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Table of Contents
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Table of Contents

As filed with the Securities and Exchange Commission on June 30, 2010

Registration No. 333-167532

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549



AMENDMENT NO. 1
TO
FORM S-4
REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933



VIRGIN MEDIA INC.*
(Exact name of registrant as specified in its charter)
* And the additional registrants listed below

Delaware   4813   59-3778247
(State or other jurisdiction
of incorporation or organization)
  (Primary Standard Industrial
Classification Code Number)
  (I.R.S. Employer
Identification No.)

909 Third Avenue, Suite 2863
New York, New York 10022
(212) 906-8440
(Address, including zip code, and telephone number,
including area code, of registrant's principal executive offices)



Bryan H. Hall
Secretary and General Counsel
Virgin Media Inc.
909 Third Avenue, Suite 2863
New York, New York 10022
(212) 906-8440
(Name, address, including zip code, and telephone number,
including area code, of agent for service)



Copy to:
Timothy E. Peterson
Fried, Frank, Harris, Shriver & Jacobson (London) LLP
99 City Road
London, EC1Y 1AX
United Kingdom
Tel: +44 (0) 20 7972 9600



           Approximate Date of Commencement of Proposed Sale of the Securities to the Public: As soon as practicable after this registration statement becomes effective.



           If the securities being registered on this Form are being offered in connection with the formation of a holding company and there is compliance with General Instruction G, check the following box. o

           If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o

           If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. o



           Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ý   Accelerated filer o   Non-accelerated filer o
(Do not check if a smaller reporting company)
  Smaller reporting company o



           If applicable, place an X in the box to designate the appropriate rule provision relied upon in conducting this transaction:

Exchange Act Rule 13e-4(i) (Cross-Border Issuer Tender Offer)   o
Exchange Act Rule 14d-1(d) (Cross-Border Third-Party Tender Offer)   o

CALCULATION OF REGISTRATION FEE

               
 
Title of each class of securities
to be registered

  Amount to be
registered

  Proposed maximum
offering price
per unit

  Proposed maximum
aggregate
offering price

  Amount of
registration fee

 

6.50% Senior Secured Notes due 2018

  $1,000,000,000   100%   $1,000,000,000   $71,300.00(1)
 

7.00% Senior Secured Notes due 2018

  £875,000,000   100%   £875,000,000   $90,418.20(1)(2)
 

Guarantees of 6.50% Senior Secured Notes due 2018 and 7.00% Senior Secured Notes due 2018

  (3)   (3)   (3)   $0(3)

 

(1)
The filing fee is calculated in accordance with Rule 457(f) under the Securities Act of 1933 and was paid at the time of initial filing of the Registration Statement.
(2)
The filing fee is calculated based on the noon buying rate for cable transfers as certified for customs purposes by the Federal Reserve Bank of New York of $1.4493 per £1.00 as of June 4, 2010.
(3)
The Senior Secured Notes issued by Virgin Media Secured Finance PLC will be accompanied by guarantees by each of the other registrants. No additional consideration will be received for the guarantees of the Senior Secured Notes. Pursuant to Rule 457(n) under the Securities Act, no additional filing fee is required in connection with such guarantees.

           The registrants hereby amend this registration statement on such date or dates as may be necessary to delay its effective date until the registrants shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.


Table of Contents


TABLE OF ADDITIONAL REGISTRANTS

Name of Additional Registrants
  Jurisdiction of
Incorporation or
Organization
  I.R.S. Employee
Identification
Number
Avon Cable Limited Partnership   Colorado   Not applicable
Cotswolds Cable Limited Partnership   Colorado   Not applicable
Edinburgh Cable Limited Partnership   Colorado   Not applicable
Estuaries Cable Limited Partnership   Colorado   Not applicable
London South Cable Partnership   Colorado   Not applicable
TCI/US West Cable Communications Group   Colorado   Not applicable
Tyneside Cable Limited Partnership   Colorado   Not applicable
United Cable (London South) Limited Partnership   Colorado   Not applicable
Chartwell Investors L.P.    Delaware   51-0352359
NNS UK Holdings 1 LLC   Delaware   13-3819696
NNS UK Holdings 2, Inc.    Delaware   13-3819694
North CableComms Holdings, Inc.    Delaware   13-3734757
North CableComms L.L.C.    Delaware   13-3827338
North CableComms Management, Inc.    Delaware   13-3734751
NTL (Triangle) LLC   Delaware   13-4086747
NTL Bromley Company   Delaware   98-0123978
NTL CableComms Group, Inc.    Delaware   98-0151139
NTL Chartwell Holdings 2, Inc.    Delaware   13-3827334
NTL Chartwell Holdings, Inc.    Delaware   13-3756572
NTL North CableComms Holdings, Inc.    Delaware   13-3756575
NTL North CableComms Management, Inc.    Delaware   13-3756576
NTL Programming Subsidiary Company   Delaware   13-3718517
NTL Solent Company   Delaware   98-0123982
NTL South CableComms Holdings, Inc.    Delaware   13-3756573
NTL South CableComms Management, Inc.    Delaware   13-3756574
NTL Surrey Company   Delaware   98-0123983
NTL Sussex Company   Delaware   98-0123984
NTL UK CableComms Holdings, Inc.    Delaware   98-0157233
NTL Wessex Company   Delaware   98-0123986
NTL Winston Holdings, Inc.    Delaware   13-3734766
NTL Wirral Company   Delaware   98-0123988
South CableComms Holdings, Inc.    Delaware   13-3827336
South CableComms L.L.C.    Delaware   13-3827337
South CableComms Management, Inc.    Delaware   13-3827330
Winston Investors L.L.C.    Delaware   51-0363339
Andover Cablevision Limited   England and Wales   98-0193306
Anglia Cable Communications Limited   England and Wales   Not applicable
Avon Cable Joint Venture   England and Wales   Not applicable
Barnsley Cable Communications Limited   England and Wales   Not applicable
BCMV Limited   England and Wales   Not applicable
Berkhamsted Properties & Building Contractors Limited   England and Wales   98-0197759
Birmingham Cable Corporation Limited   England and Wales   Not applicable
Birmingham Cable Limited   England and Wales   Not applicable
Cable Camden Limited   England and Wales   Not applicable
Cable Enfield Limited   England and Wales   Not applicable
Cable Hackney & Islington Limited   England and Wales   Not applicable
Cable Haringey Limited   England and Wales   Not applicable
Cable London Limited   England and Wales   Not applicable
Cable Television Limited   England and Wales   98-0197761

Table of Contents

Name of Additional Registrants
  Jurisdiction of
Incorporation or
Organization
  I.R.S. Employee
Identification
Number
Cable Thames Valley Limited   England and Wales   98-0197760
Cabletel (UK) Limited   England and Wales   Not applicable
CableTel Cardiff Limited   England and Wales   Not applicable
CableTel Central Hertfordshire Limited   England and Wales   Not applicable
CableTel Hertfordshire Limited   England and Wales   Not applicable
CableTel Herts and Beds Limited   England and Wales   Not applicable
CableTel Investments Limited   England and Wales   Not applicable
CableTel Newport   England and Wales   Not applicable
CableTel North Bedfordshire Limited   England and Wales   Not applicable
CableTel Surrey and Hampshire Limited   England and Wales   Not applicable
CableTel Telecom Supplies Limited   England and Wales   Not applicable
CableTel West Glamorgan Limited   England and Wales   Not applicable
CableTel West Riding Limited   England and Wales   Not applicable
Cambridge Cable Services Limited   England and Wales   98-0199438
Cambridge Holding Company Limited   England and Wales   98-0199439
CCL Corporate Communication Services Limited   England and Wales   98-0199441
Central Cable Holdings Limited   England and Wales   Not applicable
Columbia Management Limited   England and Wales   Not applicable
ComTel Cable Services Limited   England and Wales   98-0193313
ComTel Coventry Limited   England and Wales   98-0193311
Continental Shelf 16 Limited   England and Wales   Not applicable
Credit-Track Debt Recovery Limited   England and Wales   98-0199442
Crystal Palace Radio Limited   England and Wales   Not applicable
Diamond Cable Communications Limited   England and Wales   Not applicable
Digital Television Network Limited   England and Wales   Not applicable
Doncaster Cable Communications Limited   England and Wales   98-0197755
DTELS Limited   England and Wales   Not applicable
East Coast Cable Limited   England and Wales   Not applicable
Ed Stone Limited   England and Wales   Not applicable
EMS Investments Limited   England and Wales   Not applicable
Enablis Limited   England and Wales   Not applicable
EuroBell (Holdings) Limited   England and Wales   Not applicable
EuroBell (IDA) Limited   England and Wales   Not applicable
EuroBell (No. 2) Limited   England and Wales   Not applicable
EuroBell (No. 3) Limited   England and Wales   Not applicable
EuroBell (No. 4) Limited   England and Wales   Not applicable
EuroBell (South West) Limited   England and Wales   Not applicable
EuroBell (Sussex) Limited   England and Wales   Not applicable
EuroBell (West Kent) Limited   England and Wales   Not applicable
EuroBell CPE Limited   England and Wales   Not applicable
EuroBell Internet Services Limited   England and Wales   Not applicable
EuroBell Limited   England and Wales   Not applicable
Filegale Limited   England and Wales   Not applicable
Fleximedia Limited   England and Wales   Not applicable
Flextech (1992) Limited   England and Wales   Not applicable
Flextech (Kindernet Investment) Limited   England and Wales   Not applicable
Flextech (Travel Channel) Limited   England and Wales   Not applicable
Flextech Broadband Limited   England and Wales   Not applicable
Flextech Broadcasting Limited   England and Wales   Not applicable
Flextech Business News Limited   England and Wales   Not applicable
Flextech Childrens Channel Limited   England and Wales   Not applicable

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Name of Additional Registrants
  Jurisdiction of
Incorporation or
Organization
  I.R.S. Employee
Identification
Number
Flextech Communications Limited   England and Wales   Not applicable
Flextech Digital Broadcasting Limited   England and Wales   Not applicable
Flextech Distribution Limited   England and Wales   Not applicable
Flextech Family Channel Limited   England and Wales   Not applicable
Flextech IVS Limited   England and Wales   Not applicable
Flextech Limited   England and Wales   Not applicable
Flextech Media Holdings Limited   England and Wales   Not applicable
Flextech Music Publishing Limited   England and Wales   Not applicable
Flextech Video Games Limited   England and Wales   Not applicable
Flextech-Flexinvest Limited   England and Wales   Not applicable
General Cable Group Limited   England and Wales   Not applicable
General Cable Holdings Limited   England and Wales   Not applicable
General Cable Investments Limited   England and Wales   Not applicable
General Cable Limited   England and Wales   Not applicable
Halifax Cable Communications Limited   England and Wales   Not applicable
Heartland Cablevision (UK) Limited   England and Wales   Not applicable
Heartland Cablevision II (UK) Limited   England and Wales   Not applicable
Herts Cable Limited   England and Wales   Not applicable
Interactive Digital Sales Limited   England and Wales   98-0597080
Jewel Holdings   England and Wales   Not applicable
Lanbase European Holdings Limited   England and Wales   Not applicable
Lanbase Limited   England and Wales   Not applicable
Lichfield Cable Communications Limited   England and Wales   98-0193315
M&NW Network II Limited   England and Wales   98-0606718
M&NW Network Limited   England and Wales   98-0606716
Maza Limited   England and Wales   98-0197757
Metro Hertfordshire Limited   England and Wales   Not applicable
Metro South Wales Limited   England and Wales   Not applicable
Middlesex Cable Limited   England and Wales   Not applicable
Northampton Cable Television Limited   England and Wales   Not applicable
NTL (Aylesbury and Chiltern) Limited   England and Wales   Not applicable
NTL (B) Limited   England and Wales   Not applicable
NTL (Broadland) Limited   England and Wales   Not applicable
NTL (City & Westminster) Limited   England and Wales   Not applicable
NTL (County Durham) Limited   England and Wales   Not applicable
NTL (CRUK)   England and Wales   Not applicable
NTL (CWC Holdings)   England and Wales   Not applicable
NTL (CWC) Corporation Limited   England and Wales   Not applicable
NTL (CWC) Limited   England and Wales   Not applicable
NTL (CWC) Management Limited   England and Wales   Not applicable
NTL (CWC) No. 2 Limited   England and Wales   Not applicable
NTL (CWC) No. 3 Limited   England and Wales   Not applicable
NTL (CWC) No. 4 Limited   England and Wales   Not applicable
NTL (CWC) Programming Limited   England and Wales   Not applicable
NTL (CWC) UK   England and Wales   Not applicable
NTL (Ealing) Limited   England and Wales   Not applicable
NTL (Fenland) Limited   England and Wales   Not applicable
NTL (Greenwich and Lewisham) Limited   England and Wales   Not applicable
NTL (Hampshire) Limited   England and Wales   Not applicable
NTL (Harrogate) Limited   England and Wales   Not applicable
NTL (Harrow) Limited   England and Wales   Not applicable

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Name of Additional Registrants
  Jurisdiction of
Incorporation or
Organization
  I.R.S. Employee
Identification
Number
NTL (Kent) Limited   England and Wales   Not applicable
NTL (Lambeth and Southwark) Limited   England and Wales   Not applicable
NTL (Leeds) Limited   England and Wales   98-0223823
NTL (Norwich) Limited   England and Wales   Not applicable
NTL (Peterborough) Limited   England and Wales   Not applicable
NTL (South East) Limited   England and Wales   Not applicable
NTL (South London) Limited   England and Wales   Not applicable
NTL (Southampton and Eastleigh) Limited   England and Wales   Not applicable
NTL (Sunderland) Limited   England and Wales   Not applicable
NTL (Thamesmead) Limited   England and Wales   Not applicable
NTL (V)   England and Wales   98-0494768
NTL (Wandsworth) Limited   England and Wales   Not applicable
NTL (Wearside) Limited   England and Wales   98-0180429
NTL (West London) Limited   England and Wales   Not applicable
NTL (Yorcan) Limited   England and Wales   Not applicable
NTL (York) Limited   England and Wales   Not applicable
NTL Acquisition Company Limited   England and Wales   98-0180421
NTL Bolton Cablevision Holding Company   England and Wales   52-1872194
NTL Business (Ireland) Limited   England and Wales   Not applicable
NTL Business Limited   England and Wales   Not applicable
NTL Cablecomms Bolton   England and Wales   98-0139992
NTL Cablecomms Bromley   England and Wales   98-0123989
NTL Cablecomms Bury and Rochdale   England and Wales   98-0139995
NTL Cablecomms Cheshire   England and Wales   98-0139994
NTL Cablecomms Derby   England and Wales   98-0139996
NTL Cablecomms East Lancashire   England and Wales   98-0139997
NTL Cablecomms Greater Manchester   England and Wales   98-0139998
NTL Cablecomms Group Limited   England and Wales   98-0151138
NTL Cablecomms Holdings No. 1 Limited   England and Wales   98-0140169
NTL Cablecomms Holdings No. 2 Limited   England and Wales   98-0140168
NTL Cablecomms Lancashire No. 1   England and Wales   Not applicable
NTL Cablecomms Lancashire No. 2   England and Wales   Not applicable
NTL Cablecomms Limited   England and Wales   Not applicable
NTL Cablecomms Macclesfield   England and Wales   98-0139999
NTL Cablecomms Manchester Limited   England and Wales   98-0346426
NTL Cablecomms Oldham and Tameside   England and Wales   98-0140000
NTL Cablecomms Solent   England and Wales   98-0123998
NTL Cablecomms Staffordshire   England and Wales   98-0140001
NTL Cablecomms Stockport   England and Wales   98-0140002
NTL Cablecomms Surrey   England and Wales   98-0123999
NTL Cablecomms Sussex   England and Wales   98-0123990
NTL Cablecomms Wessex   England and Wales   98-0123991
NTL Cablecomms West Surrey Limited   England and Wales   98-0346435
NTL Cablecomms Wirral   England and Wales   98-0124001
NTL Cambridge Limited   England and Wales   Not applicable
NTL Chartwell Holdings Limited   England and Wales   Not applicable
NTL Communications Services Limited   England and Wales   Not applicable
NTL Darlington Limited   England and Wales   Not applicable
NTL Derby Cablevision Holding Company   England and Wales   52-1872196
NTL Equipment No. 1 Limited   England and Wales   Not applicable
NTL Equipment No. 2 Limited   England and Wales   Not applicable

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Name of Additional Registrants
  Jurisdiction of
Incorporation or
Organization
  I.R.S. Employee
Identification
Number
NTL Finance Limited   England and Wales   Not applicable
NTL Funding Limited   England and Wales   Not applicable
NTL Glasgow Holdings Limited   England and Wales   Not applicable
NTL Holdings (Broadland) Limited   England and Wales   98-0180422
NTL Holdings (East London) Limited   England and Wales   98-0180423
NTL Holdings (Fenland) Limited   England and Wales   98-0180424
NTL Holdings (Leeds) Limited   England and Wales   98-0180425
NTL Holdings (Norwich) Limited   England and Wales   98-0180426
NTL Holdings (Peterborough) Limited   England and Wales   98-0180427
NTL Internet Limited   England and Wales   Not applicable
NTL Internet Services Limited   England and Wales   98-0232442
NTL Irish Holdings Limited   England and Wales   Not applicable
NTL Kirklees   England and Wales   52-1872166
NTL Kirklees Holdings Limited   England and Wales   Not applicable
NTL Limited   England and Wales   98-0225423
NTL Manchester Cablevision Holding Company   England and Wales   52-1872197
NTL Microclock Services Limited   England and Wales   Not applicable
NTL Midlands Limited   England and Wales   Not applicable
NTL Milton Keynes Limited   England and Wales   Not applicable
NTL National Networks Limited   England and Wales   98-0439626
NTL Networks Limited   England and Wales   Not applicable
NTL Partcheer Company Limited   England and Wales   Not applicable
NTL Rectangle Limited   England and Wales   98-0582025
NTL Sideoffer Limited   England and Wales   Not applicable
NTL Solent Telephone and Cable TV Company Limited   England and Wales   Not applicable
NTL South Central Limited   England and Wales   98-0197758
NTL South Wales Limited   England and Wales   Not applicable
NTL Streetunique Projects Limited   England and Wales   Not applicable
NTL Streetunit Projects Limited   England and Wales   Not applicable
NTL Streetusual Services Limited   England and Wales   Not applicable
NTL Streetvision Services Limited   England and Wales   Not applicable
NTL Streetvital Services Limited   England and Wales   Not applicable
NTL Streetwarm Services Limited   England and Wales   Not applicable
NTL Streetwide Services Limited   England and Wales   Not applicable
NTL Strikeagent Trading Limited   England and Wales   Not applicable
NTL Strikeamount Trading Limited   England and Wales   Not applicable
NTL Strikeapart Trading Limited   England and Wales   Not applicable
NTL Systems Limited   England and Wales   Not applicable
NTL Technical Support Company Limited   England and Wales   Not applicable
NTL Teesside Limited   England and Wales   Not applicable
NTL Telecom Services Limited   England and Wales   Not applicable
NTL UK Telephone and Cable TV Holding Company Limited   England and Wales   Not applicable
NTL Victoria II Limited   England and Wales   98-0558061
NTL Victoria Limited   England and Wales   Not applicable
NTL Westminster Limited   England and Wales   Not applicable
NTL Winston Holdings Limited   England and Wales   Not applicable
NTL Wirral Telephone and Cable TV Company   England and Wales   98-0141469
Oxford Cable Limited   England and Wales   98-0193307
Screenshop Limited   England and Wales   98-0568474
Secure Backup Systems Limited   England and Wales   Not applicable
Sheffield Cable Communications Limited   England and Wales   Not applicable

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Name of Additional Registrants
  Jurisdiction of
Incorporation or
Organization
  I.R.S. Employee
Identification
Number
Southern East Anglia Cable Limited   England and Wales   98-0199443
Southwestern Bell International Holdings Limited   England and Wales   Not applicable
Stafford Communications Limited   England and Wales   98-0193308
Swindon Cable Limited   England and Wales   Not applicable
Tamworth Cable Communications Limited   England and Wales   98-0193319
Telewest Communications (Central Lancashire) Limited   England and Wales   Not applicable
Telewest Communications (Cotswolds) Limited   England and Wales   Not applicable
Telewest Communications (Cotswolds) Venture   England and Wales   Not applicable
Telewest Communications (Liverpool) Limited   England and Wales   Not applicable
Telewest Communications (London South) Joint Venture   England and Wales   Not applicable
Telewest Communications (London South) Limited   England and Wales   Not applicable
Telewest Communications (Midlands and North West) Limited   England and Wales   Not applicable
Telewest Communications (Midlands) Limited   England and Wales   Not applicable
Telewest Communications (Nominees) Limited   England and Wales   Not applicable
Telewest Communications (North East) Limited   England and Wales   Not applicable
Telewest Communications (North East) Partnership   England and Wales   Not applicable
Telewest Communications (North West) Limited   England and Wales   Not applicable
Telewest Communications (Scotland) Venture   England and Wales   Not applicable
Telewest Communications (South East) Limited   England and Wales   Not applicable
Telewest Communications (South East) Partnership   England and Wales   Not applicable
Telewest Communications (South Thames Estuary) Limited   England and Wales   Not applicable
Telewest Communications (South West) Limited   England and Wales   Not applicable
Telewest Communications (St. Helens & Knowsley) Limited   England and Wales   Not applicable
Telewest Communications (Tyneside) Limited   England and Wales   Not applicable
Telewest Communications (Wigan) Limited   England and Wales   Not applicable
Telewest Communications Cable Limited   England and Wales   Not applicable
Telewest Communications Holdco Limited   England and Wales   Not applicable
Telewest Communications Holdings Limited   England and Wales   Not applicable
Telewest Communications Networks Limited   England and Wales   Not applicable
Telewest Limited   England and Wales   Not applicable
Telewest Parliamentary Holdings Limited   England and Wales   Not applicable
Telewest UK Limited   England and Wales   98-0416238
Telso Communications Limited   England and Wales   Not applicable
The Cable Corporation Limited   England and Wales   Not applicable
The Yorkshire Cable Group Limited   England and Wales   Not applicable
Theseus No. 1 Limited   England and Wales   Not applicable
Theseus No. 2 Limited   England and Wales   Not applicable
TVS Pension Fund Trustees Limited   England and Wales   Not applicable
TVS Television Limited   England and Wales   Not applicable
United Artists Investments Limited   England and Wales   Not applicable
Virgin Media Business Limited   England and Wales   Not applicable
Virgin Media Finance PLC   England and Wales   98-0425095
Virgin Media Investment Holdings Limited   England and Wales   Not applicable
Virgin Media Investments Limited   England and Wales   98-0644845
Virgin Media Limited   England and Wales   98-0397314
Virgin Media Payments Ltd   England and Wales   98-0521160
Virgin Media SFA Finance Limited   England and Wales   Not applicable
Virgin Media Secured Finance PLC   England and Wales   Not applicable
Virgin Media Wholesale Limited   England and Wales   Not applicable
Virgin Mobile Group (UK) Limited   England and Wales   98-0521554
Virgin Mobile Holdings (UK) Limited   England and Wales   Not applicable

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Name of Additional Registrants
  Jurisdiction of
Incorporation or
Organization
  I.R.S. Employee
Identification
Number
Virgin Mobile Telecoms Limited   England and Wales   98-0513715
Virgin Net Limited   England and Wales   Not applicable
Vision Networks Services UK Limited   England and Wales   Not applicable
VMIH Sub Limited   England and Wales   Not applicable
VM Sundial Limited   England and Wales   98-00662210
Wakefield Cable Communications Limited   England and Wales   Not applicable
Wessex Cable Limited   England and Wales   98-0193309
Windsor Television Limited   England and Wales   Not applicable
XL Debt Recovery Agency Limited   England and Wales   Not applicable
X-Tant Limited   England and Wales   Not applicable
Yorkshire Cable Communications Limited   England and Wales   Not applicable
Birmingham Cable Finance Limited   Jersey   Not applicable
Future Entertainment S.à r.l.    Luxembourg   98-0620181
CableTel Scotland Limited   Scotland   Not applicable
NTL Glasgow   Scotland   13-3610666
Prospectre Limited   Scotland   Not applicable
Telewest Communications (Cumbernauld) Limited   Scotland   Not applicable
Telewest Communications (Dumbarton) Limited   Scotland   Not applicable
Telewest Communications (Dundee & Perth) Limited   Scotland   Not applicable
Telewest Communications (Falkirk) Limited   Scotland   Not applicable
Telewest Communications (Glenrothes) Limited   Scotland   Not applicable
Telewest Communications (Motherwell) Limited   Scotland   Not applicable
Telewest Communications (Scotland) Limited   Scotland   Not applicable
Telewest Communications (Scotland Holdings) Limited   Scotland   Not applicable

        The Primary Standard Industrial Classification Code Number for each additional registrant is 4813.

        The address, including zip code, and telephone number, including area code, of the principal executive offices of each additional registrant (other than Future Entertainment S.à r.l.) is 160 Great Portland Street, London, W1W 5QA, England; Tel: +44 (0) 1256 752000.

        The address, including zip code, and telephone number, including area code, of the principal executive offices of Future Entertainment S.à r.l. is Media Center Betzdorf, 11 rue Pierre Werner, L-6832 Betzdorf, Luxembourg; Tel: +352 27178 425.


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The information in this prospectus is not complete and may be changed. We may not complete the exchange offer until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.

Subject to Completion, dated June 30, 2010

Preliminary Prospectus

Virgin Media Secured Finance PLC

GRAPHIC

Exchange Offer for
$1,000,000,000 6.50% Senior Secured Notes due 2018
£875,000,000 7.00% Senior Secured Notes due 2018



        We are offering to exchange any and all of our outstanding $1,000,000,000 aggregate principal amount of 6.50% Senior Secured Notes due 2018 and £875,000,000 aggregate principal amount of 7.00% Senior Secured Notes due 2018, or the "outstanding notes," for a like amount of our new 6.50% Senior Secured Notes due 2018 and 7.00% Senior Secured Notes due 2018, respectively, or the "exchange notes," which have been registered under the U.S. Securities Act of 1933, as amended, or the Securities Act. The exchange notes have substantially the same terms as the outstanding notes, except that the transfer restrictions and registration rights applicable to the outstanding notes will not apply to the exchange notes. The exchange notes will be issued under the same indenture as the outstanding notes.

        The exchange notes will be issued by Virgin Media Secured Finance PLC and fully and unconditionally guaranteed on a senior basis by Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited and most of its subsidiaries, and certain other companies which are subsidiaries of Virgin Media Inc. but not of Virgin Media Investment Holdings Limited.

        The principal features of the exchange offer are as follows:

        All untendered outstanding notes will continue to be subject to the transfer restrictions set forth in the outstanding notes and in the related indenture.

        Each broker-dealer that receives exchange notes for its own account pursuant to the exchange offer must acknowledge that it will deliver a prospectus in connection with any resale of such exchange notes. The letter of transmittal states that by so acknowledging and delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of exchange notes received in exchange for outstanding notes where such outstanding notes were acquired by such broker-dealer as a result of market-making activities or other trading activities. In addition, all dealers effecting transactions in the exchange notes may be required to deliver a prospectus. See "Plan of Distribution."

        See "Risk Factors" beginning on page 14 for a discussion of certain risks that you should consider before you decide to participate in the exchange offer.

        We will make an application to list the exchange notes on the Official List of the Luxembourg Stock Exchange and for the admission of the exchange notes to trading on the Euro MTF market of the Luxembourg Stock Exchange.

        Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this prospectus. Any representation to the contrary is a criminal offense.

The date of this prospectus is                                    , 2010.


Table of Contents


Table of Contents

 
  Page

Currency Presentation and Exchange Rate Information

  iii

Where You Can Find More Information

  iii

Documents Incorporated by Reference

  iii

Forward-Looking Statements

  iv

Summary

  1

Risk Factors

  14

Use of Proceeds

  26

Capitalization

  27

Ratio of Earnings to Fixed Charges

  28

Description of the Intercreditor Deeds

  29

Description of Other Debt

  42

The Exchange Offer

  47

Description of the Exchange Notes

  59

Book-Entry Settlement and Clearance

  134

Material United States Federal Income Tax Considerations

  139

Material United Kingdom Tax Considerations

  146

Plan of Distribution

  150

Legal Matters

  151

Experts

  151

Enforceability of Civil Liabilities

  151

Listing and General Information

  153

List of Guarantors

  155



        This prospectus incorporates important business and financial information about the company that is not included in or delivered with the prospectus. This information is available without charge to note holders upon written or oral request to Virgin Media Inc., 909 Third Avenue, Suite 2863, New York, New York 10022, United States (Attention: Investor Relations), telephone: +1 (212) 906-8440 or +44 (0) 2072 995479. To obtain timely delivery, note holders must request the information no later than five business days before the expiration date of the exchange offer.

        You should read this prospectus together with the documents incorporated by reference herein. See "Where You Can Find More Information."

        You should rely only on the information contained in or incorporated by reference into this prospectus. We have not authorized any other person to provide you with different or additional information. If anyone provides you with different or inconsistent information, you should not rely on it. You should assume that the information appearing in this prospectus is accurate only as of the date on the front cover of this prospectus. Our business, financial condition, results of operations and prospects may have changed since that date.

        If you are our affiliate or are engaged in, or intend to engage in, or have an agreement or understanding to participate in, a distribution of the exchange notes, you cannot rely on the applicable interpretations of the staff of the Securities and Exchange Commission, or the SEC, and you must

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comply with the registration requirements of the Securities Act in connection with any resale transaction.

        The exchange offer is not being made to, nor will we accept tenders for exchange from, holders of outstanding notes in any jurisdiction in which the exchange offer or the acceptance of it would not be in compliance with the securities or blue sky laws of such jurisdiction. We are not making an offer to sell, or a solicitation of an offer to purchase, the exchange notes in any jurisdiction where the offer, sale or solicitation is not permitted.

        In any European Economic Area Member State that has implemented Directive 2003/71/EC (together with any applicable implementing measures in any Member State, the "Prospectus Directive"), this document is only addressed to and is only directed at qualified investors in that Member State within the meaning of the Prospectus Directive.

        This document has been prepared on the basis that the exchange offer in any Member State of the European Economic Area which has implemented the Prospectus Directive will be made pursuant to an exemption under the Prospectus Directive, as implemented in that Member State, from the requirement to produce a prospectus within the meaning of the Prospectus Directive.

        References to the "company," the "group," "Virgin Media," "we," "us" and "our" and all similar references are to Virgin Media Inc. and all of its consolidated subsidiaries, unless otherwise stated or the context otherwise requires.

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Currency Presentation and Exchange Rate Information

        In this prospectus: (i) £, sterling, or pound sterling refer to the lawful currency of the United Kingdom; (ii) $, dollar or U.S. dollar refer to the lawful currency of the United States; and (iii) € or euro refer to the lawful currency of participating member states of the European Union.

        The following table sets forth, for the periods indicated, certain information regarding the noon buying rate in New York City for cable transfers in pound sterling as certified for customs purposes by the Federal Reserve Bank of New York, expressed in U.S. dollars per pound sterling. The rates below may differ from the actual rates used in the preparation of our consolidated financial statements and other financial information appearing in this prospectus. Our inclusion of the exchange rates is not meant to suggest that the pound sterling amounts actually represent such U.S. dollar amounts or that such amounts could have been converted into U.S. dollars at any particular rate, if at all.

Year ended December 31,
  Exchange
rate at end
of period
  Average
exchange
rate during
period(1)
  Highest
exchange
rate during
period
  Lowest
exchange rate
during period
 
 
  (U.S. dollars per pound sterling)
 

2007

    1.9843     2.0073     2.1104     1.9235  

2008

    1.4619     1.8424     2.0311     1.4395  

2009

    1.6167     1.5707     1.6977     1.3658  

(1)
The average of the noon buying rates in New York City for cable transfers in pounds sterling as certified for customs purposes by the Federal Reserve Bank of New York on the last business day of each month during the applicable period.

Month and Year
  Highest
exchange
rate during
the month
  Lowest
exchange
rate during
the month
 
 
  (U.S. dollars per pound sterling)
 

January 2010

    1.6370     1.5912  

February 2010

    1.5968     1.5201  

March 2010

    1.5296     1.4884  

April 2010

    1.5484     1.5160  

May 2010

    1.5242     1.4344  

June 2010 (through June 25, 2010)

    1.4986     1.4422  

        On June 25, 2010, the noon buying rate in New York City for cable transfers as certified for customs purposes by the Federal Reserve Bank of New York was $1.4985 per £1.00.


Where You Can Find More Information

        Virgin Media Inc. is subject to the information and reporting requirements of the U.S. Securities Exchange Act of 1934, as amended, or the Exchange Act, and, in accordance with the Exchange Act, it files annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy any document that Virgin Media Inc. files at the Public Reference Room of the SEC at 100 F Street, NE, Washington, D.C. 20549. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You may inspect such filings on the internet website maintained by the SEC at www.sec.gov. You may also consult reports and other information about us that we file pursuant to the rules of the London Stock Exchange.


Documents Incorporated by Reference

        We are incorporating by reference certain documents that we file with the SEC. This means that we can disclose important business, financial and other information to you by referring you to other

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documents separately filed with the SEC. The information in the documents incorporated by reference is considered to be part of this prospectus. Information in documents that we file with the SEC after the date of this prospectus and that are incorporated or deemed to be incorporated by reference into this prospectus will automatically update and, where applicable, supersede information in this prospectus. We incorporate by reference the documents listed below and any future filings Virgin Media Inc. may make with the SEC under Section 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of the initial registration statement and prior to the effectiveness of the registration statement or prior to the termination of this offering.

Virgin Media Inc. Filings
  Period and Date Filed
Annual Report on Form 10-K   Year ended December 31, 2009, as filed on February 26, 2010.

Quarterly Report on Form 10-Q

 

Quarterly period ended March 31, 2010, as filed on May 6, 2010.

Current Reports on Form 8-K

 

Filed on January 13, 2010, January 20, 2010, February 1, 2010, March 3, 2010, March 18, 2010, April 12, 2010, April 29, 2010, May 28, 2010, June 4, 2010 and June 15, 2010.

        We are not incorporating by reference any documents or information deemed to have been furnished and not filed in accordance with SEC rules.

        You may request a copy of the information incorporated in this prospectus by reference, at no cost, by writing or telephoning Virgin Media's office of Investor Relations:

Virgin Media Inc.
909 Third Avenue, Suite 2863
New York, New York 10022
United States
Attention: Investor Relations
Telephone: +1 (212) 906-8440 or +44 (0) 2072 995479

For general inquiries concerning us please call:
+1 (212) 906-8440

        To obtain timely delivery of any copies of filings requested, please write or call us no later than five business days before the expiration date of the exchange offer.

        You may also obtain a copy of these filings from our website at www.virginmedia.com. The investor relations section of our website can be accessed under the heading "About Virgin Media—Investors Information." The information on our website or any other website referenced in this prospectus is not intended to be incorporated by reference and should not be considered a part of this prospectus.

        You should rely only upon the information provided in this prospectus or incorporated by reference herein. We have not authorized anyone to provide you with different information. You should not assume that the information in this prospectus or any document incorporated by reference is accurate as of any date other than that on the front cover of the document.


Forward-Looking Statements

        Various statements contained in this document or incorporated by reference herein constitute "forward-looking statements" as that term is defined under the Private Securities Litigation Reform Act of 1995. Words like "believe," "anticipate," "should," "intend," "plan," "will," "expects," "estimates,"

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"projects," "positioned," "strategy," and similar expressions identify these forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements or industry results to be materially different from those contemplated, projected, forecasted, estimated or budgeted, whether expressed or implied, by these forward-looking statements. These factors, among others, include:

        These and other factors are discussed in more detail under "Risk Factors" and elsewhere in this prospectus and under Item 1A "Risk Factors" and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2009, as filed with the SEC on February 26, 2010. That report is incorporated by reference in this prospectus. We assume no obligation to update our forward-looking statements to reflect actual results, changes in assumptions or changes in factors affecting these statements.

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Summary

        This summary highlights information contained elsewhere, or incorporated by reference, in this prospectus. Because it is a summary, it does not contain all of the information that you should consider before participating in the exchange offer. You should read this entire prospectus and the documents incorporated by reference herein carefully, including the section entitled "Risk Factors," and the financial statements and related notes to those financial statements, before making a decision on whether to tender your outstanding notes in the exchange offer. In this prospectus, references to the "issuer" are to Virgin Media Secured Finance PLC; references to the "guarantors" are to the guarantors in respect of the exchange notes, which are listed beginning on page 154 of this prospectus; and references to the "company," the "group," "Virgin Media," "we," "us" and "our," and all similar references, are to Virgin Media Inc. and all of its consolidated subsidiaries, unless otherwise stated or the context otherwise requires.

Our Company

        We are a leading provider of entertainment and communications services in the U.K., offering "quad-play" broadband internet, television, mobile telephony and fixed line telephony services. We are one of the U.K.'s largest providers of residential broadband internet, pay television and fixed line telephony services by number of customers. We believe our advanced, deep fiber access network enables us to offer faster and higher quality broadband services than our digital subscriber line, or DSL, competitors. As a result, we provide our customers with a leading next generation broadband service and one of the most advanced TV on-demand services available in the U.K. market. We are also one of the U.K.'s largest mobile virtual network operators by number of customers, providing mobile telephone service to prepay and contract mobile customers over third party networks.

        In addition, we provide a complete portfolio of voice, data and internet solutions to leading businesses, public sector organizations and service providers in the U.K. through Virgin Media Business (formerly ntl:Telewest Business). We also provide programming through Virgin Media Television, or Virgin Media TV, and through UKTV, our joint ventures with BBC Worldwide.

        Our operating segments are as follows:

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        Our revenue by segment for the three months ended March 31, 2010 and 2009 and the years ended December 31, 2009, 2008 and 2007 was as follows (in millions):

 
  Three months ended March 31,   Year ended December 31,  
 
  2010   2009   2009   2008   2007  
 
  (unaudited)
  (unaudited)
   
   
   
   
   
   
 

Consumer

  £ 789.5     82.0 % £ 753.3     80.5 % £ 3,083.1     81.0 % £ 3,029.0     80.2 % £ 3,087.3     80.4 %

Business

    139.9     14.5     149.8     16.0     580.8     15.3     626.0     16.6     641.8     16.7  

Content

    33.8     3.5     32.6     3.5     140.5     3.7     121.8     3.2     109.5     2.9  
                                           

  £ 963.2     100.0 % £ 935.7     100.0 % £ 3,804.4     100.0 % £ 3,776.8     100.0 % £ 3,838.6     100.0 %
                                           

Recent Developments

New Senior Credit Facility

        On March 16, 2010, Virgin Media Inc. and certain of its subsidiaries entered into a new senior facilities agreement, including a term loan A facility in an aggregate principal amount of £1.0 billion and a revolving credit facility in an aggregate principal amount of £250 million. On April 12, 2010, a term loan B facility in an aggregate principal amount of £675 million was added to the senior facilities agreement. On April 19, 2010, the term loan A facility and the term loan B facility were drawn down in full and all amounts outstanding under our previous senior facilities agreement, dated March 3, 2006, were repaid in full. See "Description of Other Debt—Senior Credit Facility."

        On May 12, 2010, we redeemed the full outstanding principal amount of our senior notes due 2014. See "Description of Other Debt—Existing Senior Notes."

Disposal of Virgin Media TV

        On June 4, 2010, we entered into a sale and purchase agreement with British Sky Broadcasting Limited, or BSkyB, pursuant to which we have agreed to sell Virgin Media TV to BSkyB. The transaction is subject to certain regulatory approvals. The total consideration for the sale of Virgin Media TV is £160 million in cash, with £105 million payable at closing. A further amount of up to £55 million is conditional upon certain regulatory approvals. On June 4, 2010, we also entered into a number of agreements providing for the carriage by us of certain of BSkyB's standard and high-definition channels.



        Virgin Media Secured Finance PLC is a public limited company organized under the laws of England and Wales which was incorporated on December 18, 2009. Virgin Media Inc. is a Delaware corporation. Our group's principal executive offices are located at 909 Third Avenue, Suite 2863, New York, New York 10022, and our telephone number at that address is +1 (212) 906-8440. Our website is located at www.virginmedia.com. The information on our website is not part of this prospectus.

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Corporate Structure Chart

        The following diagram sets forth our simplified corporate structure following the offering of the outstanding notes. This is a condensed chart and it does not show all of our operating and holding companies.

GRAPHIC


(1)
Virgin Media Inc. will provide a full and unconditional unsecured guarantee of the exchange notes on a senior basis. The senior guarantee will be effectively subordinated to any future secured indebtedness of Virgin Media Inc. to the extent of the value of the assets securing such secured indebtedness. Virgin Media Inc. has no significant assets of its own other than

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(2)
Virgin Media Inc. is the issuer of our 6.50% U.S. dollar convertible senior notes due 2016.

(3)
The entities which we refer to as the intermediate holding companies are Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK) Group, Inc. and Virgin Media Communications Limited. These entities are guarantors (on a senior basis) of our existing senior notes due 2016 and 2019, but will not guarantee the exchange notes offered hereby nor be subject to the covenants under the indenture governing the exchange notes.

(4)
Virgin Media Finance PLC is a holding company with no significant assets of its own other than its investments in its subsidiary. Virgin Media Finance PLC is the issuer of our existing senior notes due 2016 and 2019 and a guarantor (on a senior basis) of our senior credit facility. Virgin Media Finance PLC will guarantee the exchange notes offered hereby on a senior basis but is not subject to the covenants under the indenture governing the exchange notes. Virgin Media Finance PLC has granted liens over substantially all of its assets for the benefit of the holders of the exchange notes offered hereby and our senior credit facility. See "Description of the Exchange Notes—Security for the Notes."

(5)
The existing senior notes comprise 9.125% U.S. dollar senior notes due 2016, 9.50% U.S. dollar senior notes due 2016, 9.50% euro senior notes due 2016, 8.375% U.S. dollar senior notes due 2019 and 8.875% sterling senior notes due 2019 and are senior unsecured obligations of Virgin Media Finance PLC. The existing senior notes benefit from senior subordinated unsecured guarantees of Virgin Media Investment Holdings Limited, or VMIH, and Virgin Media Investments Limited and are guaranteed on a senior unsecured basis by Virgin Media Inc. and the intermediate holding companies.

(6)
Our senior credit facility has the benefit of full and unconditional senior secured guarantees granted by VMIH and most of its subsidiaries, and certain other companies which are subsidiaries of Virgin Media Inc. but not of VMIH. The facility is secured by liens over substantially all of their assets, in addition to a full and unconditional senior secured guarantee from Virgin Media Finance PLC, secured by liens over substantially all of its assets. The relationship between our senior credit facility and the exchange notes will be governed by the group intercreditor deed. See "Description of Other Debt—Senior Credit Facility" and "Description of the Intercreditor Deeds—Group Intercreditor Deed."

(7)
The exchange notes offered hereby will have the benefit of full and unconditional senior secured guarantees granted by VMIH and most of its subsidiaries, and certain other companies which are subsidiaries of Virgin Media Inc. but not of VMIH. The exchange notes will be secured over the same assets that secure our senior credit facility and will share in any enforcement proceeds on a pari passu basis, subject to certain exceptions. See "Description of the Exchange Notes—Security for the Notes—Limitations on the Collateral." The guarantees will be senior secured obligations of these entities, ranking equally in right of payment with all of their existing and future senior indebtedness. Each of these entities is subject to the restrictive covenants under the indenture governing the exchange notes. See "Description of the Exchange Notes—Note Guarantees" and "Description of the Intercreditor Deeds—Group Intercreditor Deed."

(8)
Virgin Media Secured Finance PLC is a finance subsidiary with no significant assets of its own other than its intercompany loan to VMIH advancing the proceeds of the notes.

(9)
The exchange notes offered hereby will be senior secured obligations of Virgin Media Secured Finance PLC, and will benefit from security and guarantees which will be substantially similar to the security and guarantees granted in respect of our senior credit facility. See "Description of the Exchange Notes—Note Guarantees" and "Description of the Exchange Notes—Security for the Notes."

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Summary of the Exchange Offer

Background

  On January 19, 2010, we issued the outstanding notes, which comprise $1,000,000,000 aggregate principal amount of 6.50% Senior Secured Notes due 2018 and £875,000,000 aggregate principal amount of 7.00% Senior Secured Notes due 2018. In connection with that issuance, we entered into a registration rights agreement, dated as of January 19, 2010, in which we agreed, among other things, to use our reasonable best efforts to complete this exchange offer. Under the terms of the exchange offer, you are entitled to exchange outstanding notes for exchange notes evidencing the same indebtedness and with substantially similar terms. You should read the discussion under the heading "Description of the Exchange Notes" for further information regarding the exchange notes.

The Exchange Offer

 

We are offering to exchange, for each $1,000 aggregate principal amount of our dollar denominated outstanding notes validly tendered and accepted, $1,000 aggregate principal amount of our dollar denominated exchange notes and, for each £1,000 aggregate principal amount of our sterling denominated outstanding notes validly tendered and accepted, £1,000 aggregate principal amount of our sterling denominated exchange notes.

 

We will not pay any accrued and unpaid interest on the outstanding notes that we acquire in the exchange offer. Instead, interest on the exchange notes will accrue from the most recent date on which interest has been paid on the outstanding notes.

 

As of the date of this prospectus, $1,000,000,000 aggregate principal amount of the dollar denominated outstanding notes and £875,000,000 aggregate principal amount of the sterling denominated outstanding notes were outstanding.

Denominations of Exchange Notes

 

Tendering holders of dollar denominated outstanding notes must tender outstanding notes in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof and tendering holders of sterling denominated outstanding notes must tender outstanding notes in minimum denominations of £50,000 and integral multiples of £1,000 in excess thereof. Dollar denominated exchange notes will be issued in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof and sterling denominated exchange notes will be issued in minimum denominations of £50,000 and integral multiples of £1,000 in excess thereof.

Expiration Date

 

The exchange offer will expire at 5:00 p.m., New York City time, on                        , 2010, unless we extend or terminate the exchange offer, in which case the "expiration date" will mean the latest date and time to which we extend the exchange offer.

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Tenders

 

By tendering outstanding notes in the exchange offer, each holder of outstanding notes will represent to us, among other things, that:

 

•       the exchange notes are being acquired in the ordinary course of business of the person receiving the exchange notes, whether or not that person is the holder;

 

•       neither the holder nor that other person has any arrangement or understanding with any person to participate in the distribution (within the meaning of the Securities Act) of the exchange notes;

 

•       it is not an "affiliate," within the meaning of Rule 405 under the Securities Act, of the issuer or any guarantor and is not a broker-dealer who acquired the outstanding notes directly from us for its own account;

 

•       if it is not a broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of the exchange notes; and

 

•       if it is a broker-dealer that will receive exchange notes for its own account in exchange for outstanding notes that were acquired as a result of market-making or other trading activities, then it will deliver a copy of this prospectus (or, to the extent permitted by law, make a copy of this prospectus available to purchasers) in connection with any resale of those exchange notes.

 

For additional representations, warranties and agreements, see "The Exchange Offer—Letter of Transmittal; Representations, Warranties and Covenants of Holders of Outstanding Notes."

Settlement Date

 

The settlement date of the exchange offer will be as soon as practicable after the expiration date.

Withdrawal of Tenders

 

Tenders of outstanding notes may be withdrawn at any time prior to the expiration date.

Conditions to the Exchange Offer

 

Our obligation to consummate the exchange offer is subject to certain customary conditions, which we may assert or waive. See "The Exchange Offer—Conditions to the Exchange Offer."

Procedures for Tendering

 

To participate in the exchange offer, you should tender your notes in accordance with the book-entry procedures of The Depository Trust Company, or DTC, Euroclear Bank S.A./N.V., or Euroclear, or Clearstream Banking S.A., or Clearstream, as the case may be, and transmit an agent's message to the exchange agent, prior to the expiration date.

 

For dollar denominated outstanding notes, you must follow the automatic tender offer program, or ATOP, procedures established by DTC. To accept an exchange offer through ATOP, participants in DTC must send electronic instructions to DTC through DTC's communication system, including an agent's message.

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For sterling denominated outstanding notes, the holder in whose name such outstanding notes are registered on the records of Euroclear or Clearstream must submit an electronic acceptance instruction, including an agent's message, to Euroclear or Clearstream to authorize the tender of the outstanding notes and the blocking of the account in Euroclear or Clearstream to which such outstanding notes are credited.

 

An "agent's message" means a message, transmitted to DTC, Euroclear or Clearstream, as the case may be, received by the exchange agent, which states that DTC, Euroclear or Clearstream, as applicable, has received an express acknowledgment from the tendering holder that it agrees to be bound by the terms of this prospectus and the letter of transmittal and that we may enforce those terms against that holder.

 

For more details, please read "The Exchange Offer—Terms of the Exchange Offer" and "The Exchange Offer—Procedures for Tendering." If you elect to have outstanding notes exchanged pursuant to this exchange offer, you must properly tender your outstanding notes prior to 5:00 p.m., New York City time, on the expiration date. Subject to the conditions to the exchange offer, all outstanding notes validly tendered and not properly withdrawn will be accepted for exchange. Outstanding notes may be exchanged only in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof (in the case of the dollar denominated outstanding notes) and minimum denominations of £50,000 and integral multiples of £1,000 in excess thereof (in the case of the sterling denominated outstanding notes).

Consequences of Failure to Exchange

 

If we complete the exchange offer and you do not participate in it, then:

 

•       your outstanding notes will continue to be subject to the existing restrictions upon their transfer;

 

•       we will have no further obligation to provide for the registration under the Securities Act of those outstanding notes except under certain limited circumstances; and

 

•       the liquidity of the market for your outstanding notes could be adversely affected.

Taxation

 

The exchange pursuant to the exchange offer generally will not be a taxable exchange for U.S. federal income tax purposes. See "Material United States Federal Income Tax Considerations."

Use of Proceeds

 

We will not receive any cash proceeds from the issuance of the exchange notes in the exchange offer.

Exchange Agent

 

The Bank of New York Mellon is the exchange agent for the exchange offer.

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Summary of the Exchange Notes

        The terms of the exchange notes are identical in all material respects to the terms of the outstanding notes, except that the exchange notes will be issued in a transaction registered under the Securities Act, and the transfer restrictions and registration rights relating to the outstanding notes will not apply to the exchange notes. We refer to the outstanding notes and the exchange notes collectively as the "notes."

Issuer

  Virgin Media Secured Finance PLC

Notes Offered

 

$1,000,000,000 aggregate principal amount of 6.50% Senior Secured Notes due 2018.

 

£875,000,000 aggregate principal amount of 7.00% Senior Secured Notes due 2018.

Maturity Date

 

January 15, 2018.

Interest

 

6.50% per year on the principal amount of the dollar denominated notes.

 

7.00% per year on the principal amount of the sterling denominated notes.

 

Interest on the notes will be payable semi-annually in arrears in cash on June 15 and December 15 of each year, beginning June 15, 2010. Interest will accrue from the most recent date on which interest has been paid on the outstanding notes.

Ranking

 

The notes will be senior secured indebtedness of the issuer, will rank equally in right of payment with all existing and future senior indebtedness of the issuer, including its guarantee of our senior credit facility, and will be senior in right of payment to all existing and future subordinated indebtedness of the issuer. The notes will, subject to certain exceptions, be secured over the same assets that secure our senior credit facility and will share in any enforcement proceeds on a pari passu basis, and will be effectively senior to existing and future senior unsecured indebtedness of the issuer to the extent of the value of the assets securing the notes.

Guarantors

 

The notes will benefit from full and unconditional senior guarantees granted by Virgin Media Inc., Virgin Media Finance PLC, VMIH and most of its subsidiaries, VM Sundial Limited, CableTel West Riding Limited, NTL Glasgow Holdings Limited, NTL Kirklees Holdings Limited, NTL Kirklees, CableTel Scotland Limited and NTL Glasgow. A complete list of the guarantors of the notes begins on page 154 of this prospectus. See "Description of the Exchange Notes—Note Guarantees."

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Security

 

Subject to certain exceptions, the notes are secured over the same assets that secure our senior credit facility and will share in any enforcement proceeds on a pari passu basis. Our senior credit facility requires that members of the bank group (which comprises VMIH and most of its subsidiaries, and certain other companies which are subsidiaries of Virgin Media Inc. but not of VMIH) which generate not less than 80% of the consolidated operating cash flow of the bank group in any financial year guarantee the payment of all sums payable under our senior credit facility and grant security over all or substantially all of their assets, subject to permitted liens, to secure the payment of all sums payable under our senior credit facility. Assets that are included in the collateral package for our senior credit facility, but which would be excluded from the collateral package for the notes, would include the capital stock and other securities of a subsidiary (other than Virgin Media Investments Limited and VMIH), to the extent that the inclusion of these assets in the collateral would require the provision of separate financial statements under Rule 3-16 of Regulation S-X under the Securities Act. This exclusion may affect many of our subsidiaries from time to time, depending upon the book value or fair market value of these assets. The security trustee, pursuant to the terms of our group intercreditor deed, controls the security and any enforcement actions in respect thereof and will generally take its instructions from the lenders under our senior credit facility or, upon repayment in full of that facility, any refinancing facility designated by us. If, for a 60 day period, the aggregate outstanding principal amount and undrawn uncancelled commitments under our senior credit facility (or, upon repayment in full of that facility, any refinancing facility designated by us) is (i) less than £1 billion and (ii) less than 60% of aggregate outstanding principal amount and undrawn uncancelled commitments under all senior secured debt, then control of any enforcement actions with respect to the security will pass to the holders of the majority of all outstanding pari passu senior secured debt. See "Description of the Exchange Notes—Security for the Notes" and "Description of the Intercreditor Deeds—Group Intercreditor Deed."

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Additional Amounts

 

Subject to limited exceptions, the issuer and each guarantor of the notes will make all payments in respect of the notes, including principal and interest payments, without deduction or withholding for or on account of any present or future taxes or other governmental charges in the United Kingdom, the United States or any other relevant taxing jurisdiction, unless it is obligated by law to deduct or withhold taxes or governmental charges. If the issuer or any guarantor is obligated by law to deduct or withhold taxes or government charges in respect of the notes or the guarantees, subject to various exceptions, the issuer or the relevant guarantor, as applicable, will pay to the holders of the notes additional amounts so that the net amount received by the holders after any deduction or withholding will not be less than the amount the holders would have received if these taxes or government charges had not been withheld or deducted.

Optional Redemption for Tax Reasons

 

If the issuer becomes obligated to pay any additional amounts as a result of any change in law of any relevant taxing jurisdiction which becomes effective after the date on which the notes are issued, the issuer may redeem the notes at its option in whole, but not in part, at any time at a price equal to 100% of the principal amount of the notes, plus any accrued and unpaid interest and additional amounts to the date of redemption.

Optional Redemption

 

The issuer may redeem each series of the notes in whole or in part at any time before January 15, 2014, at a redemption price equal to the principal amount of the notes to be redeemed, plus the applicable "make-whole" premium described in this prospectus, plus any accrued and unpaid interest and additional amounts to the date of redemption.

 

The issuer may redeem each series of the notes in whole or in part at any time on or after January 15, 2014, at the redemption prices described under the heading "Description of the Exchange Notes—Optional Redemption," plus any accrued and unpaid interest and additional amounts to the date of redemption.

 

At any time on or before January 15, 2013, the issuer may, on one or more occasions, redeem up to 40% of the aggregate principal amount of each series of the notes using the net cash proceeds from specified equity offerings at a redemption price equal to 106.50% of the principal amount of the dollar denominated notes and 107.00% of the principal amount of the sterling denominated notes plus any accrued and unpaid interest and additional amounts to the date of redemption, so long as at least 60% of the original aggregate principal amount of such series of the notes remains outstanding after the redemption. For more details, see "Description of the Exchange Notes—Optional Redemption."

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Change of Control

 

If a change of control occurs, as defined in the indenture governing the notes, the issuer will be required to make an offer to repurchase the notes at 101% of their principal amount, plus any accrued and unpaid interest and additional amounts to the date of repurchase. For more details, see "Description of the Exchange Notes—Repurchase at the Option of the Holders—Change of Control."

Certain Covenants

 

The indenture governing the notes and the guarantees of the notes restricts the ability of VMIH and its subsidiaries and certain other guarantors to:

 

•       incur or guarantee additional indebtedness;

 

•       pay dividends or make other distributions, or redeem or repurchase equity interests or subordinated obligations;

 

•       make investments;

 

•       sell assets, including the capital stock of subsidiaries;

 

•       create liens;

 

•       enter into agreements that restrict the restricted subsidiaries' ability to pay dividends, transfer assets or make intercompany loans;

 

•       merge or consolidate or transfer all or substantially all of its assets;

 

•       enter into transactions with affiliates;

 

•       enter into sale/leaseback transactions; and

 

•       materially adversely impair the liens granted with respect to the collateral.

 

All of these covenants are subject to a number of important qualifications and limitations. Many of the covenants in the indenture will be suspended for as long as the notes are rated investment grade by any two of Fitch, Moody's or Standard & Poor's provided that at such time no default or event of default has occurred and is continuing. For more details, see "Description of the Exchange Notes—Certain Covenants."

Governing Law for the Notes and Guarantees

 

The notes and the guarantees of the notes will be governed by the laws of the State of New York.

Trustee

 

The Bank of New York Mellon.

Principal Paying Agent and Registrar

 

The Bank of New York Mellon.

Security Trustee

 

Deutsche Bank AG, London Branch.

Luxembourg Listing Agent, Paying Agent and Transfer Agent

 

The Bank of New York Mellon (Luxembourg), S.A.

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Form of Notes

 

The exchange notes will be issued initially in the form of one or more dollar global exchange notes and one or more sterling global exchange notes, which will represent the aggregate principal amount of exchange notes being offered under this prospectus. The exchange notes will be deposited with the applicable custodians for the book-entry depositaries. The book-entry depositaries will issue depositary interests in respect of the dollar global exchange notes to DTC and in respect of the sterling global exchange notes to Clearstream Banking S.A., or Clearstream, and/or Euroclear Bank S.A./N.V., or Euroclear, and will then record such interests in their books and records in the name of DTC's, Clearstream's or Euroclear's nominee, as the case may be. Ownership of book-entry interests in the depositary interests will be limited to persons who have accounts with DTC, Clearstream and/or Euroclear or persons who hold interests through these persons. Book-entry interests in the depositary interests will be shown on, and transfers will be effected only through, records maintained in book-entry form by DTC, Clearstream and/or Euroclear and their participants. See "Book-Entry Settlement and Clearance."

No Prior Market

 

The exchange notes will be new securities for which there is currently no market. Accordingly, we cannot assure you that a liquid market for the exchange notes will develop or be maintained.

Listing

 

The issuer will make an application to list the exchange notes on the Official List of the Luxembourg Stock Exchange and for admission of the notes to trading on the Euro MTF market of the Luxembourg Stock Exchange. The outstanding notes are listed on the Official List of the Luxembourg Stock Exchange and admitted to trading on the Euro MTF market of the Luxembourg Stock Exchange.

Tax Considerations

 

You are urged to consult your own tax advisors with respect to the U.S. federal, state, local and non-U.S. tax consequences of purchasing, owning and disposing of the exchange notes. See "Material United States Federal Income Tax Considerations" and "Material United Kingdom Tax Considerations."

Clearing Information

 

The CUSIP number assigned to the dollar denominated exchange notes is 92769XAC9 and the ISIN number is US92769XAC92.

 

The ISIN number assigned to the sterling denominated exchange notes is XS0520493007 and the common code is 052049300.

Risk Factors

        An investment in the exchange notes involves a high degree of risk. You should carefully consider the information set forth under "Risk Factors" beginning on page 14 and all of the information included in, or incorporated by reference into, this prospectus before deciding to tender your outstanding notes in the exchange offer.

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Summary Consolidated Financial Data

        The following tables summarize our consolidated financial data for the periods presented. The summary consolidated financial data as of December 31, 2009 and 2008 and for each of the years ended December 31, 2009, 2008, and 2007 are derived from our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2009 The summary consolidated financial data as of March 31, 2010 and for the three months ended March 31, 2010 and 2009 are derived from our unaudited condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the three months ended March 31, 2010. Our unaudited condensed consolidated financial statements contain all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation of our financial position, results of operations and cash flows. The financial results for the three months ended March 31, 2010 are not necessarily indicative of results for the full year ending December 31, 2010. Our financial statements are prepared in accordance with generally accepted accounting principles in the United States. The reporting currency of our financial statements is U.K. pounds sterling. See "Currency Presentation and Exchange Rate Information." You should read the following financial information together with the information under "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and the notes to those consolidated financial statements included in our Annual Report on Form 10-K filed with the SEC on February 26, 2010, which is incorporated by reference into this prospectus.

 
  Three months ended March 31,   Year ended December 31,  
 
  2010   2009   2009   2008   2007  
 
  (unaudited)
  (unaudited)
   
   
   
 
 
   
   
  (in millions)
   
   
 

Statement of Operations Data:

                               

Revenue

  £ 963.2   £ 935.7   £ 3,804.4   £ 3,776.8   £ 3,838.6  

Operating income (loss)(1)

    76.0     13.0     142.0     (271.8 )   28.4  

Loss from continuing operations(1)

    (160.4 )   (132.9 )   (335.0 )   (853.4 )   (452.8 )

 

 
  As of March 31,   As of December 31,  
 
  2010   2009   2008  
 
  (unaudited)
   
   
 
 
  (in millions)
 

Balance Sheet Data:

                   

Cash, cash equivalents and marketable securities

  £ 420.7   £ 430.5   £ 181.6  

Working capital

    (266.5 )   (348.4 )   (460.1 )

Fixed assets

    4,982.6     5,049.2     5,342.1  

Total assets

    9,136.2     9,187.4     9,933.3  

Long term obligations

    6,146.9     5,974.7     6,170.1  

Shareholders' equity

    1,340.0     1,491.3     2,016.2  

(1)
The operating loss and loss from continuing operations for the year ended December 31, 2008 include goodwill and intangible asset impairments of £362.2 million.

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Risk Factors

        An investment in the exchange notes involves a high degree of risk. You should carefully consider the risks described below before deciding to exchange your outstanding notes for exchange notes. In assessing these risks, you should also refer to the other information included in, or incorporated by reference into, this prospectus, including the financial statements and related notes incorporated by reference. We also incorporate by reference the risk factors listed under Item 1A "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2009, as filed with the SEC on February 26, 2010. These risks and uncertainties are not the only ones we face. Additional risks and uncertainties that are not currently known to us or that we currently consider immaterial could also impair our business, financial condition, results of operations and our ability to make payments on the exchange notes. Various statements in this prospectus, including the following risk factors, constitute forward-looking statements.

Risks relating to the exchange notes and our capital structure

Our current leverage is substantial, which may have an adverse effect on our available cash flow, our ability to obtain additional financing if necessary in the future, our flexibility in reacting to competitive and technological changes and our operations.

        We had consolidated total long term debt, including current portion, of £6,146.9 million as of March 31, 2010. This high degree of leverage could have important consequences, including the following:

Most of our debt becomes due prior to the repayment at final maturity of the notes offered hereby. We may not be able to repay such debt when it becomes due and, to the extent we cannot repay such debt, we may not be able to refinance these debt obligations or may be able to refinance only on terms that will increase our cost of borrowing.

        Most of our long term debt, including the amounts outstanding under our senior credit facility, our convertible senior notes due 2016 and our existing senior notes due 2016, is scheduled to come due prior to the stated maturity of the notes offered hereby. We also have significant amounts due under other instruments, including our existing senior notes due 2019 which, while not maturing before the notes, may require refinancing at the same time as, or before, the maturity of the notes or any refinancing of the notes.

        While we expect to be able to repay a portion of our debt obligations through cash flow from operations, we may not be able to repay or refinance all outstanding amounts as or before they become due, or may be able to refinance such amounts only on terms that will increase our cost of borrowing or on terms that may be more onerous. Our ability to implement any future refinancing successfully will also depend on a variety of factors, many of which may be beyond our control, such as then

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prevailing conditions in the debt markets, including the availability of sufficient bank debt to meet our needs. We may also need to raise additional capital by doing one or more of the following:

        We cannot assure you that any of, or any combination of, the above actions would be available or sufficient to fund our debt obligations, that we will be able to refinance our debt obligations as or before they come due, or that we will be able to obtain additional financing on favorable terms or at all, should the need arise.

The issuer is a finance company and some of the guarantors are holding companies, or finance companies, and are dependent upon cash flow from group subsidiaries to meet their obligations.

        Each of the issuer, Virgin Media Finance PLC, Virgin Media Investments Limited, VMIH, Virgin Media Inc. and certain other guarantors has no revenue-generating operations of its own. To make payment on the exchange notes or the respective guarantees, as applicable, each will depend on cash flows received from its subsidiaries and payments under intercompany loans, including convertible unsecured loan stock.

        The terms of our senior credit facility and other indebtedness limit the payment of dividends, loan repayments and other distributions to or from these companies under many circumstances. Various agreements governing our debt may restrict and, in some cases, may also prohibit the ability of these subsidiaries to move cash within their restricted group. Applicable tax laws may also subject such payments to further taxation.

        Applicable law may also limit the amounts that some of our subsidiaries will be permitted to pay as dividends or distributions on their equity interests, or even prevent such payments.

        The inability to transfer cash among entities within their respective consolidated groups may mean that even though the entities, in aggregate, may have sufficient resources to meet their obligations, they may not be permitted to make the necessary transfers from one entity in their restricted group to another entity in their restricted group in order to make payments to the entity owing the obligations.

The value of the security securing our senior secured indebtedness, including the exchange notes, may not be sufficient to satisfy our obligations under the exchange notes.

        No appraisal of the value of the security securing the exchange notes has been made in connection with this offering, and the fair market value of the security is subject to fluctuations based on factors that include, among others, general economic conditions and similar factors. The amount to be received upon a sale of the security would be dependent on numerous factors, including, but not limited to, the actual fair market value of the security at such time, the timing and the manner of the sale and the availability of buyers. By its nature, portions of the security may be illiquid and may have no readily ascertainable market value. In the event of a foreclosure, liquidation, bankruptcy or similar proceeding, the security may not be sold in a timely or orderly manner. The proceeds from any sale or liquidation of the security will generally be used to repay all senior secured indebtedness, including the outstanding amounts under our senior credit facility, on a pro rata basis, and may not be sufficient to pay our obligations under the exchange notes.

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The security is subject to casualty risks.

        Some of the security is either uninsurable or not economically insurable, in whole or in part. Consequently, we may not be fully compensated by insurance proceeds for any losses we may suffer. If there is a complete or partial loss of any of the pledged security, our insurance proceeds may not be sufficient to satisfy the secured obligations, including our senior credit facility and the exchange notes.

Even though the exchange notes will be secured over substantially the same assets that secure our senior credit facility and will share in any enforcement proceeds on a pari passu basis, most actions with respect to the security will be controlled by the lenders under our senior credit facility.

        The rights of holders of the exchange notes with respect to the security will be subject to our group intercreditor deed. Under the group intercreditor deed, any enforcement actions that may be taken with respect to the security will be controlled by the security trustee. The security trustee is required to take enforcement action upon receiving instructions from an instructing group of lenders under our senior credit facility, including designated refinancing thereof, until such time as the aggregate amount outstanding under our senior credit facility or the designated refinancing has fallen below £1.0 billion and has represented less than 60% of the aggregate outstanding principal amount of all our senior liabilities for 60 consecutive days. Thereafter, the security trustee would be required to take enforcement action upon receiving instructions from the holders of a majority of the aggregate outstanding principal amount of all our liabilities that qualify as senior liabilities under our group intercreditor deed. As a result, in the event of a default, we anticipate that actions relating to enforcement of the security will be controlled by our senior lenders.

        Our senior credit facility and the indenture governing the exchange notes permit us to issue additional series of notes or other indebtedness that will also share in the security. Accordingly, if we issue additional senior secured indebtedness in the future in a greater principal amount than the notes, then the notes may not represent a majority of the aggregate outstanding principal amount of all our liabilities that qualify as senior liabilities under our group intercreditor deed, and the holders of the additional senior secured indebtedness may acquire the right to direct the security trustee to take enforcement action ahead of the holders of the exchange notes.

Holders of the exchange notes and guarantees will share all security equally and ratably with the lenders under our senior credit facility and certain additional secured indebtedness permitted under the indenture to be incurred in the future. If there is a default, the value of that security may not be sufficient to repay the holders of the exchange notes and guarantees and the lenders under such indebtedness.

        The exchange notes and guarantees will be secured equally and ratably with the lenders under our senior credit facility and additional secured indebtedness permitted under the indenture to be incurred in the future, subject to compliance with covenants in our outstanding debt agreements. The indenture permits the incurrence of additional secured indebtedness, including additional notes, which would share the security equally and ratably with the exchange notes. As a result, if there is a default, the remaining security may not be sufficient to repay the holders of the exchange notes and guarantees and the lenders under any such additional secured indebtedness.

There are circumstances other than repayment or discharge of the exchange notes under which the guarantees will be released automatically, without your consent.

        The indenture governing the exchange notes provides that each guarantee by a guarantor will be automatically and unconditionally released and discharged, and each guarantor and its obligations under such guarantee, the indenture, the security documents and our intercreditor deeds will be released and discharged in circumstances including the sale, exchange, transfer or disposition of a guarantor (resulting in the guarantor no longer being a restricted subsidiary) or all or substantially all

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of the assets of a guarantor, or the release or discharge of the guarantee given by that guarantor under our senior credit facility. As a result of these and other provisions in the guarantees, you may not be able to recover any amounts from the guarantors under the guarantees in the event of a default on the exchange notes and certain of the guarantees may be released without any recovery being available.

There are circumstances other than repayment or discharge of the exchange notes under which the security will be released, without your consent.

        The security for the benefit of the exchange notes may be released under various circumstances, including upon a sale or other disposal permitted by the terms of the indenture, upon a release of such security under our senior credit facility or upon any release in connection with a foreclosure or exercise of remedies with respect to that security by the security trustee pursuant to the terms of our group intercreditor deed acting at the direction of the relevant instructing party thereunder. Even though holders of the exchange notes share in the security ratably with the lenders under our senior credit facility, the security trustee, acting at the direction of those lenders, will generally control actions with respect to the security, including releases, whether or not holders of the exchange notes agree or disagree with those actions. See "—Even though the exchange notes will be secured over the same assets that secure our senior credit facility and will share in any enforcement proceeds on a pari passu basis, most actions with respect to the security will be controlled by the lenders under our senior credit facility." In addition, in connection with any additional secured indebtedness that can be incurred, the security may be released and retaken which may lead to renewed hardening periods in various jurisdictions and may limit your recovery in an enforcement proceeding.

Pledges of shares and other securities may be limited in amount with respect to the exchange notes.

        The exchange notes are secured by a pledge of the shares and other securities of a number of Virgin Media group companies. Under the SEC regulations in effect as of the issue date of the exchange notes, if the par value, book value as carried by us, or market value (whichever is greatest) of the capital stock, other securities or similar items of a subsidiary pledged as part of the security is greater than or equal to 20% of the aggregate principal amount of the outstanding notes and the exchange notes then outstanding, we would be required to provide separate financial statements of such group company to the SEC. Therefore, all liens on capital stock and other securities issued by any Virgin Media group company, other than the liens on the capital stock and securities of VMIH and Virgin Media Investments Limited, will be limited to the extent that such liens would result in Rule 3-16 of Regulation S-X under the Securities Act requiring the financial statements of that group company to be filed with the SEC, but only to the extent necessary to not be subject to this requirement and only for so long as this requirement is in existence. As a result, holders of the exchange notes could lose a portion or all of their security interest in the capital stock or other securities of those group companies during that period. It may be more difficult, costly and time-consuming for the security trustee to foreclose on the assets of a group company than to foreclose on its capital stock or other securities, so the proceeds realized upon any such foreclosure could be significantly less than those that would have been received upon any sale of the capital stock or other securities of such group company. Moreover, our senior credit facility does not contain the exception described above and will therefore remain secured on a first priority basis by pledges of capital stock that, due to this exception, are excluded from the collateral securing the exchange notes. Accordingly, there may be capital stock of our subsidiaries that will secure our obligations under our senior credit facility but not our obligations under the indenture.

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Your rights in the security may be adversely affected by the failure to perfect certain security interests in the future.

        Applicable law requires that certain property and rights acquired after the grant of a general security interest can only be perfected at the time such property and rights are acquired and identified. The trustee or the security trustee may not monitor, or we may not inform the trustee or the security trustee of, the future acquisition of property and rights that constitute security, and necessary action may not be taken to properly perfect such after-acquired security interest. The trustee for the exchange notes has no obligation to monitor the acquisition of additional property or rights that constitute security or the perfection of any security interest in favor of the guarantees of the exchange notes against third parties. Such failure may result in the loss of the security interest therein or the priority of the security interest in favor of the exchange notes against third parties.

Certain assets are excluded from the security.

        Certain assets are excluded from the security for the benefit of the exchange notes, including:

If an event of default occurs and the exchange notes are accelerated, the exchange notes will rank equally with all of our other unsubordinated and unsecured indebtedness and other liabilities with respect to such excluded assets. As a result, if the value of the security granted in respect of the exchange notes and the guarantees is less than the value of the claims of the holders of the exchange notes, no assurance can be provided that the holders of the exchange notes would receive any substantial recovery from the excluded assets.

Although the senior subordinated guarantees of our existing senior notes are subordinated to the exchange notes through the high yield intercreditor deed, certain critical decisions under that deed will be controlled by the lenders under our senior credit facility.

        Our existing senior notes benefit from senior subordinated guarantees from VMIH and Virgin Media Investments Limited, which are subordinated to the senior liabilities of those entities pursuant to the high yield intercreditor deed. The exchange notes will be designated as senior liabilities under that deed. However, certain of the rights attached to senior liabilities, including delivering a blockage notice to the trustee for the existing senior notes, are exercisable by an instructing group constituted under the group intercreditor deed. This will consist of lenders under our senior credit facility, including designated refinancing thereof, until such time as the aggregate amount outstanding under our senior credit facility or the designated refinancing has fallen below £1.0 billion and has represented less than 60% of the aggregate outstanding principal amount of all our senior liabilities for 60 consecutive days.

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Thereafter, the instructing group shall consist of the holders of a majority of the aggregate outstanding principal amount of all our liabilities that qualify as senior liabilities under our group intercreditor deed. As a result, in the event of a default, we anticipate that actions relating to payment blockages and other actions under the high yield intercreditor deed will be controlled by our senior lenders.

Covenants in the agreements governing our outstanding and any future indebtedness could adversely affect us and increase your credit risk.

        The agreements governing our indebtedness (including the indenture governing the exchange notes) contain (or will contain) various covenants and restrictions that limit (or will limit) our ability and/or our subsidiaries' ability to, among other things:

        For example, we have the ability to make dividends, distributions, stock and subordinated debt repurchases and investments in an amount, as of March 31, 2010, in excess of £3.1 billion under each of the two indentures governing our existing senior notes due 2016 and the indenture governing our existing senior notes due 2019, in addition to other applicable exceptions from the general restrictions under such indentures. The capacity for making restricted payments is substantially similar under both indentures governing our existing senior notes due 2016 and the indenture governing our existing notes due 2019 and has been reproduced in the indenture governing the exchange notes offered hereby.

        These restrictions could materially adversely affect our ability to finance future operations or capital needs or to engage in other business activities that may be in our best interests. We may also incur other indebtedness in the future that may contain financial or other covenants more restrictive than those applicable under our current indebtedness. We cannot assure you that we will be able to remain in compliance with these covenants in the future, and, if we fail to do so, that we will be able to obtain waivers from the appropriate parties and/or amend the covenants.

Many of the covenants in the indenture will be suspended for as long as the exchange notes are rated investment grade by any two of Fitch, Moody's or Standard & Poor's.

        Many of the covenants in the indenture governing the exchange notes will be suspended during any time that the exchange notes are rated investment grade by any two of Fitch, Moody's or Standard & Poor's, provided that at such time no default or event of default under the indenture governing the exchange notes has occurred and is continuing. Any covenants that cease to apply to us as a result of achieving these ratings will be reinstated if less than two of Fitch, Moody's or Standard & Poor's maintains an investment grade rating on the exchange notes. During any period in which these covenants are suspended, we may engage in certain transactions that would not be permitted if these

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covenants had been in effect. If the covenants are later reinstated, the actions taken while the covenants were suspended will not result in an event of default under the indenture even if they would constitute an event of default at the time the covenants are reinstated. Accordingly, if these covenants are suspended, holders of the exchange notes will have less credit protection than at the time the exchange notes are issued. See "Description of the Exchange Notes—Certain Covenants—Covenant Suspension."

Insolvency laws and other limitations on the guarantees and security may adversely affect their validity and enforceability.

        The issuer's obligations under the exchange notes will be guaranteed and secured by certain assets of the issuer and the guarantors. The guarantors are organized in various jurisdictions in Europe and the United States. The issuer and a number of the guarantors are incorporated under the laws of England and Wales, Scotland, Jersey and Luxembourg and insolvency proceedings with respect to each of these companies could be required to proceed under the laws of the jurisdiction in which its "centre of main interests," as defined in the relevant European Union regulation, is situated at the time insolvency proceedings are commenced. Although there is a rebuttable presumption that the "centre of main interests" will be in the jurisdiction of incorporation, this presumption is not conclusive.

        Although laws differ among jurisdictions, in general, applicable insolvency laws in such jurisdictions and limitations on the enforceability of judgments obtained in New York courts would limit the enforceability of judgments against the issuer and the guarantors on the exchange notes and the guarantees. The following discussion of insolvency law, although an overview, describes generally applicable terms and principles, which are defined under the relevant jurisdictions' insolvency statutes.

        In an insolvency proceeding, it is possible that creditors of the guarantors or appointed insolvency administrator may challenge the guarantees and security, and intercompany obligations generally, as fraudulent transfers or conveyances or on other grounds. If so, such laws may permit a court, if it makes certain findings, to:

        We cannot assure you which standard a court would apply in determining whether a guarantor was "insolvent" as of the date the guarantees were issued or security was created or that, regardless of the method of valuation, a court would not determine that a guarantor was insolvent on that date, or that a court would not determine, regardless of whether or not a guarantor was insolvent on the date its guarantee was issued or security was created, that payments to holders of the exchange notes constituted fraudulent transfers on other grounds.

        Furthermore, under English insolvency law, some of our subsidiaries' debts may be entitled to priority, including amounts owed in respect of various U.K. social security contributions, amounts owed in respect of occupational pension schemes, certain amounts owed to employees and liquidation expenses. Similar laws are in effect in Scotland.

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Laws relating to preferences, transactions at an undervalue and corporate benefit may adversely affect the validity and enforceability of payments under the guarantees of the exchange notes by the guarantors.

        The issuer and a significant number of the guarantors are incorporated under the laws of England and Wales. Under English insolvency law, the liquidator or administrator of a company may apply to the court to set aside a transaction entered into by that company within up to two years prior to it entering into relevant insolvency proceedings, if the company was unable to pay its debts, as defined in Section 123 of the U.K. Insolvency Act 1986, at the time of, or becomes unable to pay its debts as a consequence of, that transaction. For example, a transaction might be subject to a challenge if a company received no consideration or consideration of significantly less value than the benefit given by that company. A court generally will not intervene in these circumstances, however, if a company entered into the transaction in good faith for the purpose of carrying on its business and if at the time it did so there were reasonable grounds for believing the transaction would benefit the company. The issuer cannot assure holders of the exchange notes that in the event of insolvency the guarantees and security interests granted by the entities incorporated in England and Wales would not be challenged by a liquidator or administrator or that a court would support our analysis that the guarantees and security interests have been entered into in good faith for the purposes described above. In respect of guarantors which are incorporated in jurisdictions other than England and Wales, there may be similar insolvency laws which could affect the validity and enforceability of the guarantees and security interests granted by such guarantors.

        The board of directors of each of the guarantors incorporated in England and Wales has passed a resolution confirming that the entry into the guarantee and security interests is for the commercial benefit of and in the best interests of the company and would promote the success of the company for the benefit of its members as a whole. We can give no assurance, however, that a court would agree with their conclusions in this regard.

        If a court voided any guarantee or security interest, or any payment thereunder, as a result of a transaction at an undervalue or a preference, or held it unenforceable for any other reason, you would cease to have any claim against the applicable guarantor under its guarantee of the exchange notes or that security interest.

An active trading market may not develop for the exchange notes and the price of the exchange notes may fluctuate.

        We will make an application to list the exchange notes to the Official List of the Luxembourg Stock Exchange and for the admission of the exchange notes to trading on the Euro MTF market of the Luxembourg Stock Exchange, but we cannot assure you that the exchange notes will become or remain listed. The exchange notes will constitute a new issue of securities with no established trading market. If a trading market does not develop or is not maintained, holders of the exchange notes may experience difficulty in reselling the exchange notes or may be unable to sell them at all. Accordingly, we cannot assure holders that an active trading market for the exchange notes will develop or, if a market develops, as to the liquidity of the market.

        The liquidity of any market for the exchange notes will depend on the number of holders of the exchange notes, the interest of securities dealers in making a market in the exchange notes and other factors. Accordingly, we cannot assure you as to the development or liquidity of any market for the exchange notes. If an active trading market does not develop, the market price and liquidity of the exchange notes may be adversely affected. If the exchange notes are traded, they may trade at a discount from their initial offering price depending upon prevailing interest rates, the market for similar securities, general economic conditions, our performance and business prospects and certain other factors.

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        Factors including the following may have a significant effect on the market price of the exchange notes:

You may face foreign exchange risks by investing in the exchange notes.

        The exchange notes will be denominated and payable in U.S. dollars and pounds sterling. If you measure your investment returns by reference to a currency other than that of the exchange notes you purchase, an investment in the exchange notes entails foreign exchange-related risks, including possible significant changes in the value of U.S. dollars or pounds sterling relative to the currency by reference to which you measure your investment returns because of economic, political and other factors over which we have no control. Depreciation of the U.S. dollar or pound sterling against the currency by reference to which you measure your investment returns could cause a decrease in the effective yield of the exchange notes below their stated coupon rates and could result in a loss to you when the return on the exchange notes is translated into the currency by reference to which you measure your investment returns. There may be tax consequences for you as a result of any foreign exchange gains resulting from any investment in the exchange notes and you should consult with your own tax advisors regarding any such tax consequences.

The exchange notes will initially be held in book-entry form and therefore you must rely on the procedures of the relevant clearing systems to exercise any rights and remedies.

        Unless and until definitive exchange notes are issued in exchange for book-entry interest in the exchange notes, owners of the book-entry interests will not be considered owners or holders of exchange notes. Instead, a nominee of DTC will be the sole holder of the dollar denominated exchange notes and the common depositary for Euroclear and Clearstream will be the sole holder of the sterling denominated exchange notes.

        Payments of amounts owing in respect of the global exchange notes (including principal, premium, interest, additional interest and additional amounts) will be made by us to the paying agent. The paying agent will, in turn, make such payments to DTC or its nominee (in respect of the dollar denominated exchange notes) and to the common depositary for Euroclear and Clearstream (in respect of the sterling denominated exchange notes), which will distribute such payments to participants in accordance with their respective procedures.

        Unlike holders of the exchange notes themselves, owners of book-entry interests will not have the direct right to act upon solicitations for consents or requests for waivers or other actions from holders of the exchange notes. Instead, if you own a book-entry interest, you will be permitted to act only to the extent you have received appropriate proxies to do so from DTC, Euroclear and/or Clearstream or, if applicable, from a participant. The issuer cannot assure you that procedures implemented for the granting of such proxies will be sufficient to enable you to vote on any requested actions on a timely basis.

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        The lack of physical certificates could also:

You may be unable to recover in civil proceedings for U.S. securities laws violations.

        The issuer is a public limited company incorporated under the laws of England and Wales with its registered office and principal place of business in England. Although the issuer's ultimate parent, Virgin Media Inc., and certain guarantors are U.S. entities with their principal executive offices in the United States, substantially all of its assets are located outside the United States. All or substantially all of the assets of VMIH, Virgin Media Investments Limited and their subsidiaries are located outside the United States. As a result, it may not be possible for you to enforce in the United States judgments of U.S. courts predicated upon the civil liability provisions of the securities laws of the United States.

        It is questionable whether an English court would accept jurisdiction and impose civil liability if proceedings were commenced in England predicated solely upon U.S. federal securities laws. See "Enforceability of Civil Liabilities."

Neither the issuer nor any guarantor other than Virgin Media Inc. has any obligation to provide its financial statements to holders of the exchange notes.

        Neither the issuer nor any guarantor other than Virgin Media Inc. has any obligation in connection with the exchange notes to publish or make available its consolidated financial statements. The indenture governing the exchange notes requires the issuer to provide only financial statements with respect to its parent holding company, Virgin Media Inc. Virgin Media Inc. will not be subject to the covenants in the indenture governing the exchange notes. The absence of financial statements for the issuer and the guarantors other than Virgin Media Inc. may make it difficult for holders of the exchange notes to assess the financial condition or results of the issuer and the guarantors or their compliance with the covenants in the indenture governing the exchange notes.

Virgin Media Inc. and certain other holding companies will not be subject to the covenants in the indenture for the exchange notes.

        Our ultimate parent company, Virgin Media Inc., will guarantee the exchange notes but will not be directly subject to the covenants in the indenture governing the exchange notes. As a result, the indenture will not restrict the ability of Virgin Media Inc. to incur additional debt (secured or unsecured), sell, encumber or dispose of assets, pay dividends, make other distributions or enter into transactions with its affiliates. In addition, certain intermediate holding companies are not parties to the indenture, and so are not subject to these restrictions. Any such transactions by any of these entities could have a material adverse effect on the ability of Virgin Media Inc. to make payments in respect of its guarantee of the exchange notes.

We may be unable to repurchase, or may be prohibited from repurchasing, the exchange notes and our existing notes upon a change of control, which would result in a default under the indenture for the exchange notes and may result in a default under our other debt or financing agreements.

        If we experience a change of control, as defined in the indentures governing the exchange notes and our existing notes, we will be required to make an offer to repurchase all of the exchange notes

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and our existing notes at 101% of their principal amount plus accrued and unpaid interest, if any, to the date of purchase. We cannot assure you that we will have sufficient funds or be able to arrange for additional financing to repurchase the exchange notes and our existing notes following a change of control. In addition, we cannot assure you that a repurchase of the exchange notes and our existing notes following a change of control would be permitted pursuant to our other debt or financing agreements that may be in effect at the time of a change of control, which could cause our other indebtedness to be accelerated. If such other indebtedness were to be accelerated, we may not have sufficient funds to repurchase the exchange notes and our existing notes and repay such other indebtedness.

        In addition, you should note that recent case law suggests that, in the event that incumbent directors are replaced as a result of a contested election, issuers may nevertheless avoid triggering a change of control under a clause similar to clause (2) of the definition of "Change of Control" under the caption "Description of the Exchange Notes—Repurchase at the Option of the Holders—Change of Control," if the outgoing directors were to approve the new directors for the purpose of such change of control clause.

The indenture for the exchange notes permits us to dispose of our assets and business relating to content activities and our business division.

        The indenture governing the exchange notes permits us to, among other things, sell, transfer or spin off our business or assets relating to content activities. In addition, the indenture governing the exchange notes permits us to sell the assets relating to our business division or to contribute them to a joint venture. In each such case, the content-related assets or the business division assets, as the case may be, would no longer be held by an entity that is subject to the covenants contained in the indenture. As a result, we may undertake transactions related to these assets (such as selling them or securing debt on them) which will not be subject to the limitations of the covenants, and we would potentially lose access to all or a portion of the cash flows generated by these assets as well as the value of these assets. On June 4, 2010, we entered into a sale and purchase agreement with BSkyB, pursuant to which we have agreed to sell Virgin Media TV to BSkyB.

If you do not exchange your outstanding notes for exchange notes in the exchange offer, your outstanding notes will continue to be subject to restrictions on transfer.

        If you do not exchange your outstanding notes for exchange notes in the exchange offer, you will continue to be subject to the restrictions on transfer described in the legend on your outstanding notes and the offering memorandum related to the offering of the outstanding notes. The restrictions on transfer of your outstanding notes arise because we issued the outstanding notes in an offering exempt from the registration and prospectus delivery requirements of the Securities Act. In general, you may only offer or sell the outstanding notes if they are registered under the Securities Act or are offered and sold under an exemption from, or in a transaction not subject to, these requirements. Except as required by the registration rights agreement, we do not intend to register sales of the outstanding notes under the Securities Act. For further information regarding the consequences of failing to tender your outstanding notes in the exchange offer, see the discussion under the caption "The Exchange Offer—Consequences of Failure to Exchange."

The issuance of the exchange notes may adversely affect the market for the outstanding notes.

        To the extent that outstanding notes are tendered for exchange and accepted in the exchange offer, the trading market, if any, for the untendered and tendered but unaccepted outstanding notes could be adversely affected due to a reduction in market liquidity and there could be a significant diminution in value of the outstanding notes as compared to the value of the exchange notes.

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In some instances you may be obligated to deliver a prospectus in connection with resales of the exchange notes.

        Based on certain no-action letters issued by the staff of the SEC to third parties unrelated to us, we believe that you may offer for resale, resell or otherwise transfer the exchange notes without compliance with the registration and prospectus delivery requirements of the Securities Act, except in the instances described in this prospectus under "The Exchange Offer—Resale of the Exchange Notes." For example, if you exchange your outstanding notes in the exchange offer for the purpose of participating in a distribution of the exchange notes, you may be deemed to have received restricted securities and, if so, will be required to comply with the registration and prospectus delivery requirements of the Securities Act in connection with any resale transaction.

You must comply with the exchange offer procedures in order to receive exchange notes.

        We will not accept your outstanding notes for exchange if you do not follow the exchange offer procedures. Delivery of exchange notes in exchange for outstanding notes tendered and accepted for exchange pursuant to the exchange offer will be made only after timely receipt by the exchange agent of the following:

        If for any reason physical certificates representing the outstanding notes have been issued to a holder and that holder is delivering those certificates for exchange, a properly completed and duly executed letter of transmittal and all other documents required by the letter of transmittal.

        Therefore, holders of outstanding notes who would like to tender their outstanding notes in exchange for exchange notes should be sure to allow enough time to comply with the exchange offer procedures. Neither we nor the exchange agent are required to notify you of defects or irregularities in tenders of outstanding notes for exchange notes. Outstanding notes that are not tendered or that are tendered but we do not accept for exchange will, following completion of the exchange offer, continue to be subject to the existing transfer restrictions under the Securities Act and, upon completion of the exchange offer, certain registration and other rights under the registration rights agreement will terminate. See "The Exchange Offer—Procedures for Tendering" and "The Exchange Offer—Consequences of Failure to Exchange."

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Use of Proceeds

        We will not receive any cash proceeds from the issuance of the exchange notes. The exchange notes will be exchanged for outstanding notes as described in this prospectus upon our receipt of the outstanding notes. We will cancel all of the outstanding notes surrendered in exchange for exchange notes.

        Our net proceeds from the sale of the outstanding notes were approximately £1,453.3 million, utilizing the exchange rate at January 8, 2010 of $1.5993 per £1.00, after deducting the initial purchasers' discount, estimated offering expenses and a deferred fee. Pursuant to the terms of our previous senior credit facility, which was then in effect, we used the net proceeds of that offering to prepay some of the amounts outstanding under that senior credit facility.

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Capitalization

        The following table shows the cash and consolidated capitalization of Virgin Media as of March 31, 2010, based on our consolidated financial information at such date.

        You should read this table together with the financial statements and related notes incorporated by reference into this prospectus.

 
  As of March 31, 2010  
 
  (in millions
of £'s)
  (in millions
of $'s)(1)
 
 
  (unaudited)
  (unaudited)
 

Cash

    420.7     638.9  
           

Long term debt:

             
 

9.75% Sterling senior notes due 2014(2)

    78.8     119.7  
 

8.75% Euro senior notes due 2014(2)

    42.1     63.9  
 

8.75% U.S. Dollar senior notes due 2014(2)

    58.8     89.3  
 

9.125% U.S. Dollar senior notes due 2016

    362.2     550.0  
 

9.50% Euro senior notes due 2016

    153.8     233.6  
 

9.50% U.S. Dollar senior notes due 2016

    864.0     1,312.1  
 

6.50% U.S. Dollar convertible senior notes due 2016(3)

    540.2     820.3  
 

8.875% Sterling senior notes due 2019

    344.5     523.2  
 

8.375% U.S. Dollar senior notes due 2019

    388.8     590.4  
 

7.00% Sterling senior secured notes due 2018

    862.1     1,309.2  
 

6.50% U.S. Dollar senior secured notes due 2018

    648.7     985.1  
 

Senior credit facility(4)

    1,639.6     2,489.9  
 

Capital leases and other

    163.3     248.0  
           

Long term debt, including current portion

    6,146.9     9,334.7  

Total shareholders' equity

    1,340.0     2,034.9  
           

Total capitalization

    7,486.9     11,369.6  
           

(1)
We report our financial results in pounds sterling. Solely for your convenience, this column contains translations of sterling amounts into U.S. dollars. We are not making any representation to you regarding those translated amounts. In particular, we are not representing that any sterling or U.S. dollar amounts could have been, or could be, converted into U.S. dollars or sterling, as the case may be, at any particular rate, the rates stated below, or at all. The amounts disclosed in this column are based on the noon buying rate for cable transfers as certified for customs purposes by the Federal Reserve Bank of New York. Such rates were $1.5186 to £1.00 and $1.3526 to €1.00 as of March 31, 2010.

(2)
On May 12, 2010, we redeemed our outstanding senior notes due 2014 in full using cash from our balance sheet.

(3)
Includes the impact of new guidance issued by the Financial Accounting Standards Board, or FASB, at Accounting Standard Codification, or ASC, 470-20 which we adopted on January 1, 2009. The new guidance requires that the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) be separately accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate. For further details, please refer to our Annual Report on Form 10-K, as filed with the SEC on February 26, 2010.

(4)
In addition, as of March 31, 2010, we had the ability to borrow an additional £79.6 million under the revolving credit tranche of our old senior credit facility after giving effect to outstanding letters of credit. On April 19, 2010, we repaid our old senior credit facility in full using amounts drawn under our new senior credit facility. See "Description of Other Debt—Senior Credit Facility."

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Ratio of Earnings to Fixed Charges

        The following table sets forth the unaudited historical ratios of earnings to fixed charges of Virgin Media for the periods indicated. For the years ended December 31, 2008, 2007 and 2006, the table reflects historical financial information that has been subsequently revised to reflect the sit-up reporting unit as discontinued operations and retroactive application of ASC 470-20, as included in our Annual Report on Form 10-K, as filed with the SEC on February 26, 2010, which is incorporated in this prospectus by reference.

 
  Three months
ended March 31,
  Year ended December 31,  
 
  2010   2009   2009   2008   2007   2006   2005  
 
  (in millions)
 

Fixed charges:

                                           

Interest

  £ 123.3   £ 109.0   £ 455.1   £ 499.4   £ 514.1   £ 457.5   £ 235.8  

Interest portion of rental expense

    5.4     4.1     19.9     15.2     20.3     17.4     14.2  
                               

Fixed Charges

  £ 128.7   £ 113.1   £ 475.0   £ 514.6   £ 534.4   £ 474.9   £ 250.0  
                               

Earnings:

                                           

Loss from continuing operations

  £ (165.4 ) £ (125.5 ) £ (348.3 ) £ (848.9 ) £ (461.1 ) £ (520.6 ) £ (221.9 )

Fixed charges

    128.7     113.1     475.0     514.6     534.4     474.9     250.0  

Less: capitalized interest

                             
                               

(Deficit) earnings

  £ (36.7 ) £ (12.4 ) £ 126.7   £ (334.3 ) £ 73.3   £ (45.7 ) £ 28.1  
                               

Deficiency(1)

  £ (165.4 ) £ (125.5 ) £ (348.3 ) £ (848.9 ) £ (461.1 ) £ (520.6 ) £ (221.9 )

(1)
Earnings for each of the periods presented were inadequate to cover fixed charges by the amounts indicated in this row.

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Description of the Intercreditor Deeds

        We have entered into a Group Intercreditor Deed with, among others, Deutsche Bank AG, London Branch, as facility agent and security trustee under our senior credit facility and a High Yield Intercreditor Deed with, among others, Deutsche Bank AG, London Branch, as facility agent under our senior credit facility, The Bank of New York Mellon as trustee for our senior unsecured notes and Deutsche Bank AG London Branch as security trustee. The Bank of New York Mellon, as trustee for and on behalf of the holders of the exchange notes offered hereby, acceded to each of the Group Intercreditor Deed and the High Yield Intercreditor Deed on January 19, 2010. Definitions of certain terms used in this Description of the Intercreditor Deeds may be found below under the headings "Certain Definitions." The summaries set forth below do not purport to be complete and are qualified in their entirety by reference to the actual deeds, copies of which have been publicly filed with the SEC and will be made available by us upon request. See "Where You Can Find More Information."

Group Intercreditor Deed

        The Group Intercreditor Deed governs the relationship among our Senior Liabilities (as described below), our secured hedge counterparties and certain intra-group debtors and creditors.

Priorities

        The Group Intercreditor Deed provides that the Senior Liabilities and our secured hedging liabilities rank pari passu without any priority amongst themselves but senior to certain intra-group liabilities.

Senior Liabilities

        For purposes of the Group Intercreditor Deed, the "Senior Liabilities" include all of our present and future obligations and liabilities (excluding our hedging liabilities) to the Senior Finance Parties under or in connection with the Senior Finance Documents, including any New Senior Liabilities, together with any related additional liabilities owed to the Senior Finance Parties and together also with all costs, charges and expenses incurred by each of the Senior Finance Parties in connection with the protection, preservation or enforcement of its rights under the Senior Finance Documents.

        VMIH may at any time designate liabilities under any credit facility or other financial accommodation as "New Senior Liabilities" under the Group Intercreditor Deed (whether to refinance, replace or increase any existing Senior Liabilities or to constitute any new financial accommodation), provided that the incurrence of such liabilities complies with the terms of our senior credit facility (or, upon its discharge in full, the Designated Refinancing Facilities Agreement). VMIH designated the outstanding notes and any exchange notes issued in exchange for any of the outstanding notes as New Senior Liabilities on the Closing Date, as a result of which the outstanding notes and any such exchange notes constitute Senior Liabilities for all purposes under the Group Intercreditor Deed.

Instructing Party

        The Instructing Party which controls, among other things, voting and enforcement with respect to and under the Group Intercreditor Deed is defined, for as long as any of our Senior Liabilities are outstanding, as:

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        As of the Closing Date, lenders under our senior credit facility representing 662/3% of the aggregate outstandings thereunder constitute the Instructing Party.

Enforcement

        The Group Intercreditor Deed sets forth the relative rights of, amongst other things, our creditors in relation to our Senior Liabilities to enforce the security interests granted by us. The holders of the exchange notes offered hereby, at all times have the right, subject to the terms of the Group Intercreditor Deed and the relevant finance documents, to, among other things:

        Any of the following additional enforcement actions proposed to be taken by the holders of the exchange notes offered hereby, would require the consent of the Instructing Party (or its relevant agent or representative):

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        Our secured hedge counterparties and certain intra-group creditors are also subject to certain limitations on taking enforcement action under the Group Intercreditor Deed as well as certain limitations on receiving payments and other distributions in respect of the secured hedging liabilities and intra-group liabilities.

Enforcement of Security

        The security trustee will, to the extent it is entitled to do so under the security documents, act in relation to the security interests in accordance with the instructions of the Instructing Party (or its relevant agent or representative). Before giving any instructions to the security trustee to enforce any security interests, the relevant agent or representative acting for the Instructing Group is required to consult with the security trustee in good faith, with a view to co-ordinating their actions, for a period of 45 days or such shorter period as the relevant agent may determine. The relevant agent or representative is not required to so consult with the security trustee if:

        The security trustee will incur no liability to any Priority Creditor (as defined below) in exercising in good faith any discretion with respect to the enforcement of security interests or if it acts on the advice of a reputable independent investment bank. The security trustee and the facility agent under our senior credit facility are required to use reasonable efforts to consult with any authorized representative or any steering committee or other representative in respect of any series of Additional Senior Liabilities, which would include, prior to the any Enforcement Control Event, the trustee acting on behalf of the holders of the exchange notes offered hereby, prior to taking any enforcement action and provide on a regular basis relevant information on the status of any ongoing enforcement action.

Release of Collateral

        If any assets are sold or otherwise disposed of (i) by (or on behalf of) the security trustee, (ii) as a result of a sale by an administrator or liquidator, or (iii) by an obligor at the request of the security trustee (acting on the instructions of or with the consent of the Instructing Party (or its relevant agent or representative)), in each case, of the foregoing, either as a result of the taking of an enforcement action or a disposal by an obligor after any enforcement action, the security trustee is authorized to release those assets from the collateral and is authorized to execute, without any further authority by any Priority Creditor,

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        No liabilities of Virgin Media Finance PLC, VMIH or any issuer of senior secured notes from time to time (including the exchange notes offered hereby), in each case, in its capacity as a borrower or issuer under any Senior Finance Documents, may be disposed of pursuant to the foregoing or released pursuant to the foregoing. Any asset which is disposed of is released from the claims of all Priority Creditors and the proceeds of such disposal will be applied in accordance with "—General Application of Proceeds" below.

Security Trustee Authorization

        Subject to the terms of the Senior Finance Documents, at any time after an event of default has occurred and is continuing under our senior credit facility or any of the other Senior Finance Documents, the security trustee may take such steps as it deems necessary or advisable:

        The security trustee may refrain from enforcing the security interests unless and until instructed to do so by the Instructing Party (or its relevant agent or representative) and no Priority Creditor (or its authorized representative) is permitted to contest or object to any enforcement action taken by the security trustee on the instructions of the Instructing Party (or its relevant agent or representative). No party is permitted to take or receive any collateral or any proceeds of any collateral in connection with the exercise of any right or remedy (including set off) with respect to the collateral other than the security trustee acting on the instructions of the Instructing Party (or its relevant agent or representative) in accordance with the terms of the Group Intercreditor Deed.

        The security trustee has the exclusive right (and the Instructing Party (or its relevant agent or representative) has the exclusive right to instruct the security trustee) to enforce rights, exercise remedies (including set-off) and make determinations regarding the release, disposition, or restrictions with respect to the security and in exercising such rights and remedies, the security trustee and the Instructing Party (or its relevant agent or representative) may enforce the provisions of the Senior Finance Documents and exercise the remedies thereunder, all in such order and in such manner as they may determine in the exercise of their sole discretion.

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        Subject to "—Manner of Enforcement" below, if the Instructing Party (or its relevant agent or representative) instructs the security trustee to enforce the security, it may do so in such manner as it deems fit, having regard solely to the interests of the Beneficiaries. Neither the security trustee, the relevant agent acting for the Instructing Group nor any other Senior Finance Party is responsible to any other creditor for any failure to enforce or to maximize the proceeds of any enforcement, and may cease any such enforcement at any time.

Manner of Enforcement

        If the security trustee does enforce any of the security interests it may do so in such manner as it sees fit solely having regard to the interest of the Beneficiaries. The security trustee is not responsible to any Beneficiary for any failure to enforce nor to maximize the proceeds of any enforcement, and may cease any such enforcement at any time.

        Neither the Instructing Party (or its relevant agent or representative) instructing the security trustee, nor the security trustee itself, is required to take into account the sharing of proceeds provision in the Group Intercreditor Deed when determining the manner of enforcement (and which security to enforce) and, if it is determined to enforce any direct security over shares (other than shares in VMIH and/or Virgin Media Investments Limited), the Instructing Party (or its relevant agent or representative, as the case may be) must in good faith believe that doing so will result in more aggregate proceeds resulting from enforcement of security (disregarding the sharing of proceeds provisions in the Group Intercreditor Deed) than would be realized solely from enforcing direct security over shares in VMIH and/or Virgin Media Investments Limited alone.

Standstill Payments

        Following an event of default under our senior credit facility or any other Senior Finance Document all payments received by any Senior Finance Party to enter into any standstill agreement or other agreement to delay the taking of any enforcement action is required to be shared among all the Senior Finance Parties pro rata based on the aggregate outstanding principal amount and undrawn commitments with respect to the Senior Liabilities held by such Senior Finance Party.

No New Encumbrances

        For so long as any Senior Liabilities are outstanding, no obligor is permitted to grant or permit any additional encumbrances, or take any action to perfect any additional encumbrances, on any asset or property to secure any series of Senior Liabilities unless it has also granted an encumbrance on such asset or property to secure all of the other series of Senior Liabilities to the extent legally possible and without undue burden on the Virgin Media group of companies (excluding limitations or exclusions in the collateral provided to any series pursuant to the terms of the Senior Finance Documents in respect of such series) and has taken all actions to perfect such encumbrances. To the extent that the foregoing is not complied with, any amounts received by any Senior Finance Party in contravention of the foregoing is required to be paid to the security trustee for the benefit of the Priority Creditors for application pursuant to and in accordance with "—General Application of Proceeds" below.

General Application of Proceeds

        Subject to the rights of any preferential creditor and notwithstanding the terms of the security documents, the net proceeds of enforcement of the collateral will be paid to the security trustee for the benefit of the Priority Creditors pursuant to the terms of the Group Intercreditor Deed and will be

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applied by the security trustee (or any receiver on its behalf) in the following order of priority, in each case, until such amounts have been repaid and discharged in full:

        To the extent that (i) the net proceeds of any enforcement of collateral and (ii) any other recoveries and/or proceeds from any obligor (other than in the case of sub-paragraph (ii), such other recoveries and/or proceeds from the Virgin Media Finance PLC and VMIH) are to be applied in accordance with the foregoing, any such proceeds are required to be applied in accordance with the foregoing until all of the Senior Liabilities and our secured hedging liabilities have been discharged in full.

        To the extent that a security interest has not been granted in favor of any series of Senior Liabilities incurred after October 30, 2009 or the Senior Finance Documents in respect of such series limit or exclude such security interest from the collateral securing such series of Senior Liabilities, such series of Senior Liabilities will not receive any net proceeds resulting from the enforcement of such security interests that was so limited or excluded. The foregoing does not apply to the extent security has been granted over a particular asset under one or more Senior Finance Documents which (A) security does not secure a particular series of Senior Liabilities or (B) the Senior Finance Documents in respect of a particular series of Senior Liabilities limit or exclude such security from the collateral securing such series of Senior Liabilities, but other security has been granted over that asset which does secure such series of Senior Liabilities and is not so limited or excluded from the collateral securing such series of Senior Liabilities.

Turnover

        If any hedge counterparty, any creditor under intra-group debt or any obligor receives or recovers any payment in contravention of the terms of the Group Intercreditor Deed, it is required to hold such payment on trust and pay over such amounts to the security trustee for application in accordance with the order of application set forth above under "—General Application of Proceeds."

Purchase Option

        If an event of default has occurred under our senior credit facility or the Designated Refinancing Facilities Agreement and the security trustee or the Senior Lenders have begun any formal step to enforce any guarantee under any Senior Finance Document and/or security under any security document, the Additional Senior Finance Parties (which would include the holders of the exchange notes offered hereby) may, at the expense of such Additional Senior Finance Parties, purchase or procure the purchase of all (but not part) of the rights and obligations of the Senior Lenders in connection with the Senior Liabilities under the Senior Facilities Agreement or the Designated Refinancing Facilities Agreement upon 10 business days' prior written notice.

        If any Additional Senior Finance Parties in respect of more than one series of Additional Senior Liabilities attempts to exercise this purchase option by procuring the service of the notice described

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above, such right will be shared on a pro rata basis among the series of Additional Senior Liabilities that have served such notice.

        Any such purchase shall take effect on the following terms:

Amendments

        Save for certain technical amendments which may be made without reference to the Priority Creditors, the agent or representative acting for the Instructing Party may, from time to time, agree with VMIH to amend the Group Intercreditor Deed and any amendments so made will be binding on all the parties hereto, provided that any amendment which would:

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        Any amendment which relates to, or has the effect of, subordinating all or any portion of any series of Senior Liabilities to the other Senior Liabilities will only require the consent of the Instructing Party and the applicable consent of such series being subordinated (as determined pursuant to the Senior Finance Documents in respect of such series).

Governing Law

        The Group Intercreditor Deed is governed by and is to be construed in accordance with English law.

Certain Definitions

        For purposes of this section "Description of Intercreditor Deeds—Group Intercreditor Deed":

        "Additional Senior Finance Parties" means any Senior Finance Parties in respect of any Additional Senior Liabilities;

        "Additional Senior Liabilities" means any Senior Liabilities which are not outstanding under our senior credit facility or the Designated Refinancing Facilities Agreement;

        "Beneficiaries" means the security trustee (to the extent only of the amounts payable to it in its capacity as such (for its own account) pursuant to the Senior Finance Documents) and the Second Beneficiaries;

        "Closing Date" means January 19, 2010, the closing date in respect of the outstanding notes;

        "Designated Refinancing Facilities Agreement" means, upon the discharge of our senior credit facility in full, any Refinancing Facilities Agreement designated as such by VMIH. Only one agreement at a time may be a Designated Refinancing Facilities Agreement;

        An "Enforcement Control Event" occurs when 60 consecutive business days have lapsed since both of the following have occurred at the same time: the aggregate outstanding principal amount and undrawn commitments under our senior credit facility (or, upon its discharge in full, the Designated Refinancing Facilities Agreement), (i) is less than £1.0 billion and (ii) represents less than 60% of the aggregate outstanding principal amount and undrawn commitments under all our Senior Liabilities, and both conditions under clauses (i) and (ii) continue to exist on such 60th business day;

        "Priority Creditors" means the Senior Finance Parties and our secured hedge counterparties;

        "Refinancing Facilities Agreement" is defined to include any agreement under which debt facilities are made available for the refinancing of the facilities made available under our senior secured facilities agreement or any Designated Refinancing Facilities Agreement and which is designated as such by VMIH, provided that the aggregate principal amount of such refinancing indebtedness does not exceed the aggregate principal amount under our senior credit facilities or any Designated Refinancing Facilities Agreement that it is refinancing plus any New Senior Liabilities;

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        "Second Beneficiaries" means the facility agent under our senior credit facility or any Designated Refinancing Agreement, any other authorized representatives of either any other series of Senior Liabilities or the Senior Liabilities as a whole, the Senior Finance Parties and our secured hedge counterparties;

        "Senior Finance Documents" means (i) the Relevant Finance Documents (as defined in our senior credit facility, or upon its discharge in full, equivalent expression in the Designated Refinancing Facilities Agreement, (ii) any Refinancing Facilities Agreement and (iii) any document evidencing New Senior Liabilities;

        "Senior Finance Parties" means (i) the Relevant Finance Parties (as defined in our senior credit facility or, upon its discharge in full, equivalent expression in the Designated Refinancing Facilities Agreement, and (ii) any other creditor or designated agent under any of the Senior Finance Documents; and

        "Senior Lenders" means a bank or financial institution or other person which has become a party to the Group Intercreditor Deed as a Senior Lender, in accordance with the applicable provisions of the Group Intercreditor Deed and our senior credit facility or any Designated Refinancing Facilities Agreement.

High Yield Intercreditor Deed

        The High Yield Intercreditor Deed governs the relationship of the Senior Liabilities, High Yield Guarantee Liabilities and certain subordinated intra-group indebtedness between any Intra-group Debtor and Virgin Media Finance PLC.

Priorities

        The High Yield Intercreditor Deed provides that the following liabilities rank and should be paid and discharged in the following order:

Senior Liabilities and High Yield Guarantee Liabilities

        For the purposes of the High Yield Intercreditor Deed, "Senior Liabilities" include all present and future obligations and liabilities of the obligors to the Senior Finance Parties under or in connection with the Senior Finance Documents including any New Senior Liabilities together with any related additional liabilities owed to the Senior Finance Parties and together also with all costs, charges and expenses incurred by each of the Senior Finance Parties in connection with the protection, preservation or enforcement of its rights under the Senior Finance Documents, which includes our secured hedging liabilities. The exchange notes offered hereby together with our obligations under our senior credit facility and our related secured hedging liabilities will constitute Senior Liabilities for purposes of the High Yield Intercreditor Deed.

        For the purposes of the High Yield Intercreditor Deed, "High Yield Guarantee Liabilities" include all present and future obligations and liabilities of any High Yield Guarantor to any High Yield Creditors pursuant to any High Yield Guarantee, which includes the senior subordinated guarantees provided by VMIH and Virgin Media Investments Limited in respect of our existing senior notes, together with any related additional liabilities owed to any High Yield Creditor pursuant to any High

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Yield Guarantee in connection with the protection, preservation or enforcement of the rights of such High Yield Creditors under the indenture and other related documentation with respect thereto.

Payment Blockage

        If there is a payment default under our Senior Liabilities or if there is an outstanding payment blockage notice, the High Yield Intercreditor Deed will restrict the ability of any High Yield Guarantor in respect of the High Yield Guarantee Liabilities or any Intra-group Debtor in respect of the Subordinated Intra-group Liabilities:

the High Yield Guarantee Liabilities or the Subordinated Intra-group Liabilities for so long as the Senior Liabilities remain outstanding. In the event of a payment default with respect to our Senior Liabilities, service of a payment blockage notice is not required to effect the restrictions described above.

        A payment blockage notice may be served by the agent or representatives of the relevant series of Senior Liabilities on, among others, the trustee of any High Yield Notes during the continuance of a non-payment event of default with respect to our Senior Liabilities. While a payment blockage is in effect, any High Yield Guarantor and any Intra-group Debtor will be prohibited from making any payment with respect to the High Yield Guarantee Liabilities or the Subordinated Intra-group Liabilities, as applicable.

        However, a payment blockage notice is only permitted to be served on or before the date falling 45 days after the date on which notice of such event of default has been received by the agent or representative of the relevant series of Senior Liabilities. A payment blockage notice will remain outstanding, unless cancelled, until the earliest of:

        Only one blockage notice is permitted to be served in respect of a particular event or circumstance, and only one blockage notice is permitted to be served in any consecutive 360-day period relating to an event of default under our Senior Liabilities which was existing at the time of such payment blockage notice, unless such event of default has been remedied and is no longer continuing for at least 180 days prior to the service of the proposed new payment blockage notice.

Standstill on Enforcement

        The trustee under the indentures governing any of our High Yield Notes and the holders of such High Yield Notes may bring an action to enforce the obligations of Virgin Media Finance PLC

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thereunder and, subject to the circumstances described below, the obligations of the relevant High Yield Guarantor under the related High Yield Guarantee. Subject also to the circumstances described below, Virgin Media Finance PLC may also take action to enforce the obligations in respect of the Subordinated Intra-group Liabilities. Enforcement in respect of any High Yield Notes against Virgin Media Finance PLC is not restricted by the High Yield Intercreditor Deed. However, enforcement action may not be taken with respect to the Subordinated Intra-group Liabilities, and the High Yield Guarantees will not become due, unless:

Subordination on Insolvency

        In the event of an insolvency of any Intra-group Debtor, any High Yield Guarantor or any member of the Virgin Media group which is a party to a secured hedging agreement, the High Yield Intercreditor Deed provides that all High Yield Guarantee Liabilities and Subordinated Intra-group Liabilities will be subordinated to the prior payment in full of all Senior Liabilities. In that event, the security trustee may make demands under, or enforce, the High Yield Guarantee Liabilities and Subordinated Intra-group Liabilities and any amounts so received in respect thereof shall be applied by the security trustee towards all Senior Liabilities obligations outstanding until such obligations have been paid in full.

Turnover and Application of Proceeds

        In the event that, in contravention of the subordination terms described above, or at a time when payments are not permitted to be made:

Release of the High Yield Guarantees

        The High Yield Intercreditor Deed provides for the automatic and unconditional release and discharge of High Yield Guarantees concurrently with any sales of all of the shares of any High Yield Guarantor or any of its direct or indirect holding companies or of all or substantially all of the assets of a High Yield Guarantor by the security trustee or an administrator appointed under the U.K. Insolvency Act of 1986. In order for the release to be effective:

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        The High Yield Intercreditor Deed provides that if, notwithstanding the reasonable efforts of the security trustee, the procedures referred to above are not implemented by the relevant court or other authority or any other third party required to act in connection with such sale, the security trustee will not be under any further obligation to cause such procedures to be implemented by such authority.

Priority of Payments

        The postponement, subordination, blockage and prevention of payment of the High Yield Guarantees is not intended to and will not impair the obligation of the High Yield Guarantors to pay the holders of our High Yield Notes all amounts due and payable under such guarantees as and when they become due and payable in accordance with the terms of the High Yield Intercreditor Deed. The liabilities owed to the creditors of any High Yield Guarantor will be paid and discharged in the following order:

Any additional amounts remaining after discharge of the above listed liabilities will be paid to the relevant obligor or any other person or persons entitled thereto.

Governing Law

        The High Yield Intercreditor Deed is governed by and is to be construed in accordance with English Law.

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Certain Definitions

        For purposes of this section, "Description of Intercreditor Deeds—High Yield Intercreditor Deed":

        "High Yield Creditor" means each holder of our High Yield Notes from time to time.

        "High Yield Guarantor" means VMIH and Virgin Media Investments Limited as providers of subordinated guarantees in respect of our existing High Yield Notes and any other direct or indirect subsidiary of Virgin Media Finance PLC which is a provider from time to time of any High Yield Guarantee in respect of any High Yield Notes.

        "High Yield Guarantee" means any unsecured subordinated guarantee of any High Yield Notes provided by any High Yield Guarantor.

        "High Yield Notes" means our existing senior unsecured subordinated notes and any other senior unsecured notes issued by Virgin Media Finance PLC and guaranteed by any High Yield Guarantor.

        "Intra-group Debtor" means VMIH, Virgin Media Investments Limited and any other High Yield Guarantor from time to time.

        "Subordinated Intra-group Liabilities" includes all present and future obligations constituted by indebtedness owed by any Intra-group Debtor to Virgin Media Finance PLC, together with any related additional liabilities owed to Virgin Media Finance PLC and together with all costs, charges and expenses incurred by Virgin Media Finance PLC in connection with the protection, preservation or enforcement of its rights in respect of such amount.

        "New Senior Liabilities" means credit facilities or other financial accommodation provided by any Senior Finance Party under the Senior Finance Documents to VMIH which exceeds the total commitments as at April 13, 2004 under our historic senior credit facility dated as of April 13, 2004 (excluding, for the avoidance of doubt, any credit exposure of a lender thereunder, if any, in its capacity as a hedge counterparty, if applicable). No consent by any creditor is required for the incurrence of such New Senior Liabilities provided such incurrence is permitted under the indenture governing our High Yield Notes.

        "Refinancing Facilities Agreement" means any facilities agreement under which facilities are made available for the refinancing of the facilities made available under our senior credit facility or any predecessor Refinancing Facilities Agreement and which is designated as such by VMIH provided that the incurrence of such refinancing indebtedness is permitted under the finance documents in respect of our High Yield Notes.

        "Senior Finance Documents" means the Finance Documents (as defined in our senior credit facility or any Refinancing Facilities Agreement), which shall include our secured hedging documents.

        "Senior Finance Parties" means the Finance Parties (as defined in our senior credit facility or any Refinancing Facilities Agreement), which shall include our secured hedge counterparties.

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Description of Other Debt

        The summaries set forth below do not purport to be complete and are qualified in their entirety by reference to the actual agreements, copies of which have been publicly filed with the SEC and will be made available by us upon request. See "Where You Can Find More Information."

Senior Credit Facility

        On March 16, 2010, we entered into a new senior credit facility. On April 19, 2010, we drew down an aggregate principal amount of £1,675.0 million under our new senior credit facility, and applied the proceeds towards the repayment in full of all amounts outstanding under our old senior credit facility as at the draw down date. The new senior credit facility comprises a term loan A, or Tranche A, facility in an aggregate principal amount of £1,000 million; a term loan B, or Tranche B, facility in an aggregate principal amount of £675 million; and a revolving credit facility in an aggregate principal amount of £250 million. The proceeds from Tranches A and B facilities may also be used for general corporate purposes, while the proceeds from the revolving credit facility are available for the financing of our ongoing working capital requirements and general corporate purposes. Our old senior credit facility, which was repaid in full on April 19, 2010, was comprised of amortizing term loan A facilities, bullet repayment term loan B and C facilities and multi-currency revolving credit facilities.

Principal Amortization

        Following the repayments made on April 19, 2010, there were no outstanding amounts under our old senior credit facility.

        Under our new senior credit facility, the final maturity date of Tranche A and the revolving credit facility is June 30, 2015 and the final maturity date of Tranche B is December 31, 2015. The principal repayment schedule for the term facilities under our new senior credit facility is (in millions):

Date
  Amount  

Tranche A

       

June 30, 2011

  £ 150.0  

June 30, 2012

    175.0  

June 30, 2013

    200.0  

June 30, 2014

    200.0  

June 30, 2015

    275.0  

Tranche B

       

December 31, 2015

    675.0  
       

Total

  £ 1,675.0  
       

Mandatory Prepayments

        Our new senior credit facility must be prepaid in certain circumstances by certain amounts, including:

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        In addition, the outstandings under our new senior credit facility must be repaid and all commitments will be cancelled upon the occurrence of a change of control.

Interest Margins

        The annual rate of interest payable under our new senior credit facility is the sum of (i) the London Intrabank Offer Rate, or LIBOR, plus (ii) the applicable interest margin and (iii) the applicable cost of complying with any mandatory costs requirement.

        The applicable interest margin for Tranche A and the revolving credit facility under our new senior credit facility depends upon the total net leverage ratio of the bank group (which comprises VMIH and most of its subsidiaries, and certain other companies which are subsidiaries of Virgin Media Inc. but not of VMIH) then in effect as set forth below:

Leverage Ratio
  Margin  

Greater than 3.75:1.00

    3.50 %

Equal to or less than 3.75:1.00 but greater than 3.25:1.00

    3.25 %

Equal to or less than 3.25:1.00 but greater than 2.75:1.00

    3.00 %

Equal to or less than 2.75:1.00

    2.75 %

        The applicable interest margin for Tranche B is 3.75%.

Guarantees; Security

        The security granted in respect of our new senior credit facility on the draw down date includes substantially all of the assets of the bank group. Our new senior credit facility requires that members of the bank group which generate not less than 80% of the consolidated operating cash flow of the bank group (excluding the consolidated net income attributable to any joint venture) in any financial year guarantee the payment of all sums payable under our new senior credit facility and such members are required to grant first-ranking security over all or substantially all of their assets to secure the payment of all sums payable under our new senior credit facility. Virgin Media Finance PLC has also provided a guarantee for the payment of all sums payable under our new senior credit facility and has secured its obligations under that guarantee by granting security over its interest in the intercompany debt owed to it by its direct subsidiary VMIH and over all of the shares in VMIH.

Financial Maintenance Covenants

        Our new senior credit facility contains the following financial covenant ratios:

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        The minimum required ratios are outlined below:

Quarter Date
  Leverage Ratio   Interest
Coverage Ratio
 

June 30, 2010

    4.85:1.00     2.50:1.00  

September 30, 2010

    4.80:1.00     2.55:1.00  

December 31, 2010

    4.70:1.00     2.65:1.00  

March 31, 2011

    4.60:1.00     2.75:1.00  

June 30, 2011

    4.40:1.00     2.80:1.00  

September 30, 2011

    4.35:1.00     2.85:1.00  

December 31, 2011

    4.30:1.00     2.95:1.00  

March 31, 2012

    4.25:1.00     3.00:1.00  

June 30, 2012

    4.10:1.00     3.05:1.00  

September 30, 2012

    4.10:1.00     3.10:1.00  

December 31, 2012

    4.10:1.00     3.10:1.00  

March 31, 2013

    4.05:1.00     3.15:1.00  

June 30, 2013

    3.85:1.00     3.20:1.00  

September 30, 2013

    3.80:1.00     3.25:1.00  

December 31, 2013

    3.80:1.00     3.35:1.00  

March 31, 2014

    3.75:1.00     3.45:1.00  

June 30, 2014

    3.55:1.00     3.55:1.00  

September 30, 2014

    3.55:1.00     3.70:1.00  

December 31, 2014

    3.50:1.00     3.80:1.00  

March 31, 2015

    3.50:1.00     3.95:1.00  

June 30, 2015

    3.25:1.00     4.00:1.00  

September 30, 2015

    3.25:1.00     4.00:1.00  

December 31, 2015

    3.00:1.00     4.00:1.00  

        As shown in the table above, the required levels become more restrictive over time. As a result, we will need to continue to improve our operating performance over the next several years to meet these levels. Failure to meet these covenant levels would result in a default under our new senior credit facility.

Restrictions

        Our new senior credit facility significantly, and in some cases absolutely, restricts the ability of the members of the bank group to, among other things:

        The new senior credit facility also contains certain carve outs from these limitations.

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Events of Default

        The occurrence of events of default specified in our new senior credit facility entitle the lenders, after the expiry of any grace periods, as applicable, to cancel any undrawn portion of the facilities, require the immediate payment of all amounts outstanding under the facilities and enforce or direct the security trustee to enforce the security interests that have been granted. These events of default include, among other things:

Existing Senior Notes

        In November 2009, Virgin Media Finance PLC issued U.S. dollar denominated 8.375% senior notes due 2019 with a principal amount outstanding of $600 million and sterling denominated 8.875% senior notes due 2019 with a principal amount outstanding of £350 million, collectively, the senior notes due 2019. Interest on the senior notes due 2019 is payable on April 15 and October 15 of each year. The senior notes due 2019 are unsecured senior obligations of Virgin Media Finance PLC and rank pari passu with Virgin Media Finance PLC's outstanding senior notes due 2016. The senior notes due 2019 mature on October 15, 2019 and are guaranteed on a senior basis by Virgin Media Inc., Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK) Group, Inc. and Virgin Media Communications Limited and on a senior subordinated basis by VMIH and Virgin Media Investments Limited.

        In June 2009, Virgin Media Finance PLC issued U.S. dollar denominated 9.50% senior notes due 2016 with a principal amount outstanding of $750 million and euro denominated 9.50% senior notes due 2016 with a principal amount outstanding of €180 million. In July 2009, Virgin Media Finance PLC issued additional U.S. dollar denominated 9.50% senior notes due 2016 with a principal amount outstanding of $600 million. The U.S. dollar denominated senior notes issued in June 2009 and July 2009, respectively, are treated as a single issuance of the same notes under the indenture for these notes. We refer to all these notes, collectively, as the 9.50% senior notes due 2016. Interest on the 9.50% senior notes due 2016 is payable on February 15 and August 15 of each year. The 9.50% senior notes due 2016 are unsecured senior obligations of Virgin Media Finance PLC and rank pari passu with Virgin Media Finance PLC's outstanding senior notes due 2019 and its 9.125% senior notes due 2016. The 9.50% senior notes due 2016 mature on August 15, 2016 and are guaranteed on a senior basis by Virgin Media Inc., Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK)

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Group, Inc. and Virgin Media Communications Limited and on a senior subordinated basis by VMIH and Virgin Media Investments Limited.

        In July 2006, Virgin Media Finance PLC issued U.S. dollar denominated 9.125% senior notes due 2016 with a principal amount outstanding of $550 million. The 9.125% senior notes due 2016 are unsecured senior obligations of Virgin Media Finance PLC and rank pari passu with Virgin Media Finance PLC's outstanding 9.50% senior notes due 2016 and its senior notes due 2019. Interest on the 9.125% senior notes due 2016 is payable on February 15 and August 15 of each year. The 9.125% senior notes due 2016 mature on August 15, 2016 and are guaranteed on a senior basis by Virgin Media Inc., Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK) Group, Inc. and Virgin Media Communications Limited and on a senior subordinated basis by VMIH and Virgin Media Investments Limited.

        In April 2004, Virgin Media Finance PLC issued U.S. dollar denominated 8.75% senior notes due 2014 with a principal amount outstanding of $425 million, sterling denominated 9.75% senior notes due 2014 with a principal amount outstanding of £375 million, and euro denominated 8.75% senior notes due 2014 with a principal amount outstanding of €225 million, collectively, the senior notes due 2014. We partially redeemed our senior notes due 2014 in December 2009 using the proceeds from the senior notes which we issued in November 2009, and we redeemed the outstanding balance of our senior notes due 2014 in full on May 12, 2010 using cash from our balance sheet.

        The covenants relating to the senior notes due 2016 and the senior notes due 2019 contain similar obligations and restrictions on the activities of the issuer and certain of its affiliates as the covenants relating to the exchange notes offered hereby, which are described under "Description of the Exchange Notes." However, the group of companies generally restricted by the covenants relating to our existing senior notes comprises Virgin Media Group LLC and its subsidiaries, whereas the group of companies generally restricted by the covenants relating to the exchange notes offered hereby comprises VMIH and its subsidiaries and other guarantors of the exchange notes.

Convertible Senior Notes

        In April 2008, Virgin Media Inc. issued U.S. dollar denominated 6.50% convertible senior notes due 2016 with a principal amount outstanding of $1.0 billion. The convertible senior notes are unsecured senior obligations of Virgin Media Inc. and, consequently, are subordinated to our obligations under our new senior credit facility and rank equally with Virgin Media Inc.'s guarantees of the existing senior notes and will rank equally with Virgin Media Inc.'s guarantee of the outstanding notes and the exchange notes offered hereby. The convertible senior notes bear interest at an annual rate of 6.50% payable semi-annually on May 15 and November 15 of each year. The convertible senior notes mature on November 15, 2016 and may not be redeemed by us prior to their maturity date. Upon conversion, we may elect to settle in cash, shares of common stock or a combination of cash and shares of our common stock.

        Holders of convertible senior notes may tender their notes for conversion at any time on or after August 15, 2016 through to the second scheduled trading date preceding the maturity date. Prior to August 15, 2016, holders may convert their notes, at their option, only under certain circumstances set forth in the indenture governing the convertible senior notes. The initial conversion rate of the convertible senior notes represents an initial conversion price of approximately $19.22 per share of common stock, subject to adjustment under circumstances set forth in the indenture governing the convertible senior notes.

        Holders may also require us to repurchase the convertible senior notes for cash in the event of a fundamental change (as defined in the indenture governing the convertible senior notes), such as a change in control, merger, consolidation, dissolution or delisting (including involuntary delisting for failure to continue to comply with the NASDAQ listing criteria), for a purchase price equal to 100% of the principal amount, plus accrued but unpaid interest to the purchase date.

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The Exchange Offer

Purpose of the Exchange Offer

        On January 19, 2010, we issued the outstanding notes. In connection with that issuance, we entered into a registration rights agreement with the initial purchasers of the outstanding notes, dated as of January 19, 2010. Pursuant to the registration rights agreement, we agreed that we would use our reasonable best efforts to:

        Upon the effectiveness of the registration statement of which this prospectus is a part, we will offer the exchange notes in exchange for the outstanding notes. We have filed a copy of the registration rights agreement as an exhibit incorporated by reference into the registration statement.

Resale of the Exchange Notes

        We are making the exchange offer in reliance on the position of the staff of the SEC as set forth in interpretive letters addressed to other parties in other transactions. For further information on the SEC staff's position, see Exxon Capital Holdings Corporation (April 13, 1988), Morgan Stanley & Co. Incorporated (June 5, 1991) and Shearman & Sterling (July 2, 1993), and other interpretive letters to similar effect. We have not sought our own interpretive letter, however, and we cannot assure you that the staff would make a similar determination with respect to the exchange offer as it has in interpretive letters to other parties. Based on these interpretations by the staff, we believe that the exchange notes issued under the exchange offer may be offered for resale, resold or otherwise transferred by you, without further compliance with the registration and prospectus delivery provisions of the Securities Act, so long as you:

        If you are participating in or intend to participate in, a distribution of the exchange notes, or have any arrangement or understanding with any person to participate in a distribution of the exchange notes to be acquired in this exchange offer, you may be deemed to have received restricted securities and may not rely on the applicable interpretations of the staff of the SEC. If you are so deemed, you will have to comply with the registration and prospectus delivery requirements of the Securities Act in connection with any secondary resale transaction.

        Each broker-dealer that receives exchange notes for its own account in exchange for outstanding notes, where the outstanding notes were acquired by the broker-dealer as a result of market-making

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activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of the exchange notes. The letter of transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. A broker-dealer may use this prospectus, as it may be amended or supplemented from time to time, in connection with resales of exchange notes received in exchange for outstanding notes which the broker-dealer acquired as a result of market-making or other trading activities. See "Plan of Distribution."

        The exchange offer is not being made to, nor will we accept tenders for exchange from, holders of outstanding notes in any jurisdiction in which the exchange offer or the acceptance of it would not be in compliance with the securities or blue sky laws of such jurisdiction.

Terms of the Exchange Offer

        Upon the terms and subject to the conditions set forth in this prospectus and the letter of transmittal, we will accept any and all outstanding notes validly tendered and not withdrawn prior to 5:00 p.m., New York City time, on the expiration date. We will issue $1,000 principal amount of dollar denominated exchange notes in exchange for each $1,000 principal amount of dollar denominated outstanding notes validly tendered and accepted pursuant to the exchange offer and £1,000 principal amount of sterling denominated exchange notes in exchange for each £1,000 principal amount of sterling denominated outstanding notes validly tendered and accepted pursuant to the exchange offer.

        We will not pay any accrued and unpaid interest on the outstanding notes that we acquire in the exchange offer. Instead, interest on the exchange notes will accrue from the most recent date on which interest has been paid on the outstanding notes.

        Tendering holders of dollar denominated outstanding notes must tender outstanding notes in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof and tendering holders of sterling denominated outstanding notes must tender outstanding notes in minimum denominations of £50,000 and integral multiples of £1,000 in excess thereof. Dollar denominated exchange notes will be issued in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof and sterling denominated exchange notes will be issued in minimum denominations of £50,000 and integral multiples of £1,000 in excess thereof.

        The terms of the exchange notes are identical in all material respects to the terms of the outstanding notes, except that:

        The exchange notes will evidence the same debt as the outstanding notes. The exchange notes will be issued under the same indenture and will be entitled to the same benefits under that indenture as the outstanding notes being exchanged. As of the date of this prospectus, $1,000,000,000 aggregate principal amount of the dollar denominated outstanding notes and £875,000,000 aggregate principal amount of the sterling denominated outstanding notes are outstanding. Outstanding notes accepted for exchange will be retired and cancelled and not reissued.

        Except as described under "Book-Entry Settlement and Clearance," the exchange notes will be issued in the form of one or more registered notes in global form, without interest coupons, representing the dollar denominated exchange notes and one or more registered notes in global form, without interest coupons, representing the sterling denominated exchange notes (collectively, the "global exchange notes"). The global exchange notes will be deposited with and registered in the name of a nominee of DTC (in the case of the dollar denominated exchange notes) or a common depositary

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for Euroclear and Clearstream (in the case of the sterling denominated exchange notes). The sterling denominated exchange notes will not be eligible for clearance through the facilities of DTC.

        We will conduct the exchange offer in accordance with the applicable requirements of the Securities Act and the Exchange Act, and the rules and regulations of the SEC thereunder.

        We will be considered to have accepted validly tendered outstanding notes if and when we have given oral or written notice to that effect to the exchange agent. The exchange agent will act as agent for the tendering holders for the purposes of receiving the exchange notes from us.

        If we do not accept any tendered outstanding notes for exchange because of an invalid tender, the occurrence of the other events described in this prospectus or otherwise, we will return these outstanding notes, without expense, to the tendering holder as soon as practicable after the expiration date of the exchange offer.

        Holders who tender outstanding notes will not be required to pay brokerage commissions or fees or, subject to the instructions in the letter of transmittal, transfer taxes on exchange of outstanding notes in connection with the exchange offer. We will pay all charges and expenses, other than certain applicable taxes in certain circumstances, in connection with the exchange offer. See "—Other Fees and Expenses" and "—Transfer Taxes."

        If we successfully complete the exchange offer, any outstanding notes which holders do not tender or which we do not accept in the exchange offer will remain outstanding and continue to accrue interest. The holders of outstanding notes after the exchange offer in general will not have further rights under the registration rights agreement, including registration rights and any rights to additional interest. Holders wishing to transfer the outstanding notes would have to rely on exemptions from the registration requirements of the Securities Act.

Expiration Date; Extensions; Amendments; Termination

        For purposes of the exchange offer, the term "expiration date" means 5:00 p.m., New York City time, on                                    , 2010, subject to our right to extend that time and date in our sole discretion, in which case the expiration date means the latest time and date to which the exchange offer is extended.

        We reserve the right, in our sole discretion, by giving oral or written notice to the exchange agent, to:

        If the exchange offer is amended in a manner that we determine constitutes a material change, we will extend the exchange offer for a period of two to ten business days, depending upon the significance of the amendment and the manner of disclosure to the holders, if the exchange offer would otherwise have expired during that two to ten business day period.

        We will notify holders of the outstanding notes of any extension, amendment or termination of the exchange offer by press release or other public announcement. We will announce any extension of the expiration date no later than 9:00 a.m., New York City time, on the first business day after the previously scheduled expiration date. We have no other obligation to publish, advertise or otherwise communicate any information about any extension, amendment or termination.

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Settlement Date

        We will deliver the exchange notes on the settlement date, which will be as soon as practicable after the expiration date of the exchange offer. We will not be obligated to deliver exchange notes unless the exchange offer is consummated.

Conditions to the Exchange Offer

        Notwithstanding any other provision of the exchange offer, we will not be required to accept for exchange, or to issue exchange notes in exchange for, any outstanding notes and may terminate or amend the exchange offer if at any time before the expiration of the exchange offer, we determine (i) that the exchange offer violates applicable law, any applicable interpretation of the staff of the SEC or any order of any governmental agency or court of competent jurisdiction; (ii) an action or proceeding shall have been instituted or threatened in any court or by any governmental agency which might materially impair our ability to proceed with the exchange offer or a material adverse development shall have occurred in any existing action or proceeding with respect to us; or (iii) all governmental approvals that we deem necessary for the consummation of the exchange offer have not been obtained.

        The foregoing conditions are for our sole benefit and may be asserted by us regardless of the circumstances giving rise to any such condition or may be waived by us in whole or in part at any time and from time to time. The failure by us at any time to exercise any of the foregoing rights shall not be deemed a waiver of any of those rights and each of those rights shall be deemed an ongoing right which may be asserted at any time and from time to time. Any determination made by us concerning an event, development or circumstance described or referred to above will be conclusive and binding.

        If any of the foregoing conditions are not satisfied, we may, at any time on or prior to the expiration date:

        In addition, we will not accept for exchange any outstanding notes tendered, and no exchange notes will be issued in exchange for those outstanding notes, if at such time any stop order shall be threatened or in effect with respect to the registration statement of which this prospectus constitutes a part or with respect to the qualification of the indenture governing the exchange notes under the Trust Indenture Act of 1939, as amended.

Effect of Tender

        Any tender by a holder, and our subsequent acceptance of that tender, of outstanding notes will constitute a binding agreement between that holder and us upon the terms and subject to the conditions of the exchange offer described in this prospectus and in the letter of transmittal. The acceptance of the exchange offer by a tendering holder of outstanding notes will constitute the agreement by that holder to deliver good and marketable title to the tendered outstanding notes, free and clear of any and all liens, restrictions, charges, pledges, security interests, encumbrances or rights of any kind of third parties.

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Letter of Transmittal; Representations, Warranties and Covenants of Holders of Outstanding Notes

        Upon agreement to the terms of the letter of transmittal, a holder, or the beneficial owner of outstanding notes on behalf of which the holder has tendered, will, subject to that holder's ability to withdraw its tender, and subject to the terms and conditions of the exchange offer generally, thereby:

        In addition, by tendering outstanding notes in the exchange offer, each holder of outstanding notes will represent, warrant and agree that:

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        The representations, warranties and agreements of a holder tendering outstanding notes will be deemed to be repeated and reconfirmed on and as of the expiration date and the settlement date. For purposes of this prospectus, the "beneficial owner" of any outstanding notes means any holder that exercises investment discretion with respect to those outstanding notes.

Absence of Dissenters' Rights

        Holders of the outstanding notes do not have any appraisal or dissenters' rights in connection with the exchange offer.

Procedures for Tendering

        To participate in the exchange offer, you must properly tender your outstanding notes to the exchange agent as described below. We will only issue exchange notes in exchange for outstanding notes that you timely and properly tender. Therefore, you should allow sufficient time to ensure timely delivery of the outstanding notes, and you should follow carefully the instructions on how to tender your outstanding notes. It is your responsibility to properly tender your outstanding notes. We have the right to waive any defects. However, we are not required to waive defects, and neither we nor the exchange agent is required to notify you of defects in your tender.

        If you have any questions or need help in exchanging your outstanding notes, please contact the exchange agent at the address or telephone numbers set forth below.

        All of the outstanding notes were issued in book-entry form, and all of the outstanding notes are currently represented by global certificates registered in the name of a nominee of DTC (in the case of

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the dollar denominated outstanding notes) and a common depositary for Euroclear and Clearstream (in the case of the sterling denominated outstanding notes). To participate in the exchange offer, you should tender your notes in accordance with the book-entry procedures of DTC, Euroclear or Clearstream, as the case may be, and transmit an agent's message to the exchange agent through the facilities of DTC, Euroclear or Clearstream, as applicable, prior to the expiration date. If you are a beneficial owner whose original notes are registered in the name of a broker, dealer, commercial bank, trust company or other nominee, and wish to tender, you should promptly instruct the registered holder to tender on your behalf.

        Dollar denominated outstanding notes.    DTC's ATOP program is the only method of processing exchange offers through DTC. To accept an exchange offer through ATOP, participants in DTC must send electronic instructions to DTC through DTC's communication system. We have confirmed with DTC that the outstanding notes may be tendered using DTC's automatic tender offer program, or ATOP. The exchange agent will establish an account with DTC for purposes of the exchange offer promptly after the commencement of the exchange offer, and DTC participants may electronically transmit their acceptance of the exchange offer by causing DTC to transfer their outstanding notes to the exchange agent using the ATOP procedures. In connection with the transfer, DTC will send an agent's message to the exchange agent.

        Sterling denominated outstanding notes.    The holder of outstanding notes in whose name such outstanding notes are registered on the records of Euroclear or Clearstream must submit an electronic acceptance instruction, including an agent's message, to Euroclear or Clearstream to authorize the tender of the outstanding notes and the blocking of the account in Euroclear or Clearstream to which such outstanding notes are credited. If you are a beneficial owner of outstanding notes that are registered in the name of a broker, dealer, commercial bank, trust company or other nominee and you wish to tender, you should contact such registered holder promptly and instruct such registered holder to tender on your behalf in accordance with these procedures. Each holder submitting an electronic acceptance instruction must ensure that Euroclear or Clearstream, as the case may be, is authorized to block the accounts in which the tendered outstanding notes are held so that no transfers may be effected in relation to such notes at any time from and including the date on which the holder submits its electronic acceptance instruction. By blocking such outstanding notes in Euroclear or Clearstream, each holder of outstanding notes will be deemed to consent to have the relevant clearing system provide details concerning such holder's identity to the exchange agent. An electronic acceptance instruction must be submitted prior to the expiration date and before the relevant deadlines specified by Euroclear or Clearstream, as applicable.

        By using the book-entry confirmation procedures of DTC, Euroclear or Clearstream to exchange outstanding notes, you will not be required to deliver a letter of transmittal to the exchange agent. However, you will be bound by its terms just as if you had signed it.

        The term "agent's message" means a message, transmitted to DTC, Euroclear or Clearstream, as the case may be, received by the exchange agent and forming part of the confirmation of a book-entry transfer, which states that DTC, Euroclear or Clearstream, as applicable, has received an express acknowledgment from the holder that is tendering the outstanding notes that are the subject of the book-entry transfer that such holder agrees to be bound by the terms of this prospectus and the letter of transmittal and that we may enforce such terms against such holder.

        Any instruction through DTC, Euroclear or Clearstream is at your risk and such instruction will be deemed made only when actually received by the exchange agent. In order for an acceptance of an exchange offer through DTC, Euroclear or Clearstream to be valid, an agent's message must be transmitted to and received by the exchange agent prior to the expiration date. Delivery of instructions to DTC, Euroclear or Clearstream does not constitute delivery to the exchange agent.

        If for any reason physical certificates representing the outstanding notes have been issued to you and you are delivering such certificates for exchange, you must deliver an executed letter of transmittal,

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together with any other documents required by the letter of transmittal, to the exchange agent at the address set forth below under "—Exchange Agent."

        There is no procedure for guaranteed late delivery of the outstanding notes.

        The method of delivery of the outstanding notes, the letters of transmittal and all other required documents is at the election and risk of the holders. If such delivery is by mail, we recommend registered mail, properly insured, with return receipt requested. In all cases, you should allow sufficient time to assure timely delivery. No letters of transmittal or outstanding notes should be sent directly to us.

        Signatures on a letter of transmittal or a notice of withdrawal must be guaranteed by an eligible institution unless the outstanding notes surrendered for exchange are tendered by a registered holder of the outstanding notes or for the account of an eligible institution.

        An "eligible institution" is a firm which is a member of a registered national securities exchange or a member of the Financial Industry Regulatory Authority, Inc., or a commercial bank or trust company having an office or correspondent in the United States.

        If outstanding notes are registered in the name of a person other than the signer of the letter of transmittal, the outstanding notes surrendered for exchange must be endorsed by, or accompanied by a written instrument or instruments of transfer or exchange, in satisfactory form as determined by us in our sole discretion, duly executed by the registered holder with the holder's signature guaranteed by an eligible institution.

        We will determine in our sole discretion all questions as to the validity, form, eligibility, time of receipt, acceptance of tendered outstanding notes and withdrawal of tendered outstanding notes. Our determination will be final and binding. We reserve the absolute right to reject any outstanding notes not properly tendered or any outstanding notes our acceptance of which would, in the opinion of our counsel, be unlawful. We also reserve the right to waive any defect, irregularities or conditions of tender as to particular outstanding notes. Our interpretation of the terms and conditions of the exchange offer, including the instructions in the letter of transmittal, will be final and binding on all parties. Unless waived, all defects or irregularities in connection with tenders of outstanding notes must be cured within such time as we shall determine. Although we intend to notify holders of defects or irregularities with respect to tenders of outstanding notes, neither we, the exchange agent nor any other person will incur any liability for failure to give such notification. Tenders of outstanding notes will not be deemed made until such defects or irregularities have been cured or waived. Any outstanding notes received by the exchange agent that are not properly tendered and as to which the defects or irregularities have not been cured or waived will be returned to the tendering holder as soon as practicable after the expiration date of the exchange.

Acceptance of Outstanding Notes for Exchange and Delivery of Exchange Notes

        On the settlement date, exchange notes to be issued in exchange for outstanding notes in the exchange offer, if consummated, will be delivered in book-entry form.

        We will be deemed to accept validly tendered outstanding notes that have not been validly withdrawn as provided in this prospectus when, and if, we give oral or written notice of acceptance to the exchange agent. Subject to the terms and conditions of the exchange offer, delivery of the exchange notes will be made by the exchange agent on the settlement date following receipt of that notice. The exchange agent will act as agent for tendering holders of outstanding notes for the purpose of receiving outstanding notes and transmitting exchange notes as of the settlement date. If any tendered outstanding notes are not accepted for any reason described in the terms and conditions of the exchange offer, such unaccepted outstanding notes will be returned without expense to the tendering holders as promptly as practicable after the expiration or termination of the exchange offer.

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        In all cases, we will issue exchange notes for outstanding notes that we have accepted for exchange under the exchange offer only after the exchange agent receives, prior to 5:00 p.m., New York City time, on the expiration date:

        If for any reason physical certificates representing the outstanding notes have been issued to you and you are delivering such certificates for exchange, a properly completed and duly executed letter of transmittal and all other documents required by the letter of transmittal, together with physical certificates representing outstanding notes being submitted for exchange.

        If we do not accept any tendered outstanding notes for exchange or if outstanding notes are submitted for a greater principal amount than the holder desires to exchange, the unaccepted or non-exchanged outstanding notes will be returned to the holder thereof without cost to such holder or, as applicable, credited to an account maintained with DTC, Euroclear or Clearstream, as the case may be. These actions will occur as promptly as practicable after the expiration or termination of the exchange offer.

        Each broker-dealer that receives exchange notes for its own account in exchange for outstanding notes, where those outstanding notes were acquired by such broker-dealer as a result of market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of those exchange notes. See "Plan of Distribution."

Withdrawal of Tenders

        Tenders of outstanding notes may be withdrawn at any time prior to 5:00 p.m., New York City time, on the expiration date.

        For a withdrawal to be effective, you must:

        Any such notice of withdrawal must:

        If certificates for outstanding notes have been delivered or otherwise identified to the exchange agent, then, prior to the release of such certificates, the withdrawing holder must also submit the serial numbers of the particular certificates to be withdrawn and signed notice of withdrawal with signatures guaranteed by an eligible institution unless such holder is an eligible institution.

        If outstanding notes have been tendered pursuant to the procedures of DTC, Euroclear or Clearstream, any notice of withdrawal must specify the name and number of the account at DTC, Euroclear or Clearstream, as applicable, to be credited with withdrawn outstanding notes and otherwise comply with the procedures of such facility.

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        We will determine all questions as to the validity, form, eligibility and time of receipt of a notice of withdrawal. Our determination shall be final and binding on all parties. We will deem any outstanding notes so withdrawn not to have been validly tendered for exchange for purposes of the exchange offer.

        Any outstanding notes that have been tendered for exchange but that are not exchanged for any reason will be returned to the holder thereof without cost to such holder, or, as applicable, credited to an account maintained with DTC, Euroclear or Clearstream, as the case may be. This return or crediting will take place as soon as practicable after withdrawal, rejection of tender, expiration or termination of the exchange offer. You may retender properly withdrawn outstanding notes by following the procedures described under "—Procedures for Tendering" at any time prior to the expiration date of the exchange offer.

Exchange Agent

        The Bank of New York Mellon has been appointed as the exchange agent for the exchange offer. All correspondence in connection with the exchange offer should be sent or delivered by each holder of outstanding notes, or a beneficial owner's commercial bank, broker, dealer, trust company or other nominee, to the exchange agent at either of the following addresses:

The Bank of New York Mellon   The Bank of New York Mellon
One Canada Square   Attn: Reorganization Unit
40th Floor   101 Barclay Street—7 East
London E14 5AL   New York, NY10286
United Kingdom   USA

Tel: +44 207 964 4958

 

Tel: +1 212 815 5788
Fax: +44 207 964 2536   Fax: +1 212 298 1915
Attn: Event Administration   Attn: William Buckley

        Questions concerning tender procedures and requests for additional copies of this prospectus or the letter of transmittal should be directed to the exchange agent at the address, telephone numbers or fax number listed above. Holders of outstanding notes may also contact their commercial bank, broker, dealer, trust company or other nominee for assistance concerning the exchange offer. We will pay the exchange agent and information agent reasonable and customary fees for its services and will reimburse it for its reasonable out-of-pocket expenses.

Announcements

        We may make any announcement required pursuant to the terms of this prospectus or required by the Exchange Act or the rules promulgated thereunder through a reasonable press release or other public announcement in our sole discretion; provided, that, if any such announcement is made by issuing a press release to Business Wire or other national newswire service, such announcement shall be reasonable and sufficient.

Other Fees and Expenses

        We will bear the expenses of soliciting tenders of the outstanding notes. The principal solicitation is being made by mail. Additional solicitations may, however, be made by e-mail, facsimile transmission, telephone or in person by the exchange agent as well as our officers and other employees and those of our affiliates.

        We have not retained any dealer-manager in connection with this exchange offer and will not make any payments to broker-dealers or others soliciting acceptances of the exchange offer. However, we will pay the exchange agent reasonable and customary fees for its services and will reimburse it for its reasonable out-of-pocket expenses.

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        Tendering holders of outstanding notes will not be required to pay any fee or commission to the exchange agent. If, however, a tendering holder handles the transaction through its commercial bank, broker, dealer, trust company or other institution, that holder may be required to pay brokerage fees or commissions.

Transfer Taxes

        Holders who tender their outstanding notes for exchange will not be obligated to pay any transfer taxes in connection with that tender or exchange, except that holders who instruct us to register exchange notes in the name of, or request that outstanding notes not tendered or not accepted in the exchange offer be returned to, a person other than the registered tendering holder will be responsible for the payment of any applicable transfer tax on those outstanding notes.

Consequences of Failure to Exchange

        Holders of outstanding notes who do not exchange their outstanding notes for exchange notes under this exchange offer will remain subject to the restrictions on transfer applicable in the outstanding notes (i) as set forth in the legend printed on the outstanding notes as a consequence of the issuance of the outstanding notes pursuant to exemptions from, or in transactions not subject to, the registration requirements of the Securities Act and applicable state securities laws and (ii) otherwise as set forth in the offering memorandum distributed in connection with the private offering of the outstanding notes.

        Any outstanding notes not tendered by their holders in exchange for exchange notes in this exchange offer will not retain any rights under the registration rights agreement (except in certain limited circumstances). See "—Resale Registration Statement; Additional Interest."

        In general, you may not offer or sell the outstanding notes unless they are registered under the Securities Act, or if the offer or sale is exempt from the registration requirements of the Securities Act and applicable state securities laws. We do not intend to register resales of the outstanding notes under the Securities Act. Based on interpretations of the SEC staff, exchange notes issued pursuant to this exchange offer may be offered for resale, resold or otherwise transferred by their holders (other than any such holder that is our "affiliate" within the meaning of Rule 405 under the Securities Act) without compliance with the registration and prospectus delivery provisions of the Securities Act, provided that the holders acquired the exchange notes in the ordinary course of business and the holders are not engaged in, have no arrangement with any person to participate in, and do not intend to engage in, any public distribution of the exchange notes to be acquired in this exchange offer. Any holder who tenders in this exchange offer and is engaged in, has an arrangement with any person to participate in, or intends to engage in, any public distribution of the exchange notes (i) may not rely on the applicable interpretations of the SEC staff and (ii) must comply with the registration and prospectus delivery requirements of the Securities Act in connection with a secondary resale transaction.

Resale Registration Statement; Additional Interest

        Under the registration rights agreement, we have agreed that if (i) we determine that the exchange offer registration contemplated by the registration rights agreement is not available or may not be completed as soon as practicable after the last date of acceptance for exchange because it would violate any applicable law or applicable interpretations of the staff of the SEC; (ii) the exchange offer is not for any other reason completed by 475 days after the date of original issuance of the outstanding notes; (iii) a holder participating in the exchange offer does not receive exchange notes on the date of the exchange that may be sold without restriction under state and federal securities laws (other than due solely to the status of such holder as an affiliate of ours within the meaning of the Securities Act) and notifies us within 30 days after such holder first becomes aware of such restrictions; or (iv) we receive a written request from any of the initial purchasers of the outstanding notes representing that it holds registrable notes following the consummation of the exchange offer that are or were ineligible to be

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exchanged in the exchange offer, then we will use our reasonable best efforts, at our cost, to (a) file as promptly as practicable a registration statement (the "shelf registration statement") covering resales of the notes; (b) cause the shelf registration statement to become effective under the Securities Act and (c) keep the shelf registration statement continuously effective until the earlier of (1) the notes covered by the shelf registration statement cease to be registrable notes, (2) such time as all the registrable notes covered by the shelf registration statement have been sold pursuant to the shelf registration statement and (3) a period of one year from the effective date of the shelf registration statement. We will, in the event a shelf registration statement is filed, among other things, provide to each holder for whom such shelf registration statement was filed copies of the prospectus which is a part of the shelf registration statement, notify each such holder when the shelf registration statement has become effective and take certain other actions as are required to permit unrestricted resales of the notes. A holder selling outstanding notes or exchange notes pursuant to the shelf registration statement generally would be required to be named as a selling security holder in the related prospectus and to deliver a prospectus to purchasers, will be subject to certain of the civil liability provisions under the Securities Act in connection with such sales and will be bound by the provisions of the registration rights agreement which are applicable to such holder (including certain indemnification obligations).

        The registration rights agreement further provides that in the event that (each such event referred to in clauses (A) through (C), a "registration default") (A) the issuer and the guarantors fail to file the registration statement required by the registration rights agreement on or before the date specified for such filing, or (B) such registration statement is not declared effective by the SEC on or prior to the date specified for such declaration of effectiveness, or (C) we have not exchanged exchange notes for all notes validly tendered in accordance with the terms of the exchange offer on or prior to the 30th business day after the date specified for such effectiveness, then additional interest shall accrue on the principal amount of the notes at a rate of 0.25% per annum (which rate will be increased by an additional 0.25% per annum for each subsequent 90-day period that such additional interest continues to accrue, provided that the rate at which such additional interest accrues may in no event exceed 1.00% per annum) commencing on the occurrence of an event described in (A), (B) or (C) above; provided, however, that upon the filing of the registration statement required by the registration rights agreement (in the case of clause (A) above), the declaration of such registration statement to be effective by the SEC (in the case of clause (B) above), or the exchange of exchange notes for all notes validly tendered (in the case of clause (C) above), additional interest on such notes as a result of such clause (or the relevant sub-clause thereof), as the case may be, shall cease to accrue. If a shelf registration statement is required to be filed pursuant to the registration rights agreement, has been declared effective and thereafter either ceases to be effective or the included prospectus ceases to be usable at any time during the required effectiveness period, and such failure to remain effective or be usable exists for more than 30 days (whether or not consecutive) in any 12-month period, the interest rate on the notes will be increased by 0.25% per annum commencing on the 31st day in such 12-month period and ending on such date that the shelf registration statement has again been declared effective or the prospectus again becomes usable.

Other

        Participation in this exchange offer is voluntary, and you should carefully consider whether to participate. You are urged to consult your financial and tax advisors in making your own decision as to what action to take.

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Description of the Exchange Notes

        Definitions of certain terms used in this Description of the Exchange Notes may be found below under the heading "—Certain Definitions." For purposes of this section, the term:

        Parent and VM FinanceCo are not directly subject to the covenants under the Indenture.

        Each guarantee granted by an Additional Subsidiary Guarantor is referred to in this section as an "Additional Subsidiary Guarantee." The guarantees of the original Subsidiary Guarantors and any Additional Subsidiary Guarantors will collectively be referred to as "Subsidiary Guarantors," and their guarantees will collectively be referred to as "Subsidiary Guarantees." Parent, the Company, VM FinanceCo and the Subsidiary Guarantors are each referred to from time to time in this section as a "Note Guarantor," and each such guarantee is referred to in this section from time to time as a "Note Guarantee."

        The Issuer issued the outstanding notes and will issue the Exchange Notes under an Indenture (the "Indenture") dated as of January 19, 2010 (the "Closing Date"), among the Parent, the Company, VM FinanceCo, the Issuer, the Subsidiary Guarantors and The Bank of New York Mellon, as Trustee, Registrar and Paying Agent (the "Trustee") and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg Paying Agent, a copy of which is available from the Issuer upon request. The Indenture

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contains provisions which define your rights under the Notes. In addition, the Indenture governs the obligations of the Parent, the Company, VM FinanceCo, the Issuer, each Subsidiary Guarantor and the Trustee under the Notes. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the U.S. Trust Indenture Act of 1939, as amended.

        Each Holder, by accepting a Note, shall be deemed to have agreed to and accepted the terms and conditions of each of the Intercreditor Deeds. A copy of each of the Intercreditor Deeds shall be available on any Business Day upon prior written request at the offices of the Trustee and, for so long as any Notes are listed on the Luxembourg Stock Exchange, at the offices of the Luxembourg Paying Agent. See "Description of the Intercreditor Deeds."

        The following description is only a summary of certain provisions of the Indenture. It does not restate the terms of the Indenture in their entirety. We urge you to carefully read the Indenture as it, and not this description, governs your rights as Holders.

Overview of the Notes and the Note Guarantees

        The Notes:

        The Issuer is a finance subsidiary of the Company with no significant assets of its own other than its intercompany loan to the Company advancing the proceeds of the offering of the outstanding notes.

        The Parent Guarantee:

        The VM FinanceCo Guarantee:

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        The Company Guarantee:

        The Subsidiary Guarantees:

        Under limited circumstances, certain additional entities may be required to provide Additional Subsidiary Guarantees. The circumstances under which Additional Subsidiary Guarantees may be required are described below under "—Certain Covenants—Limitation on Guarantees of Indebtedness by Restricted Subsidiaries" and "—Merger and Consolidation."

        The circumstances under which the Note Guarantees may be released are described below under "—Note Guarantees—Release of Guarantees."

        Each of the Issuer, VM FinanceCo, Virgin Media Investments Limited, Parent, the Company and certain other guarantors has no revenue-generating operations of its own. To make payment on the

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Notes or the Note Guarantees, as applicable, each will depend on cash flows received from its subsidiaries and payments under intercompany loans, including convertible unsecured loan stock. See "Risk Factors—Risks relating to the exchange notes and our capital structure—The issuer is a finance company and some of the guarantors are holding companies or finance companies and are dependent upon cash flow from group subsidiaries to meet their obligations." Moreover, the Issuer and the other Restricted Subsidiaries will be able to Incur substantial amounts of Indebtedness in the future, including Indebtedness that will be effectively senior to the Notes and the Note Guarantees. See "—Other Indebtedness" and "—Certain Covenants—Limitation on Indebtedness" below.

Compliance with the Trust Indenture Act

        The Trust Indenture Act will become applicable to the indenture only upon the qualification of the indenture under the Trust Indenture Act, which will occur when the Exchange Notes have been registered under the Securities Act. To the extent applicable, the indenture requires the Issuer to comply with the provisions of TIA § 314 and to cause TIA § 313(b), relating to reports, and TIA § 314(d), relating to the release of property or securities or relating to the substitution therefor of any property or securities to be subjected to the Lien of the Collateral Documents, to be complied with. Any certificate or opinion required by TIA § 314(d) may be made by an officer of the Issuer except in cases where TIA § 314(d) requires that such certificate or opinion be made by an independent Person, which Person will be an independent engineer, appraiser or other expert selected by or reasonably satisfactory to the trustee.

        Notwithstanding anything to the contrary in the preceding paragraph, the Issuer will not be required to comply with all or any portion of TIA § 314(d) if the Issuer determines, in good faith, that under the terms of TIA § 314(d) and/or any interpretation or guidance as to the meaning thereof of the SEC and its staff, including "no action" letters or exemptive orders, all or any portion of TIA § 314(d) is inapplicable to released collateral. The Issuer and the Note Guarantors may, subject to the provisions of the indenture, among other things, without any release or consent by the Trustee or the Security Trustee or any holder of Pari Passu Lien Obligations, conduct ordinary course activities with respect to the Collateral.

Treatment of Content Business and Business Sales Division

        The Indenture permits us to, among other things, sell, transfer or spin off our business or assets relating to content activities. In addition, the Indenture permits us to contribute the assets relating to our business division to a joint venture. See "—Certain Covenants—Limitation on Restricted Payments" and "—Certain Covenants—Limitation on Sales of Assets and Subsidiary Stock." In each such case, the content-related assets or the business division assets, as the case may be, would no longer be held by the Company or any Restricted Subsidiary, and so would not be subject to the covenants contained in the Indenture. As a result, the Company may undertake transactions related to these assets (such as selling them or securing debt on them) which will not be subject to the limitations of the covenants, and the Company would potentially lose access to all or a portion of the cash flows generated by these assets as well as the value of these assets. On June 4, 2010, we entered into a sale and purchase agreement with BSkyB, pursuant to which we have agreed to sell Virgin Media TV to BSkyB.

        For the year ended December 31, 2009, our Content segment (which does not include our sit-up business which was sold on April 1, 2009, and is treated as a discontinued operation) had revenue (including internally generated revenue) of £167.8 million and segment contribution of £11.8 million. Revenue and segment contribution for our business division, which constitutes our Business segment, for the year ended December 31, 2009, were £580.8 million and £339.7 million, respectively.

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        For the three months ended March 31, 2010, our Content segment (which does not include our sit-up business which was sold on April 1, 2009, and is treated as a discontinued operation) had revenue (including internally generated revenue) of £40.9 million and segment contribution of £6.6 million. Revenue and segment contribution for our business division, which constitutes our Business segment, for the three months ended March 31, 2010, were £139.9 million and £76.1 million, respectively.

        Segment contribution, which is defined as operating income (loss) before network operating costs, corporate costs, depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges, is management's measure of segment profit. Segment contribution excludes the impact of certain costs and expenses that are not directly attributable to the reporting segments, such as the costs of operating the network, corporate costs and depreciation and amortization. Restructuring and other charges, and goodwill and intangible asset impairments are excluded from segment contribution as management believes they are not characteristic of our underlying business operations. Assets are reviewed on a consolidated basis and are not allocated to segments for management reporting since the primary asset of the business is the cable network infrastructure, which is shared by our Consumer and Business segments.

Principal, Maturity and Interest

        The outstanding Dollar Notes were issued in an aggregate principal amount of $1,000,000,000 and in minimum denominations of $100,000 and integral multiples of $1,000. The outstanding Sterling Notes were issued in an aggregate principal amount of £875,000,000 and in minimum denominations of £50,000 and integral multiples of £1,000. The Notes will mature on January 15, 2018.

        Interest on the Dollar Notes accrues at the rate of 6.50% per annum. Interest on the Sterling Notes accrues at the rate of 7.00% per annum. The Exchange Notes will bear interest from the most recent date to which interest has been paid on the outstanding Notes. The Issuer will pay interest semi-annually in arrears to Holders of Notes of record at the close of business on June 1 and December 1 immediately preceding the interest payment date on June 15 and December 15 of each year. The first interest payment date was June 15, 2010. Interest on the Notes will be computed on the basis of a 360-day year of twelve 30-day months.

Indenture May Be Used for Future Issuances

        From time to time, the Issuer may issue additional Notes of any series having identical terms and conditions to the Notes it is currently offering (the "Additional Notes"). The Issuer is permitted to issue such Additional Notes only if at the time of such issuance the Company and the Restricted Subsidiaries, including the Issuer, are in compliance with the covenant described below under "—Certain Covenants—Limitation on Indebtedness." Any Additional Notes may be treated with the Notes as a single class and may vote on all matters with such Notes except as described under the caption "—Amendment, Supplement and Waiver."

Paying Agents and Registrar

        The Trustee will initially act as Paying Agent and Registrar for the Notes. In addition, if and for so long as the Notes are listed on the Luxembourg Stock Exchange and traded on the Euro MTF market of the Luxembourg Stock Exchange and the rules of such exchange so require, the Issuer shall have appointed a Person located in Luxembourg reasonably acceptable to the Trustee as an additional paying agent and transfer agent for the Notes. The Issuer may change the Paying Agent or Registrar for the Notes without prior notice to the Holders of the Notes. However, if and for so long as the Notes are listed on the Luxembourg Stock Exchange and traded on the Euro MTF market of the Luxembourg Stock Exchange and the rules of such exchange so require, the Issuer will publish notice of the change

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in the Paying Agent and Registrar in a daily newspaper with general circulation in Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange (www.bourse.lu).

        The Issuer undertakes that it will ensure that it maintains a paying agent in a Member State that will not be obliged to withhold or deduct tax pursuant to the European Union Directive 2003/48/EC regarding the taxation of savings income (the "Directive").

Transfer and Exchange

        A Holder may transfer or exchange Notes in accordance with the indenture. The registrar and the trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents reasonably satisfactory to them and the Issuer may require a Holder to pay any taxes and fees required by law or permitted by the indenture. The Issuer is not required to transfer or exchange any Note selected for redemption. Also, the Issuer is not required to transfer or exchange any Note (1) for a period of 15 days before a selection of Notes to be redeemed or (2) tendered and not withdrawn in connection with a Repurchase Offer or an Excess Proceeds Offer.

Optional Redemption

        Except as set forth under "—Make-Whole Redemption" and "—Equity Proceeds Redemption" and under the heading "—Optional Redemption for Tax Reasons," the Issuer may not redeem the Notes prior to January 15, 2014. On or after this date, the Issuer may redeem each series of Notes, either together or separately, in whole or in part, on not less than 30 nor more than 60 days' prior notice, at the following redemption prices (expressed as percentages of principal amount), plus accrued and unpaid interest thereon, if any, to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), if redeemed during the 12-month period commencing on January 15 of the years set forth below:

Redemption Year
  Dollar Notes
Redemption
Price
  Sterling Notes
Redemption
Price
 

2014

    103.250 %   103.500 %

2015

    101.625 %   101.750 %

2016 and thereafter

    100.000 %   100.000 %

        For purposes of the optional redemption provisions, the Dollar Notes and the Sterling Notes will each be treated as a separate series.

Make-Whole Redemption

        The Issuer may choose to redeem each series of Notes, either together or separately, prior to 2014, in whole or in part, on not less than 30 nor more than 60 days' prior notice, by paying a redemption price equal to the sum of:

plus accrued and unpaid interest thereon, if any, to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date).

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Equity Proceeds Redemption

        At any time prior to January 15, 2013 the Issuer may, on one or more occasions, redeem up to a maximum of 40% of the original aggregate principal amount of each series of Notes, either together or separately, (calculated giving effect to any issuance of Additional Notes) with the Net Cash Proceeds of one or more Equity Offerings. The redemption price of the Dollar Notes is equal to 106.500% of the principal amount thereof and the redemption price of the Sterling Notes is equal to 107.000% of the principal amount thereof in each case plus accrued and unpaid interest thereon, if any, to the redemption date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided, however, that:

Payments of Additional Amounts

        All payments made under or with respect to the Notes or the Note Guarantees shall be made free and clear of, and without withholding or deduction for or on account of, any present or future tax, duty, levy, impost, assessment or other governmental charge (including related penalties, interest and other liabilities) (hereinafter, "Taxes") imposed or levied by or on behalf of (1) the government of the United Kingdom, (2) the United States, (3) any other jurisdiction in which the Issuer or any Note Guarantor is organized or is otherwise resident for tax purposes, (4) any jurisdiction from or through which payment is made and (5) any political subdivision or governmental authority or agency of or in any of the foregoing having the power to tax (each, a "Relevant Taxing Jurisdiction"), unless the Issuer or any Note Guarantor is required to withhold or deduct Taxes by law or by the interpretation or administration thereof.

        If the Issuer or a Note Guarantor is so required to withhold or deduct any amount for or on account of Taxes imposed by a Relevant Taxing Jurisdiction from any payment made under or with respect to the Notes or the Note Guarantees, the Issuer or the applicable Note Guarantor shall pay such additional amounts ("Additional Amounts") as may be necessary so that the net amount received by the Holders and beneficial owners (including Additional Amounts) after such withholding or deduction will not be less than the amount the Holders and beneficial owners would have received if such Taxes had not been withheld or deducted; provided, however, that the foregoing obligation to pay Additional Amounts does not apply to:

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        The Issuer or such Note Guarantor also will not be required to pay Additional Amounts:

        If the Issuer or any Note Guarantor will be obligated to pay Additional Amounts with respect to any payment under or with respect to the Notes or the relevant Note Guarantee, as applicable, the Issuer or such Note Guarantor, as applicable, will deliver to the Trustee at least 30 days prior to the date of that payment (unless the obligation to pay Additional Amounts arises after the 30th day prior to that payment date, in which case the Issuer or the Note Guarantor, as applicable, shall notify the Trustee promptly thereafter but in no event later than two Business Days prior to the date of payment) notice of payment in the form of an Officer's Certificate. In either circumstance, the Officer's Certificate must state that Additional Amounts will be payable and the amount so payable. The Officer's Certificate must also set forth any other information necessary to enable the paying agent to pay Additional Amounts to Holders and beneficial owners on the relevant payment date.

        The Issuer or any Note Guarantor will (i) make such withholding or deduction and (ii) remit the full amount deducted or withheld to the Relevant Taxing Jurisdiction in accordance with applicable law. The Issuer will provide the Trustee with official receipts or other documentation satisfactory to the Trustee evidencing the payment of the Taxes with respect to which Additional Amounts are paid. Certificated copies of such receipts and such other documentation shall be made available to Holders upon request and will be made available at the offices of the Paying Agent if the Notes are then listed on the Luxembourg Stock Exchange. The Issuer will attach to such copies an Officer's Certificate stating (x) that the amount of withholding Taxes evidenced by such copies was paid in connection with any payment made under or with respect to the Notes or any Note Guarantee and (y) the amount of such withholding Taxes paid per $1,000 or £1,000 of Notes.

        Whenever in this "Description of the Exchange Notes" there is mentioned, in any context:

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that reference shall be deemed to include payment of Additional Amounts provided for in this section to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof.

        The Issuer or a Note Guarantor will pay any present or future stamp, court or documentary taxes or any other excise or property taxes, charges or similar levies that arise in any jurisdiction from the execution, delivery, enforcement or registration of the Notes, the Note Guarantees, the Indenture or any other related document or instrument, or the receipt of any payments with respect to the Notes or the Note Guarantees, excluding taxes, charges or similar levies imposed by any jurisdiction that is not a Relevant Taxing Jurisdiction, and the Issuer will agree to indemnify the Holders or the Trustee for any such taxes paid by the Holders or the Trustee.

        The preceding provisions will survive any termination, defeasance or discharge of the Indenture and shall apply mutatis mutandis to any jurisdiction in which any successor Person to the Issuer or any Note Guarantee is organized or any political subdivision or taxing authority or agency thereof or therein.

Optional Redemption for Tax Reasons

        The Issuer may, at its option, redeem all, but not less than all, of each series of the then-outstanding Notes at any time upon giving not less than 30 nor more than 60 days' notice to the Holders (which notice shall be irrevocable), at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the redemption date (a "Tax Redemption Date") and all Additional Amounts, if any, that will become due on the Tax Redemption Date as a result of such redemption or otherwise (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), if the Issuer determines in good faith that (1) it, or any Note Guarantor, with respect to a Note Guarantee, as the case may be, has become obligated or, on the occasion of the next payment due in respect of a series of the Notes, would be obligated to pay Additional Amounts with respect to any payment under or with respect to a series of the Notes or the relevant Note Guarantee, as applicable, and (2) the payment obligation cannot be avoided by the Issuer taking reasonable measures available to it (including making payment through a paying agent located in another jurisdiction), as a result of:

        The notice of redemption may not be given (a) earlier than 90 days prior to the earliest date on which the Issuer would be obligated to make a payment or withholding if a payment in respect of a series of the Notes were then due and (b) unless at the time such notice is given, such obligation to pay such Additional Amounts remains in effect. Prior to the publication or, where relevant, mailing of any notice of redemption of a series of the Notes pursuant to the foregoing, the Issuer will deliver to the Trustee an Officer's Certificate and Opinion of Counsel to the effect that the circumstances

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referred to above exist and the Issuer cannot avoid the obligation by taking reasonable measures available to it. The Trustee shall accept the Officer's Certificate and Opinion of Counsel as sufficient evidence of the satisfaction of the conditions precedent described above.

Sinking Fund

        The Notes will not be entitled to the benefit of any sinking fund.

Selection

        If the Issuer partially redeems any series of the Notes, the Trustee will select the Notes in such series to be redeemed on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair and appropriate (and in such manner that complies with applicable legal and exchange requirements). No Note of $100,000 in original principal amount or less (in the case of the Dollar Notes) or £50,000 in original principal amount or less (in the case of the Sterling Notes) will be redeemed in part. If the Issuer redeems any Note in part only, the notice of redemption relating to such Note shall state the portion of the principal amount thereof to be redeemed. In case of a Definitive Note, a new Note in principal amount equal to the unredeemed portion thereof will be issued in the name of the Holder thereof upon cancellation of the original Note. In case of a global Note, an appropriate notation will be made on such Note to decrease the principal amount thereof to an amount equal to the unredeemed portion thereof. On and after the redemption date, interest will cease to accrue on Notes or portions thereof called for redemption so long as the Issuer has deposited with any paying agent funds sufficient to pay the principal of, plus accrued and unpaid interest thereon, if any, on the Notes to be redeemed (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date).

Other Indebtedness

        On March 31, 2010, the Company, the Issuer and the other Restricted Subsidiaries had the following outstanding indebtedness (other than intercompany indebtedness owed to other members of the Virgin Media group):

        Although the Indenture limits the Incurrence of Indebtedness by the Company, the Issuer and the other Restricted Subsidiaries, such limitation is subject to a number of significant qualifications. The Company, the Issuer and the other Restricted Subsidiaries will be able to Incur additional Indebtedness. Such Indebtedness may be senior indebtedness or may be effectively senior to the Notes, the Company Guarantee and the Subsidiary Guarantees. See "—Certain Covenants—Limitation on Indebtedness" below. The Indenture does not limit the Incurrence of Indebtedness by Parent, VM FinanceCo or any Unrestricted Subsidiary.

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        The ability of the Issuer to service its Indebtedness, including the Notes, is dependent upon the earnings of the Company and its Subsidiaries and the ability of the Subsidiaries of the Company to distribute earnings to the Company as dividends, loans or other payments and then the Company's ability to distribute those earnings as contributions, loans or other payments to the Issuer. In particular, the ability of Subsidiaries of the Company to transfer funds to the Company (in the form of cash dividends, loans, advances or otherwise) may be limited by financial assistance rules, corporate benefit laws, other corporate laws, banking or other regulations. For example, restrictions under English company law prohibit Subsidiaries that are incorporated in England and Wales from paying dividends except out of profits legally available for distribution. If these restrictions are applied to the Subsidiaries of the Company, then the Company would not be able to use the earnings of those Subsidiaries to make payments on the Notes to the extent that such earnings cannot otherwise be paid lawfully to the Company (directly or through Subsidiaries of the Company). In addition, contractual obligations of the Subsidiaries of the Company, including financing arrangements such as the Existing Credit Facility, limit and may in the future limit the ability of Subsidiaries to transfer funds to the Company. As noted above, agreements relating to future Indebtedness of the Subsidiaries of the Company, including capital markets Indebtedness, may include such limitations.

Note Guarantees

        Each of the Note Guarantors will fully and unconditionally guarantee the performance and full and punctual payment when due, whether at Stated Maturity, by acceleration or otherwise, of all obligations of the Issuer under the Indenture (including obligations to the Trustee) and the Notes, whether for payment of principal of or interest on or in respect of the Notes, expenses, indemnification or otherwise (all such obligations being herein referred to as the "Guaranteed Obligations"). Each of the Note Guarantees will be limited to an amount not to exceed the maximum amount that can be Guaranteed by the relevant Note Guarantor, without rendering the Note Guarantee voidable under applicable law relating to ultra vires, corporate benefit, fraudulent conveyance, fraudulent transfer or similar laws affecting the rights of creditors generally) or other considerations under applicable law.

        Each Subsidiary of Parent that is currently guaranteeing the Existing Credit Facility has provided a Note Guarantee for the benefit of the Notes. The Existing Credit Facility requires that members of the Bank Group which generate not less than 80% of the consolidated operating cash flow of the Bank Group (as tested by reference to the annual financial information of the Bank Group) act as guarantors under the Existing Credit Facility. The Bank Group is substantially similar to the Company and the Restricted Subsidiaries.

        The Parent Guarantee will be granted on a senior unsecured basis. The Company Guarantee will be secured by Liens on substantially all of the assets of the Company being substantially the same assets as those on which Liens have been granted in respect of the Existing Credit Facility (subject to any Permitted Liens) and will share in any enforcement proceeds on a pari passu basis therewith. The VM FinanceCo Guarantee will be secured by Liens on substantially all of the assets of VM FinanceCo being substantially the same assets as those on which Liens have been granted in respect of the Existing Credit Facility (subject to any Permitted Liens) and will share in any enforcement proceeds on a pari passu basis therewith. The Subsidiary Guarantees will be secured by Liens on substantially all of the assets of the Subsidiary Guarantors taken as a whole, being substantially the same assets as those on which Liens have been granted in respect of the Existing Credit Facility (subject to any Permitted Liens) and will share in any enforcement proceeds on a pari passu basis therewith.

        Each of the secured Note Guarantees will be effectively senior to any existing or future unsecured Indebtedness of the relevant Note Guarantor to the extent of the value of the Collateral securing such Note Guarantor's obligations under the Note Guarantee and other Secured Indebtedness. See under "—Certain Covenants—Limitation on Guarantees of Indebtedness by Restricted Subsidiaries."

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Additional Subsidiary Guarantees

        Under limited circumstances, certain additional entities may be required to provide Additional Subsidiary Guarantees by executing and delivering to the Trustee a supplemental indenture in the form attached to the Indenture (along with an officer's certificate and opinion of counsel as the Trustee may reasonably require). See under "—Certain Covenants—Limitation on Guarantees of Indebtedness by Restricted Subsidiaries." Each such Additional Subsidiary Guarantor will, jointly and severally, with the Note Guarantors and each other Additional Subsidiary Guarantor, fully and unconditionally guarantee the performance and full and punctual payment when due, whether at Stated Maturity, by acceleration or otherwise, of the Guaranteed Obligations.

        The circumstances under which Additional Subsidiary Guarantees may be required are described below under "—Certain Covenants—Limitation on Guarantees of Indebtedness by Restricted Subsidiaries" and "—Merger and Consolidation." The circumstances under which a Restricted Subsidiary that is not a Note Guarantor would be required to become an Additional Subsidiary Guarantor are limited. If a Restricted Subsidiary that is not a Note Guarantor provides a guarantee for the benefit of the Existing Credit Facility, such Restricted Subsidiary will also be required to provide an Additional Subsidiary Guarantee.

        Each Additional Subsidiary Guarantee will be limited under its Additional Subsidiary Guarantee to an amount not to exceed the maximum amount that can be Guaranteed by each Additional Subsidiary Guarantor, without rendering such Additional Subsidiary Guarantee voidable under applicable law relating to ultra vires, corporate benefit, fraudulent conveyance, fraudulent transfer or similar laws affecting the rights of creditors generally) or other considerations under applicable law. Any Additional Subsidiary Guarantee shall be issued on substantially the same terms as the Subsidiary Guarantees. For purposes of the Indenture and this "Description of the Exchange Notes," references to the Subsidiary Guarantees include references to any Additional Subsidiary Guarantees and references to the Note Guarantors include references to any Additional Subsidiary Guarantors.

Release of Guarantees

        Subject to the following paragraph and the terms of the Intercreditor Deeds, each Note Guarantee, once it becomes due, is a continuing guarantee and shall (a) remain in full force and effect until payment in full of all the Guaranteed Obligations, (b) be binding upon each Note Guarantor and its successors and (c) inure to the benefit of, and be enforceable by, the Trustee, the Holders and their successors, transferees and assigns.

        The Indenture provides that each Note Guarantee by a Note Guarantor will be automatically and unconditionally released and discharged, and each Note Guarantor and its obligations under the Note Guarantee, the Indenture, the Collateral Documents and the Intercreditor Deeds will be released and discharged:

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        The Trustee is authorized by the Holders to take all necessary actions, including the granting of releases or waivers under the Intercreditor Deeds, to effectuate any release in accordance with these provisions, subject to customary and reasonably satisfactory protections and indemnifications.

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

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Security for the Notes

General

        The Notes and the secured Note Guarantees will be secured by Liens on substantially all of the assets of the Company, the Issuer and each of the Note Guarantors (except for the Parent), being substantially the same assets as those on which Liens have been granted in respect of the Indebtedness under the Existing Credit Facility and future Secured Indebtedness (subject to any Permitted Liens) and will share in any enforcement proceeds on a pari passu basis therewith.

        The Collateral includes substantially all of the assets of the Issuer, the Company and each of the Subsidiary Guarantors, other than the Excluded Assets. The Existing Credit Facility requires that members of the Bank Group which generate not less than 80% of the consolidated operating cash flow of the Bank Group (as tested by reference to the annual financial information of the Bank Group) act as guarantors under the Existing Credit Facility and such members are required to grant first ranking security over all or substantially all of their assets to secure the payment of all sums payable under the Existing Credit Facility. The Bank Group is substantially similar to the Company and the Restricted Subsidiaries. The Collateral will also secure any Additional Notes. The Collateral may also secure other Indebtedness of the Company or any Restricted Subsidiary, including any Pari Passu Lien Obligations, which may share in the Collateral on a pari passu basis. The Incurrence of such Indebtedness is limited by the covenants of the Indenture. See also "—Certain Covenants—Limitation on Indebtedness" and "—Certain Covenants—Limitation on Liens." The amount of such additional Secured Indebtedness could be significant.

        Any other additional security interests that may in the future be pledged to secure obligations under the Notes and the Indenture would also constitute Collateral.

        Subject to certain conditions, including compliance with the covenant described under "—Certain Covenants with Respect to the Collateral—Impairment of Security Interest," the Company and the Restricted Subsidiaries are permitted to pledge the Collateral in connection with future issuances of any Indebtedness, including any Additional Notes, in each case permitted under the Indenture and on terms consistent with the relative priority of such Indebtedness. In addition to the release provisions described below, the Liens will cease to exist by operation of law or will be released, depending on the type of security interest, upon the defeasance or discharge of the Notes as provided in "—Defeasance" or "—Satisfaction and Discharge," in each case in accordance with the terms and conditions of the Indenture.

        The Liens over some or all of the Collateral may also be released in circumstances described under "—Release."

        No appraisals of any of the Collateral have been prepared by or on behalf of the Company, the Issuer or any other Note Guarantor in connection with the issuance of the Notes. There can be no assurance that the proceeds from the sale of the Collateral remaining after sharing with other creditors entitled to share in such proceeds would be sufficient to satisfy the obligations owed to the holders of the Notes. By its nature, some or all of the Collateral will be illiquid and may have no readily ascertainable market value. Accordingly, there can be no assurance that the Collateral will be able to be sold in a short period of time, if at all. In addition, the Group Intercreditor Deed places limitations on the ability of the Security Trustee to enforce the Collateral. See "Description of the Intercreditor Deeds—Group Intercreditor Deed." Each Holder will be deemed to have irrevocably appointed the Security Trustee to act as its agent and security trustee under the Intercreditor Deeds and the Collateral Documents.

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Priority

        The relative priority among the Senior Liabilities, our secured hedging liabilities, the subordinated guarantees granted by VMIH and Virgin Media Investments Limited with respect to the Existing Notes and certain intra-group liabilities is established by the terms of the Intercreditor Deeds. See "Description of the Intercreditor Deeds." In addition, pursuant to Additional Intercreditor Deeds entered into after the Closing Date in compliance with the Indenture, the Collateral may be pledged to secure other Indebtedness. See "—Certain Covenants with Respect to the Collateral—Impairment of Security Interest."

Collateral Documents

        The Company, the Issuer, VM FinanceCo and the Subsidiary Guarantors and, in each case, the Security Trustee have entered into Collateral Documents specifying the terms of the Liens that secure the obligations under the Notes and the Note Guarantees. Subject to the terms of, and limitations under, the Collateral Documents, these security interests will secure the payment and performance when due of the obligations of the Issuer and the relevant Note Guarantors under the Notes, the Note Guarantees, the Indenture and the Collateral Documents.

        Each Collateral Document is governed by the laws of the jurisdiction in which the assets that constitute the Collateral are located in which comprise England, New York, Colorado, the Island of Jersey, Scotland and Luxembourg. The Collateral Documents provide that the rights thereunder must be exercised by the Security Trustee. Since the Holders are not parties to the Collateral Documents, they may not, individually or collectively, take any direct action to enforce any rights in their favor under the Collateral Documents. The Holders may only act by instructing the Trustee to act through the Security Trustee.

        Subject to the terms of the Senior Finance Documents (as defined in the Group Intercreditor Deed), the Collateral Documents may be amended with the consent of the Instructing Party (as defined in the Group Intercreditor Deed); provided that any amendment which would affect (i) the nature or the scope of the Collateral or (ii) the manner in which the proceeds of any enforcement are distributed, requires the consent of all of the Senior Lenders (as defined in the Group Intercreditor Deed) and the related hedge counterparties; and, provided further that no new or additional obligations may be imposed upon any person that is party to such Collateral Documents without the consent of that person. For a description of what amendments require consent under the Indenture, see "—Amendment, Supplement and Waiver."

        Subject to the terms of the Indenture and the Collateral Documents, the Issuer and the Note Guarantors will have the right to remain in possession and retain exclusive control of the Collateral securing the Notes, to freely operate the Collateral and to collect, invest and dispose of any income therefrom.

Limitations on the Collateral

        The Capital Stock and other securities of a Subsidiary of the Company or the Affiliate Guarantors (other than Virgin Media Investments Limited and, following the 2014 Notes Repayment, VMIH), that are owned by the Company or any Note Guarantor will constitute Collateral only to the extent that such Capital Stock and other securities can secure the Notes without Rule 3-16 of Regulation S-X under the Securities Act (or any other law, rule or regulation) requiring separate financial statements of such Subsidiary to be filed with the SEC (or any other governmental agency). In the event that Rule 3-16 of Regulation S-X under the Securities Act requires or is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other governmental agency) of separate financial statements of any such Subsidiary, due to the fact that such Subsidiary's Capital

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Stock and other securities secure the Notes, then the Capital Stock and other securities of such Subsidiary shall automatically be deemed not to be part of the Collateral (but only to the extent necessary to not be subject to any such financial statement requirement and only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary). In such event, the Collateral Documents may be amended or modified, without the consent of any Holder, to the extent necessary to release the security interests in the shares of Capital Stock and other securities that are so deemed to no longer constitute part of the Collateral.

        In the event that Rule 3-16 of Regulation S-X under the Securities Act permits or is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary's Capital Stock and other securities to secure the Notes in excess of the amount then pledged without the filing with the SEC (or any other governmental agency) of separate financial statements of such Subsidiary, then the Capital Stock and other securities of such Subsidiary shall automatically be deemed to be a part of the Collateral (but only to the extent necessary to not be subject to any such financial statement requirement). In such event, the Collateral Documents may be amended or modified, without the consent of any Holder, to the extent necessary to subject to the Liens under the Collateral Documents such additional Capital Stock and other securities.

        In accordance with the limitations set forth in the two immediately preceding paragraphs, the Collateral will include shares of Capital Stock and other securities of Subsidiaries of the Company and the Affiliate Guarantors only to the extent that the applicable value of such Capital Stock and other securities (on a Subsidiary-by-Subsidiary basis) is less than 20% of the aggregate principal amount of the Notes outstanding. Therefore, following the Closing Date, the portion of the Capital Stock and other securities of such Subsidiaries constituting Collateral may decrease or increase as described above. This limitation does not apply to any pledges of the Capital Stock and other securities of Virgin Media Investments Limited and, following the 2014 Notes Repayment, VMIH. The taking of any enforcement action by the Security Trustee at a level where the Collateral may be limited due to the limitation outlined in the foregoing paragraphs could be limited by the terms of the Group Intercreditor Deed. See "Description of the Intercreditor Deeds—Group Intercreditor Deed."

        Regardless of the limitations on the Collateral securing the Notes as outlined in the foregoing paragraphs, the Liens on such Capital Stock or other securities securing the Existing Credit Facility and other future Secured Indebtedness will not be released and will remain in force with respect to such property. See "Risk Factors—Risk relating to the exchange notes and our capital structure—Pledges of shares and other securities may be limited in amount with respect to the exchange notes."

        The Liens will further be limited as necessary to recognize certain defenses generally available to providers of Liens (including those that relate to fraudulent conveyance or transfer, thin capitalization, voidable preference, financial assistance, corporate purpose, capital maintenance or similar laws, regulations or defenses affecting the rights of creditors generally) or other considerations under applicable law. See "Risk Factors—Risk relating to the exchange notes and our capital structure—Laws relating to fraudulent preference, fraudulent conveyance and corporate benefit may adversely affect the validity and enforceability of payments under the guarantees of the exchange notes by the guarantors."

Security Trustee

        The lenders under the Existing Credit Facility, certain secured hedge counterparties and the Trustee have and, by accepting a Note, each Holder will be deemed to have (i) irrevocably appointed the Security Trustee to act as its agent and security trustee under the Intercreditor Deeds and the Collateral Documents and, (ii) irrevocably authorized the Security Trustee to (A) perform the duties and exercise the rights, powers and discretions that are specifically given to it under the Group Intercreditor Deed or the Collateral Documents, together with any other incidental rights, power and

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discretions; and (B) execute each Collateral Document, waiver, modification, amendment, renewal or replacement expressed to be executed by the Security Trustee on its behalf.

        For a description of the authority and function of the Security Trustee, see "Description of the Intercreditor Deeds—Group Intercreditor Deed—Security Trustee Authorization."

Enforcement of Security Interest

        The ability of the Security Trustee to enforce the Liens is restricted by the terms of the Group Intercreditor Deed and will be at the discretion of the lenders representing 662/3% of all outstandings under the Existing Credit Facility until certain conditions are met. See "Description of the Intercreditor Deeds—Group Intercreditor Deed—Instructing Party."

Certain Covenants with Respect to the Collateral

        The Collateral will be pledged pursuant to the Collateral Documents, which contain provisions relating to identification of the Collateral and the creation of the Liens on the relevant Note Guarantors' properties and assets. The following is a summary of some of the covenants and provisions set forth in the Collateral Documents and the Indenture as they relate to the Collateral.

Further Assurances

        The Collateral Documents generally provide that each Note Guarantor that is providing Liens is required to execute such further security interests and assurances in favor of the Security Trustee and/or the secured creditors and do all such acts and things as the Security Trustee from time to time may reasonably require over or in relation to all of the Collateral to secure the secured obligations or to perfect or protect the security intended to be created by the Collateral Documents or, in connection with the enforcement of a Lien, to facilitate the realization of the enforcement.

Impairment of Security Interests

        Neither the Company nor any Restricted Subsidiary will take or omit to take any action which would materially adversely affect or impair the Liens in favor of the Security Trustee, the Trustee and the Holders with respect to the Collateral (it being understood that the Incurrence of Permitted Liens or other actions permitted as described under "—Certain Covenants" shall under no circumstances be deemed to materially impair the Security Interest with respect to the Collateral). Neither the Company nor any Restricted Subsidiary shall grant to any Person, or permit any Person to retain (other than the Security Trustee, for the benefit of the Trustee and the Holders and the other beneficiaries described in the Collateral Documents), any interest whatsoever in the Collateral, other than Permitted Liens. Notwithstanding the foregoing, the Collateral may be discharged and released, and the Collateral Documents amended accordingly, pursuant to the terms of the Indenture, the Intercreditor Deeds or any Additional Intercreditor Deeds, provided, however, that, following an Enforcement Control Event, no Collateral Document may be amended, extended, renewed, restated, supplemented or otherwise modified or replaced, unless contemporaneously with any such action, either (i) the Company delivers to the Trustee a certificate from an officer of the relevant Person which confirms the solvency of the Person granting such Lien after giving effect to the transactions contemplated by such amendment, extension, renewal, restatement, supplement or other modification or replacement, and in the case of any company incorporated in England and Wales, it is not, and will not as a result of the incurrence of such Lien become unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 or (ii) an opinion of counsel in form and substance reasonably satisfactory to the Security Agent and the Trustee, confirming that, after giving effect to any transactions related to such amendment, extension, renewal, restatement, supplement, modification or release (followed by an immediate retaking of a lien of at least equivalent ranking over the same assets), the Lien or Liens created under

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the Collateral Documents, so amended, extended, renewed, restated, supplemented, modified or released and replaced are valid Liens not otherwise subject to any limitation, imperfection or new hardening period, in equity or at law, that such Lien or Liens were not otherwise subject to immediately prior to such amendment, extension, renewal, restatement, supplement, modification or replacement. The Trustee shall (subject to customary and reasonably satisfactory protections and indemnifications from the Issuer) consent to such amendments without the need for instructions from the Holders.

        Neither the Company nor any Restricted Subsidiary will enter into any agreement that requires the proceeds received from any sale of Collateral to be applied to repay, redeem, defease or otherwise acquire or retire any Indebtedness of any Person, other than as permitted by the Indenture, the Notes, the Subsidiary Guarantees, the Collateral Documents and the Intercreditor Deeds. The Company will, and will cause each Subsidiary Guarantor to, at its sole cost and expense, execute and deliver all such agreements and instruments as necessary, or as the Trustee reasonably requests, to more fully or accurately describe the assets and property intended to be Collateral or the obligations intended to be secured by the Collateral Documents.

After-Acquired Property

        The Company and the Restricted Subsidiaries may under certain circumstances be required to provide Liens over additional assets of the Issuer or the Note Guarantors in the future as described under "Certain Covenants—Limitation on Guarantees of Indebtedness by Restricted Subsidiaries" and "Description of Intercreditor Deeds."

Release

        The Liens on the Collateral will be released with respect to the Notes:

        To the extent required by the Indenture for the release of principal properties that constitute Collateral, the Issuer will furnish to the Trustee, prior to each proposed release of such Collateral pursuant to the Collateral Documents and the Indenture, an Officer's Certificate, an Opinion of Counsel and any other documentation reasonably required by the Trustee as required by the Indenture.

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        In addition, in connection with the incurrence of any Pari Passu Lien Obligations, the Company can request that all or part of the Liens on the Collateral with respect to the Notes be released under the then existing Collateral Documents if the Pari Passu Lien Obligations are to be secured on the Collateral under new collateral documents (the "Replacement Collateral Documents"); provided that the Security Trustee and the Trustee, for the benefit of the Holders, also enters into the Replacement Collateral Documents which provide for Liens on the Collateral which are equal, or substantially equal, to the Liens provided for the benefit of any Pari Passu Lien Obligations; and provided further that a board resolution be provided to the Trustee from any company granting any liens under any applicable Replacement Collateral Document certifying that, in the case of any company incorporated in England and Wales, it is not, and will not as a result of the incurrence of such Lien become unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 (or successor law) or, for all other companies, it is solvent under the laws of its jurisdiction of incorporation. The Holders authorize and direct the Security Trustee and the Trustee, upon request of the Company, to so release any Liens on the Collateral, as required, and to enter into any such Replacement Collateral Documents. The entering into any Replacement Collateral Documents may result in renewed hardening periods under applicable law in the relevant jurisdictions and may limit the recovery in an enforcement proceeding. See "Risk Factors—Risk relating to the exchange notes and our capital structure—There are circumstances other than repayment or discharge of the exchange notes under which the security will be released automatically, without your consent or the consent of the security trustee."

        Upon compliance by the Issuer or the Note Guarantors, as the case may be, with the conditions precedent set forth above, as applicable, the Trustee or the Security Trustee shall as soon as reasonably practicable cause to be released and reconveyed to the Issuer, or its Note Guarantors, as the case may be, the released Collateral.

Repurchase at the Option of the Holders

Change of Control

        Upon the occurrence of any of the following events (each a "Change of Control"), each Holder will have the right to require the Issuer to purchase all or any part of such Holder's Notes at a purchase price in cash equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the date of purchase (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date); provided, however, that notwithstanding the occurrence of a Change of Control, the Issuer shall not be obligated to purchase the Notes pursuant to this section in the event that it has exercised its right to redeem all of the Notes under the terms of the sections titled "—Optional Redemption":

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        Notwithstanding the foregoing, a Change of Control shall not be deemed to have occurred if a Virgin Media Holding Company that is not then a Subsidiary of Parent becomes the ultimate parent of the Company and, if such Virgin Media Holding Company had been Parent, no Change of Control would have otherwise occurred; provided, however, that such Virgin Media Holding Company guarantees the Notes on a senior basis.

        Parent and, subject to the limitations discussed below, the Company and the Issuer could, in the future, enter into certain transactions, including mergers, acquisitions, refinancings or recapitalizations, that would not constitute a Change of Control under the Indenture, but that could increase the amount of Indebtedness outstanding at such time or otherwise affect the Issuer's and the Company's capital structure or credit ratings. Restrictions on the ability of the Issuer and the Company to Incur additional Indebtedness or enter into such transactions are contained in the covenants described under "—Certain Covenants—Limitation on Indebtedness," "—Certain Covenants—Limitation on Liens" and "—Merger and Consolidation." Such restrictions can only be waived with the consent of the Holders of a majority in principal amount of the Notes then outstanding. Except for the limitations contained in such covenants, however, the Indenture does not contain any covenants or provisions that afford Holders protection in the event of a highly leveraged transaction. In addition, you should note that recent case law suggests that, in the event that incumbent directors are replaced as a result of a contested election, issuers may nevertheless avoid triggering a change of control under a clause similar to clause (2) of the definition of "Change of Control" above, if the outgoing directors were to approve the new directors for the purpose of such change of control clause.

        The occurrence of the events which would constitute a Change of Control could constitute a default or require prepayments under the agreement governing the Existing Credit Facility, although certain of the events that constitute a Change of Control under the Existing Credit Facility and may cause a default or require prepayments thereunder may not constitute a Change of Control under the Indenture. Future Indebtedness of the Issuer and the Company and their Subsidiaries may contain prohibitions with respect to certain events which would constitute a Change of Control or require such

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Indebtedness to be repurchased or repaid upon a Change of Control. Moreover, the exercise by the Holders of their right to require the Issuer to purchase the Notes could cause a default under such Indebtedness, even if the Change of Control itself does not, due to the financial effect of such repurchase on the Issuer. Finally, the Issuer's ability to pay cash to the Holders upon a purchase may be limited by the Issuer's then-existing financial resources. Sufficient funds may not be available when necessary to make any required purchases.

        The Change of Control provisions described above may deter certain mergers, tender offers and other takeover attempts involving Parent, the Company, any Virgin Media Holding Company or the Issuer by increasing the capital required to effectuate such transactions. The definition of "Change of Control" includes a disposition of all or substantially all of the Property and assets of Parent, any Virgin Media Holding Company or the Company to other Persons (other than Parent, any Virgin Media Holding Company or the Issuer). There is no precise established definition of the phrase "substantially all" under applicable law. Accordingly, in certain circumstances there may be a degree of uncertainty as to whether a particular transaction would involve a disposition of "all or substantially all" of the Property or assets of a Person. As a result, it may be unclear as to whether a Change of Control has occurred and whether a Holder of the Notes may require the Issuer to make an offer to repurchase the Notes as described above.

        A change in the Board of Directors as a result of a proxy contest may not be deemed a Change of Control.

Repurchase Offer Procedures

        Within 30 days following any Change of Control giving rise to the obligations under this covenant or, at the Issuer's option, at any time prior to a Change of Control but following the public announcement thereof, the Issuer shall mail a notice to each Holder with a copy to the Trustee (the "Repurchase Offer") stating:

        The Issuer will not be required to make a Repurchase Offer upon a Change of Control if a third party makes the Repurchase Offer in the manner, at the times and otherwise in compliance with the requirements set forth in the Indenture applicable to a Repurchase Offer made by the Issuer and purchases all Notes validly tendered and not withdrawn under such Repurchase Offer. The Issuer shall not be required to effect more than one Repurchase Offer, including repurchasing all Notes validly tendered and not withdrawn under such Repurchase Offer, for each Change of Control.

        The Issuer will comply with the requirements of Section 14(e) of the Exchange Act and any applicable securities laws or regulations in connection with the repurchase of Notes pursuant to this

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covenant. To the extent that the provisions of any securities laws or regulations conflict with provisions of this covenant, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this covenant by virtue thereof.

        The provisions under the Indenture obligating the Issuer to make an offer to repurchase the Notes as a result of a Change of Control may be waived or modified with the written consent of the Holders of a majority in aggregate principal amount of the Notes outstanding.

        The Issuer's ability to repurchase the Notes upon a Change of Control may be limited by a number of factors. Even if sufficient funds were otherwise available, the terms of other Indebtedness may prohibit the Issuer's prepayment of the Notes. In the event that a Change of Control occurs at a time when the Company or the Restricted Subsidiaries are prohibited from repurchasing the Notes, the Company or any Restricted Subsidiary may seek to repay such Indebtedness, to obtain the consent of its lenders to repurchase the Notes or to refinance any borrowing that contains such prohibition. If such other Indebtedness is not repaid or such consent or refinancing is not obtained, the Issuer will be unable to fulfill its repurchase obligations if Holders exercise their rights following a Change of Control, thereby resulting in a default under the Indenture. A default under the Indenture may result in a cross default under such other Indebtedness.

Certain Covenants

        The Indenture contains covenants including, among others, the following:

        Limitation on Indebtedness.    (a) The Company will not, and will not cause or permit any Restricted Subsidiary to, Incur, directly or indirectly, any Indebtedness; provided, however, that the Company and any Restricted Subsidiary may Incur Indebtedness if on the date of such Incurrence and after giving effect thereto the Leverage Ratio would not exceed 5.5:1.0.

        (b)   Notwithstanding the foregoing paragraph (a), the Company and any Restricted Subsidiary may Incur the following Indebtedness:

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        (c)   For purposes of determining the outstanding principal amount of any particular Indebtedness Incurred pursuant to this covenant:

        (d)   For the purposes of determining compliance with any sterling denominated restriction on the Incurrence of Indebtedness denominated in a currency other than pounds sterling, the sterling-equivalent principal amount of such Indebtedness Incurred pursuant thereto shall be calculated based on the relevant currency exchange rate in effect on the date that such Indebtedness was Incurred, in the case of term Indebtedness, or first committed, in the case of revolving credit Indebtedness, provided that (x) the sterling-equivalent principal amount of any such Indebtedness outstanding on the Closing Date shall be calculated based on the relevant currency exchange rate in effect on the Closing Date, (y) if such Indebtedness is Incurred to Refinance other Indebtedness denominated in a currency other than pounds sterling, and such refinancing would cause the applicable sterling denominated restriction

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to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such Refinancing, such sterling denominated restriction shall be deemed not to have been exceeded so long as the principal amount of such Refinancing Indebtedness does not exceed the principal amount of such Indebtedness being Refinanced based on the exchange rate between the currency of the Indebtedness being Refinanced and the currency of the Refinancing Indebtedness and (z) the sterling-equivalent principal amount of Indebtedness denominated in a currency other than pounds sterling and Incurred pursuant to any Credit Facility shall be calculated based on the relevant currency exchange rate in effect on, at the Company's option, (i) the Closing Date, (ii) any date on which any of the respective commitments under the Credit Facility shall be reallocated between or among facilities or subfacilities thereunder, or (iii) the date of such Incurrence. The principal amount of any Indebtedness Incurred to Refinance other Indebtedness, if Incurred in a different currency from the Indebtedness being Refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on the date of such Refinancing.

        Limitation on Layering.    The Company will not, and will not permit any Restricted Subsidiary, to Incur Indebtedness that is subordinated in right of payment to other Indebtedness of the Company or any Restricted Subsidiary, unless such Indebtedness Incurred by the Company or a Restricted Subsidiary is also subordinated to the Notes; provided, however, that no Indebtedness will be deemed to be contractually subordinated in right of payment to any other Indebtedness of the Company and the Restricted Subsidiaries solely by virtue of being unsecured, by virtue of being secured with different collateral, by virtue of being secured on a junior priority basis or by virtue of the application of waterfall or other payment-ordering provisions.

        Limitation on Restricted Payments.    (a) The Company will not, and will not permit any Restricted Subsidiary to, directly or indirectly:

(any such dividend, distribution, payment, purchase, redemption, repurchase, defeasance, retirement, or other acquisition or Investment being herein referred to as a "Restricted Payment"), if at the time the Company or such Restricted Subsidiary makes such Restricted Payment:

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        For purposes of calculating the aggregate amount of Restricted Payments under clause (a)(C) above declared or made subsequent to July 25, 2006 and prior to the date of the Indenture, any Restricted Payment which was not included in the calculation of the amount of Restricted Payments under Section 4.07(a)(C) of the 2006 Indenture shall also not be included in such calculation under clause (a)(C) above.

        (b)   The provisions of the foregoing paragraph (a) will not prohibit:

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        Limitation on Restrictions on Distributions from Restricted Subsidiaries.    The Company will not permit any Restricted Subsidiary (other than the Issuer and the Affiliate Guarantors) to create or otherwise cause or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary (other than the Issuer and the Affiliate Guarantors) to:

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        The provisions of the preceding paragraph will not prohibit:

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        (a)   The Company will not, and will not permit any Restricted Subsidiary to, make any Asset Disposition unless:

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        (c)   In the event of an Asset Disposition that requires the purchase of Notes pursuant to clause (b)(3)(C) of this covenant, the Issuer will be required to purchase Notes tendered pursuant to an offer by the Issuer for the Notes (an "Excess Proceeds Offer"), which Excess Proceeds Offer shall be in the amount of the Allocable Excess Proceeds, on a pro rata basis according to principal amount, at a purchase price equal to 100% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the purchase date (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), in accordance with the procedures (including prorating in the event of over-subscription and calculation of the principal amount of Notes denominated in different currencies) set forth in the Indenture. To the extent that any portion of the amount of Net Available Cash remains after compliance with the preceding sentence, the Issuer may apply the remaining Net Available Cash in accordance with clause (a)(3)(D) of this covenant. The Issuer will not be required to make an Excess Proceeds Offer for Notes or any other Indebtedness pursuant to this covenant if the Net Available Cash available therefor (after application of the proceeds as provided in clauses (a)(3)(A) and (a)(3)(B)) is less than £40 million for any particular Asset Disposition (which lesser amount will be carried forward for purposes of determining whether an Excess Proceeds Offer is required with respect to the Net Available Cash from any subsequent Asset Disposition). Upon completion of each Excess Proceeds Offer, the amount of Allocable Excess Proceeds will be reset at zero.

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        The term "Allocable Excess Proceeds" means the product of:

        (d)   For the purposes of this covenant, the following are deemed to be cash:

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

        Limitation on Transactions with Affiliates.    (a) The Company will not, and will not permit any Restricted Subsidiary to, directly or indirectly, enter into any transaction or series of related transactions (including the purchase, sale, lease or exchange of any Property or the rendering of any service) with any Affiliate of the Company (an "Affiliate Transaction") unless such transaction is on terms:

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        (b)   The provisions of the foregoing paragraph (a) will not apply to:

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        Limitation on Liens.    The Company will not, and will not permit any Restricted Subsidiary to, directly or indirectly, Incur or permit to exist any consensual Lien of any nature whatsoever (other than Permitted Liens) on any of its Property or assets (including Capital Stock of a Restricted Subsidiary), whether owned at the Closing Date or thereafter acquired.

        Limitation on Guarantees of Indebtedness by Restricted Subsidiaries.    No Restricted Subsidiary (other than the Issuer or a Notes Guarantor) shall guarantee or otherwise become obligated under any Indebtedness under the Existing Credit Facility or any Pari Passu Lien Obligations unless such Restricted Subsidiary is or becomes an Additional Guarantor on the date on which such other guarantee or Indebtedness is Incurred (or as soon as reasonably practicable thereafter) and, if applicable, executes and delivers to the Trustee a supplemental Indenture in the form attached to the Indenture (and such documentation relating thereto as the Trustee may reasonably require pursuant to the terms of the Indenture) pursuant to which such Restricted Subsidiary will provide an Additional Subsidiary Guarantee (which Additional Subsidiary Guarantee shall be senior to or pari passu with such Restricted Subsidiary's guarantee of such other Indebtedness); provided that,

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        The preceding paragraph shall not apply to (1) the granting by such Restricted Subsidiary of a Permitted Lien under circumstances which do not otherwise constitute the guarantee of Indebtedness of the Company or the Issuer; or (2) the guarantee by any Restricted Subsidiary of Indebtedness that refinances Indebtedness which benefited from a guarantee by any Restricted Subsidiary Incurred in compliance with this covenant immediately prior to such refinancing.

        Virgin Media Finance PLC shall, within 60 days of the 2014 Notes Repayment, enter into Collateral Documents providing Liens over substantially the same assets as it provides for the benefit of the Existing Credit Facility or any Pari Passu Lien Obligations.

        Within 60 days of the delivery by the Company of the financial statements for any fiscal year starting with the fiscal year ended 31 December 2010 under "Certain Covenants—Ongoing Reporting," the Company shall cause any Restricted Subsidiary to become a Note Guarantor under the Indenture so that the Issuer and the Note Guarantors on a Consolidated basis represent not less than seventy-five per cent (75%) of the EBITDA of the Company and the Restricted Subsidiaries for such fiscal year.

        Each Restricted Subsidiary that becomes a Note Guarantor on or after the Closing Date shall also become a party to the Collateral Documents or execute separate Collateral Documents, as applicable, and the Intercreditor Deeds, as applicable, and shall as promptly as practicable execute and deliver such security instruments, financing statements, mortgages, deeds of trust (in substantially the same form as those executed and delivered with respect to the Collateral) and certificates and opinions of counsel (to the extent, and substantially in the form, delivered on the Closing Date (but no greater scope) as may be necessary to vest in the Security Trustee a valid security interest (subject to Permitted Liens) upon all its properties and assets (other than the Excluded Assets) as security for the Notes or the Subsidiary Guarantees and as may be necessary to have such property or asset added to the Collateral as required under the Collateral Documents and the Indenture, and thereupon all provisions of the Indenture relating to the Collateral shall be deemed to relate to such properties and assets to the same extent and with the same force and effect; provided, however, that if granting such security interest, as the case may be, in any such property or asset requires the consent of a third party, the Company will use commercially reasonable efforts to obtain such consent with respect to the security interest for the benefit of the Security Trustee on behalf of the Holders.

        No Lien shall be required to be granted over any asset if such Lien may result in (i) any breach of corporate benefit, financial assistance, fraudulent preference or thin capitalisation laws or regulations or other considerations under applicable law of any applicable jurisdiction, (ii) a significant risk to the officers of the relevant grantor of the Lien of contravention of their fiduciary duties and/or of civil or criminal liability in any applicable jurisdiction or (iii) costs that are disproportionate to the benefit obtained by the beneficiaries of such Lien; provided that with respect to clause (iii) such Lien has not also been provided to the benefit of the Existing Credit Facility or any other Pari Passu Lien Obligations.

        Ongoing Reporting.    So long as the Notes are outstanding, the Company will furnish to the Trustee, within the time periods specified in the SEC's rules and regulations, without cost to the Trustee (who, at the Issuer's expense, will furnish by mail to the Holders); provided, however, that to the extent any reports are filed on the SEC's website, such reports shall be deemed to be furnished to the Trustee and the Holders:

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        The Parent will also make available copies of all reports required by clauses (1) and (2) above on its website.

        Limitation on Activities.    The Company will not, and will not permit any Restricted Subsidiary to, engage in any business, other than a Permitted Business, except for any businesses that are immaterial to the business as a whole.

        Limitation on Sale/Leaseback Transactions.    The Company will not, and will not permit any Restricted Subsidiary to, enter into any Sale/Leaseback Transaction with respect to any Property unless:

        Designation of Restricted and Unrestricted Subsidiaries.    The Board of Directors may designate any Restricted Subsidiary of the Company or any Affiliate Guarantor (including any newly acquired or newly formed Subsidiary) other than the Issuer to be an Unrestricted Subsidiary if:

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        In the event of any such designation, the Company shall be deemed to have made an Investment constituting a Restricted Payment pursuant to the covenant described under "—Limitation on Restricted Payments."

        The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary if immediately after giving effect to such designation:

        Any such designation of a Subsidiary or as a Restricted Subsidiary or Unrestricted Subsidiary by the Board of Directors shall be evidenced to the Trustee by promptly filing with the Trustee a copy of the resolution of the Board of Directors giving effect to such designation and an Officer's Certificate certifying that such designation complied with the foregoing provisions.

        Additional Intercreditor Deeds.    The Indenture provides that in connection with the Incurrence of any Indebtedness by the Parent or any of its Subsidiaries, the Trustee shall, at the request of the Company, enter into with the Company, the relevant Restricted Subsidiaries and the holders of such Indebtedness (or their duly authorized representatives) one or more intercreditor agreements or deeds (including a restatement, replacement, amendment or other modification of either of the Intercreditor Deeds) (an "Additional Intercreditor Deed"), on substantially the same terms (other than, prior to an Enforcement Control Event, with respect to rights to provide notice or instructions or other administrative matters) as the relevant Intercreditor Deed (or terms (i) not materially less favorable to the Holders and/or (ii) substantially similar as applies to the Existing Credit Facility or any Pari Passu Lien Obligations) with respect to subordination, payment blockage, limitation on enforcement and

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release of Guarantees, priority and release of security; provided, further, that such Additional Intercreditor Deed will not impose any personal obligations on the Trustee or adversely affect the personal rights, duties, liabilities, indemnification or immunities of the Trustee under the Indenture or the Intercreditor Deeds. In connection with the foregoing, the Company shall furnish to the Trustee such documentation in relation thereto as it may reasonably require.

        The Indenture also provides that, in relation to the Intercreditor Deeds or an Additional Intercreditor Deed, the Trustee shall consent on behalf of the holders to the payment, repayment, purchase, repurchase, defeasance, acquisition, retirement or redemption of any obligations subordinated to the Notes thereby; provided, however, that such transaction would comply with the covenant described under "—Certain CovenantsLimitation on Restricted Payments."

        Covenant Suspension.    From and after the first day on which (i) the Notes have been assigned an Investment Grade Rating by at least two Rating Agencies and (ii) no Default or Event of Default under the Indenture has occurred and is continuing (the "Suspension Date"), the Company and the Restricted Subsidiaries shall cease to be subject to certain sections of the Indenture, including the provisions summarized under "—Limitation on Indebtedness," "—Limitation on Restricted Payments," "—Limitation on Restrictions on Distributions from Restricted Subsidiaries," "—Limitation on Sales of Assets and Subsidiary Stock," "—Limitation on Transactions with Affiliates," "—Limitation on Activities," "—Limitation on Sale/Leaseback Transactions," clause (y) of the third paragraph under "—Designation of Restricted and Unrestricted Subsidiaries" and clause (3) of the first paragraph under "Description of the Exchange Notes—Merger and Consolidation" (collectively, the "Suspended Covenants").

        If at any time following the Suspension Date one or more Rating Agencies downgrades the rating assigned to the Notes to below an Investment Grade Rating with the result that less than two Rating Agencies maintain an Investment Grade Rating with respect to the Notes (such date being the "Reinstatement Date"), then the Suspended Covenants will thereafter be reinstated and again be applicable pursuant to the terms of the Indenture, unless and until the Notes subsequently again attain an Investment Grade Rating by two or more Rating Agencies. The period of time between the Suspension Date and Reinstatement Date shall be referred to as the "Suspension Period."

        No action taken by either the Company or any of the Restricted Subsidiaries during the Suspension Period with respect to a Suspended Covenant (including, for the avoidance of doubt, any failure to comply with a Suspended Covenant), nor the compliance or performance by the Company or any of the Restricted Subsidiaries with any contractual obligation entered into during the Suspension Period with respect to a Suspended Covenant will constitute a Default, Event of Default or breach of any kind under the Indenture, the Notes or the Guarantees and will not result in any reduction of any amounts available under any of the baskets as of the Suspension Date that may apply under the Suspended Covenants.

Merger and Consolidation

        The Company will not consolidate with or merge with or into, or convey, transfer or lease all or substantially all its assets to, any Person, unless:

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        The Successor Company will succeed to, and be substituted for, and may exercise every right and power of, the Company under the Indenture, and upon such substitution, the predecessor Company will be released from its obligations under the Indenture and the Notes, but, in the case of a conveyance, transfer or lease of all or substantially all its assets, such predecessor Company will not be released from the obligation to pay the principal of and interest on the Notes.

        Clauses (2) and (3) of the first paragraph of this section will not apply to any transaction in which (i) any Restricted Subsidiary consolidates with, merges into or transfers all or part of its properties and assets to the Company or (ii) (x) the Company consolidates or merges with or into or transfers all or substantially all of its assets to an Affiliate incorporated or organized for the purpose of changing the legal domicile of the Company, reincorporating the Company in another jurisdiction or changing its legal structure to a corporation or other entity or (y) the Company consolidates or merges with or into or transfers all or substantially all of its assets to a Restricted Subsidiary so long as all assets of the Restricted Subsidiaries immediately prior to such transaction (other than Capital Stock of such Restricted Subsidiary) are owned by such Restricted Subsidiary and the Restricted Subsidiaries immediately after the consummation thereof.

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        In addition, the Issuer and each Note Guarantor will not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its assets to any Person unless:

        Notwithstanding the foregoing, the Company or any Restricted Subsidiary may consolidate with, merge into or transfer all or part of its properties and assets to the Issuer or any Note Guarantor; provided, however, that neither the Company nor any Restricted Subsidiary shall be permitted to consolidate with, merge into or transfer all or part of its properties and assets to any Note Guarantor if following such consolidation, merger or transfer such Note Guarantor would be prohibited by applicable law from continuing to provide a Note Guarantee or the amount of such Note Guarantee would be required to be limited to a greater extent than immediately prior to such consolidation, merger or transfer.

        There is no precise established definition of the phrase "substantially all" under applicable law. Accordingly, in certain circumstances there may be a degree of uncertainty as to whether a particular transaction would involve a disposition of "all or substantially all" of the Property or assets of a Person.

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As a result there may be circumstances in which it is unclear whether the provisions of this section apply.

Events of Default

        Each of the following is an Event of Default:

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

        However, a default under clause (4) or (5) will not constitute an Event of Default until the Trustee notifies the Issuer or the Holders of at least 25% in aggregate principal amount of the outstanding Notes notify the Issuer and the Trustee of the default and the Company, the Issuer or the relevant Restricted Subsidiary, as applicable, does not cure such default within the time specified in clause (4) or (5) after receipt of such notice. Such notice must specify the Default, demand that it be remedied and state that such notice is a notice of Default. When a Default or an Event of Default is cured within the time specified, it ceases. In the event of a declaration of acceleration of the Notes because an Event of Default described in clause (6) under "—Events of Default" has occurred and is continuing, the declaration of acceleration of the Notes shall be automatically annulled if the event of default or payment default triggering such Event of Default pursuant to clause (6) shall be remedied or cured, or waived by the holders of the Indebtedness, or the Indebtedness that gave rise to such Event of Default shall have been discharged in full, within 30 days after the declaration of acceleration with respect thereto and if (1) the annulment of the acceleration of the Notes would not conflict with any judgment or decree of a court of competent jurisdiction and (2) all existing Events of Default, except nonpayment of principal, premium or interest on the Notes that became due solely because of the acceleration of the Notes, have been cured or waived.

        Subject to the terms of the Group Intercreditor Deed and the provisions of the above paragraph, if an Event of Default (other than an Event of Default under the bankruptcy provisions described in clause (7) with respect to the Issuer, any Note Guarantor or any Significant Subsidiary) occurs and is

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continuing and is known to the Trustee, the Trustee or the Holders of at least 25% in aggregate principal amount of the outstanding Notes by notice to the Issuer may declare the principal of and accrued but unpaid interest on all the Notes to be due and payable. Upon such a declaration, such principal and interest will be due and payable immediately. If an Event of Default under the bankruptcy provisions described in clause (7) with respect to the Issuer, any Note Guarantor or any Significant Subsidiary occurs, the unpaid principal of and interest on all the Notes will become immediately due and payable without any declaration or other act on the part of the Trustee or any Holders. Under certain circumstances, the Holders of a majority in aggregate principal amount of the outstanding Notes may rescind any such acceleration with respect to the Notes and its consequences.

        Subject to the provisions of the Indenture relating to the duties of the Trustee, in case an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or powers under the Indenture at the request or direction of any of the Holders unless such Holders have provided to the Trustee indemnity or security satisfactory to the Trustee against any loss, liability or expense. Except to enforce the right to receive payment of principal, premium (if any) or interest when due, no Holder may pursue any remedy with respect to the Indenture or the Notes unless:

        The Holders of a majority in aggregate principal amount of the outstanding Notes will be given the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or of exercising any trust or power conferred on the Trustee. The Trustee, however, may refuse to follow any direction that the Trustee determines (after consultation with counsel) conflicts with law, the Indenture or the Intercreditor Deeds or that the Trustee determines is unduly prejudicial to the rights of any other Holder or that may involve the Trustee in personal liability or expense, provided that the Trustee may take any other action deemed proper by the Trustee which is not consistent with any such direction. Prior to taking any action under the Indenture, the Trustee will be entitled to reasonable indemnification against all losses and expenses caused by taking or not taking such action.

        If a Default (or the Event of Default) occurs and is continuing and is known to the Trustee, the Trustee must mail to each Holder notice of the Default (or the Event of Default) within the earlier of 90 days after it occurs or 30 days after it is known to a Trust Officer or written notice of it is received by the Trustee. Except in the case of a Default in the payment of principal of, premium, if any, or interest on any Note (including payments pursuant to the redemption provisions of such Note), the Trustee may withhold notice if and so long as a committee of its Trust Officers in good faith determines that withholding notice is in the best interests of the Holders.

        In addition, the Issuer will be required to deliver to the Trustee, within 120 days after the end of each fiscal year, an Officer's Certificate indicating whether the signer thereof knows of any Default that occurred during the previous fiscal year. The Issuer will also be required to deliver to the Trustee,

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within 30 days after the occurrence thereof, written notice of any event which would constitute an Event of Default, its status and what action the Issuer is taking or proposes to take in respect thereof.

Amendment, Supplement and Waiver

        Subject to certain exceptions, the Indenture, the Notes, the Subsidiary Guarantees and the Collateral Documents may be amended or supplemented with the consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding and, subject to certain exceptions, any past default or compliance with certain provisions thereof may be waived with the consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding; provided, however, that if any amendment, waiver or other modification would only affect the Dollar Notes or the Sterling Notes, the consent of the Holders of at least a majority in aggregate principal amount of the then-outstanding Notes of the affected series (and not the consent of the Holders of any other series of Notes) shall be required. However, with respect to the Notes, without the consent of each Holder of an outstanding Note affected, no amendment or supplement may:

        In addition, (A) without the consent of at least seventy-five per cent (75%) in aggregate principal amount of Notes then outstanding, no amendment or supplement may:

        (B)  without the consent of each affected Holder, no amendment or supplement to any Intercreditor Deed may be made that materially adversely affects (x) the ranking (as it relates to the right to receive payments on enforcement) of the Notes and Note Guarantees with respect to any Pari Passu Lien Obligations and (y) the subordination (as it relates to the right to receive payments on enforcement) of Subordinated Obligations to the Notes and Note Guarantees as set forth in the Intercreditor Deeds;

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        Notwithstanding any of the foregoing, with respect to the Notes, without the consent of any Holder, the Parent, the Issuer, the Subsidiary Guarantors and the Trustee may amend or supplement the Indenture, the Notes, the Subsidiary Guarantees, the Intercreditor Deeds and the Collateral Documents to:

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        For purposes of determining whether the Holders of the requisite principal amount of Notes have taken any action under the Indenture, the principal amount of Sterling Notes and Dollar Notes shall be deemed to be the Dollar Equivalent of such principal amount of Sterling Notes and Dollar Notes as of (i) if a record date has been set with respect to the taking of such action, such date or (ii) if no such record date has been set, the date the taking of such action by the Holders of such requisite principal amount is certified to the Trustee by the Issuer.

        After an amendment becomes effective, the Issuer is required to mail to Holders a notice briefly describing such amendment. However, the failure to give such notice to all Holders, or any defect therein, will not impair or affect the validity of the amendment. In addition, for so long as the Notes are listed on the Luxembourg Stock Exchange and the rules of such exchange so require, the Issuer will inform such exchange of any amendment, supplement or waiver and will publish notice of such amendment, supplement or waiver in Luxembourg in a daily newspaper with general circulation in Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange (www.bourse.lu).

Defeasance

        The Company and the Issuer may at any time terminate all obligations of the Issuer and the Note Guarantors under the Notes, the Note Guarantees, the Indenture, the Intercreditor Deeds and the Collateral Documents, and cause the release of all Liens on the Collateral granted under the Collateral Documents ("legal defeasance"), except for certain obligations, including those respecting the defeasance trust and obligations to register the transfer or exchange of the Notes, to replace mutilated, destroyed, lost or stolen Notes and to maintain a registrar and paying agent in respect of the Notes.

        In addition, the Company and the Issuer may at any time terminate:

        In the event that the Company or the Issuer exercises its legal defeasance option, each Note Guarantor will be released from all of its obligations with respect to its Note Guarantee and the Collateral Documents.

        The Company or the Issuer may exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. If the Company or the Issuer exercises its legal defeasance option, payment of the Notes may not be accelerated because of an Event of Default with respect thereto. If the Company or the Issuer exercises its covenant defeasance option, payment of the Notes may not be accelerated because of an Event of Default specified in clause (4), (6), (7) (with respect only to any Note Guarantor and Significant Subsidiaries) or (8) under "—Events of Default" above or

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because of the failure of the Issuer to comply with clause (3) under the first paragraph of "—Merger and Consolidation" above.

        In order to exercise either defeasance option, the Company or the Issuer must irrevocably deposit in trust (the "defeasance trust") with the Trustee cash in U.S. dollars or U.S. Government Obligations or a combination thereof (in the case of the Dollar Notes) or cash in pounds sterling or UK Government Obligations or a combination thereof (in the case of the Sterling Notes), the principal of and interest on which will be sufficient to pay the principal of, premium (if any) and interest on the outstanding Notes to redemption or maturity, as the case may be, as specified in an Officer's Certificate, and must comply with certain other conditions, including delivery to the Trustee of an Opinion of Counsel to the effect that Holders and beneficial owners of the Notes will not recognize income, gain or loss for U.S. Federal or U.K. income tax purposes as a result of such deposit and defeasance and will be subject to U.S. Federal and U.K. income tax on the same amounts and in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred (and, in the case of legal defeasance only, such Opinion of Counsel must be based on and refer to a ruling of the Internal Revenue Service or other change in applicable U.S. Federal income tax law).

Satisfaction and Discharge

        The Indenture will be discharged and will cease to be of further effect as to all Notes and Note Guarantees issued thereunder when:

        In addition, the Issuer must deliver an Officer's Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

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Prescription

        There is no express term in the Indenture as to any time limit on the validity of claims of the Holders to interest and repayment of principal, but any such claims will be subject to any statutory limitation period prescribed under the laws of the State of New York.

Concerning the Trustee

        The Bank of New York Mellon is to be the Trustee under the Indenture and has been appointed by the Issuer as a Paying Agent with regard to the Notes.

        The Bank of New York Mellon, as trustee, is permitted to engage in other transactions with us from time to time. If the Trustee becomes a creditor of the Issuer, the Indenture limits its rights to obtain payment of claims in certain cases, or to realize on certain Property received in respect of any such claim as security or otherwise. The Trustee will be permitted to engage in other transactions; however, if it acquires any conflicting interest (within the meaning of the Trust Indenture Act) it must eliminate such conflict within 90 days, apply to the SEC for permission to continue as trustee or resign.

        The Holders of a majority in aggregate principal amount of the then-outstanding Notes will have the right to direct the time, method and place of conducting any proceeding for exercising any remedy available to the Trustee in respect of such Notes, subject to certain exceptions. The Indenture provides that in case an Event of Default occurs and is continuing, the Trustee will exercise such of the rights and powers vested in it by the Indenture, and use the same degree of care and skill in its exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person's own affairs. Subject to such provisions, the Trustee will be under no obligation to exercise any of its rights or powers under the Indenture at the request of any Holder of Notes unless such Holder has provided to the Trustee security and indemnity satisfactory to it against any loss, liability or expense.

Notices

        All notices to Holders of each series of Notes will be validly given if mailed to them at their respective addresses in the register of the Holders of such Notes, if any, maintained by the Registrar. In addition, for so long as any of the Notes are listed on the Luxembourg Stock Exchange and the rules of the Luxembourg Stock Exchange so require, notices with respect to the Notes listed on the Luxembourg Stock Exchange will be published in a leading newspaper having general circulation in Luxembourg (which is expected to be the Luxemburger Wort) or on the website of the Luxembourg Stock Exchange (www.bourse.lu).

Governing Law

        The Indenture and the Notes will be governed by, and construed in accordance with, the laws of the State of New York without giving effect to applicable principles of conflicts of law to the extent that the application of the law of another jurisdiction would be required thereby.

No Personal Liability of Directors, Officers, Employees and Stockholders

        No past, present or future director, officer, employee, incorporator or stockholder of Parent, the Company, the Issuer or any Subsidiary Guarantor, as such, will have any liability for any obligations of Parent, the Issuer or any Subsidiary Guarantor under the Parent Guarantee, the Notes, the Subsidiary Guarantees or the Indenture, or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and releases such liability. The waiver and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under U.S. Federal securities laws and it is the view of the SEC that such a waiver is against public policy.

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Enforceability of Judgments

        Since the Issuer and the Subsidiary Guarantors are incorporated in the United Kingdom and substantially all of their operating assets and the operating assets of their Subsidiaries are outside the United States, any judgment obtained in the United States against the Issuer or the Subsidiary Guarantors, including judgments with respect to the payment of principal, premium, interest, Additional Amounts and any purchase price with respect to the Notes, may not be collectable within the United States. See "Enforceability of Civil Liabilities."

Currency Indemnity

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

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

Calculation of Sterling Denominated Restrictions

        Except as otherwise specifically set forth herein under the covenant described under "—Certain Covenants—Limitation on Indebtedness," for purposes of determining compliance with any sterling denominated restriction herein, the Sterling Equivalent amount for purposes hereof that is denominated in a non-sterling currency shall be calculated based on the relevant currency exchange rate in effect on the date such non-sterling amount is incurred or made, as the case may be.

Certain Definitions

        "2004 Indenture" means the indenture dated as of April 13, 2004, between the Issuer, NTL Incorporated, Cable Communications Funding Corp., NTL (UK) Group, Inc., NTL Communications Limited, NTL Investment Holdings Limited and The Bank of New York as trustee.

        "2006 Indenture" means the indenture dated as of July 25, 2006 between the Issuer, NTL Incorporated, NTL:Telewest LLC, NTL Holdings Inc., NTL (UK) Group, Inc., NTL Communications

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Limited, NTL Investment Holdings Limited, The Bank of New York as trustee and paying agent and The Bank of New York (Luxembourg) S.A. as Luxembourg paying agent.

        "2014 Notes" means the £375 million of 9.75% Senior Notes due 2014, the $425 million of 8.75% Senior Notes due 2014 and the €225 million of 8.75% Senior Notes due 2014 issued by VM FinanceCo pursuant to the 2004 Indenture.

        "Additional Assets" means:

provided, however, that any such Restricted Subsidiary described in clause (2) or (3) above is primarily engaged in a Permitted Business.

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

        "Applicable Premium" means, with respect to a Note at any time, the greater of (1) 1.0% of the principal amount of such Note at such time and (2) the excess (to the extent positive) of (A) the present value at such time of (i) the redemption price of such Note at January 15, 2014 (such redemption price being described in the table appearing in the first paragraph under the heading "Optional Redemption," exclusive of any accrued and unpaid interest) plus (ii) any required interest payments due on such Note through January 15, 2014 (including any accrued and unpaid interest) computed using a discount rate equal to the Treasury Rate, in the case of the Dollar Notes and the Gilt Rate, in the case of the Sterling Notes, in each case plus 50 basis points, over (B) the principal amount of such Note.

        "Asset Disposition" means any sale, lease (other than operating leases entered into in the ordinary course of business), transfer or other disposition (or series of related sales, leases, transfers or dispositions), including any disposition by means of a merger, consolidation, or similar transaction (each referred to for the purposes of this definition as a "disposition"), of any shares of Capital Stock of the Company or a Restricted Subsidiary (other than directors' qualifying shares or shares required by applicable law to be held by a Person other than the Issuer or a Restricted Subsidiary) or any assets of the Company or any Restricted Subsidiary other than:

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        "Attributable Debt" in respect of a Sale/Leaseback Transaction means, as at the time of determination, the present value (discounted at the interest rate reasonably determined in good faith by a responsible financial or accounting officer of the Issuer to be the interest rate implicit in such Sale/ Leaseback Transaction in accordance with GAAP) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such Sale/Leaseback Transaction (including any period for which such lease has been extended).

        "Average Life" means, as of the date of determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by dividing:

        "Bank Group" shall have the meaning ascribed thereto in the Existing Credit Facility.

        "Bank Indebtedness" means any and all amounts payable under or in respect of an agreement, instrument or other document relating to a Credit Facility (including security documents, fee letters and intercreditor agreements or deeds related thereto), including principal, premium (if any), interest (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Person liable thereunder whether or not a claim for post-filing interest is allowed in such proceedings), fees, charges, expenses, reimbursement obligations, Guarantees and all other amounts payable thereunder or in respect thereof, and any and all Refinancing Indebtedness Incurred in respect of any such amount (including amounts in respect of Refinancing Indebtedness), whether Incurred under or in respect of an agreement relating to a Credit Facility or otherwise.

        "Bankruptcy Law" means (a) the U.K. Insolvency Act 1986 or any other bankruptcy, insolvency, liquidation or similar laws of general application and (b) the United States Bankruptcy Code of 1978 or any similar U.S. federal or state law for the relief of debtors.

        "BBC Guarantees" means the guarantees required to be given by certain Restricted Subsidiaries in favor of BBC Worldwide Limited pursuant to the shareholder agreements relating to the UKTV Joint Ventures.

        "Board of Directors" means the Board of Directors of the Issuer or any committee thereof duly authorized to act on behalf of the Board of Directors of the Issuer or, with respect to clause (2) of the definition of Change of Control, the Board of Directors of Parent or the Company.

        "Business Day" means each day which is not a Saturday, Sunday or other day on which banking institutions are not required by law or regulation to be open in the State of New York or London, England.

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        "Business Division Transaction" means any creation or participation in any joint venture with respect to any assets, undertakings and/or businesses of the Company and the Restricted Subsidiaries which comprise all or part of the ntl:Telewest business division (or its predecessor or successors), to or with any other entity or person whether or not the Company or any of the Restricted Subsidiaries, excluding the contribution to (but not the use by) any joint venture of the backbone assets utilized by the Company and the Restricted Subsidiaries and excluding any Subsidiary included in or owned by the ntl:Telewest business division but not engaged in the business of that division.

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

        "Capitalized Lease Obligation" means an obligation that is required to be classified and accounted for as a capitalized lease for financial reporting purposes in accordance with GAAP, and the amount of Indebtedness represented by such obligation shall be the capitalized amount of such obligation determined in accordance with GAAP; and the Stated Maturity thereof shall be the date of the last payment of rent or any other amount due under such lease.

        "Clearstream" means Clearstream Banking S.A.

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

        "Collateral" means all property and assets, whether now owned or hereafter acquired, in which Liens are, from time to time, purported to be granted to secure the Notes, the VM FinanceCo Guarantee (subject to the completion of the 2014 Notes Repayment), the Company Guarantee and the Subsidiary Guarantees pursuant to the Collateral Documents.

        "Collateral Documents" means the mortgages, deeds of trust, deeds to secure debt, security agreements, security trust agreements, pledge agreements, agency agreements and other instruments and documents executed and delivered pursuant to the Indenture or any of the foregoing, as the same may be amended, supplemented or otherwise modified from time to time and pursuant to which Collateral is pledged, assigned or granted to or on behalf of the Security Trustee for the ratable benefit of the Holders and the Trustee or notice of such pledge, assignment or grant is given.

        "Consolidated Interest Expense" means, for any period, the total interest expense of the Company and the Restricted Subsidiaries on a Consolidated basis including, without duplication:

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        "Consolidated Net Income" means, for any period, the Consolidated net income (loss) of the Company and the Restricted Subsidiaries for such period; provided, however, that there shall not be included in such Consolidated Net Income:

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        Notwithstanding the foregoing, for the purpose of the covenant described under "—Certain Covenants—Limitation on Restricted Payments" only, there shall be excluded from Consolidated Net Income any repurchases, repayments, redemptions or releases of Investments, proceeds realized on the sale or liquidation of Investments, and dividends, repayments of loans or advances or other transfers of assets from Unrestricted Subsidiaries to the Company or a Restricted Subsidiary to the extent such amounts increase the amount of Restricted Payments permitted under such covenant pursuant to clauses (C)(iv) of paragraph (a) thereof.

        "Consolidation" means the consolidation of the accounts of each of the Restricted Subsidiaries (excluding the Affiliate Guarantors) with those of the Company in accordance with GAAP consistently applied and together with the accounts of the Affiliate Guarantors on a combined basis (including eliminations of intercompany transactions and balances, as appropriate); provided, however, that "Consolidation" will not include consolidation of the accounts of any Unrestricted Subsidiary, but the interest of the Company or any Restricted Subsidiary in an Unrestricted Subsidiary will be accounted for as an investment. The term "Consolidated" has a correlative meaning.

        "Content" means any rights to broadcast, transmit, distribute or otherwise make available for viewing, exhibition or reception (whether in analogue or digital format and whether as a channel or an internet service, a teletext-type service, an interactive service, or an enhanced television service or any part of any of the foregoing, or on a pay-per-view basis, or near video-on-demand, or video-on-demand basis or otherwise) any one or more of audio and/or visual images, audio content, or interactive content (including hyperlinks, re-purposed web-site content, database content plus associated templates, formatting information and other data including any interactive applications or functionality), text, data, graphics, or other content, by means of any means of distribution, transmission or delivery system or technology (whether now known or herein after invented).

        "Content Business" means the business of the Company and the Restricted Subsidiaries consisting of ownership or licensing of Content.

        "Content Transaction" means any sale, transfer, demerger, contribution, spin-off or distribution of, any creation or participation in any joint venture and/or entering into any other transaction or taking any action with respect to, in each case, any assets, undertakings and/or businesses of the Company and the Restricted Subsidiaries which comprise all or part of the Content Business, to or with any other entity or person whether or not the Company or any of the Restricted Subsidiaries.

        "Convertible Senior Notes" means the $1,000,000,000 of 6.50% Convertible Senior Notes due 2016 issued pursuant to an indenture dated as of April 16, 2008 between the Parent and the Bank of New York, as trustee.

        "Credit Facility" means any debt facility or commercial paper facility (including the Existing Credit Facility) or ancillary facility, in each case with a lender or a syndicate of commercial bank lenders or other financial institutions, providing for revolving credit loans, term loans, receivables financing or letters of credit, in each case, as amended, restated, refunded, renewed, replaced or Refinanced in whole or in part from time to time by a lender or a syndicate of commercial bank lenders or other financial institutions.

        "Currency Agreement" means with respect to any Person any foreign exchange contract, currency swap agreements or other similar agreement or arrangement to which such Person is a party or of which it is a beneficiary.

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

        "Definitive Note" means a registered note issued in certificated form pursuant to the Indenture.

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        "Designated Non-Cash Consideration" means the Fair Market Value of non-cash consideration received by the Company, the Issuer or any Restricted Subsidiary in connection with an Asset Disposition that is so designated pursuant to an Officer's Certificate, setting forth the basis of such valuation. The aggregate Fair Market Value of the Designated Non-Cash Consideration, taken together with the Fair Market Value at the time of receipt of all other Designated Non-Cash Consideration then held by the Company, the Issuer or any Restricted Subsidiary, may not exceed the greater of (x) £250 million in the aggregate or (y) 1.00% of Total Assets, at the time of the receipt of the Designated Non-Cash Consideration (with the Fair Market Value being measured at the time received and without giving effect to subsequent changes in value).

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

in the case of each of clauses (1), (2) and (3), on or prior to 180 days following the Stated Maturity of the Notes; provided, however, that any Capital Stock that would not constitute Disqualified Stock but for provisions thereof giving holders thereof the right to require such Person to repurchase or redeem such Capital Stock upon the occurrence of an "asset sale" or "change of control" occurring prior to 180 days following the Stated Maturity of the Notes shall not constitute Disqualified Stock if the "asset sale" or "change of control" provisions applicable to such Capital Stock are not more favorable to the holders of such Capital Stock than the provisions of the covenants described under "—Repurchase at the Option of the Holders—Change of Control" and "—Certain Covenants—Limitation on Sales of Assets and Subsidiary Stock."

        "Dollar Equivalent" means with respect to any monetary amount in pounds sterling, at any time for the determination thereof, the amount of U.S. Dollars obtained by converting the pounds sterling involved in such computation into U.S. Dollars at the spot rate for the purchase of U.S. Dollars with pounds sterling as published under the "Currencies" section of the homepage of the Wall Street Journal (http:/www.online.wsj.com) on the date two Business Days prior to such determination.

        "Dollar Notes" means the U.S. dollar denominated 6.50% Senior Secured Notes due 2018 of the Issuer.

        "EBITDA" for any period means the Consolidated Net Income for such period plus, without duplication, the following to the extent deducted in calculating such Consolidated Net Income of the Company and the Restricted Subsidiaries:

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in each case for such period.

        Notwithstanding the foregoing, the provision for taxes based on the income or profits of, and the depreciation and amortization and non-cash charges of, a Restricted Subsidiary shall be added to Consolidated Net Income to compute EBITDA only to the extent (and in the same proportion) that the net income of such Restricted Subsidiary was included in calculating Consolidated Net Income and, except for Affiliate Guarantors, only to the extent that a corresponding amount would be permitted at the date of determination to be dividended or distributed, directly or indirectly, to the Company by such Restricted Subsidiary without breaching or violating a restriction, directly or indirectly, applicable to such Restricted Subsidiary (disregarding for this purpose any restriction permitted under clause (A), (C) (solely to the extent relating to clause (A)) or (H) of the covenant described under "—Certain Covenants—Limitation on Restrictions on Distributions from Restricted Subsidiaries").

        "Enforcement Control Event" shall have the meaning ascribed thereto in the Group Intercreditor Deed.

        "Equity Offering" means a public or private sale for cash of Capital Stock that is a sale of Capital Stock of the Company or any Virgin Media Holding Company (not including convertible debt or other equity-linked securities or purchases of Capital Stock of the Company or any Virgin Media Holding Company funded by a sale of debt, convertible debt or other equity-linked securities of the Company or any Virgin Media Holding Company).

        "Euroclear" means Euroclear Bank S.A./N.V.

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

        "Excluded Assets" means any of the following:

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        "Excluded Subsidiary" means:

        "Existing Credit Facility" means the Senior Facilities Agreement dated March 3, 2006 between Virgin Media Inc. as Ultimate Parent and the other parties thereto, as the same may be amended, modified, supplemented, extended or replaced from time to time, in each case in accordance with the terms of the Indenture.

        "Existing Notes" means (i) the 2014 Notes, (ii) the $550 million 9.125% Senior Notes due 2016 issued by VM FinanceCo pursuant to the 2006 Indenture (iii) the $1.35 billion of 9.50% Senior Notes due 2016 and the €180 million of 9.50% Senior Notes due 2016 issued by VM FinanceCo pursuant to the June 2009 Indenture, and (iii) the $600 million of 8.375% Senior Notes due 2019 and the £350 million of 8.875% Senior Notes due 2019 issued by VM FinanceCo pursuant to the November 2009 Indenture.

        "Fawnspring Limited" refers to ntl Fawnspring Limited a private limited company incorporated under the laws of England and Wales.

        "Fair Market Value" means, with respect to any asset or Property, the price which could be negotiated in an arm's-length transaction between a willing seller and a willing buyer, neither of whom is under undue pressure or compulsion to complete the transaction.

        "Fitch" means Fitch Ratings or any successor to its rating business.

        "Flextech Interactive Limited" refers to Flextech Interactive Limited a private limited company incorporated under the laws of England and Wales.

        "GAAP" means generally accepted accounting principles in the United States of America as in effect as of the Closing Date. All ratios and computations based on GAAP contained in the Indenture shall be computed in conformity with GAAP as in effect at the Closing Date.

        "Gilt Rate" means, as of any redemption date, the yield to maturity as of such redemption date of UK Government Obligations with a fixed maturity (as complied by the Office for National Statistics and published in the most recent Financial Statistics that have become publicly available at least two Business Days in London prior to such redemption date (or, if such Financial Statistics are no longer published, any publicly available source of similar market data selected by the Company in good faith)) most nearly equal to the period from such redemption date to January 15, 2014; provided, however, that if the period from such redemption date to January 15, 2014 is not equal to the fixed maturity of UK Government Obligations for which a yield is given, the Gilt Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the yields of UK Government Obligations for which such yields are given, except that if the period from such redemption date to January 15, 2014 is less than one year, the weekly average yield on actually traded UK Government Obligations denominated in sterling adjusted to a fixed maturity of one year shall be used.

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        "Group Intercreditor Deed" means the Group Intercreditor Deed originally entered into on March 3, 2006 and as amended from time to time, between Deutsche Bank AG London Branch as Facility Agent and Security Trustee, the Original Borrowers, the Original Guarantors, the Senior Lenders, the Lessors, the Lessees, the Hedge Counterparties, the Lessor's Agent, the Intergroup Debtors and the Intergroup Creditors (each as defined therein) as the same may be amended, modified, supplemented, extended or replaced from to time.

        "Guarantee" means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any Indebtedness or other obligation of any other Person and any obligation, direct or indirect, contingent or otherwise, of such Person:

provided, however, that the term "Guarantee" shall not include endorsements for collection or deposit in the ordinary course of business or (ii) a contractual commitment by a Person to make an Investment in another Person so long as such Investment is reasonably expected to constitute a Permitted Investment under clause (1) or (2) of the definition of "Permitted Investment." The term "Guarantee" used as a verb has a corresponding meaning. The term "Guarantor" shall mean any Person Guaranteeing any obligation.

        "Hedging Obligations" of any Person means the obligations of such Person pursuant to any Interest Rate Agreement or any Currency Agreement.

        "High Yield Intercreditor Deed" means the High Yield Intercreditor Deed first entered into among the Issuer, the Company, Credit Suisse First Boston, The Bank of New York and the senior lenders party thereto, on April 13, 2004, as the same may be amended, modified, supplemented, extended or replaced from time to time, in each case in accordance with the terms of the Indenture, including by the accession of the Trustee thereto.

        "Holder" means each Person in whose name the Notes are registered on the Registrar's books.

        "Incur" means issue, assume, Guarantee, incur or otherwise become liable for; provided, however, that any Indebtedness or Capital Stock of a Person existing at the time such Person becomes a Subsidiary (whether by merger, consolidation, acquisition or otherwise) shall be deemed to be Incurred by such Person at the time it becomes a Subsidiary. The term "Incurrence" when used as a noun shall have a correlative meaning.

        Solely for purposes of determining compliance with the covenant described under "—Certain Covenants—Limitation on Indebtedness," the following will not be deemed to be the Incurrence of Indebtedness: (1) amortization of debt discount or the accretion of principal with respect to a non-interest bearing or other discount security; (2) the payment of regularly scheduled interest in the form of additional Indebtedness of the same instrument or the payment of regularly scheduled dividends on Capital Stock in the form of additional Capital Stock of the same class and with the same terms; (3) the obligation to pay a premium in respect of Indebtedness arising in connection with the issuance of a notice of redemption or the making of a mandatory offer to purchase such Indebtedness; and (4) a change in GAAP that results in an obligation of such Person that exists at such time, and is not theretofore classified as Indebtedness, becoming Indebtedness.

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        "Indebtedness" means, with respect to any Person on any date of determination, without duplication:

        The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations as described above and the maximum liability, upon the occurrence of the contingency giving rise to the obligation, of any contingent obligations at such date as determined in accordance with GAAP. The amount of Indebtedness under Hedging Obligations of a Person will be calculated by reference to the net liability of such Person thereunder (as determined in accordance with GAAP as of the date of the most recent financial statements distributed to Holders under the covenant described under "—Certain Covenants—Ongoing Reporting").

        "Independent Financial Advisor" means an investment banking, financial advisory, valuation or accounting firm of international standing or any third-party appraiser of international standing; provided that such firm or appraiser is not an Affiliate of the Company.

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        "Initial Purchasers" means in respect of (i) the Dollar Notes, J.P. Morgan Securities Inc., Goldman, Sachs & Co., BNP Paribas, CALYON, Credit Suisse Securities (Europe) Limited, Deutsche Bank Securities Inc., GE Capital Markets, Inc., HSBC Securities (USA) Inc., Lloyds TSB Bank plc, The Royal Bank of Scotland plc, UBS Securities LLC, Barclays Capital Inc., Merrill Lynch International and Citigroup Global Markets Limited and (ii) in respect of the Sterling Notes, J.P. Morgan Securities Ltd., Goldman, Sachs & Co., BNP Paribas, CALYON, Credit Suisse Securities (Europe) Limited, Deutsche Bank AG, London Branch, GE Corporate Finance Bank SAS, HSBC Bank plc, Lloyds TSB Bank plc, The Royal Bank of Scotland plc, UBS Limited, Barclays Bank PLC, Merrill Lynch International and Citigroup Global Markets Limited and such other initial purchasers party to the purchase agreement entered into in connection with the offer and sale of the Notes on the Closing Date and any similar purchase agreement in connection with any Additional Notes.

        "Intercreditor Deeds" means the High Yield Intercreditor Deed and the Group Intercreditor Deed.

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

        "Intra-Group Services" means:

        "Investment" in any Person means any direct or indirect advance, loan (other than advances to customers in the ordinary course of business that are of a type that will be recorded as accounts receivable on the balance sheet of the lender) or other extension of credit (including by way of Guarantee or similar arrangement) or capital contribution to (including by means of any transfer of cash or other Property to others or any payment for Property or services for the account or use of others), or any purchase or acquisition of Capital Stock, Indebtedness or other similar instruments issued by such Person, or any prepayment, repayment, repurchase, redemption, retirement, refinancing or defeasance of Indebtedness of such Person, together with all items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP. For purposes of the covenants

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described under "—Certain Covenants—Designation of Restricted and Unrestricted Subsidiaries," and "—Certain Covenants—Limitation on Restricted Payments":

        "Investment Grade Rating" means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody's, BBB- (or the equivalent) by S&P, or an equivalent rating by any other Rating Agency.

        "June 2009 Indenture" means the indenture dated as of June 3, 2009 between the Issuer, Virgin Media Inc., Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK) Group, Inc., Virgin Media Communications Limited, Virgin Media Investment Holdings Limited, The Bank of New York Mellon as trustee and paying agent and The Bank of New York Mellon (Luxembourg) S.A. as Luxembourg paying agent.

        "Leverage Ratio" means the ratio of:

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

        "Member State" means any country that was a member of the European Union as of July 25, 2006.

        "Merger Date" means March 3, 2006.

        "Moody's" means Moody's Investors Service, Inc. or any successor to its rating business.

        "Net Available Cash" from an Asset Disposition means cash payments received (including, only when and as received, any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise and proceeds from the sale or other disposition of any securities received as consideration, but excluding any other consideration received in the form of assumption by the acquiring Person of Indebtedness or other obligations relating to the properties or

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assets that are the subject of such Asset Disposition or received in any other non-cash form) therefrom, in each case net of:

        "Net Cash Proceeds," with respect to any issuance or sale of Capital Stock, means the cash proceeds of such issuance or sale net of attorneys' fees, accountants' fees, underwriters' or placement agents' fees, discounts or commissions and brokerage, consultant and other fees actually incurred in connection with such issuance or sale and net of taxes paid or payable as a result thereof.

        "Non-Recourse Debt" means Indebtedness:

        "November 2009 Indenture" means the indenture dated as of November 9, 2009 between the Issuer, Virgin Media Inc., Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK) Group, Inc., Virgin Media Communications Limited, Virgin Media Investment Holdings Limited, The Bank of New York Mellon as trustee and paying agent and The Bank of New York Mellon (Luxembourg) S.A. as Luxembourg paying agent.

        "Ntl South Herts" refers to ntl (South Hertfordshire) Limited a private limited company incorporated under the laws of England and Wales.

        "Officer" of a Person means the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, Deputy Chief Financial Officer, the President, any Vice President, the Treasurer, Assistant Treasurer, the Secretary or Assistant Secretary, or any Director.

        "Officer's Certificate" means a certificate signed by an Officer.

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        "Opinion of Counsel" means a written opinion from legal counsel of recognized standing in a form reasonably satisfactory to the addressee of such opinion. The counsel may be an employee of or counsel to the Issuer or the Trustee.

        "Pari Passu Lien Obligations" means any Additional Notes and any other Indebtedness that has Pari Passu Lien Priority relative to the Notes with respect to the Collateral.

        "Pari Passu Lien Priority" means, relative to specified Indebtedness and other obligations, having equal or substantially equal Lien priority to the Notes and the Note Guarantees, as the case may be, on the Collateral (taking into account any intercreditor agreements).

        "Permitted Business" means any business engaged in by the Company, the Issuer or any other Restricted Subsidiary on the Closing Date and any Related Business.

        "Permitted Investment" means an Investment by the Company, the Issuer or any other Restricted Subsidiary in:

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        "Permitted Joint Ventures" means one or more joint ventures formed by (i) the contribution of all or any part of the Content Business to a joint venture formed by the Company or any of the Restricted Subsidiaries with one or more joint venturers; and (ii) the contribution of some or all of the assets of the ntl:Telewest business division pursuant to a Business Division Transaction to a joint venture formed by the Company or any of the Restricted Subsidiaries with one or more joint venturers.

        "Permitted Liens" means, with respect to any Person:

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

        "Preferred Stock," as applied to the Capital Stock of any Person, means Capital Stock of any class or classes (however designated) that is preferred as to the payment of dividends, or as to the

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distribution of assets upon any voluntary or involuntary liquidation or dissolution of such Person, over shares of Capital Stock of any other class of such Person.

        "principal" of a Note means the principal of the Note plus the premium, if any, payable on the Note which is due or overdue or is to become due at the relevant time.

        "Pro Forma EBITDA" means, for any period, the EBITDA of the Company and the Restricted Subsidiaries, after giving effect to the following:

        if:

        "Property" means, with respect to any Person, any interest of such Person in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including Capital Stock in, and other securities of, any other Person.

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

        "Purchase Money Indebtedness" means Indebtedness:

provided, however, that the original principal amount of such Indebtedness is Incurred within 180 days after the acquisition by the Company or such Restricted Subsidiary of such asset.

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        "Qualified Receivables Transaction" means any transaction or series of transactions that may be entered into by the Company, the Issuer or any other Restricted Subsidiary pursuant to which the Company, the Issuer or any other Restricted Subsidiary may sell, convey or otherwise transfer to:

        "Rating Agency" means each of Fitch, Moody's and S&P, or if none of Fitch, Moody's or S&P, shall make a rating on the Notes publicly available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Issuer (as certified by a resolution of its Board of Directors), shall be substituted for Fitch, Moody's or S&P, as the case may be.

        "Receivables and Related Assets" means accounts receivable, instruments, chattel paper, obligations, general intangibles and other similar assets, including interests in merchandise or goods, the sale or lease of which give rise to the foregoing, related contractual rights, Guarantees, insurance proceeds, collections, other related assets and assets that are customarily transferred, or in respect of which security interests are customarily granted, in connection with asset securitization transactions involving accounts receivable, and proceeds of all the foregoing.

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

        "Receivables Subsidiary" means a Subsidiary of the Company that engages in no activities other than in connection with the financing of accounts receivable and that is designated by the Board of Directors (as provided below) as a Receivables Subsidiary and:

        Any such designation by the Board of Directors shall be evidenced to the relevant Trustee by filing with such Trustee a copy of the resolution of the Board of Directors giving effect to such designation and an Officer's Certificate certifying, to such Officer's knowledge and belief after consulting with counsel that such designation complied with the foregoing conditions.

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

        "Refinancing Indebtedness" means any Indebtedness that Refinances any other Indebtedness, including any successive Refinancings, so long as:

provided, however, that Refinancing Indebtedness shall not include:

        "Registration Rights Agreement" means the Registration Rights Agreement, dated January 19, 2010, among the Company, the Issuer, the Parent, Virgin Media Finance PLC and the Initial Purchasers relating to the Notes and any similar agreement entered into in connection with any Additional Notes.

        "Related Business" means any business related, ancillary or complementary to the businesses of the Company, the Issuer and the Restricted Subsidiaries on the Closing Date including, without limitation, all forms of television, telephony and internet services and any services relating to carriers, networks, broadcast or communications services, or Content.

        "Restricted Subsidiary" means the Issuer and any other Subsidiary of the Company together with CableTel Scotland Limited, CableTel West Riding Limited, ntl Glasgow Holdings Limited, ntl Glasgow, ntl Kirklees Holdings Limited and ntl Kirklees, in each case other than any Unrestricted Subsidiary.

        "Rule 3-16 Excluded Collateral" means, with respect to any Lien on Capital Stock or other securities issued by Subsidiaries of either the Company or the Affiliate Guarantors (other than Virgin Media Investments Limited and, following the 2014 Notes Repayment, the Company), under any Collateral Documents, to the extent necessary and for so long as required for such Subsidiary not to be subject to any requirement pursuant to Rule 3-16 of Regulation S-X under the Securities Act to file separate financial statements with the SEC (or any other governmental agency), the Capital Stock or other securities of such Subsidiary shall not be included in the Collateral with respect to the Notes and shall not be subject to the Liens securing the Notes solely to the extent necessary to render such requirement inapplicable.

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        "S&P" means Standard and Poor's Rating Service, a division of McGraw-Hill Companies, Inc. or any successor to its rating business.

        "Sale/Leaseback Transaction" means an arrangement relating to Property now owned or hereafter acquired by the Company or any Restricted Subsidiary whereby the Company or any Restricted Subsidiary transfers such Property to a Person and the Company or such Restricted Subsidiary leases it from such Person, other than leases between the Company and any Restricted Subsidiary or between Restricted Subsidiaries.

        "SEC" means the U.S. Securities and Exchange Commission.

        "Secured Indebtedness" means any Indebtedness of any Person secured by a Lien.

        "Securities Act" means the U.S. Securities Act of 1933, as amended.

        "Security Trustee" means Deutsche Bank AG, London Branch until a successor replaces it and, thereafter, means the successor.

        "Significant Subsidiary" means any Restricted Subsidiary which, together with the Restricted Subsidiaries of such Restricted Subsidiary, accounted for more than 10% of the Consolidated Net Income or 10% of the Total Assets, in each case, for the most recently completed fiscal year.

        "Standard Securitization Undertakings" means representations, warranties, covenants and indemnities entered into by the Company, the Issuer or any other Restricted Subsidiary that are customary in an accounts receivable transaction.

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

        "Sterling Equivalent" means with respect to any monetary amount in a currency other than pounds sterling, at any time of determination thereof, the amount of pounds sterling obtained by converting such foreign currency involved in such computation into pounds sterling at the average of the spot rates for the purchase and sale of pounds sterling with the applicable foreign currency as quoted on or recorded in any recognized source of foreign exchange rates within two Business Days prior to such determination. Whenever it is necessary to determine whether the Issuer has complied with any covenant in the Indenture or whether a Default has occurred and an amount is expressed in a currency other than pounds sterling, such amount shall be treated as the Sterling Equivalent determined as of the date such amount is initially determined in such currency.

        "Sterling Notes" means the sterling denominated 7.00% Senior Secured Notes due 2018 of the Issuer.

        "Subordinated Obligation" means any Indebtedness of the Issuer or a Note Guarantor (whether outstanding on the Closing Date or thereafter Incurred) that is subordinate or junior in right of payment to the Notes (in the case of the Issuer) or the Note Guarantee (in the case of a Note Guarantor) pursuant to a written agreement.

        "Subsidiary" of any Person means any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of Capital Stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by:

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        "Subsidiary Guarantee" means each Guarantee of the obligations with respect to the Notes issued by a Subsidiary of the Issuer pursuant to the terms of the Indenture.

        "Subsidiary Guarantor" means each Restricted Subsidiary in existence on the Closing Date that provides a Subsidiary Guarantee on the Closing Date (and any other Restricted Subsidiary that provides a Subsidiary Guarantee in accordance with the Indenture); provided that upon release or discharge of such Restricted Subsidiary from its Subsidiary Guarantee in accordance with the Indenture, such Restricted Subsidiary ceases to be a Subsidiary Guarantor.

        "Successor Entity" shall have the meaning assigned thereto in clause (i) of under "Merger and consolidation."

        "Tax Sharing Agreement" means the tax cooperation agreement entered into with effect as of the 3rd day of March, 2006, by and between (i) Parent and (ii) the Company and Telewest Communications Networks Limited.

        "Temporary Cash Investments" means any of the following:

        "Total Assets" means, as of any date of determination, the fixed assets and current assets shown on the most recent Consolidated balance sheet of the Company and the Restricted Subsidiaries as certified in an Officer's Certificate delivered to the Trustee.

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        "Trade Payables" means, with respect to any Person, any accounts payable or any indebtedness or monetary obligation to trade creditors created, assumed or Guaranteed by such Person arising in the ordinary course of business in connection with the acquisition of goods or services.

        "Treasury Rate" means the yield to maturity at the time of computation of United States Treasury securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (519) which has become publicly available at least two Business Days (but not more than five Business Days) prior to the redemption date (or, if such Statistical Release is not so published or available, any publicly available source of similar market data selected by the Company in good faith)) most nearly equal to the period from the redemption date to January 15, 2014; provided, however, that if the period from the redemption date to January 15, 2014 is not equal to the constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United States Treasury securities for which such yields are given, except that if the period from the redemption date to January 15, 2014 is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a constant maturity of one year shall be used.

        "Trustee" means the party named as such in the Indenture until a successor replaces it and, thereafter, means the successor.

        "Trust Indenture Act" means the U.S. Trust Indenture Act of 1939, as amended.

        "Trust Officer" means the chairman of the board, the president or any other officer or assistant officer of the Trustee assigned by the Trustee to administer its corporate trust matters.

        "UK Government Obligations" means sovereign obligations of the UK for the timely payment of which its full faith and credit is pledged, in each case which are payable in pounds sterling and not callable or redeemable at the option of the issuer thereof.

        "UKTV Joint Ventures" means any joint venture arrangement relating to the Content Business in existence on the Closing Date or formed thereafter by the Company or any of the Restricted Subsidiaries with BBC Commercial Holdings Limited or any of its affiliates.

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

        "Unrestricted Subsidiary" means:

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

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payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligations or the specific payment of principal of or interest on the U.S. Government Obligations evidenced by such depositary receipt.

        "Virgin Media Communications" means Virgin Media Communications Limited, a company incorporated under the laws of England and Wales.

        "Virgin Media Holding Company" means any Person of which the Company is a direct or indirect Wholly Owned Subsidiary.

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

        "Wholly Owned Subsidiary" means (1) in respect of any Person, a Person, all of the Capital Stock of which (other than directors' qualifying shares or an immaterial amount of shares required to be owned by other Persons pursuant to applicable law or to ensure limited liability) is owned by that Person directly or (2) indirectly by a Person that satisfies the requirements of clause (1).

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Book-Entry Settlement and Clearance

The Global Exchange Notes

        The dollar denominated exchange notes offered hereby are denominated in U.S. dollars and the sterling denominated exchange notes are denominated in pounds sterling.

        The exchange notes will be issued in the form of one or more registered notes in global form, without interest coupons, representing the dollar denominated exchange notes (the "dollar global exchange notes") and one or more registered notes in global form, without interest coupons, representing the sterling denominated exchange notes (the "sterling global exchange notes," and together with the dollar global exchange notes, the "global exchange notes").

        The global exchange notes will be deposited with and registered in the name of a nominee of DTC (in the case of the dollar denominated exchange notes) or a common depositary for Euroclear and Clearstream (in the case of the sterling denominated exchange notes). The sterling denominated exchange notes will not be eligible for clearance through the facilities of DTC.

        Ownership of interests in the global exchange notes ("book-entry interests") will be limited to persons who have accounts with DTC, Euroclear or Clearstream, as applicable, or persons that may hold interests through such participants. Book-entry interests will be shown on, and transfers thereof will be effected only through, records maintained in book-entry form by DTC, Euroclear, Clearstream and their participants.

        The book-entry interests will not be held in definitive form. Instead, DTC, Euroclear and/or Clearstream will credit on their respective book-entry registration and transfer systems a participant's account with the interest beneficially owned by such participant. The laws of some jurisdictions, including certain states of the U.S., may require that certain purchasers of securities take physical delivery of such securities in definitive form. The foregoing limitations may impair the ability to own, transfer or pledge book-entry interests. In addition, while the exchange notes are in global form, "holders" of book-entry interests will not be considered the owners of exchange notes for any purpose.

        So long as the exchange notes are held in global form, DTC, Euroclear and/or Clearstream (or their respective nominees) will be considered the holders of global exchange notes for all purposes under the indenture. As such, participants must rely on the procedures of DTC, Euroclear and/or Clearstream and indirect participants must rely on the procedures of DTC, Euroclear and/or Clearstream and the participants through which they own book-entry interests in order to exercise any rights of holders under the indenture.

        Neither we nor the trustee under the indenture nor any of our respective agents will have any responsibility or be liable for any aspect of the records in relation to the book-entry interests.

Redemption of Global Exchange Notes

        In the event that any global exchange note, or any portion thereof, is redeemed, DTC, Euroclear and/or Clearstream, as applicable, will distribute the amount received by it in respect of the global exchange note so redeemed to the holders of the book-entry interests in such global exchange note. The redemption price payable in connection with the redemption of such book-entry interests will be equal to the amount received by DTC, Euroclear and/or Clearstream, as applicable, in connection with the redemption of such global exchange note (or any portion thereof). We understand that under existing practices of DTC, Euroclear and/or Clearstream, if fewer than all of the exchange notes are to be redeemed at any time, DTC, Euroclear and/or Clearstream will credit their respective participants' accounts on a proportionate basis (with adjustments to prevent fractions) or by lot or on any other basis that they deem fair and appropriate; provided that no book-entry interest of less than $100,000 or £50,000, as applicable, principal amount may be redeemed in part.

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Payments on Global Exchange Notes

        Payments of amounts owing in respect of the global exchange notes (including principal, premium, interest, additional interest and additional amounts) will be made by us to the paying agent. The paying agent will, in turn, make such payments to DTC or its nominee (in the case of the dollar global exchange notes) and to the common depositary for Euroclear and Clearstream (in the case of the sterling global exchange notes), which will distribute such payments to participants in accordance with their procedures.

        Under the terms of the indenture, the issuer and the trustee will treat the registered holder of the global exchange notes (i.e., DTC, Euroclear or Clearstream (or their respective nominees)) as the owner thereof for the purpose of receiving payments and for all other purposes. Consequently, neither we nor the trustee or any of our respective agents has or will have any responsibility or liability for:

        Payments by participants to owners of book-entry interests held through participants are the responsibility of such participants, as is now the case with securities held for the accounts of customers registered in "street name."

Currency and Payment for the Global Exchange Notes

        The principal of, premium, if any, and interest on, and all other amounts payable in respect of (i) the dollar global exchange notes will be paid in U.S. dollars and (ii) the sterling global exchange notes will be paid in pounds sterling.

Action by Owners of Book-Entry Interests

        DTC, Euroclear and Clearstream have advised us that they will take any action permitted to be taken by a holder of exchange notes only at the direction of one or more participants to whose account the book-entry interests in the global exchange notes are credited and only in respect of such portion of the aggregate principal amount of exchange notes as to which such participant or participants has or have given such direction. DTC, Euroclear and Clearstream will not exercise any discretion in the granting of consents, waivers or the taking of any other action in respect of the global exchange notes. However, if there is an event of default under the exchange notes, DTC, Euroclear and Clearstream reserve their right, subject to certain restrictions, to exchange the global exchange notes for definitive registered notes (as defined below) in certificated form, and to distribute such definitive registered notes to their respective participants.

Issuance of Definitive Registered Notes

        Owners of book-entry interests will receive definitive notes in registered form ("definitive registered notes"):

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        In such an event, the registrar will issue definitive registered notes, registered in the name or names and issued in any approved denominations, requested by or on behalf of DTC, Euroclear or Clearstream or the issuer, as applicable (in accordance with their respective customary procedures and based upon directions received from participants reflecting the beneficial ownership of book-entry interests).

Transfers

        Transfers between participants in DTC will be done in accordance with DTC rules and will be settled in immediately available funds. If a holder requires physical delivery of definitive registered notes for any reason, including to sell the exchange notes to persons in states which require physical delivery of such securities or to pledge such securities, such holder must transfer its interest in the global exchange notes in accordance with the normal procedures of DTC and in accordance with the provisions of the indenture.

        Subject to the foregoing, book-entry interests may be transferred and exchanged as described under "Description of the Exchange Notes—Transfer and Exchange."

        Any book-entry interest in one of the global exchange notes that is transferred to a person who takes delivery in the form of a book-entry interest in the other global exchange note of the same denomination will, upon transfer, cease to be a book-entry interest in the first-mentioned global exchange note and become a book-entry interest in the other global exchange note, and accordingly, will thereafter be subject to all transfer restrictions, if any, and other procedures applicable to book-entry interests in such other global exchange note for as long as it retains such a book-entry interest.

        Definitive registered notes may be transferred and exchanged for book-entry interests in a global exchange note only as described under "Description of the Exchange Notes—Transfers" and, if required, only if the transferor first delivers to the trustee a written certificate (in the form provided in the indenture) to the effect that such transfer will comply with the appropriate transfer restrictions applicable to such exchange notes.

Information Concerning DTC

        All book-entry interests will be subject to the operations and procedures of DTC. We provide the following summaries of those operations and procedures solely for the convenience of investors. The operations and procedures of each settlement system are controlled by that settlement system and may be changed at any time. We are not responsible for those operations or procedures.

        DTC has advised us that it is:

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        DTC was created to hold securities for its participants and to facilitate the clearance and settlement of transactions among its participants. It does this through electronic book-entry changes in the accounts of securities participants, eliminating the need for physical movement of securities certificates. DTC participants include securities brokers and dealers, banks, trust companies, clearing corporations and certain other organizations. DTC's owners are the New York Stock Exchange, Inc., the American Stock Exchange, Inc. and the National Association of Securities Dealers, Inc. and a number of its direct participants. Others, such as banks, brokers and dealers and trust companies that clear through or maintain a custodial relationship with a direct participant also have access to the DTC system and are known as indirect participants.

        Like DTC, Euroclear and Clearstream hold securities for participating organizations. They also facilitate the clearance and settlement of securities transactions between their respective participants through electronic book-entry changes in the accounts of such participants. Euroclear and Clearstream provide various services to their participants, including the safekeeping, administration, clearance, settlement, lending and borrowing of internationally traded securities. Euroclear and Clearstream interface with domestic securities markets. Euroclear and Clearstream participants are financial institutions such as underwriters, securities brokers and dealers, banks, trust companies and certain other organizations. Indirect access to Euroclear or Clearstream is also available to others such as banks, brokers, dealers and trust companies that clear through or maintain a custodial relationship with a Euroclear or Clearstream participant, either directly or indirectly.

        Because DTC, Euroclear and Clearstream can only act on behalf of participants, who in turn act on behalf of indirect participants and certain banks, the ability of an owner of a beneficial interest to pledge such interest to persons or entities that do not participate in the DTC, Euroclear or Clearstream systems, or otherwise take actions in respect of such interest, may be limited by the lack of a definite certificate for that interest. The laws of some jurisdictions require that certain persons take physical delivery of securities in definitive form. Consequently, the ability to transfer beneficial interests to such persons may be limited.

Global Clearance and Settlement under the Book-Entry System

        The exchange notes represented by the global exchange notes are expected to be listed on the Official List of the Luxembourg Stock Exchange and admitted to trading on the Euro MTF market of the Luxembourg Stock Exchange, and interests in the dollar global exchange notes will trade in DTC's Same Day Funds Settlement System, and any permitted secondary market trading activity in such notes will, therefore, be required by DTC to be settled in immediately available funds. Transfers of interests in the dollar global exchange notes and sterling global exchange notes between participants in Euroclear or Clearstream will be effected in the ordinary way in accordance with their respective rules and operating procedures. Cross-market transfers with respect to interests in dollar global exchange notes between participants in DTC, on the one hand, and Euroclear or Clearstream participants, on the other hand, will be done through DTC in accordance with DTC's rules on behalf of each of Euroclear or Clearstream.

        Because of time-zone differences, the securities account of a Euroclear or Clearstream participant purchasing an interest in a global exchange note from a DTC participant will be credited, and any such crediting will be reported to the relevant Euroclear or Clearstream participant, during the securities settlement processing day (which must be a business day for Euroclear or Clearstream) immediately following the settlement date of DTC. Cash received in Euroclear and Clearstream as a result of a sale of an interest in a global exchange note by or through a Euroclear or Clearstream participant to a participant in DTC will be received with value on the settlement date of DTC but will be available in the relevant Euroclear or Clearstream cash account only as of the business day for Euroclear or Clearstream following DTC's settlement date.

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        Although DTC, Euroclear and Clearstream currently follow the foregoing procedures in order to facilitate transfers of interests in the global exchange notes among participants in DTC, Euroclear and Clearstream, as the case may be, they are under no obligation to perform or continue to perform such procedures, and such procedures may be discontinued or modified at any time. None of the issuer, the trustee or the paying agent will have any responsibility for the performance by DTC, Euroclear or Clearstream or their respective participants or indirect participants, of their respective obligations under the rules and procedures governing their operations.

Initial Settlement

        Initial settlement for the exchange notes denominated in U.S. dollars will be made in U.S. dollars and initial settlement for the exchange notes denominated in sterling will be made in pounds sterling. Book-entry interests owned through DTC, Euroclear or Clearstream accounts will follow the settlement procedures applicable to conventional bonds in registered form. Book-entry interests will be credited to the securities custody accounts of DTC, Euroclear and Clearstream holders on the business day following the settlement date against payment for value on the settlement date.

Secondary Market Trading

        The book-entry interests will trade through participants of DTC, Euroclear and Clearstream and will settle in same-day funds. Since the purchaser determines the place of delivery, it is important to establish at the time of trading of any book-entry interests where both the purchaser's and the seller's accounts are located to ensure that settlement can be made on the desired value date.

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Material United States Federal Income Tax Considerations

        The following summary describes the material U.S. federal income tax consequences of the ownership and disposition of the exchange notes and the exchange of the outstanding notes for the exchange notes by a U.S. holder, as defined below. The discussion set forth below is applicable to U.S. holders (i) who are residents of the United States for purposes of the current Income Tax Convention between the U.K. and the United States, which we refer to as the Treaty, (ii) whose notes are not, for purposes of the Treaty, part of the business property of a permanent establishment in the U.K. or a fixed base in the U.K. and (iii) who otherwise qualify for the full benefits of the Treaty. Except where noted, this section deals only with notes held as capital assets and does not deal with special situations, for example, those of dealers in securities or currencies, financial institutions, tax-exempt entities, insurance companies, real estate investment trusts, regulated investment companies, partnerships or other pass through-entities for U.S. federal income tax purposes, traders in securities that elect to use a mark-to-market method of accounting for their securities holdings, persons liable for alternative minimum tax, persons holding notes as part of a hedging, integrated, conversion or constructive sale transaction or a straddle, some U.S. expatriates or U.S. holders of notes whose "functional currency" is not the U.S. dollar. If a partnership or other entity or arrangement classified as a partnership for U.S. federal income tax purposes holds the notes, the tax treatment of a partner will generally depend on the status of the partner and the activities of the partnership. If you are a partner of a partnership (or a member of an entity or arrangement classified as a partnership for U.S. federal income tax purposes) holding the notes, you should consult your tax advisors. Furthermore, the discussion below is based upon the provisions of the Internal Revenue Code of 1986, as amended, which we refer to as the Code, and regulations, administrative proceedings and judicial decisions thereunder as of the date of this prospectus. These authorities may be repealed, revoked or modified, perhaps retroactively, so as to result in U.S. federal income tax consequences different from those discussed below. This summary does not represent a detailed description of the U.S. federal income tax consequences to you in light of your particular circumstances and does not address U.S. state or local or non-U.S. tax consequences of the ownership and disposition of the notes. Persons considering the purchase, ownership or disposition of the exchange notes or the exchange of the outstanding notes for the exchange notes should consult their own tax advisors concerning the U.S. federal income tax consequences related to their particular situations as well as any consequences arising under the laws of any other taxing jurisdiction.

        As used herein, a "U.S. holder" means a beneficial owner of a note that is for U.S. federal income tax purposes (i) an individual citizen or resident of the United States, (ii) a corporation or other entity classified as a corporation for these purposes, created or organized in or under the laws of the United States, any state or any political subdivision thereof or the District of Columbia, (iii) an estate the income of which is subject to U.S. federal income taxation regardless of its source or (iv) a trust (X) that is subject to the primary supervision of a court within the United States and the control of one or more United States persons as described in section 7701(a)(30) of the Code or (Y) that has a valid election in effect under applicable U.S. Treasury Regulations to be treated as a United States person.

Exchange of Notes

        The exchange of the outstanding notes for the exchange notes pursuant to the exchange offer will not be a taxable exchange for U.S. federal income tax purposes and, accordingly, for such purposes, a U.S. holder will not recognize any taxable gain or loss as a result of such exchange and will have the same tax basis and holding period in the exchange notes as the U.S. holder had in the outstanding notes immediately before the exchange.

Stated Interest

        Stated interest on the exchange notes will generally be taxable to a U.S. holder as ordinary income at the time it is paid or accrued in accordance with the U.S. holder's method of accounting for U.S.

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federal income tax purposes. The exchange notes will not be treated as issued with original issue discount for U.S. federal income tax purposes.

        Interest on the exchange notes generally will constitute foreign source income and generally will constitute "passive category income" or, in the case of certain U.S. holders, "general category income" for foreign tax credit purposes. In addition, foreign tax credits generally will not be allowed for foreign taxes imposed on interest on certain short-term or hedged positions in the exchange notes. The calculation and timing of foreign tax credits and, in the case of a U.S. holder that elects to deduct foreign taxes, the availability of deductions involve the application of complex rules that depend upon a U.S. holder's particular circumstances. U.S. holders should consult with their own tax advisors with regard to the availability of a credit or deduction in respect of foreign taxes and, in particular, the application of the foreign tax credit rules to their particular situations.

        See the discussion below under "Foreign Currency Considerations for Sterling Notes" for additional U.S. federal income tax consequences related to the sterling exchange notes.

Market Discount and Bond Premium

        If a U.S. holder purchases an exchange note (or purchased the outstanding note for which the exchange note was exchanged, as the case may be) at a price that is less than its principal amount, the excess of the principal amount over the U.S. holder's purchase price will be treated as "market discount." However, the market discount will be considered to be zero if it is less than 1/4 of 1% of the principal amount multiplied by the number of complete years to maturity from the date the U.S. holder purchased the exchange note or the outstanding note, as the case may be. Under the market discount rules of the Code, a U.S. holder that purchases an exchange note (or purchased the outstanding note for which the exchange note was exchanged, as the case may be) with market discount generally will be required to treat any principal payment on, or any gain realized on the sale, exchange, retirement or other disposition of, the exchange note as ordinary income (generally treated as interest income) to the extent of the market discount which accrued but was not previously included in income by the U.S. holder during the period the U.S. holder held the exchange note (and the outstanding note for which the exchange note was exchanged, as the case may be). In addition, the U.S. holder may be required to defer, until the maturity of the exchange note or its earlier disposition in a taxable transaction, the deduction of all or a portion of the interest expense on any indebtedness incurred or continued to purchase or carry the exchange note (or the outstanding note for which the exchange note was exchanged, as the case may be). In general, market discount will be considered to accrue ratably during the period from the date of the purchase of the exchange note (or outstanding note for which the exchange note was exchanged, as the case may be) to the maturity date of the exchange note, unless the U.S. holder makes an irrevocable election (on an instrument-by-instrument basis) to accrue market discount under a constant yield method. A U.S. holder may elect to include market discount in income currently as it accrues (under either a ratable or constant yield method), in which case the rules described above regarding the treatment as ordinary income of gain upon the disposition of the note and the deferral of interest deductions will not apply. A U.S. holder's election to include market discount in income currently, once made, applies to all market discount obligations acquired by the U.S. holder on or after the first day of the first taxable year to which the election applies, and may not be revoked without the consent of the Internal Revenue Service.

        If a U.S. holder purchases an exchange note (or purchased the outstanding note for which the exchange note was exchanged, as the case may be) for an amount in excess of the amount payable at maturity of the exchange note, the U.S. holder will be considered to have purchased the exchange note (or outstanding note) with "bond premium" equal to the excess of the U.S. holder's purchase price over the amount payable at maturity (or on an earlier call date if it results in a smaller amortizable bond premium). It may be possible for a U.S. holder of an exchange note to elect to amortize the bond premium using a constant yield method over the remaining term of the exchange note (or until an

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earlier call date, as applicable). The amortized amount of the bond premium for a taxable year generally will be treated first as a reduction of interest on the exchange note included in such taxable year to the extent thereof, then as a deduction allowed in that taxable year to the extent of the U.S. holder's prior interest inclusions on the exchange note, and finally as a carryforward allowable against the U.S. holder's future interest inclusions on the exchange note. If a U.S. holder makes such an election, the U.S. holder's tax basis in the exchange note will be reduced by the amount of the allowable amortization. If a U.S. holder does not elect to amortize bond premium, the bond premium will decrease the gain or increase the loss such U.S. holder would otherwise recognize on a disposition of its exchange note. A U.S. holder's election to amortize bond premium on a constant yield method will apply to all debt obligations held or subsequently acquired by the U.S. holder on or after the first day of the first taxable year to which the election applies. A U.S. holder may not revoke the election without the consent of the Internal Revenue Service. U.S. holders should consult their own tax advisors before making this election and regarding the calculation and amortization of any bond premium on the exchange notes.

        A U.S. holder may elect to include in gross income under a constant yield method all amounts that accrue on an exchange note that are treated as interest for tax purposes (i.e., stated interest, market discount and de minimis market discount, as adjusted by any amortizable bond premium). U.S. holders should consult their tax advisors as to the desirability, mechanics and collateral consequences of making this election.

        See the discussion below under "Foreign Currency Considerations for Sterling Exchange Notes" for additional U.S. federal income tax consequences related to the sterling exchange notes.

Sale, Exchange and Retirement of Exchange Notes

        Upon the sale, exchange, retirement or other taxable disposition of an exchange note, a U.S. holder will recognize gain or loss equal to the difference between the amount realized upon the sale, exchange, retirement or other disposition, less any accrued and unpaid interest that has not been previously included in income, which will be taxable as described above, and the U.S. holder's tax basis in the exchange note. A U.S. holder's tax basis in the exchange note will, in general, be such U.S. holder's cost of the exchange note (or in the case of an exchange note exchanged for an outstanding note pursuant to the exchange offer, the tax basis of the outstanding note, as discussed above under "—Exchange of Notes"), increased by the amount of any market discount previously included in the U.S. holder's gross income, and reduced by the amount of any amortizable bond premium applied to reduce, or allowed as a deduction against, interest on the exchange note. Gain or loss recognized by a U.S. holder on the sale, exchange, retirement or other disposition of an exchange note will generally be treated as United States source gain or loss. Except as discussed below under "Foreign Currency Considerations for Sterling Notes," such gain or loss will be capital gain or loss, except with respect to market discount which accrued but was not previously included in income, which will be taxable as ordinary income. The capital gain or loss recognized by a U.S. holder will be long-term capital gain or loss if at the time of the sale, exchange, retirement or other disposition, the exchange note has been held for more than one year (taking into account, for this purpose, in the case of an exchange note received in an exchange for an outstanding note, the period of time that the outstanding note was held, as discussed above under "—Exchange of Notes"). Capital gains of individuals derived with respect to capital assets held for more than one year are eligible for reduced rates of taxation. The deductibility of capital losses is subject to limitations.

        See the discussion below under "Foreign Currency Considerations for Sterling Exchange Notes" for additional U.S. federal income tax consequences related to the sterling exchange notes.

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Foreign Currency Considerations for Sterling Exchange Notes

Stated Interest on Sterling Exchange Notes

        Interest payments on the sterling exchange notes will be taxable to U.S. holders under the following rules. A cash basis U.S. holder will be required to include in gross income the U.S. dollar value of the sterling amount of interest received, determined by translating the sterling amount into U.S. dollars at the spot rate in effect on the date of receipt, regardless of whether the payment is in fact converted into U.S. dollars. A cash basis U.S. holder will not recognize exchange gain or loss with respect to the receipt of pounds sterling interest payments.

        An accrual basis U.S. holder of a sterling exchange note will be required to include interest in gross income under the following rules. The U.S. holder will be required to include in gross income the U.S. dollar value of the sterling amount of interest that accrues during an accrual period, determined by translating the sterling amount of accrued interest into U.S. dollars at the average exchange rate in effect during the accrual period (or, if the accrual period spans two taxable years, at the exchange rate for the partial period within the taxable year). However, the U.S. holder may elect to translate accrued interest income into U.S. dollars at the spot rate on the last day of the accrual period (or the last day of the taxable year in the case of an accrual period that straddles the U.S. holder's taxable year) or at the spot rate on the date the interest payment is received if that date is within five days of the end of the accrual period. A U.S. holder that makes such an election must apply it consistently to all debt instruments from year to year and cannot change the election without the consent of the Internal Revenue Service. Accordingly, U.S. holders should consult their own tax advisors regarding the desirability, mechanics and collateral consequences of making this election.

        Upon receipt of an interest payment on a sterling exchange note, including amounts received upon the disposition of such sterling exchange note attributable to accrued but unpaid interest previously included in income, an accrual basis U.S. holder will recognize exchange gain or loss, generally treated as ordinary income or loss, in an amount equal to the difference, if any, between (x) the U.S. dollar value of such payment, determined by translating the sterling amount received into U.S. dollars at the spot rate in effect on the date received and (y) the U.S. dollar value of the interest income that the U.S. holder has previously included in income with respect to such payment, regardless of whether the payment is actually converted into U.S. dollars. For these purposes, all receipts on a sterling exchange note will be viewed (i) first, as the receipt of any stated interest payments called for under the terms of the sterling exchange note, and (ii) second, as the receipt of principal.

        If a U.S. holder receives a payment on a sterling exchange note in U.S. dollars as a result of a currency conversion, the U.S. dollar amount so received might not be the same as the U.S. dollar amount required to be recognized as interest income under the rules described above.

Market Discount

        If a U.S. holder purchases a sterling exchange note (or purchased the sterling outstanding note for which the sterling exchange note was exchanged, as the case may be) with "market discount," the U.S. holder's accrued market discount (other than market discount currently included in the U.S. holder's gross income) on the sterling exchange note will be determined in pounds sterling and translated into U.S. dollars at the spot rate for pounds sterling in effect on the date of the sale, exchange, retirement, redemption or other disposition of the sterling exchange note, and no part of the accrued market discount will be treated as exchange gain or loss.

        If a U.S. holder elects to include market discount in income currently as it accrues, the U.S. holder will determine the amount of market discount that accrues in each accrual period in pounds sterling and will translate such amount into U.S. dollars at the average exchange rate for such accrual period. Upon the sale, exchange, retirement, redemption or other disposition of the sterling exchange note, the U.S. holder will recognize exchange gain or loss (generally treated as ordinary income or loss) in an

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amount equal to the difference between the U.S. dollar amount of the accrued market discount included in the U.S. holder's income and the U.S. dollar amount of such accrued market discount computed based on the spot rate for pounds sterling in effect on the date the sterling exchange note was disposed of.

Bond Premium

        If a U.S. holder purchases a sterling exchange note (or purchased a sterling outstanding note for which the sterling exchange note was exchanged, as the case may be) with "bond premium" and elects to amortize such bond premium, the amount of allowable amortization will be determined in pounds sterling and generally will be treated first as a reduction to the U.S. holder's interest inclusions on the sterling exchange note, determined in pounds sterling, then as a deduction allowed in that taxable year to the extent of the U.S. holder's prior pounds sterling interest inclusions on the sterling exchange note, and finally as a carryforward allowable against the U.S. holder's future pounds sterling interest inclusions on the sterling exchange note. A U.S. holder will recognize exchange gain or loss (generally treated as ordinary income or loss) with respect to the bond premium based on the difference in spot rates between the date that the bond premium is paid to acquire the sterling exchange note (or the sterling outstanding note for which the sterling exchange note was exchanged, as the case may be) and each date that the amortized amount of the bond premium reduces (or is deducted against) the U.S. holder's interest inclusions on such note. In addition, a U.S. holder will be required to reduce its sterling tax basis in the exchange note by the amount of the bond premium so amortized.

Exchange or Purchase of Pounds Sterling

        Pounds sterling received by a U.S. holder as interest on a sterling exchange note or on the sale or other disposition of a sterling exchange note generally will have a tax basis equal to the U.S. dollar value of the pounds sterling determined at the spot rate on the date the U.S. holder receives the pounds sterling. If a U.S. holder purchases pounds sterling, the U.S. holder's tax basis in the pounds sterling generally will be the U.S. dollar value of the pounds sterling determined at the spot rate on the date of purchase. Any gain or loss recognized by a U.S. holder on the sale or other disposition of pounds sterling (including the use of pounds sterling to purchase notes or upon the exchange of pounds sterling for U.S. dollars) generally will be treated as ordinary income or loss.

Exchange Gain or Loss on Sale or Disposition of Sterling Exchange Notes

        If a U.S. holder receives pounds sterling on the sale, retirement or other disposition of a sterling exchange note, the U.S. dollar amount realized generally will be based on the spot rate on the date of the sale, retirement or other disposition. However, if the sterling exchange notes are traded on an established securities market, a cash basis U.S. holder or an electing accrual basis U.S. holder will determine the U.S. dollar amount realized by translating the pounds sterling received at the spot rate on the settlement date of the sale, retirement or other disposition. If an accrual basis U.S. holder makes this election, the election must be applied consistently to all debt instruments from year to year and cannot be changed without the consent of the Internal Revenue Service. If an accrual basis U.S. holder does not make this election, the U.S. holder will determine the U.S. dollar equivalent of the amount realized by translating that amount at the spot rate on the date of the sale, retirement or other disposition and generally will recognize exchange gain or loss (generally treated as ordinary income or loss) equal to the difference, if any, between the U.S. dollar equivalent of the amount realized based on the spot rates in effect on the date of disposition and the settlement date.

        A U.S. holder's tax basis in a sterling exchange note generally will be U.S. holder's cost of the sterling exchange note (or in the case of a sterling exchange note exchanged for a sterling outstanding note pursuant to the exchange offer, the tax basis of the sterling outstanding note, as discussed above under "—Exchange of Notes"), increased by the U.S. dollar amount of any market discount previously included in the U.S. holder's gross income, and reduced by the U.S. dollar amount of any amortizable

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bond premium applied to reduce, or allowed as a deduction against, interest on such sterling note. If a U.S. holder purchased such sterling exchange note (or the sterling outstanding note for which such sterling exchange note was exchanged) with pounds sterling, the U.S. holder's cost for such note generally will be the U.S. dollar value of the sterling amount paid for the sterling exchange note (or, the U.S. dollar value of the sterling amount paid for the sterling outstanding note, as the case may be) determined at the spot rate on the date of purchase. However, if the sterling exchange notes are traded on an established securities market, a cash basis U.S. holder or an electing accrual basis U.S. holder will determine the U.S. dollar amount of the pounds sterling purchase price by translating the pounds sterling paid at the spot rate on the settlement date of the purchase. As described above, if an accrual basis U.S. holder makes this election, the election must be applied consistently to all debt instruments from year to year and cannot be changed without the consent of the Internal Revenue Service. If an accrual basis U.S. holder does not make this election, the U.S. holder will determine the U.S. dollar equivalent of the purchase price by translating that amount at the spot rate on the date of the purchase and generally will recognize exchange gain or loss (generally treated as ordinary income or loss) equal to the difference, if any, between the U.S. dollar equivalent of the purchase price based on the spot rates in effect on the date of purchase and the settlement date.

        A U.S. holder of a sterling exchange note will recognize exchange gain or loss attributable to the movement in exchange rates between the time of purchase and the time of disposition, including the sale, exchange, retirement or other disposition, of the sterling exchange note. Gain or loss attributable to the movement of exchange rates will equal the difference between (1) the U.S. dollar value of the pounds sterling principal amount of the sterling exchange note, determined as of the date such sterling exchange note is disposed of based on the spot rate in effect on that date, and (2) the U.S. dollar value of the pounds sterling principal amount of such sterling exchange note (or in the case of an exchange note exchanged for an outstanding note pursuant to the exchange offer, the U.S. dollar value of the pounds sterling principal amount of the outstanding note), determined on the date the U.S. holder acquired the sterling exchange note or sterling outstanding note, as the case may be, based on the spot rate in effect on that date. For this purpose, the principal amount of the sterling exchange note is the U.S. holder's purchase price for such note in pounds sterling (or, in the case of a sterling exchange note acquired in exchange for a sterling outstanding note pursuant to the exchange offer, the U.S. holder's purchase price for the sterling outstanding note in pounds sterling), decreased by the amortized portion of any bond premium. Any such gain or loss generally will be treated as ordinary income or loss, and generally will be U.S. source gain or loss, and generally will not be treated as interest income or expense. The realization of any such gain or loss will be limited to the amount of overall gain or loss realized by the U.S. holder on the disposition of such note.

Information Reporting and Backup Withholding

        In general, information reporting may apply to payments of principal and interest on an exchange note and to the proceeds of the sale of an exchange note made to U.S. holders other than exempt recipients. Backup withholding will apply to these payments if the U.S. holder fails to provide its taxpayer identification number or, in the case of interest payments, fails either to report in full dividend and interest income or to make various certifications.

        Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against the U.S. holder's U.S. federal income tax liability provided the required information is furnished on a timely basis to the Internal Revenue Service.

        Pursuant to recently enacted legislation, effective for tax years beginning after March 18, 2010, individuals who are U.S. holders, and who hold "specified foreign financial assets" (as defined), including notes that are not held in an account maintained by a U.S. "financial institution" (as defined), whose aggregate value exceeds $50,000 during the tax year, may be required to attach to their tax returns for the year certain specified information. An individual who fails to timely furnish the

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required information may be subject to penalty. U.S. holders who are individuals should consult their own tax advisors regarding their reporting obligations under this legislation.

        The above summary is not intended to constitute a complete analysis of all U.S. federal income tax consequences to an investor of acquiring, owning and disposing of the exchange notes and the exchange of the outstanding notes for exchange notes. Each prospective investor should consult its own tax advisor with respect to the U.S. federal, state and local and foreign and other tax consequences of acquiring, holding and disposing of the exchange notes and the exchange of the outstanding notes for exchange notes.

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Material United Kingdom Tax Considerations

        The following is a general guide to U.K. tax considerations relating to the notes based on current U.K. law and practice. It does not purport to be a complete analysis of all U.K. tax considerations relating to the notes. It applies only to persons who are the absolute beneficial owners of notes and some aspects do not apply to some classes of taxpayer. Prospective holders of notes who may be subject to tax in a jurisdiction other than the U.K. or who are in any doubt as to their tax position should consult their own professional advisers.

Exchange of Notes

        For U.K. taxpayers other than corporation tax payers, the exchange of outstanding notes for exchange notes pursuant to the exchange offer may constitute a disposal for the purposes of the UK's deeply discounted securities provisions, and the exchange may constitute a transfer for the purposes of the accrued income scheme where relevant, although in each case the position is not clear. The potential tax consequences of such disposal or transfer would be as described under "Sale, Exchange and Redemption of Notes" below.

Payment of Interest

        The notes will constitute "quoted Eurobonds" within the meaning of section 987 of the Income Tax Act 2007 (the "2007 Act"), as long as they are and continue to be listed on a "recognised stock exchange" within the meaning of section 1005 of the 2007 Act. The Luxembourg Stock Exchange is such a recognised exchange. Provided that this condition remains satisfied, payments of interest on the notes may be made without withholding on account of U.K. tax.

        In the event that the notes cease to be listed on a recognised stock exchange, payments of interest must be made under deduction of income tax at the basic rate, currently 20%, subject to any direction to the contrary by HM Revenue & Customs under an applicable double taxation treaty, unless payments are made to some categories of recipients, including companies who the issuer reasonably believes are subject to U.K. corporation tax.

        Interest on the notes may be subject to income tax by direct assessment even where paid without deduction or withholding on account of U.K. income tax. Interest on the notes received without deduction or withholding on account of U.K. tax will not be chargeable to U.K. tax in the hands of a holder of notes who is not resident for tax purposes in the U.K. (other than in the case of certain trustees) unless that holder of notes carries on a trade, profession or vocation in the U.K. through a U.K. branch or agency, or for holders of notes who are companies through a U.K. permanent establishment, in connection with which the interest is received or to which the notes are attributable. There are exemptions from U.K. tax for interest received through certain categories of agent, such as some brokers and investment managers. The provisions of any applicable double tax treaty may be relevant to such a holder of notes.

        The provisions relating to additional payments referred to under "Description of the Exchange Notes—Payments of Additional Amounts" would not apply if HM Revenue & Customs sought to assess the person entitled to the interest directly to U.K. income tax. Exemption from or reduction of U.K. tax liability might be available under an applicable double taxation treaty.

Payments by a Guarantor

        If a guarantor makes any payments in respect of interest on the notes (or other amounts due under the notes other than the repayment of amounts subscribed for the notes), it is possible that such payments may be subject to U.K. withholding tax, subject to any claim which could be made under an

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applicable double taxation treaty. Such payments by a guarantor may not be eligible for the quoted Eurobonds exemption described above.

Provision of Information

        Holders of notes should note that where any interest on notes is paid to them (or to any person acting on their behalf) by the issuer or any person in the U.K. acting on behalf of the issuer (a "paying agent"), or is received by any person in the U.K. acting on behalf of the relevant noteholder (other than solely by clearing or arranging the clearing of a cheque) (a "collecting agent"), then the issuer, the paying agent or the collecting agent (as the case may be) may, in certain cases, be required to supply to HM Revenue & Customs details of the payment and certain details relating to the noteholder (including the noteholder's name and address). These provisions will apply whether or not the interest has been paid subject to withholding or deduction for or on account of U.K. income tax and whether or not the noteholder is resident in the U.K. for U.K. taxation purposes. Where the noteholder is not so resident, the details provided to HM Revenue & Customs may, in certain cases, be passed by HM Revenue & Customs to the tax authorities of the jurisdiction in which the noteholder is resident for taxation purposes.

        For the above purposes, "interest" should be taken, for practical purposes, as including payments made by a guarantor in respect of interest on the notes.

        The provisions referred to above may also apply to payments made on redemption of any notes where the amount payable on redemption is greater than the issue price of the notes.

        Under European Union Council Directive 2003/48/EC on the taxation of savings income, each Member State is required to provide to the tax authorities of another Member State details of payments of interest or other similar income paid by a person within its jurisdiction to, or collected by such a person for, an individual (or certain other kinds of person) resident in that other Member State. However, for a transitional period, Austria and Luxembourg are currently applying a withholding system in relation to such payments, deducting tax at rates rising over time to 35 per cent. The transitional period is to terminate at the end of the first full fiscal year following agreement by certain non-EU countries to the exchange of information relating to such payments.

        A number of non-EU countries and certain dependant or associated territories of certain Member States have adopted similar measures (either provision of information or transitional withholding) in relation to payments made by a person within its jurisdiction to, or collected by such a person for, an individual resident in a Member State. In addition, the Member States have entered into reciprocal provision of information or transitional withholding arrangements with certain of those dependent or associated territories in relation to payments made by a person in a Member State to, or collected by such a person for, an individual resident in one of those territories.

        If a payment were to be made or collected through a Member State which has opted for a withholding system and an amount of, or in respect of, tax were to be withheld from that payment, neither the issuer nor any paying agent nor any other person would be obliged to pay additional amounts to the noteholders or to otherwise compensate noteholders for the reduction in the amounts that they will receive as a result of the imposition of such withholding tax. However, the issuer is required to maintain a paying agent in a Member State that will not be obliged to withhold or deduct tax pursuant to the directive (if such a state exists).

Sale, Exchange and Redemption of Notes

U.K. Corporation Taxpayers

        In general, a holder of notes which is subject to U.K. corporation tax will be treated for U.K. tax purposes as realizing profits, gains or losses in respect of the notes under the "loan relationship" rules

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in Part 5 of the Corporation Tax Act 2009 on a basis reflecting the treatment in its statutory accounts, calculated in accordance with generally accepted accounting practice. These profits, gains or losses will be taken into account in computing income for U.K. corporation tax purposes.

        Exchange gains and losses on the notes will be treated for U.K. tax purposes as included within the profits, gains and losses realized in respect of the notes and thereby taxable under the loan relationship rules referred to above.

Other U.K. Taxpayers

        The notes are likely to constitute "deeply discounted securities" (although arguments may be made to the contrary) and, therefore, the notes (including the U.S. dollar denominated notes) would be "qualifying corporate bonds." Accordingly, no chargeable gain or allowable loss would arise for the purposes of U.K. capital gains tax on a transfer or redemption of such a note. However, any profit arising on the transfer or redemption of such a note by an individual holder who is resident in the United Kingdom or who carries on a trade, profession or vocation in the United Kingdom through a branch or agency to which such note is attributable would be taxed as income (with no account being taken in calculating the profit of any costs incurred in connection with the transfer or redemption of such note or its acquisition). In calculating any profit on disposal of such a note, sterling values are likely to be compared at acquisition and transfer or redemption. Accordingly, in respect of the U.S. dollar denominated notes, a U.K. taxable profit (but no allowable loss) can arise even where the U.S. dollar amount received on a disposal is less than or the same as the amount paid for such note. No income tax relief in respect of any losses arising on transfers or redemptions of the notes will be allowed for U.K. income tax purposes. The accrued income scheme rules will not apply to any transfer of such a note on the assumption that such notes are deeply discounted securities.

        If the U.S. dollar denominated notes are not deeply discounted securities, disposal of such a note by an individual holder who is resident or ordinarily resident for tax purposes in the United Kingdom or who carries on a trade, profession or vocation in the United Kingdom through a branch or agency to which such a note is attributable may give rise to a chargeable gain or allowable loss for the purposes of U.K. tax on chargeable gains, depending on individual circumstances. In calculating any gain or allowable loss on disposal of such a note, sterling values are compared at acquisition and transfer or redemption. Accordingly, a U.K. taxable gain can arise even where the U.S. dollar amount received on a disposal is less than or the same as the amount paid for such a note.

        The sterling denominated notes should constitute "qualifying corporate bonds" whether or not they are deeply discounted securities. As such, a disposal of a sterling denominated note by an individual holder who is resident or ordinarily resident for tax purposes in the United Kingdom or who carries on a trade, profession or vocation in the United Kingdom through a branch or agency to which such note is attributable should not give rise to a chargeable gain or allowable loss for the purposes of U.K. tax on chargeable gains.

        On a disposal of a note (if they do not constitute deeply discounted securities) any interest which has accrued since the last interest payment date (or issue) may be charged to U.K. tax as income under the rules of the accrued income scheme if that individual holder is resident or ordinarily resident in the United Kingdom or carries on a trade in the United Kingdom through a branch or agency to which such note is attributable. In respect of the U.S. dollar denominated notes, this amount would be taken into account and excluded in determining any capital gain or loss arising on disposal.

Holders who are not Resident in the United Kingdom

        A body corporate, that is neither resident in the United Kingdom nor carrying on a trade in the United Kingdom through a permanent establishment will not be liable for U.K. corporation tax on profits, gains and losses on, or fluctuations in value of, the notes. Other holders of notes who are

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neither resident nor ordinarily resident for tax purposes in the United Kingdom and who do not carry on a trade, profession or vocation in the United Kingdom through a branch or agency to which the notes are attributable will not be liable to U.K. tax on chargeable gains realized on or profits arising on the disposal of their notes.

Stamp Duty and Stamp Duty Reserve Tax

        No U.K. stamp duty or stamp duty reserve tax is payable on the issue of the notes or on a transfer of the notes.

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Plan of Distribution

        Each broker-dealer that receives exchange notes for its own account pursuant to the exchange offer must acknowledge that it will deliver a prospectus in connection with any resale of such exchange notes. This prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of exchange notes received in exchange for outstanding notes, where such outstanding notes were acquired as a result of market-making activities or other trading activities. To the extent any such broker-dealer participates in the exchange offer, we have agreed that for a period of up to 365 days after the date of issuance of the notes, we will make this prospectus, as amended or supplemented, available to such broker-dealer for use in connection with any such resale. In addition, all dealers effecting transactions in the exchange notes may be required to deliver a prospectus.

        We will not receive any proceeds from any sale of exchange notes by broker-dealers. Exchange notes received by broker-dealers for their own account pursuant to the exchange offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the exchange notes or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may be made directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealer and/or the purchasers of any such exchange notes. Any broker-dealer that resells exchange notes that were received by it for its own account pursuant to the exchange offer and any broker or dealer that participates in a distribution of such exchange notes may be deemed to be an "underwriter" within the meaning of the Securities Act and any profit of any such resale of exchange notes and any commissions or concessions received by any such persons may be deemed to be underwriting compensation under the Securities Act. The letter of transmittal states that by acknowledging that it will deliver and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act.

        We have agreed to pay all expenses incident to the exchange offer other than commissions or concessions of any brokers or dealers and will indemnify the holders of the notes (including any broker-dealers) against certain liabilities, including liabilities under the Securities Act.

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Legal Matters

        The validity of the new notes and guarantees offered hereby has been passed upon for us by Fried, Frank, Harris, Shriver & Jacobson (London) LLP, London, England. Certain matters of Colorado law have been passed upon for us by Ballard Spahr LLP, Denver, Colorado. Certain matters of Jersey law have been passed upon for us by Mourant Ozannes, St Helier, Jersey. Certain matters of Luxembourg law have been passed upon for us by LG@vocats, Luxembourg, Luxembourg. Certain matters of Scottish law have been passed upon for us by HBJ Gateley Wareing (Scotland) LLP, Edinburgh, Scotland.


Experts

        The consolidated financial statements and financial statement schedule of Virgin Media Inc. and subsidiaries included in its Annual Report on Form 10-K for the year ended December 31, 2009, and the condensed consolidating financial information of Virgin Media Inc. and subsidiaries, consolidated financial statements of Virgin Media Investment Holdings Limited and subsidiaries and consolidated financial statements of Virgin Media Investments Limited and subsidiaries, included herein have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports thereon included herein. The effectiveness of Virgin Media Inc. and subsidiaries' internal control over financial reporting as of December 31, 2009 has also been audited by Ernst & Young LLP, as set forth in their report thereon included in its Annual Report on Form 10-K for the year ended December 31, 2009 and incorporated herein by reference.

        Such consolidated financial statements, financial statement schedule and accompanying condensed consolidating financial information, and the effectiveness of Virgin Media Inc. and subsidiaries' internal control over financial reporting as of December 31, 2009, consolidated financial statements of Virgin Media Investment Holdings Limited and subsidiaries, and consolidated financial statements of Virgin Media Investments Limited and subsidiaries, are either included in this prospectus or incorporated herein by reference in reliance upon such reports given upon the authority of such firm as experts in accounting and auditing.


Enforceability of Civil Liabilities

        The issuer is a public limited company incorporated under the laws of England and Wales with its registered office and principal place of business in England. Most of the guarantors are incorporated under the laws of England and Wales, and most of the assets held by the guarantors are located within England and Wales. As a result, it may not be possible for you to recover payments of principal, premium, interest, Additional Amounts or purchase price with respect to the exchange notes or other payments or claims in the United States upon judgments of U.S. courts for any such payments or claims. The United States and England do not currently have a treaty providing for the reciprocal recognition and enforcement of judgments, other than arbitration awards, in civil and commercial matters. Therefore, a final judgment for the payment of a fixed debt, sum of money, payment or claim rendered by any U.S. court based on civil liability, whether or not predicated solely upon the U.S. federal securities laws, would not automatically be enforceable in England. In order to enforce such a U.S. judgment in England, proceedings must be initiated by way of common law action before a court of competent jurisdiction in England. In the case of any judgment by any U.S. court, an English court will, subject to what is said below, normally order summary judgment on the basis that there is no defense to the claim for payment and will not reinvestigate the merits of the original dispute and therefore will treat the U.S. judgment as creating a valid debt upon which the judgment creditor could bring an action for payment any relevant assets of the issuer and any of the guarantors, as long as, among other things:

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        Based on the foregoing and subject to matters referred to in "Description of the Intercreditor Deeds," there can be no assurance that you will be able to enforce in England judgments in civil and commercial matters obtained in any U.S. court. There is doubt as to whether an English court would impose civil liability in an original action predicated solely upon the U.S. federal securities laws brought in a court of competent jurisdiction in England.

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Listing and General Information

Listing

        The issuer will make an application to list the exchange notes on the Official List of the Luxembourg Stock Exchange and for admission to trading on the Euro MTF market of the Luxembourg Stock Exchange in accordance with the rules of that exchange. Notice of any optional redemption, change of control or any change in the rate of interest payable on the exchange notes will be published in a Luxembourg newspaper of general circulation, which is expected to be the Luxemburger Wort, or on the website of the Luxembourg Stock Exchange (www.bourse.lu).

        For so long as the exchange notes are listed on the Luxembourg Stock Exchange and the rules of that exchange require, copies of the following documents, including any future amendments, may be inspected and obtained at the specified office of the listing agent in Luxembourg during normal business hours on any weekday:

        For so long as the exchange notes are listed on the Luxembourg Stock Exchange and the rules of that exchange require, copies of the articles of incorporation and bylaws, or other constitutional documents as applicable, of the issuer and each of the guarantors will be available free of charge at the offices of the paying agent in Luxembourg.

        The issuer will maintain a paying and transfer agent in Luxembourg for as long as any of the exchange notes are listed on the Luxembourg Stock Exchange. The issuer reserves the right to vary such appointment and we will publish notice of such change of appointment in a newspaper having a general circulation in Luxembourg, which is expected to be the Luxemburger Wort, or on the website of the Luxembourg Stock Exchange (www.bourse.lu).

        Our fiscal year ends December 31. The issuer files its statutory annual accounts with the Companies House of England and Wales but does not otherwise publish its financial statements. Virgin Media Inc. currently prepares consolidated annual and quarterly reports pursuant to the Exchange Act. Virgin Media Investment Holdings Limited publishes its annual and quarterly reports pursuant to the Exchange Act and files its statutory annual accounts with the Companies House of England and Wales. None of the other guarantors currently publishes financial statements. Virgin Media Inc.'s most recent audited consolidated financial statements and interim quarterly financial statements are available free of charge at the office of our Luxembourg paying agent. Virgin Media Inc.'s financial statements will be made available free of charge at the office of our Luxembourg paying agent.

Clearing Information

Exchange Notes:

        The CUSIP number assigned to the dollar denominated exchange notes is 92769XAC9 and the ISIN number is US92769XAC92.

        The ISIN number assigned to the sterling denominated exchange notes is XS0520493007 and the common code is 052049300.

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Outstanding Notes—Rule 144A Notes:

        The CUSIP number assigned to the dollar denominated outstanding notes issued under Rule 144A is 92769XAA3 and the ISIN number is US92769XAA37.

        The ISIN number assigned to the sterling denominated outstanding notes issued under Rule 144A is XS0479701137 and the common code is 047970113.

Outstanding Notes—Regulation S Notes:

        The CUSIP number assigned to the dollar denominated outstanding notes issued under Regulation S is G9372GAA6 and the ISIN number is USG9372GAA60.

        The ISIN number assigned to the sterling denominated outstanding notes issued under Regulation S is XS0479697947 and the common code is 047969794.

Legal Information

        The issuer is a public limited company incorporated on December 18, 2009 under the laws of England and Wales. The issued share capital of the issuer is £50,000, divided into 50,000 ordinary shares of £1 each. The authorized share capital of the issuer is £50,000 divided into 50,000 ordinary shares of £1 each. Its registered address is 160 Great Portland Street, London W1W 5QA, United Kingdom. The directors of the issuer are Robert Gale and Robert Mackenzie. The directors can be contacted at the registered address of the issuer.

        The creation and issuance of the exchange notes and the execution of the indenture has been authorized by a resolution of the issuer's board of directors passed at a meeting of the issuer's board of directors held on January 7, 2010. The guarantees have been authorized by resolution of the board of directors, or equivalent body, where applicable, of each of the guarantors.

        Virgin Media Inc. was incorporated on November 12, 2003 under the laws of the State of Delaware, United States of America. Its issued share capital is divided into 330,750,544 fully paid, non-assessable shares of common stock with a par value of $0.01 as of January 8, 2010. Its authorized share capital is 1,305,000,000 shares, consisting of 1,000,000,000 shares of common stock, 300,000,000 shares of Class B redeemable common stock and 5,000,000 shares of preferred stock, with a par value of $0.01 per share.

        Virgin Media Finance PLC was incorporated on March 3, 2004 under the laws of England and Wales. Its issued share capital is £92,456, divided into 92,456 fully paid ordinary shares of £1.00 each. Its authorized share capital is £5,000,000, divided into 5,000,000 ordinary shares of £1.00 each. Its registered address is 160 Great Portland Street, London W1W 5QA, United Kingdom. Its directors are Robert Gale and Robert Mackenzie. The directors can be contacted at the company's registered address.

        Virgin Media Investment Holdings Limited was incorporated on March 15, 1996 under the laws of England and Wales. Its issued share capital is £225 divided into 224,552 fully paid ordinary shares of £0.001 each. Its authorized share capital is £1,000 divided into 1,000,000 ordinary shares of £0.001 each. Its registered address is at 160 Great Portland Street, London W1W 5QA, United Kingdom. Its directors are Robert Gale and Robert Mackenzie. The directors can be contacted at the company's registered address.

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List of Guarantors

Andover Cablevision Limited

   

Anglia Cable Communications Limited

   

Avon Cable Joint Venture

   

Avon Cable Limited Partnership(1)

   

Barnsley Cable Communications Limited

   

BCMV Limited

   

Berkhamsted Properties & Building Contractors Limited

   

Birmingham Cable Corporation Limited

   

Birmingham Cable Finance Limited(2)

   

Birmingham Cable Limited

   

Cable Camden Limited

   

Cable Enfield Limited

   

Cable Hackney & Islington Limited

   

Cable Haringey Limited

   

Cable London Limited

   

Cable Television Limited

   

Cable Thames Valley Limited

   

Cabletel (UK) Limited

   

CableTel Cardiff Limited

   

CableTel Central Hertfordshire Limited

   

CableTel Hertfordshire Limited

   

CableTel Herts and Beds Limited

   

CableTel Investments Limited

   

CableTel Newport

   

CableTel North Bedfordshire Limited

   

CableTel Scotland Limited(3)

   

CableTel Surrey and Hampshire Limited

   

CableTel Telecom Supplies Limited

   

CableTel West Glamorgan Limited

   

CableTel West Riding Limited

   

Cambridge Cable Services Limited

   

Cambridge Holding Company Limited

   

CCL Corporate Communication Services Limited

   

Central Cable Holdings Limited

   

Chartwell Investors L.P.(4)

   

Columbia Management Limited

   

ComTel Cable Services Limited

   

ComTel Coventry Limited

   

Continental Shelf 16 Limited

   

Cotswolds Cable Limited Partnership(1)

   

Credit-Track Debt Recovery Limited

   

Crystal Palace Radio Limited

   

Diamond Cable Communications Limited

   

Digital Television Network Limited

   

Doncaster Cable Communications Limited

   

DTELS Limited

   

East Coast Cable Limited

   

Ed Stone Limited

   

Edinburgh Cable Limited Partnership(1)

   

EMS Investments Limited

   

Enablis Limited

   

Estuaries Cable Limited Partnership(1)

   

EuroBell (Holdings) Limited

   

EuroBell (IDA) Limited

   

EuroBell (No. 2) Limited

   

EuroBell (No. 3) Limited

   

EuroBell (No. 4) Limited

   

EuroBell (South West) Limited

   

EuroBell (Sussex) Limited

   

EuroBell (West Kent) Limited

   

EuroBell CPE Limited

   

EuroBell Internet Services Limited

   

EuroBell Limited

   

Filegale Limited

   

Fleximedia Limited

   

Flextech (1992) Limited

   

Flextech (Kindernet Investment) Limited

   

Flextech (Travel Channel) Limited

   

Flextech Broadband Limited

   

Flextech Broadcasting Limited

   

Flextech Business News Limited

   

Flextech Childrens Channel Limited

   

Flextech Communications Limited

   

Flextech Digital Broadcasting Limited

   

Flextech Distribution Limited

   

Flextech Family Channel Limited

   

Flextech IVS Limited

   

Flextech Limited

   

Flextech Media Holdings Limited

   

Flextech Music Publishing Limited

   

Flextech Video Games Limited

   

Flextech-Flexinvest Limited

   

Future Entertainment S.à r.l.(5)

   

General Cable Group Limited

   

General Cable Holdings Limited

   

General Cable Investments Limited

   

General Cable Limited

   

Halifax Cable Communications Limited

   

Heartland Cablevision (UK) Limited

   

Heartland Cablevision II (UK) Limited

   

Herts Cable Limited

   

Interactive Digital Sales Limited

   

Jewel Holdings

   

Lanbase European Holdings Limited

   

Lanbase Limited

   

Lichfield Cable Communications Limited

   

London South Cable Partnership(1)

   

M&NW Network II Limited

   

M&NW Network Limited

   

Maza Limited

   

Metro Hertfordshire Limited

   

Metro South Wales Limited

   

Middlesex Cable Limited

   

NNS U.K. Holdings 2, Inc.(4)

   

NNS UK Holdings 1 LLC(4)

   

North CableComms Holdings, Inc.(4)

   

North CableComms L.L.C.(4)

   

North CableComms Management, Inc.(4)

   

Northampton Cable Television Limited

   

NTL (Aylesbury and Chiltern) Limited

   

NTL (B) Limited

   

NTL (Broadland) Limited

   

NTL (City & Westminster) Limited

   

NTL (County Durham) Limited

   

NTL (CRUK)

   

NTL (CWC Holdings)

   

NTL (CWC) Corporation Limited

   

NTL (CWC) Limited

   

NTL (CWC) Management Limited

   

NTL (CWC) No. 2 Limited

   

NTL (CWC) No. 3 Limited

   

NTL (CWC) No. 4 Limited

   

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Table of Contents

NTL (CWC) Programming Limited

   

NTL (CWC) UK

   

NTL (Ealing) Limited

   

NTL (Fenland) Limited

   

NTL (Greenwich and Lewisham) Limited

   

NTL (Hampshire) Limited

   

NTL (Harrogate) Limited

   

NTL (Harrow) Limited

   

NTL (Kent) Limited

   

NTL (Lambeth and Southwark) Limited

   

NTL (Leeds) Limited

   

NTL (Norwich) Limited

   

NTL (Peterborough) Limited

   

NTL (South East) Limited

   

NTL (South London) Limited

   

NTL (Southampton and Eastleigh) Limited

   

NTL (Sunderland) Limited

   

NTL (Thamesmead) Limited

   

NTL (Triangle) LLC(4)

   

NTL (V)

   

NTL (Wandsworth) Limited

   

NTL (Wearside) Limited

   

NTL (West London) Limited

   

NTL (Yorcan) Limited

   

NTL (York) Limited

   

NTL Acquisition Company Limited

   

NTL Bolton Cablevision Holding Company

   

NTL Bromley Company(4)

   

NTL Business (Ireland) Limited

   

NTL Business Limited

   

NTL Cablecomms Bolton

   

NTL Cablecomms Bromley

   

NTL Cablecomms Bury and Rochdale

   

NTL Cablecomms Cheshire

   

NTL Cablecomms Derby

   

NTL Cablecomms East Lancashire

   

NTL Cablecomms Greater Manchester

   

NTL Cablecomms Group Limited

   

NTL CableComms Group, Inc.(4)

   

NTL Cablecomms Holdings No. 1 Limited

   

NTL Cablecomms Holdings No. 2 Limited

   

NTL Cablecomms Lancashire No. 1

   

NTL Cablecomms Lancashire No. 2

   

NTL Cablecomms Limited

   

NTL Cablecomms Macclesfield

   

NTL Cablecomms Manchester Limited

   

NTL Cablecomms Oldham and Tameside

   

NTL Cablecomms Solent

   

NTL Cablecomms Staffordshire

   

NTL Cablecomms Stockport

   

NTL Cablecomms Surrey

   

NTL Cablecomms Sussex

   

NTL Cablecomms Wessex

   

NTL Cablecomms West Surrey Limited

   

NTL Cablecomms Wirral

   

NTL Cambridge Limited

   

NTL Chartwell Holdings 2, Inc.(4)

   

NTL Chartwell Holdings Limited

   

NTL Chartwell Holdings, Inc.(4)

   

NTL Communications Services Limited

   

NTL Darlington Limited

   

NTL Derby Cablevision Holding Company

   

NTL Equipment No. 1 Limited

   

NTL Equipment No. 2 Limited

   

NTL Finance Limited

   

NTL Funding Limited

   

NTL Glasgow(3)

   

NTL Glasgow Holdings Limited

   

NTL Holdings (Broadland) Limited

   

NTL Holdings (East London) Limited

   

NTL Holdings (Fenland) Limited

   

NTL Holdings (Leeds) Limited

   

NTL Holdings (Norwich) Limited

   

NTL Holdings (Peterborough) Limited

   

NTL Internet Limited

   

NTL Internet Services Limited

   

NTL Irish Holdings Limited

   

NTL Kirklees

   

NTL Kirklees Holdings Limited

   

NTL Limited

   

NTL Manchester Cablevision Holding Company

   

NTL Microclock Services Limited

   

NTL Midlands Limited

   

NTL Milton Keynes Limited

   

NTL National Networks Limited

   

NTL Networks Limited

   

NTL North CableComms Holdings, Inc.(4)

   

NTL North CableComms Management, Inc.(4)

   

NTL Partcheer Company Limited

   

NTL Programming Subsidiary Company(4)

   

NTL Rectangle Limited

   

NTL Sideoffer Limited

   

NTL Solent Company(4)

   

NTL Solent Telephone and Cable TV Company Limited

   

NTL South CableComms Holdings, Inc.(4)

   

NTL South CableComms Management, Inc.(4)

   

NTL South Central Limited

   

NTL South Wales Limited

   

NTL Streetunique Projects Limited

   

NTL Streetunit Projects Limited

   

NTL Streetusual Services Limited

   

NTL Streetvision Services Limited

   

NTL Streetvital Services Limited

   

NTL Streetwarm Services Limited

   

NTL Streetwide Services Limited

   

NTL Strikeagent Trading Limited

   

NTL Strikeamount Trading Limited

   

NTL Strikeapart Trading Limited

   

NTL Surrey Company(4)

   

NTL Sussex Company(4)

   

NTL Systems Limited

   

NTL Technical Support Company Limited

   

NTL Teesside Limited

   

NTL Telecom Services Limited

   

NTL UK CableComms Holdings, Inc.(4)

   

NTL UK Telephone and Cable TV Holding Company Limited

   

NTL Victoria II Limited

   

NTL Victoria Limited

   

NTL Wessex Company(4)

   

NTL Westminster Limited

   

NTL Winston Holdings Limited

   

NTL Winston Holdings, Inc.(4)

   

NTL Wirral Company(4)

   

NTL Wirral Telephone and Cable TV Company

   

Oxford Cable Limited

   

Prospectre Limited(3)

   

Screenshop Limited

   

Secure Backup Systems Limited

   

Sheffield Cable Communications Limited

   

South CableComms Holdings, Inc.(4)

   

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Table of Contents

South CableComms L.L.C.(4)

   

South CableComms Management, Inc.(4)

   

Southern East Anglia Cable Limited

   

Southwestern Bell International Holdings Limited

   

Stafford Communications Limited

   

Swindon Cable Limited

   

Tamworth Cable Communications Limited

   

TCI/US West Cable Communications Group(1)

   

Telewest Communications (Central Lancashire) Limited

   

Telewest Communications (Cotswolds) Limited

   

Telewest Communications (Cotswolds) Venture

   

Telewest Communications (Cumbernauld) Limited(3)

   

Telewest Communications (Dumbarton) Limited(3)

   

Telewest Communications (Dundee & Perth) Limited(3)

   

Telewest Communications (Falkirk) Limited(3)

   

Telewest Communications (Glenrothes) Limited(3)

   

Telewest Communications (Liverpool) Limited

   

Telewest Communications (London South) Joint Venture

   

Telewest Communications (London South) Limited

   

Telewest Communications (Midlands and North West) Limited

   

Telewest Communications (Midlands) Limited

   

Telewest Communications (Motherwell) Limited(3)

   

Telewest Communications (Nominees) Limited

   

Telewest Communications (North East) Limited

   

Telewest Communications (North East) Partnership

   

Telewest Communications (North West) Limited

   

Telewest Communications (Scotland Holdings) Limited(3)

   

Telewest Communications (Scotland) Limited(3)

   

Telewest Communications (Scotland) Venture

   

Telewest Communications (South East) Limited

   

Telewest Communications (South East) Partnership

   

Telewest Communications (South Thames Estuary) Limited

   

Telewest Communications (South West) Limited

   

Telewest Communications (St. Helens & Knowsley) Limited

   

Telewest Communications (Tyneside) Limited

   

Telewest Communications (Wigan) Limited

   

Telewest Communications Cable Limited

   

Telewest Communications Holdco Limited

   

Telewest Communications Holdings Limited

   

Telewest Communications Networks Limited

   

Telewest Limited

   

Telewest Parliamentary Holding Limited

   

Telewest UK Limited

   

Telso Communications Limited

   

The Cable Corporation Limited

   

The Yorkshire Cable Group Limited

   

Theseus No. 1 Limited

   

Theseus No. 2 Limited

   

TVS Pension Fund Trustees Limited

   

TVS Television Limited

   

Tyneside Cable Limited Partnership(1)

   

United Artists Investments Limited

   

United Cable (London South) Limited Partnership(1)

   

Virgin Media Business Limited

   

Virgin Media Finance PLC

   

Virgin Media Inc.(4)

   

Virgin Media Investment Holdings Limited

   

Virgin Media Investments Limited

   

Virgin Media Limited

   

Virgin Media Payments Ltd

   

Virgin Media SFA Finance Limited

   

Virgin Media Wholesale Limited

   

Virgin Mobile Group (UK) Limited

   

Virgin Mobile Holdings (UK) Limited

   

Virgin Mobile Telecoms Limited

   

Virgin Net Limited

   

Vision Networks Services UK Limited

   

VM Sundial Limited

   

VMIH Sub Limited

   

Wakefield Cable Communications Limited

   

Wessex Cable Limited

   

Windsor Television Limited

   

Winston Investors L.L.C.(4)

   

XL Debt Recovery Agency Limited

   

X-Tant Limited

   

Yorkshire Cable Communications Limited

   

Guarantors are incorporated or organized in England and Wales, except where indicated as follows:

(1)
Colorado

(2)
Jersey

(3)
Scotland

(4)
Delaware

(5)
Luxembourg

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INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Virgin Media Investment Holdings Limited and Virgin Media Investments Limited

   

Report of Independent Registered Public Accounting Firm

  F-2

Report of Independent Registered Public Accounting Firm

  F-3

Audited Financial Statements of Virgin Media Investment Holdings Limited

   

Consolidated Balance Sheets—December 31, 2009 and 2008

  F-4

Consolidated Statements of Operations—Years ended December 31, 2009, 2008 and 2007

  F-5

Consolidated Statements of Cash Flows—Years ended December 31, 2009, 2008 and 2007

  F-6

Consolidated Statements of Shareholders' Equity—Years ended December 31, 2009, 2008 and 2007

  F-7

Audited Financial Statements of Virgin Media Investments Limited

   

Consolidated Balance Sheets—December 31, 2009 and 2008

  F-8

Consolidated Statements of Operations—Years ended December 31, 2009, 2008 and 2007

  F-9

Consolidated Statements of Cash Flows—Years ended December 31, 2009, 2008 and 2007

  F-10

Consolidated Statements of Shareholders' Equity—Years ended December 31, 2009, 2008 and 2007

  F-11

Combined Notes to the Consolidated Financial Statements

  F-12

Virgin Media Inc.

   

Report of Independent Registered Public Accounting Firm

  F-56

Condensed Consolidating Financial Information

  F-57

Unaudited Condensed Consolidating Financial Information

  F-66

F-1


Table of Contents


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders
Virgin Media Investment Holdings Limited

        We have audited the accompanying consolidated balance sheets of Virgin Media Investments Holdings Limited and subsidiaries (the "Company") an indirect wholly owned subsidiary of Virgin Media Inc. (the "Parent"), as of December 31, 2009 and 2008, and the related consolidated statements of operations, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Virgin Media Investment Holdings Limited and subsidiaries at December 31, 2009 and 2008, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

London, England
June 15, 2010

F-2


Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders
Virgin Media Investments Limited

        We have audited the accompanying consolidated balance sheets of Virgin Media Investments Limited and subsidiaries (the "Company") an indirect wholly owned subsidiary of Virgin Media Inc. (the "Parent"), as of December 31, 2009 and 2008, and the related consolidated statements of operations, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2009. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Company's internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Virgin Media Investments Limited and subsidiaries at December 31, 2009 and 2008, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles.

/s/ Ernst & Young LLP

London, England
June 15, 2010

F-3


Table of Contents


VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

 
  December 31,  
 
  2009   2008  

Assets

             

Current assets

             
 

Cash and cash equivalents

  £ 415.9   £ 170.7  
 

Restricted cash

    5.3     5.3  
 

Accounts receivable—trade, less allowances for doubtful accounts of £9.6 (2009) and £16.5 (2008)

    427.9     454.3  
 

Inventory for resale

    12.9     12.7  
 

Programming inventory

    62.1     68.4  
 

Derivative financial instruments

    2.2     168.4  
 

Prepaid expenses and other current assets

    96.4     104.0  
 

Current assets held for sale

        56.2  
           
 

Total current assets

    1,022.7     1,040.0  

Fixed assets, net

    4,925.3     5,209.3  

Goodwill and other indefinite-lived assets

    2,081.0     2,091.4  

Intangible assets, net

    265.9     510.3  

Equity investments

    359.9     353.5  

Derivative financial instruments

    235.1     435.7  

Deferred financing, net of accumulated amortization of £133.6 (2009) and £78.0 (2008)

    101.8     104.8  

Other assets

    50.8     35.9  

Due from group companies

    781.6     795.0  
           

Total assets

  £ 9,824.1   £ 10,575.9  
           

Liabilities and shareholders' equity

             

Current liabilities

             
 

Accounts payable

  £ 375.5   £ 370.0  
 

Accrued expenses and other current liabilities

    407.4     443.4  
 

Derivative financial instruments

    17.8     84.4  
 

VAT and employee taxes payable

    61.8     57.4  
 

Restructuring liabilities

    55.9     69.5  
 

Interest payable

    42.7     95.9  
 

Interest payable to group companies

    165.9     113.7  
 

Deferred revenue

    276.7     259.4  
 

Current portion of long term debt

    41.2     40.5  
 

Current liabilities held for sale

        36.2  
           
 

Total current liabilities

    1,444.9     1,570.4  

Long term debt, net of current portion

    3,239.4     4,327.6  

Long term debt due to group companies

    3,321.1     2,468.1  

Derivative financial instruments

    106.8     42.6  

Deferred revenue and other long term liabilities

    180.7     147.2  

Deferred income taxes

    83.0     79.2  
           

Total liabilities

    8,375.9     8,635.1  

Commitments and contingent liabilities

             

Shareholders' equity

             
 

Common stock—£0.001 par value; authorized 1,000,000 ordinary shares (2009 and 2008); issued and outstanding 224,552 ordinary shares (2009 and 2008)

         
 

Additional paid-in capital

    4,371.3     4,371.3  
 

Accumulated other comprehensive income

    (137.8 )   9.0  
 

Accumulated deficit

    (2,785.3 )   (2,439.5 )
           
 

Total shareholders' equity

    1,448.2     1,940.8  
           

Total liabilities and shareholders' equity

  £ 9,824.1   £ 10,575.9  
           

See accompanying notes.

F-4


Table of Contents


VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions)

 
  Year ended December 31,  
 
  2009   2008   2007  

Revenue

  £ 3,698.3   £ 3,666.0   £ 3,724.3  

Costs and expenses

                   
 

Operating costs (exclusive of depreciation shown separately below)

    1,590.2     1,598.5     1,606.9  
 

Selling, general and administrative expenses

    763.0     781.2     846.4  
 

Restructuring and other charges

    39.2     22.0     27.2  
 

Depreciation

    909.7     882.4     900.4  
 

Amortization

    243.1     283.4     293.2  
 

Goodwill and intangible asset impairments

    4.7     362.2      
               

    3,549.9     3,929.7     3,674.1  
               

Operating income (loss)

    148.4     (263.7 )   50.2  

Other income (expense)

                   
 

Interest income and other, net

    6.0     25.9     16.4  
 

Interest income from group companies

    7.9     8.4     5.3  
 

Interest expense

    (235.2 )   (366.5 )   (420.3 )
 

Interest expense to group companies

    (232.8 )   (152.4 )   (111.6 )
 

Loss on extinguishment of debt

    (54.5 )   (9.6 )   (3.2 )
 

Share of income from equity investments

    14.1     14.4     17.7  
 

(Losses) gains on derivative instruments

    (114.5 )   283.7     (2.5 )
 

Foreign currency gains (losses)

    136.5     (456.2 )   (8.0 )
               

Loss from continuing operations before income taxes

    (324.1 )   (916.0 )   (456.0 )
 

Income tax benefit (expense)

    1.1     9.9     (0.6 )
               

Loss from continuing operations

    (323.0 )   (906.1 )   (456.6 )
               

Discontinued operations

                   
 

Loss from discontinued operations, net of tax

    (22.8 )   (66.6 )   (10.7 )
               

Net loss

  £ (345.8 ) £ (972.7 ) £ (467.3 )
               

See accompanying notes.

F-5


Table of Contents


VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

 
  Year ended December 31,  
 
  2009   2008   2007  

Operating activities

                   

Net loss

  £ (345.8 ) £ (972.7 ) £ (467.3 )

Loss from discontinued operations

    22.8     66.6     10.7  
               

Loss from continuing operations

    (323.0 )   (906.1 )   (456.6 )

Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:

                   
 

Depreciation and amortization

    1,152.8     1,165.8     1,193.6  
 

Goodwill and intangible asset impairments

    4.7     362.2      
 

Non-cash interest

    20.0     (58.6 )   4.1  
 

Non-cash compensation

    15.4     13.2     14.0  
 

Loss on extinguishment of debt

    53.6     9.7     3.2  
 

(Income) loss from equity accounted investments, net of dividends received

    (12.4 )   10.7     (10.8 )
 

Income taxes

    4.2     (2.2 )   14.9  
 

(Gain) loss on disposal of assets

    (0.3 )   (0.3 )   18.7  
 

Amortization of original issue discount and deferred finance costs

    32.3     23.5     23.1  
 

Unrealized foreign currency (gains) losses

    (163.2 )   414.0     10.2  
 

Unrealized losses (gains) on derivative instruments

    133.3     (278.1 )   2.5  
 

Gain on disposal of investments

            (8.1 )
 

Other

    1.6     0.7      

Changes in operating assets and liabilities, net of effect from business acquisitions and dispositions:

                   
 

Accounts receivable

    26.4     (7.2 )   3.0  
 

Inventory

    6.0     (17.4 )   (11.5 )
 

Prepaid expenses and other current assets

    (4.7 )   (12.1 )   10.1  
 

Other assets

    (14.9 )   (11.0 )   4.2  
 

Accounts payable

    (24.8 )   5.1     (0.2 )
 

Accrued expenses and other current liabilities

    (37.8 )   (35.4 )   (107.7 )
 

Deferred revenue (current)

    17.3     19.2     (17.4 )
 

Deferred revenue and other long term liabilities

    (4.9 )   4.0     5.2  
               
   

Net cash provided by operating activities

    881.6     699.7     694.5  
               

Investing activities

                   
 

Purchase of fixed and intangible assets

    (556.7 )   (470.5 )   (527.8 )
 

Investments in and loans to parent and subsidiary companies

    974.4     522.1     26.6  
 

Increase in restricted cash

            (0.2 )
 

Principal repayments on loans to equity investments

    12.5     8.6     16.4  
 

Proceeds from sale of fixed assets

    4.2     2.1     3.3  
 

Proceeds from sale of investments

            9.8  
 

Purchase of investments

    (2.5 )   (1.5 )   (2.0 )
 

Disposal of sit-up, net

    (17.5 )        
 

Acquisitions, net of cash acquired

            (1.0 )
               
   

Net cash provided by (used in) investing activities

    414.4     60.8     (474.9 )
               

Financing activities

                   
 

New borrowings, net of financing fees

    (52.6 )   (49.0 )   874.5  
 

Principal payments on long term debt, including redemption premiums, and capital leases

    (1,078.6 )   (846.3 )   (1,170.8 )
 

Realized gain on derivatives

    88.3          
               
   

Net cash used in financing activities

    (1,042.9 )   (895.3 )   (296.3 )
               

Cash flow from discontinued operations

                   
 

Net cash (used in) provided by operating activities

    (7.9 )   (3.0 )   5.2  
 

Net cash used in investing activities

        (1.9 )   (2.5 )
               
   

Net cash (used in) provided by discontinued operations

    (7.9 )   (4.9 )   2.7  
               

Effect of exchange rate changes on cash and cash equivalents

        0.4      

Increase (decrease) in cash and cash equivalents

    245.2     (139.3 )   (74.0 )

Cash and cash equivalents, beginning of year

    170.7     310.0     384.0  
               

Cash and cash equivalents, end of year

  £ 415.9   £ 170.7   £ 310.0  
               

Supplemental disclosure of cash flow information

                   

Cash paid during the year for interest exclusive of amounts capitalized

  £ 248.3   £ 391.8   £ 391.4  

Income taxes paid

  £   £   £  

See accompanying notes.

F-6


Table of Contents


VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY

(in millions, except share data)

 
   
   
   
   
  Accumulated Other
Comprehensive Income (Loss)
   
   
 
 
  Share Capital
£0.001
Par Value
   
   
   
   
 
 
   
   
   
   
  Net
(Losses)
Gains on
Derivatives
   
   
 
 
  Additional
Paid-In
Capital
  Comprehensive
Income (Loss)
  Foreign
Currency
Translation
  Pension
Liability
Adjustments
  Accumulated
Deficit
   
 
 
  Shares   Par   Total  

Balance, December 31, 2006

    224,552       £ 4,371.3           £ (20.0 ) £ (16.0 ) £ (999.5 ) £ 3,335.8  

Net loss for the year ended December 31, 2007

              £ (467.3 )               (467.3 )   (467.3 )

Currency translation adjustment

                                     

Net gains on derivatives, net of tax

                53.8             53.8         53.8  

Reclassification of derivative gains to net income, net of tax

                (20.4 )           (20.4 )       (20.4 )

Pension liability adjustment, net of tax

                19.8         19.8             19.8  
                                                       

                    £ (414.1 )                              
                                       

Balance, December 31, 2007

    224,552       £ 4,371.3             £ (0.2 ) £ 17.4   £ (1,466.8 ) £ 2,921.7  

Net loss for the year ended December 31, 2008

              £ (972.7 )               (972.7 )   (972.7 )

Currency translation adjustment

                0.4     0.4                 0.4  

Net gains on derivatives, net of tax

                147.8             147.8         147.8  

Reclassification of derivative gains to net income, net of tax

                (125.1 )           (125.1 )       (125.1 )

Pension liability adjustment, net of tax

                (31.3 )       (31.3 )           (31.3 )
                                                       

                    £ (980.9 )                              
                                       

Balance, December 31, 2008

    224,552       £ 4,371.3         £ 0.4   £ (31.5 ) £ 40.1   £ (2,439.5 ) £ 1,940.8  

Net loss for the year ended December 31, 2009

              £ (345.8 )               (345.8 )   (345.8 )

Currency translation adjustment

                (0.6 )   (0.6 )               (0.6 )

Net losses on derivatives, net of tax

                (216.6 )           (216.6 )       (216.6 )

Reclassification of derivative losses to net income, net of tax

                121.2             121.2         121.2  

Pension liability adjustment, net of tax

                (50.8 )       (50.8 )           (50.8 )
                                                       

                    £ (492.6 )                              
                                       

Balance, December 31, 2009

    224,552       £ 4,371.3         £ (0.2 ) £ (82.3 ) £ (55.3 ) £ (2,785.3 ) £ 1,448.2  
                                         

See accompanying notes.

F-7


Table of Contents


VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in millions, except share data)

 
  December 31,  
 
  2009   2008  

Assets

             

Current assets

             
 

Cash and cash equivalents

  £ 415.9   £ 170.7  
 

Restricted cash

    5.3     5.3  
 

Accounts receivable—trade, less allowances for doubtful accounts of £9.6 (2009) and £16.5 (2008)

    427.9     454.3  
 

Inventory for resale

    12.9     12.7  
 

Programming inventory

    62.1     68.4  
 

Derivative financial instruments

    2.2     168.4  
 

Prepaid expenses and other current assets

    96.4     104.0  
 

Current assets held for sale

        56.2  
           
 

Total current assets

    1,022.7     1,040.0  

Fixed assets, net

    4,925.3     5,209.3  

Goodwill and other indefinite-lived assets

    2,081.0     2,091.4  

Intangible assets, net

    265.9     510.3  

Equity investments

    359.9     353.5  

Derivative financial instruments

    235.1     435.7  

Deferred financing, net of accumulated amortization of £133.6 (2009) and £78.0 (2008)

    101.8     104.8  

Other assets

    50.8     35.9  

Due from group companies

    781.6     795.0  
           

Total assets

  £ 9,824.1   £ 10,575.9  
           

Liabilities and shareholders' equity

             

Current liabilities

             
 

Accounts payable

  £ 375.5   £ 370.0  
 

Accrued expenses and other current liabilities

    407.4     443.4  
 

Derivative financial instruments

    17.8     84.4  
 

VAT and employee taxes payable

    61.8     57.4  
 

Restructuring liabilities

    55.9     69.5  
 

Interest payable

    18.9     34.1  
 

Interest payable to group companies

    189.7     175.5  
 

Deferred revenue

    276.7     259.4  
 

Current portion of long term debt

    41.2     40.5  
 

Current liabilities held for sale

        36.2  
           
 

Total current liabilities

    1,444.9     1,570.4  

Long term debt, net of current portion

    1,440.5     2,262.9  

Long term debt due to group companies

    5,120.0     4,532.8  

Derivative financial instruments

    106.8     42.6  

Deferred revenue and other long term liabilities

    180.7     147.2  

Deferred income taxes

    83.0     79.2  
           

Total liabilities

    8,375.9     8,635.1  

Commitments and contingent liabilities

             

Shareholders' equity

             
 

Common stock—£1.0 par value; issued and outstanding 1,000,141 ordinary shares (2009 and 2008)

    1.0     1.0  
 

Additional paid-in capital

    4,370.3     4,370.3  
 

Accumulated other comprehensive income

    (137.8 )   9.0  
 

Accumulated deficit

    (2,785.3 )   (2,439.5 )
           
 

Total shareholders' equity

    1,448.2     1,940.8  
           

Total liabilities and shareholders' equity

  £ 9,824.1   £ 10,575.9  
           

See accompanying notes.

F-8


Table of Contents


VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions)

 
  Year ended December 31,  
 
  2009   2008   2007  

Revenue

  £ 3,698.3   £ 3,666.0   £ 3,724.3  

Costs and expenses

                   
 

Operating costs (exclusive of depreciation shown separately below)

    1,590.2     1,598.5     1,606.9  
 

Selling, general and administrative expenses

    763.0     781.2     846.4  
 

Restructuring and other charges

    39.2     22.0     27.2  
 

Depreciation

    909.7     882.4     900.4  
 

Amortization

    243.1     283.4     293.2  
 

Goodwill and intangible asset impairments

    4.7     362.2      
               

    3,549.9     3,929.7     3,674.1  
               

Operating income (loss)

    148.4     (263.7 )   50.2  

Other income (expense)

                   
 

Interest income and other, net

    6.0     25.9     16.4  
 

Interest income from group companies

    7.9     8.4     5.3  
 

Interest expense

    (92.7 )   (191.7 )   (228.3 )
 

Interest expense to group companies

    (375.3 )   (327.2 )   (303.6 )
 

Loss on extinguishment of debt

    (54.5 )   (9.6 )   (3.2 )
 

Share of income from equity investments

    14.1     14.4     17.7  
 

(Losses) gains on derivative instruments

    (114.5 )   283.7     (2.5 )
 

Foreign currency gains (losses)

    136.5     (456.2 )   (8.0 )
               

Loss from continuing operations before income taxes

    (324.1 )   (916.0 )   (456.0 )
 

Income tax benefit (expense)

    1.1     9.9     (0.6 )
               

Loss from continuing operations

    (323.0 )   (906.1 )   (456.6 )
               

Discontinued operations

                   
 

Loss from discontinued operations, net of tax

    (22.8 )   (66.6 )   (10.7 )
               

Net loss

  £ (345.8 ) £ (972.7 ) £ (467.3 )
               

See accompanying notes.

F-9


Table of Contents


VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

 
  Year ended December 31,  
 
  2009   2008   2007  

Operating activities

                   

Net loss

  £ (345.8 ) £ (972.7 ) £ (467.3 )

Loss from discontinued operations

    22.8     66.6     10.7  
               

Loss from continuing operations

    (323.0 )   (906.1 )   (456.6 )

Adjustments to reconcile net loss from continuing operations to net cash provided by operating activities:

                   
 

Depreciation and amortization

    1,152.8     1,165.8     1,193.6  
 

Goodwill and intangible asset impairments

    4.7     362.2      
 

Non-cash interest

    20.0     (58.6 )   4.1  
 

Non-cash compensation

    15.4     13.2     14.0  
 

Loss on extinguishment of debt

    53.6     9.7     3.2  
 

(Income) loss from equity accounted investments, net of dividends received

    (12.4 )   10.7     (10.8 )
 

Income taxes

    4.2     (2.2 )   14.9  
 

(Gain) loss on disposal of assets

    (0.3 )   (0.3 )   18.7  
 

Amortization of original issue discount and deferred finance costs

    32.3     23.5     23.1  
 

Unrealized foreign currency (gains) losses

    (163.2 )   414.0     10.2  
 

Unrealized losses (gains) on derivative instruments

    133.3     (278.1 )   2.5  
 

Gain on disposal of investments

            (8.1 )
 

Other

    1.6     0.7      

Changes in operating assets and liabilities, net of effect from business acquisitions and dispositions:

                   
 

Accounts receivable

    26.4     (7.2 )   3.0  
 

Inventory

    6.0     (17.4 )   (11.5 )
 

Prepaid expenses and other current assets

    (4.7 )   (12.1 )   10.1  
 

Other assets

    (14.9 )   (11.0 )   4.2  
 

Accounts payable

    (24.8 )   5.1     (0.2 )
 

Accrued expenses and other current liabilities

    (37.8 )   (35.4 )   (107.7 )
 

Deferred revenue (current)

    17.3     19.2     (17.4 )
 

Deferred revenue and other long term liabilities

    (4.9 )   4.0     5.2  
               
   

Net cash provided by operating activities

    881.6     699.7     694.5  
               

Investing activities

                   
 

Purchase of fixed and intangible assets

    (556.7 )   (470.5 )   (527.8 )
 

Investments in and loans to parent and subsidiary companies

    740.9     235.2     373.0  
 

Increase in restricted cash

            (0.2 )
 

Principal repayments on loans to equity investments

    12.5     8.6     16.4  
 

Proceeds from sale of fixed assets

    4.2     2.1     3.3  
 

Proceeds from sale of investments

            9.8  
 

Purchase of investments

    (2.5 )   (1.5 )   (2.0 )
 

Disposal of sit-up, net

    (17.5 )        
 

Acquisitions, net of cash acquired

            (1.0 )
               
   

Net cash provided by (used in) investing activities

    180.9     (226.1 )   (128.5 )
               

Financing activities

                   
 

New borrowings, net of financing fees

    (52.6 )   (49.0 )   297.7  
 

Principal payments on long term debt, including redemption premiums, and capital leases

    (845.1 )   (559.4 )   (940.4 )
 

Realized gain on derivatives

    88.3          
               
   

Net cash used in financing activities

    (809.4 )   (608.4 )   (642.7 )
               

Cash flow from discontinued operations

                   
 

Net cash (used in) provided by operating activities

    (7.9 )   (3.0 )   5.2  
 

Net cash used in investing activities

        (1.9 )   (2.5 )
               
   

Net cash (used in) provided by discontinued operations

    (7.9 )   (4.9 )   2.7  
               

Effect of exchange rate changes on cash and cash equivalents

        0.4      

Increase (decrease) in cash and cash equivalents

    245.2     (139.3 )   (74.0 )

Cash and cash equivalents, beginning of year

    170.7     310.0     384.0  
               

Cash and cash equivalents, end of year

  £ 415.9   £ 170.7   £ 310.0  
               

Supplemental disclosure of cash flow information

                   

Cash paid during the year for interest exclusive of amounts capitalized

  £ 248.3   £ 391.8   £ 391.4  

Income taxes paid

  £   £   £  

See accompanying notes.

F-10


Table of Contents


VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY

(in millions, except share data)

 
   
   
   
   
  Accumulated Other
Comprehensive Income (Loss)
   
   
 
 
  Share Capital
£1 Par Value
   
   
   
   
 
 
   
   
   
   
  Net
(Losses)
Gains on
Derivatives
   
   
 
 
  Additional
Paid-In
Capital
  Comprehensive
Income (Loss)
  Foreign
Currency
Translation
  Pension
Liability
Adjustments
  Accumulated
Deficit
   
 
 
  Shares   Par   Total  

Balance, December 31, 2006

    1,000,141     £1.0     £4,370.3           £ (20.0 ) £ (16.0 ) £ (999.5 ) £ 3,335.8  

Net loss for the year ended December 31, 2007

              £ (467.3 )               (467.3 )   (467.3 )

Currency translation adjustment

                                     

Net gains on derivatives, net of tax

                53.8             53.8         53.8  

Reclassification of derivative gains to net income, net of tax

                (20.4 )           (20.4 )       (20.4 )

Pension liability adjustment, net of tax

                19.8         19.8             19.8  
                                                       

                    £ (414.1 )                              
                                       

Balance, December 31, 2007

    1,000,141     £1.0     £4,370.3             £ (0.2 ) £ 17.4   £ (1,466.8 ) £ 2,921.7  

Net loss for the year ended December 31, 2008

              £ (972.7 )               (972.7 )   (972.7 )

Currency translation adjustment

                0.4     0.4                 0.4  

Net gains on derivatives, net of tax

                147.8             147.8         147.8  

Reclassification of derivative gains to net income, net of tax

                (125.1 )           (125.1 )       (125.1 )

Pension liability adjustment, net of tax

                (31.3 )       (31.3 )           (31.3 )
                                                       

                    £ (980.9 )                              
                                       

Balance, December 31, 2008

    1,000,141     £1.0     £4,370.3         £ 0.4   £ (31.5 ) £ 40.1   £ (2,439.5 ) £ 1,940.8  

Net loss for the year ended December 31, 2009

              £ (345.8 )               (345.8 )   (345.8 )

Currency translation adjustment

                (0.6 )   (0.6 )               (0.6 )

Net losses on derivatives, net of tax

                (216.6 )           (216.6 )       (216.6 )

Reclassification of derivative losses to net income, net of tax

                121.2             121.2         121.2  

Pension liability adjustment, net of tax

                (50.8 )       (50.8 )           (50.8 )
                                                       

                    £ (492.6 )                              
                                       

Balance, December 31, 2009

    1,000,141   £ 1.0   £ 4,370.3         £ (0.2 ) £ (82.3 ) £ (55.3 ) £ (2,785.3 ) £ 1,448.2  
                                         

See accompanying notes.

F-11


Table of Contents


VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Note 1—Organization and Business

        These combined notes accompany and form an integral part of the separate consolidated financial statements of Virgin Media Investment Holdings Limited and its subsidiaries, or VMIH, and Virgin Media Investments Limited and its subsidiaries, or VMIL. VMIH and VMIL are indirect, wholly owned subsidiaries of Virgin Media Inc., or Virgin Media. VMIL is a direct, wholly owned subsidiary of VMIH.

        VMIH is incorporated in the United Kingdom. On February 19, 2007, VMIH changed its name from NTL Investment Holdings Limited to Virgin Media Investment Holdings Limited.

        VMIL was organized under English law on December 18, 2009 (inception) as a holding company. VMIL had no operations or cash flows for the period from December 18, 2009, through December 31, 2009. Under the terms of the indentures governing Virgin Media's senior notes, VMIL was required to grant a conditional guarantee that is identical to the conditional guarantee granted by VMIH. As a result, VMIL must file financial statements pursuant to Rule 3-10(a)(1).

        As used in these notes, the terms "we", "our", or "companies" refer to VMIH and VMIL and, except as otherwise noted, the information in these combined notes relates to both of the companies.

        We are a leading provider of entertainment and communications services in the U.K., offering "quad-play" broadband internet, television, mobile telephony and fixed line telephony services. We are one of the U.K.'s largest providers of residential broadband internet, pay television and fixed line telephony services by number of customers. We believe our advanced, deep fiber access network enables us to offer faster and higher quality broadband services than our digital subscriber line, or DSL, competitors. As a result, we provide our customers with a leading next generation broadband service and one of the most advanced TV on-demand services available in the U.K. market. As of December 31, 2009, Virgin Media provided service to approximately 4.7 million residential customers on our cable network. We are also one of the U.K.'s largest mobile virtual network operators by number of customers, providing mobile telephony service to approximately 2.2 million pre-pay mobile customers and nearly one million contract mobile customers over third party networks. We conduct our operations primarily through direct and indirect wholly owned subsidiaries.

        In addition, we provide a complete portfolio of voice, data and internet solutions to leading businesses, public sector organizations and service providers in the U.K. through Virgin Media Business (formerly ntl: Telewest Business). We also provide a broad range of programming through Virgin Media Television, or Virgin Media TV, which operates our wholly owned channels, such as Virgin1, Living and Bravo; and through UKTV, our joint ventures with BBC Worldwide.

        In 2009, we implemented a new operating model for our organization and made corresponding revisions to our internal reporting structure and the related financial information used by our management, including our chief operating decision maker, to assess the performance of our business. As of December 31, 2009, our operating segments were as follows:

F-12


Table of Contents


VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 1—Organization and Business (Continued)

        While VMIH and VMIL have operating segments, consisting of Consumer, Business, and Content, which are consistent with Virgin Media Inc., financial information is only prepared and reviewed by the chief operating decision maker at the Virgin Media Inc. consolidated level. As such, there are no separable reportable segments for VMIH or VMIL.

Note 2—Significant Accounting Policies

Basis of Presentation

        The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP. We have evaluated subsequent events through the date the financial statements were available to be issued.

        On April 1, 2009, we sold our sit-up reporting unit, which was formerly included within our Content segment. In accordance with the provisions of the Property, Plant and Equipment Topic of the Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, the planned sale of the sit-up business met the requirements for it to be reflected as assets and liabilities held for sale and discontinued operations in both the current and prior periods. These consolidated financial statements reflect sit-up as assets and liabilities held for sale and discontinued operations and we have retrospectively adjusted the balance sheet as of December 31, 2008 and statements of operations, cash flows and shareholders' equity for the years ended December 31, 2008 and 2007.

        On January 1, 2010, VMIL acquired VMIH's shareholdings in its wholly owned subsidiaries other than Virgin Media Secured Finance PLC, which remains a subsidiary of VMIH. VMIL issued 1,000,141 shares to VMIH as part of this internal reorganization with an additional issuance of shares from VMIL to VMIH due to occur upon the filing of the 2009 audited financial statements of VMIH with the appropriate authorities in England and Wales. As a result of the reorganization, it was determined that a change in reporting entity had occurred for VMIL and accordingly the comparative separate financial statements for VMIL have been adjusted to consist of the combined historical balance sheet, results of operations, and cash flows of the wholly owned subsidiaries of VMIH that were contributed to VMIL as part of the group reorganization. These comparative financial statements have been prepared in accordance with the guidance permissible for reorganizations between wholly owned subsidiaries such that the historic values of all assets and liabilities acquired in the reorganization have been carried over with no new purchase accounting considered. The effect of the issuance of common stock to VMIH has been retrospectively applied to the shareholder's equity amounts in the consolidated balance sheet as at December 31, 2009 and the consolidated statements of shareholder's equity for the three years ending December 31, 2009 to reflect these amounts as if the transaction had

F-13


Table of Contents


VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2—Significant Accounting Policies (Continued)


occurred at the beginning of the periods presented. The retrospective application had no material effect on other amounts. Intercompany accounts and transactions have been eliminated.

        Under the terms of the indentures governing the senior notes issued by Virgin Media Finance PLC and the indentures governing the senior secured notes issued by Virgin Media Secured Finance PLC, VMIL was required to grant guarantees that are identical to the guarantees granted by VMIH under the same indentures. Under the terms of the intercreditor deed governing the senior credit facility, VMIL was required to grant a guarantee identical to the guarantee granted by VMIH under the same deed. VMIH is fully dependent on the cash flows of the operating subsidiaries of VMIL to service these debt obligations. As a result, debt obligations, cash required to service debt obligations, derivative financial instruments, and any effects on the consolidated results of operations and cash flows related to the senior notes, senior secured notes and senior credit facility have been reflected in the separate consolidated financial statements of VMIL. As such, the amounts included in the financial statements of VMIL do not necessarily represent items to which VMIL has legal title.

Principles of Consolidation

        The consolidated financial statements include the accounts for us and our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated on consolidation. The operating results of acquired companies are included in our consolidated statements of operations from the date of acquisition.

        For investments in which we own 20% to 50% of the voting shares and have significant influence over the operating and financial policies, the equity method of accounting is used. Accordingly, our share of the earnings and losses of these companies are included in the share of income (losses) in equity investments in the accompanying consolidated statements of operations. For investments in which we own less than 20% of the voting shares and do not have significant influence, the cost method of accounting is used. Under the cost method of accounting, we do not record our share in the earnings and losses of the companies in which we have an investment and such investments are generally reflected in the consolidated balance sheet at historical cost.

Use of Estimates

        The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Such estimates and assumptions impact, among others, the following: the amount of uncollectible accounts receivable, the amount to be paid to terminate certain agreements included in restructuring costs, amounts accrued for vacated properties, the amount to be paid for other liabilities, including contingent liabilities, our pension expense and pension funding requirements, amounts to be paid under our employee incentive plans, costs for interconnection, the amount of costs to be capitalized in connection with the construction and installation of our network and facilities, goodwill and indefinite life assets, long-lived assets, certain other intangible assets and the computation of our income tax expense and liability. Actual results could differ from those estimates.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2—Significant Accounting Policies (Continued)

Fair Values

        We have determined the estimated fair value amounts presented in these consolidated financial statements using available market information and appropriate methodologies including, where appropriate, the recording of adjustments to fair values to reflect non-performance risk. However, considerable judgment is required in interpreting market data to develop the estimates of fair value. The estimates presented in these consolidated financial statements are not necessarily indicative of the amounts that we could realize in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts. We have based these fair value estimates on pertinent information available to us as of December 31, 2009 and 2008.

Foreign Currency Translation

        Our reporting currency is the pound sterling because substantially all of our revenues, operating costs and selling general and administrative expenses are denominated in U.K. pounds sterling. Exchange gains and losses on translation of our net equity investments in subsidiaries having functional currencies other than the pound sterling are reported as a separate component of accumulated other comprehensive income in shareholders' equity. Foreign currency transactions involving amounts denominated in currencies other than a subsidiary's functional currency are recorded at the exchange rate ruling at the date of the transaction and are remeasured each period with gains and losses recorded in the consolidated statement of operations.

Cash Equivalents and Restricted Cash

        Cash equivalents are short term highly liquid investments purchased with an original maturity of three months or less. We had cash equivalents totaling £356.6 million and £120.2 million as at December 31, 2009 and 2008, respectively.

        Restricted cash balances of £5.3 million as at December 31, 2009 and 2008 represent cash balances collateralized against performance bonds given on our behalf.

Trade Receivables

        Our trade receivables are stated at outstanding principal balance, net of allowance for doubtful accounts. Allowances for doubtful accounts are estimated based on the current aging of trade receivables, prior collection experience and future expectations of conditions that might impact recoverability. The movements in our allowance for doubtful accounts for the years ended December 31, 2009, 2008 and 2007 are as follows (in millions):

 
  Year ended December 31,  
 
  2009   2008   2007  

Balance, January 1

  £ 16.5   £ 17.1   £ 49.4  
 

Charged to costs and expenses

    25.2     30.1     30.3  
 

Write offs, net of recoveries

    (32.1 )   (30.7 )   (62.6 )
               

Balance, December 31

  £ 9.6   £ 16.5   £ 17.1  
               

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2—Significant Accounting Policies (Continued)

Inventory

        Inventory consists of consumer goods for re-sale and programming inventory. Consumer goods for re-sale are valued at the lower of cost or market value using the first-in, first-out, or FIFO method. Cost represents the invoiced purchase cost of inventory. This valuation requires us to make judgments, based on currently available information, about obsolete, slow-moving or defective inventory. Based upon these judgments and estimates, which are applied consistently from period to period, we adjust the carrying amount of our inventory for re-sale to the lower of cost or market value.

        Programming inventory represents television programming libraries held by each of our television channels and is stated at the lower of cost or market value. Programming is recognized as inventory when a contractual purchase obligation exists, it has been delivered to us and is within its permitted broadcasting period. Programming inventory is periodically reviewed and a provision made for impairment or obsolescence.

Reclassification

        Certain prior year amounts have been reclassified to conform to the current year presentation. On our consolidated balance sheet, we have disclosed deferred financing costs separately from other assets. In our note on income taxes, we have also reclassified certain deferred tax balances from the prior year to conform with the current year's classification.

Fixed Assets

        Depreciation is computed by the straight-line method over the estimated useful economic lives of the assets. Land and fixed assets held for sale are not depreciated. Estimated useful economic lives are as follows:

Operating equipment:

   
 

Cable distribution plant

  8-30 years
 

Switches and headends

  8-10 years
 

Customer premises equipment

  5-10 years
 

Other operating equipment

  8-20 years

Other equipment:

   
 

Buildings

  30 years
 

Leasehold improvements

  7 years or, if less, the lease term
 

Computer infrastructure

  3-5 years
 

Other equipment

  5-12 years

        The cost of fixed assets includes amounts capitalized for labor and overhead expended in connection with the design and installation of our operating network equipment and facilities. Costs associated with initial customer installations, additions of network equipment necessary to enable enhanced services, acquisition of additional fixed assets and replacement of existing fixed assets are capitalized. The costs of reconnecting the same service to a previously installed premise are charged to expense in the period incurred. Costs for repairs and maintenance are charged to expense as incurred.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2—Significant Accounting Policies (Continued)

        Labor and overhead costs directly related to the construction and installation of fixed assets, including payroll and related costs of some employees and related rent and other occupancy costs, are capitalized. The payroll and related costs of some employees that are directly related to construction and installation activities are capitalized based on specific time devoted to these activities where identifiable. In cases where the time devoted to these activities is not specifically identifiable, we capitalize costs based upon estimated allocations.

Goodwill and Intangible Assets

        Goodwill and other intangible assets with indefinite lives, such as television channel trademarks and reorganization value in excess of amount allocable to identifiable assets, are not amortized and are tested for impairment annually or more frequently if circumstances indicate a possible impairment exists in accordance with the Intangibles—Goodwill and Other Topic of the FASB ASC.

        Goodwill and other intangible assets with indefinite lives are allocated to various reporting units, which are the operating segments. For purposes of performing the impairment test of goodwill during the years ended December 31, 2008 and 2007, we established the following reporting units: Cable, Mobile, Virgin Media TV and sit-up. We compared the fair value of the reporting unit to its carrying amount on an annual basis to determine if there was potential goodwill impairment. We evaluated our former Cable reporting unit for impairment on an annual basis as at December 31, while all other reporting units were evaluated as at June 30.

        During the first quarter of 2009, we realigned our internal reporting structure and the related financial information utilized by the chief operating decision maker to assess the performance of our business. As a result, three new operating segments and reporting units were established; Consumer, Business and Content. Content, which consists of the former Virgin Media TV reporting unit, is evaluated for impairment purposes as at June 30 while the Consumer and Business reporting units are evaluated as at October 1 each year.

        Intangible assets include trademark license agreements and customer lists. Trademark license agreements represent the portion of purchase price allocated to agreements to license trademarks acquired in business combinations. Trademark licenses are amortized over the period in which we expect to derive benefits, which is principally five years. Customer lists represent the portion of the purchase price allocated to the value of the customer base acquired in business combinations. Customer lists are amortized on a straight-line basis over the period in which we expect to derive benefits, which is principally three to six years.

Asset Retirement Obligations

        We account for our obligations under the Waste Electrical and Electronic Equipment Directive adopted by the European Union in accordance with the Asset Retirement and Environmental Obligations Topic of the FASB ASC whereby we accrue the cost to dispose of certain of our customer premises equipment at the time of acquisition.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2—Significant Accounting Policies (Continued)

Impairment of Long-Lived Assets

        In accordance with the Property, Plant and Equipment Topic of the FASB ASC, long-lived assets, including fixed assets and amortizable definite lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. We assess the recoverability of the carrying value of long-lived assets, by first grouping our long-lived assets with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (the asset group) and, secondly, estimating the undiscounted future cash flows that are directly associated with and expected to arise from the use of and eventual disposition of such asset group. We estimate the undiscounted cash flows over the remaining useful life of the primary asset within the asset group. If the carrying value of the asset group exceeds the estimated undiscounted cash flows, we record an impairment charge to the extent the carrying value of the long-lived asset exceeds its fair value. We determine fair value through quoted market prices in active markets or, if quoted market prices are unavailable, through the performance of internal analysis of discounted cash flows or external appraisals. The undiscounted and discounted cash flow analyses are based on a number of estimates and assumptions, including the expected period over which the asset will be utilized, projected future operating results of the asset group, discount rate and long term growth rate.

        As of December 31, 2009 there were no indicators of impairment that suggest the carrying amounts of our long-lived assets are not recoverable.

Deferred Financing Costs

        Deferred financing costs are incurred in connection with the issuance of debt and are amortized over the term of the related debt using the effective interest method. Deferred financing costs of £101.8 million and £104.8 million as of December 31, 2009 and 2008, respectively, are included on the consolidated balance sheets.

Restructuring Costs

        We account for our restructuring costs, which comprise of lease and contract exit costs as well as employee termination costs, in accordance with the Exit or Disposal Cost Obligations Topic of the FASB ASC and recognize a liability for costs associated with restructuring activities when the liability is incurred. In 2008, we initiated a restructuring program aimed at driving further improvements in our operational performance and eliminating inefficiencies. Accruals in respect to exit activities within this program are recognized at the date the liability is incurred.

Revenue Recognition

        We recognize revenue only when it is realized or realizable and earned. We recognize revenue when all of the following are present:

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2—Significant Accounting Policies (Continued)

        Fixed line telephone, cable television and internet revenues are recognized as the services are provided to customers. At the end of each period, adjustments are recorded to defer revenue relating to services billed in advance and to accrue for earned but unbilled services.

        Installation revenues are recognized in accordance with the provisions of the Revenue Recognition Topic of the FASB ASC, in relation to connection and activation fees for cable television, as well as fixed line telephone and internet services, on the basis that we market and maintain a unified fiber network through which we provide all of these services. Installation revenues are recognized at the time the installation has been completed to the extent that those fees are less than direct selling costs. Installation fees in excess of direct selling costs are deferred and amortized over the expected life of the customer's connection.

        Rental revenues in respect of line rentals and rental of equipment provided to customers are recognized on a straight-line basis over the term of the rental agreement.

        Mobile handset and other equipment revenues are recognized when the goods have been delivered and title has passed. Equipment revenue is stated net of discounts earned through service usage.

        Mobile service revenues include airtime, data, roaming and long-distance revenues and are invoiced and recorded as part of a periodic billing cycle. Service revenues are recognized as the services are provided. At the end of each period, adjustments are recorded to defer revenue relating to services billed in advance and to accrue for earned but unbilled services.

        Contract customers are billed in arrears based on usage and revenue is recognized when the service is rendered and collectibility is reasonably assured. Revenue from non-contract pre-pay customers is recorded as deferred revenue prior to commencement of services and is recognized as the services are rendered or usage expires.

        Bundled services revenue is recognized in accordance with the provisions of the Revenue Recognition Topic of the FASB ASC, to assess whether the components of the bundled services should be recognized separately.

        For bundled packages that have separately identifiable components, the total consideration is allocated to the different components based on their relative fair values. Where the fair value of a delivered component cannot be determined reliably but the fair value of the undelivered component can be, the fair value of the undelivered component is deducted from the total consideration and the net amount is allocated to the delivered components based on the "residual value" method.

        Programming revenues are recognized in accordance with the Entertainment—Films Topic of the FASB ASC. Revenue on transactional and interactive sales is recognized as and when the services are delivered. Advertising sales revenue is recognized at estimated realizable values when the advertising is aired.

Subscriber Acquisition Costs

        Costs incurred in respect to the acquisition of our customers, including payments to distributors and the cost of mobile handset promotions, are expensed as incurred.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2—Significant Accounting Policies (Continued)

Advertising Expense

        We expense the cost of advertising as incurred. Advertising costs were £102.5 million, £96.7 million and £104.9 million in 2009, 2008 and 2007, respectively.

Stock-Based Compensation

        We are an indirect, wholly owned subsidiary of Virgin Media. Accordingly, we have no stock-based compensation plans. Certain of our employees participate in the stock-based compensation plans of Virgin Media, which are described in Virgin Media's consolidated financial statements.

Pensions

        We account for our defined benefit pension arrangements in accordance with the Compensation-Retirement Benefits Topic of the FASB ASC which requires that pension expense is recognized on an accrual basis over employees' approximate service periods. Pension expense calculated is generally independent of funding decisions or requirements.

        We recognize the funded status of our defined benefit postretirement plans on our balance sheet, and changes in the funded status are reflected in comprehensive income.

Derivative Financial Instruments

        We are exposed to various market risks, including changes in foreign currency exchange rates and interest rates. As certain portions of our indebtedness accrue interest at variable rates, we are exposed to volatility in future cash flows and earnings associated with variable interest rate payments. Also, substantially all of our revenue and operating costs are earned and paid in pounds sterling and, to a lesser extent, U.S. dollars and euros, but we pay interest and principal obligations on some of our indebtedness in U.S. dollars and euros. As a result, we have exposure to volatility in future cash flows and earnings associated with changes in foreign currency exchange rates on payments of principal and interest on a portion of our indebtedness. We are also exposed to volatility in future cash flows and earnings associated with foreign currency payments in relation to operating costs and purchase of fixed assets incurred in the normal course of business.

        Our objective in managing our exposure to fluctuations in interest rates and foreign currency exchange rates is to decrease the volatility of our earnings and cash flows caused by changes in underlying rates. To achieve this objective, we have entered into derivative financial instruments. We have established policies and procedures to govern the management of these exposures through a variety of derivative financial instruments, including interest rate swaps, cross-currency interest rate swaps and foreign currency forward rate contracts. By policy, we do not enter into derivative financial instruments with a level of complexity or with a risk that is greater than the exposure to be managed.

        In order to qualify for hedge accounting in accordance with the Derivatives and Hedging Topic of the FASB ASC we are required to document in advance the relationship between the item being hedged and the hedging instrument. We are also required to demonstrate that the hedge will be highly effective on an ongoing basis. This effectiveness testing is performed and documented at each period end to ensure that the hedge remains highly effective.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 2—Significant Accounting Policies (Continued)

        We recognize all derivative financial instruments as either assets or liabilities measured at fair value. Gains and losses resulting from changes in fair value are accounted for depending on the use of the derivative and whether it is designated and qualifies for hedge accounting. To the extent that the derivative instrument is designated and considered to be effective as a cash flow hedge of an exposure to future changes in interest rates or foreign currency exchange rates, the change in fair value of the instrument is deferred in accumulated other comprehensive income or loss. Amounts recorded in accumulated other comprehensive income or loss are reclassified to the statement of operations in the same period as the corresponding impact on earnings from the underlying hedged transaction. Changes in fair value of any instrument not designated as an accounting hedge or considered to be ineffective as an accounting hedge are reported in earnings immediately.

        Where an accounting hedge no longer meets the effectiveness criteria, any gains or losses deferred in equity are only transferred to the statement of operations when the committed or forecasted transaction is recognized in the statement of operations. However, where we have applied cash flow hedge accounting for a forecasted or committed transaction that is no longer expected to occur, then the cumulative gain or loss that has been recorded in equity is recognized immediately as gains or losses on derivative instruments in the statement of operations. When an instrument designated as an accounting hedge expires or is sold, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the statement of operations.

Software Development Costs

        We capitalize costs related to computer software developed or obtained for internal use in accordance with the Intangibles—Goodwill and Other Topic of the FASB ASC. Software obtained for internal use has generally been enterprise-level business and finance software that we customize to meet our specific operational needs. Costs incurred in the application development phase are capitalized and amortized over their useful lives, which are generally three to five years. We have not sold, leased or licensed software developed for internal use to our customers and we have no intention of doing so in the future.

Income Taxes

        We provide for income taxes in accordance with the Income Taxes Topic of the FASB ASC. Judgment is required in determining our provision for income taxes, deferred tax assets and liabilities and the extent to which deferred tax assets can be recognized. We recognize deferred tax assets only if it is more likely than not that sufficient taxable income will be available in the future against which the temporary differences and unused tax losses can be utilized. We have considered future taxable income and tax planning strategies in assessing whether deferred tax assets should be recognized.

Note 3—Recent Accounting Pronouncements

        In June 2009, the FASB issued guidance relating to the FASB Accounting Standards Codification. Effective for interim or annual financial periods ending after September 15, 2009, the ASC became the single official source of authoritative U.S. GAAP (other than guidance issued by the SEC), superseding existing FASB, American Institute of Certified Public Accountants, Emerging Issues Task Force (EITF),

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 3—Recent Accounting Pronouncements (Continued)


and related literature. After September 15, 2009, only one level of authoritative U.S. GAAP exists. All other literature will be considered non-authoritative. The ASC does not change U.S. GAAP; instead, it introduces a new structure that is organized in an easily accessible, user-friendly online research system. We have adopted the disclosure requirements of this guidance.

        In December 2007, the FASB issued new accounting guidance for business combinations. This guidance requires the acquiring entity in a business combination to prospectively recognize the full fair value of assets acquired and liabilities assumed in the transaction (whether a full or partial acquisition); establishes the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed; requires expensing of most transaction and restructuring costs; and requires the acquirer to disclose to investors and other users all of the information needed to evaluate and understand the nature and financial effect of the business combination. Further, regardless of the business combination date, any subsequent changes to acquired uncertain tax positions and valuation allowances associated with acquired deferred tax assets will no longer be applied to goodwill but will be recognized as an adjustment to income tax expense. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2008. The adoption of this guidance did not have a material impact on our consolidated financial statements.

        In December 2007, the FASB issued new accounting guidance for noncontrolling interests in subsidiaries. This guidance establishes requirements for ownership interests in subsidiaries held by parties other than ourselves (sometimes called "minority interests") to be clearly identified, presented, and disclosed in the consolidated statement of financial position within equity, but separate from the parent's equity. All changes in the parent's ownership interests are required to be accounted for consistently as equity transactions and any non controlling equity investments in unconsolidated subsidiaries must be measured initially at fair value. This guidance is effective, on a prospective basis, for fiscal years beginning after December 15, 2008; however, presentation and disclosure requirements must be retrospectively applied to comparative financial statements. The account balances recorded in our consolidated financial statements relating to noncontrolling interests are immaterial and therefore, the disclosure requirements have not been applied as permitted by the provisions of the guidance.

        In December 2008, the FASB issued new accounting guidance which expands the disclosure requirements related to plan assets of a defined benefit pension or other postretirement plan. The guidance requires that employers disclose information about fair value measurements of plan assets similar to the disclosures required by the Fair Value Measurements and Disclosures Topic of the ASC. The new guidance is a response to users' concerns about the lack of transparency surrounding the types of assets and associated risks in an employer's defined benefit pension or other postretirement plan and events in the economy and markets that could have a significant effect on the value of plan assets. The guidance is effective for fiscal years ending after December 15, 2009. We have adopted the disclosure requirements of this guidance.

        In April 2009, the FASB issued new accounting guidance for disclosures about the fair value of financial instruments in interim reporting periods. Such disclosures were previously required only in annual financial statements. This guidance is effective for financial statements issued for all periods ending after June 15, 2009. We have adopted the disclosure requirements of this guidance.

        In May 2009, the FASB issued new accounting guidance for the disclosure of subsequent events, effective for financial statements issued for all periods ending after June 15, 2009. The guidance

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 3—Recent Accounting Pronouncements (Continued)


establishes general standards of accounting for, and requires disclosure of, events that occur after the balance sheet date but before financial statements are issued or are available to be issued. We adopted this guidance during the second quarter of 2009.

        In September 2009, the FASB ratified new accounting guidance for existing multiple-element revenue arrangements. The revised multiple-element revenue arrangements guidance will be effective for the first annual reporting period beginning on or after June 15, 2010 and may be applied retrospectively for all periods presented or prospectively to arrangements entered into or materially modified after the adoption date. Early adoption is permitted provided that the revised guidance is retroactively applied to the beginning of the year of adoption. We have not yet adopted the provisions of this guidance and are evaluating the impact on our consolidated financial statements.

        In January 2010, the FASB issued new guidance for fair value measurements and disclosures. The guidance improves disclosures about fair value measurements by requiring a greater level of disaggregated information and more robust disclosures about valuation techniques and inputs to fair value measurements. In addition, the guidance requires separate disclosure of amounts of significant transfers in and out of Levels 1 and 2 of the fair value hierarchy and a reconciliation of fair value measurements using significant unobservable inputs (Level 3 of the fair value hierarchy). The adoption of this standard did not have a material impact on our consolidated financial statements.

        In February 2010, the FASB issued new guidance for the disclosure of subsequent events. As a result of this guidance, we are no longer required to disclose the date through which we have evaluated subsequent events in the financial statements. We have adopted the provisions of this guidance.

Note 4—Disposals

Disposal of sit-up

        On April 1, 2009, we completed the disposal of our sit-up reporting unit, which was formerly included within our Content segment. sit-up provided a variety of retail consumer products through three interactive auction-based television channels: price-drop tv, bid tv and speed auction tv.

        We determined that the planned sale of the sit-up business met the requirements as of March 31, 2009 for it to be reflected as assets and liabilities held for sale and discontinued operations in both the current and prior periods and we adjusted the balance sheet as of December 31, 2008 and statement of operations for the years ended December 31, 2008 and 2007 accordingly. Revenue of the sit-up business, reported in discontinued operations, for the years ended December 31, 2009, 2008 and 2007 was £38.9 million, £241.8 million and £238.6 million, respectively. sit-up's pre-tax loss, reported within discontinued operations, for the years ended December 31, 2009, 2008 and 2007 was £22.8 million, £66.6 million and £10.7 million, respectively. Revenue related to the carriage of the sit-up channels recognized in our Consumer segment that had previously been eliminated for consolidation purposes was £0.6 million, £2.7 million and £3.5 million for the years ended December 31, 2009, 2008 and 2007, respectively.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 4—Disposals (Continued)

        The assets and liabilities of the sit-up business reported as held for sale as of December 31, 2008 included (in millions):

 
  December 31,
2008
 

Current assets held for sale

       
 

Accounts receivable, net

  £ 2.4  
 

Inventory

    7.2  
 

Prepaid expenses

    5.4  
 

Other assets

    41.2  
       
   

Current assets held for sale

  £ 56.2  
       

Current liabilities held for sale

       
 

Accounts payable

  £ 26.5  
 

Accrued expenses

    9.6  
 

Deferred revenue and other liabilities

    0.1  
       
   

Current liabilities held for sale

  £ 36.2  
       

        In accordance with the sale agreement, part of the consideration included a loan note from the purchaser. On April 1, 2009, we entered into a five-year carriage agreement with sit-up for continued distribution of the three sit-up channels on our television platform. In general, the agreements governing the loan note and exchange of services between us and sit-up are for specified periods at commercial rates. Following the sale, our continuing involvement with sit-up is limited to the loan note and carriage agreement and is therefore not considered significant. The loan note was repaid during the year ended December 31, 2009.

        As at December 31, 2008, we performed an interim goodwill impairment review of our sit-up reporting unit. In September 2008, we received notification that one of our two licenses to broadcast over Freeview digital terrestrial television would not be renewed. Along with this, the downturn in the economy had reduced the level of retail sales. As a result, management concluded that indicators existed that suggested it was more likely than not that the fair value of this reporting unit was less than its carrying value.

        The fair value of the sit-up reporting unit, which was determined through the use of a combination of both the market and income approaches to calculate fair value, was found to be less than the carrying value. The market and income approaches declined from the goodwill impairment test we performed as at June 30, 2008 as a result of reduced long term cash flow estimates. As a result, we extended our review to include the valuation of the reporting unit's individual assets and liabilities and recognized a goodwill impairment charge of £39.9 million. During the year ended December 31, 2008, we impaired intangible assets relating to our sit-up reporting unit totaling £14.9 million. Subsequent to the year end, in accordance with the provisions of the Property, Plant, and Equipment Topic of the FASB ASC, we wrote down the assets held for sale to fair value based upon the agreed purchase consideration. This resulted in a £19.0 million impairment charge, which was recognized in the loss from discontinued operations for the year ended December 31, 2009.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 5—Fixed Assets (Including Leases)

        Fixed assets consist of (in millions):

 
   
  December 31,  
 
   
  2009   2008  
 
  Useful Economic
Life
  Total   Under
Capital
Leases
  Total   Under
Capital
Leases
 

Operating equipment

                             
 

Cable distribution plant

  8-30 years   £ 6,187.9   £ 28.8   £ 5,923.9   £ 28.8  
 

Switches and headends

  8-10 years     806.9     20.0     740.9     29.4  
 

Customer premises equipment

  5-10 years     1,146.7         1,062.5      
 

Other operating equipment

  8-20 years     11.6         7.3      
                       
 

Total operating equipment

        8,153.1     48.8     7,734.6     58.2  

Other equipment

                             
 

Land

      13.2         13.2      
 

Buildings

  30 years     113.8         114.8      
 

Leasehold improvements

  7 years or, if less,
the lease term
    60.4         53.4      
 

Computer infrastructure

  3-5 years     276.3     56.3     233.1     63.5  
 

Other equipment

  5-12 years     254.9     124.0     273.0     108.0  
                       
 

Total other equipment

        718.6     180.3     687.5     171.5  
                       

        8,871.7     229.1     8,422.1     229.7  

Accumulated depreciation

        (4,084.5 )   (88.0 )   (3,316.0 )   (70.6 )
                       

        4,787.2     141.1     5,106.1     159.1  

Construction in progress

        138.1         103.2      
                       

      £ 4,925.3   £ 141.1   £ 5,209.3   £ 159.1  
                       

        During the years ended December 31, 2009, 2008 and 2007, the assets acquired under capital leases totaled £34.4 million, £99.2 million and £45.8 million, respectively.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 5—Fixed Assets (Including Leases) (Continued)

        Future minimum annual payments under capital and operating leases at December 31, 2009 are as follows (in millions). The table reflects our contractual obligations.

 
  Capital
Leases
  Operating
Leases
 

Year ending December 31:

             

2010

  £ 51.2   £ 60.1  

2011

    65.2     61.3  

2012

    36.6     51.7  

2013

    12.3     41.1  

2014

    4.1     29.1  

Thereafter

    80.1     81.0  
           

Total minimum lease payments

    249.5   £ 324.3  
             

Less: amount representing interest

    (82.9 )      
             

Present value of net minimum obligations

    166.6        

Less: current portion

    (40.6 )      
             

  £ 126.0        
             

        Total rental expense for the years ended December 31, 2009, 2008 and 2007 under operating leases was £59.5 million, £42.8 million and £49.9 million, respectively.

        During 2009 and 2008, the changes in the asset retirement obligations related to customer premises equipment were as follows (in millions):

 
  2009   2008  

Asset retirement obligation at the beginning of the year

  £ 56.6   £ 57.8  
 

Assets acquired

    12.4     14.8  
 

Liabilities settled

    (3.7 )   (7.7 )
 

Accretion expense

    4.4     4.5  
 

Revisions in cash flow estimates

    (24.2 )   (12.8 )
           

Asset retirement obligation at the end of the year

  £ 45.5   £ 56.6  
           

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 6—Goodwill and Intangible Assets

        Goodwill and intangible assets consist of (in millions):

 
   
  December 31,  
 
  Estimated
Useful Life
 
 
  2009   2008  

Goodwill and intangible assets not subject to amortization:

                 
 

Goodwill

      £ 1,916.5   £ 1,922.2  
 

Reorganization value in excess of amounts allocable to identifiable assets

        153.2     153.2  
 

Trademarks

        11.3     16.0  
               

      £ 2,081.0   £ 2,091.4  
               

Intangible assets subject to amortization:

                 

Cost

                 
 

Customer lists

  3-6 years   £ 754.6   £ 1,052.9  
 

Software and other intangible assets

  1-3 years     5.5     32.8  
               

        760.1     1,085.7  
               

Accumulated amortization

                 
 

Customer lists

        489.5     549.9  
 

Software and other intangible assets

        4.7     25.5  
               

        494.2     575.4  
               

      £ 265.9   £ 510.3  
               

        Estimated aggregate amortization expense for each of the five succeeding fiscal years after December 31, 2009 is as follows: £147.4 million in 2010, £118.5 million in 2011 and nil thereafter.

        During the years ended December 31, 2009 and 2008, assets not subject to amortization were adjusted for the following (in millions):

 
  Trademarks   Reorganization
Value
  Goodwill  

Balance, December 31, 2007

  £ 16.5   £ 153.2   £ 2,285.7  
 

Deferred tax balances

            (1.3 )
 

Goodwill and intangible asset impairments

    (0.5 )       (362.2 )
               

Balance, December 31, 2008

  £ 16.0   £ 153.2   £ 1,922.2  
 

Goodwill and intangible asset impairments

    (4.7 )        
 

Amendment to business acquisition goodwill

            (5.7 )
               

Balance, December 31, 2009

  £ 11.3   £ 153.2   £ 1,916.5  
               

        As at December 31, 2009, goodwill and intangible assets not subject to amortization totaling £1,820.2 million, £206.8 million and £54.0 million are allocated to our Consumer, Business and Content reporting units, respectively.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 6—Goodwill and Intangible Assets (Continued)

        We performed our annual impairment review of our Content reporting unit as at June 30, 2009. As a result of this review we concluded that no impairment charge was required as at June 30, 2009.

        We performed our annual impairment review of our Consumer and Business reporting units as at October 1, 2009. As a result of this review we concluded that no impairment charge was required as at October 1, 2009. During the fourth quarter of 2009, we entered into a license agreement with Virgin Enterprises Limited for use of the "Virgin" name for our Business reporting unit. As a result of the decision to rebrand this reporting unit, we recognized an impairment charge of £4.7 million in respect to the Telewest trademark which we discontinued using from February 10, 2010.

        As at June 30, 2008, we performed our annual impairment review of the goodwill recognized in the Virgin Media TV and former Mobile reporting units. The fair value of these reporting units were determined through the use of a combination of both the market and income valuation approaches to calculate fair value. We concluded that the fair value of the Virgin Media TV reporting unit exceeded its carrying value, while the Mobile reporting unit fair value was less than its carrying value.

        The market approach valuations in respect of the Mobile reporting unit had declined from the prior year primarily as a result of declining market multiples of comparable companies. The income approach valuations in respect of the Mobile reporting unit declined as a result of a combination of an increased discount rate, a reduced terminal value multiple and reduced long term cash flow estimates. As a result, we extended our review to include the valuation of the Mobile reporting unit's individual assets and liabilities and recognized a goodwill impairment charge of £362.2 million in the year ended December 31, 2008.

        As at December 31, 2008, we performed our annual impairment review of the goodwill recognized in our former Cable reporting unit and concluded that no impairment charge was necessary. Subsequent to the year end, management performed an exercise to reallocate goodwill and reorganization value intangible assets that had been previously recognized in the former Cable and Mobile reporting units to our Consumer and Business reporting units. As a result of this review, goodwill and reorganization value intangible assets totaling £1,825.2 million and £207.3 million were allocated to the Consumer and Business reporting units, respectively. We also performed an interim impairment review of the goodwill related to the former Mobile reporting unit as at January 1, 2009 and concluded that the goodwill was not impaired. The revised amounts will be tested for impairment on an annual basis on October 1 of each year.

Note 7—Investments

        Through our wholly owned subsidiary, Flextech Broadband Limited, we own a 50% equity investment in the UKTV joint venture companies and a 49.9% equity investment in the Setanta Sports News channel. These investments are accounted for under the equity method at December 31, 2009. The UKTV joint venture companies operate a portfolio of channels under the UKTV brand. This equity investment was acquired as part of the acquisition of Telewest on March 3, 2006. In accordance with the joint venture agreements between Flextech Broadband Limited and BBC Worldwide, we are required to recognize 100% of any losses for those companies which represent UKTV. The Setanta Sports News channel was incorporated on November 29, 2007 and we have recognized our proportion of its losses from that date. Setanta Sports News ceased broadcasting in June 2009 when Setanta Sports Limited entered administration.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 7—Investments (Continued)

        Investments consist of (in millions):

 
  December 31,  
 
  2009   2008  

Loans and redeemable preference shares

  £ 129.3   £ 137.7  

Share of net assets

    230.6     215.8  
           

  £ 359.9   £ 353.5  
           

Note 8—Long Term Debt

        Long term debt reflects our obligations under the terms of the indentures governing the senior notes and senior secured notes as well as the intercreditor deed governing the senior credit facility. As such, these amounts include debt owed directly to third parties by affiliated entities not consolidated by us which have been classified as amounts due to group companies.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8—Long Term Debt (Continued)

        Long term debt consists of (in millions):

 
  December 31, 2009   December 31, 2008  
 
  VMIH   VMIL   VMIH   VMIL  

Amounts due to third parties

                         

Sterling

                         
 

Senior credit facility

  £ 2,481.0   £ 1,038.6   £ 3,421.9   £ 1,760.9  
 

Capital leases

    166.6     166.6     174.6     174.6  
 

Other

    1.2     1.2     4.1     4.1  

U.S. Dollar

                         
 

Senior credit facility

    275.3     275.3     363.8     363.8  

Euro

                         
 

Senior credit facility

    356.5         403.7      
                   

    3,280.6     1,481.7     4,368.1     2,303.4  
 

Less current portion

    (41.2 )   (41.2 )   (40.5 )   (40.5 )
                   

Long term debt due to third parties

  £ 3,239.4   £ 1,440.5   £ 4,327.6   £ 2,262.9  
                   

Amounts due to group companies

                         

Sterling

                         
 

9.75% senior notes due 2014

  £ 78.8   £ 78.8   £ 375.0   £ 375.0  
 

8.875% senior notes due 2019

    344.5     344.5          
 

Senior credit facility

        1,442.4         1,661.0  

U.S. Dollar

                         
 

8.75% senior notes due 2014

    55.3     55.3     290.7     290.7  
 

9.125% senior notes due 2016

    340.2     340.2     376.2     376.2  
 

6.50% senior notes due 2016

    606.8     606.8     671.1     671.1  
 

9.50% senior notes due 2016

    810.9     810.9          
 

8.375% senior notes due 2019

    365.1     365.1          
 

Floating rate senior loan notes due 2012

    61.9     61.9     68.4     68.4  

Euro

                         
 

8.75% senior notes due 2014

    41.9     41.9     214.2     214.2  
 

9.50% senior notes due 2016

    152.9     152.9          
 

Senior credit facility

        356.5         403.7  

Other amounts due to group companies

                         
 

Other notes due to affiliates

    462.8     462.8     472.5     472.5  
                   

Long term debt due to group companies

  £ 3,321.1   £ 5,120.0   £ 2,468.1   £ 4,532.8  
                   

        The effective interest rate on the senior credit facility was 5.3% and 7.3% as at December 31, 2009 and 2008, respectively. The effective interest rate on the floating rate loan notes was 5.3% and 9.8% as at December 31, 2009 and 2008, respectively.

        The terms of the senior notes and senior credit facility as at December 31, 2009 are summarized below.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8—Long Term Debt (Continued)

Senior Notes

        Our parent, Virgin Media Finance PLC, issued senior notes due 2014 on April 13, 2004. On July 25, 2006, Virgin Media Finance PLC issued $550 million U.S. dollar denominated 9.125% senior notes due 2016 to repay in part an alternative senior bridge facility whose proceeds had been loaned to us for the acquisition of Telewest UK Limited. All senior notes have been guaranteed by us pursuant to a senior subordinated guarantee. The terms of our senior notes and loan notes are summarized below.

        On June 3, 2009, Virgin Media Finance PLC, or Virgin Media Finance, issued $750 million aggregate principal amount of 9.50% senior notes due 2016 and €180 million aggregate principal amount of 9.50% senior notes due 2016, collectively the 9.50% senior notes due 2016. The 9.50% senior notes due 2016 are unsecured senior obligations of Virgin Media Finance and rank pari passu with Virgin Media Finance's outstanding senior notes due 2014 and 2016. Interest is payable on February 15 and August 15 of each year. The 9.50% senior notes due 2016 mature on August 15, 2016 and are guaranteed on a senior basis by Virgin Media Inc., Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK) Group, Inc. and Virgin Media Communications Limited and on a senior subordinated basis by VMIH and VMIL. We used the net proceeds, together with cash on hand, to make repayments totaling £608.5 million under our senior credit facility. On July 21, 2009, Virgin Media Finance issued an additional $600 million aggregate principal amount of 9.50% senior notes due

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8—Long Term Debt (Continued)


2016 under the same terms as the notes issued on June 3, 2009. We used the net proceeds, together with cash on hand, to make repayments totaling £403.6 million under our senior credit facility.

        On November 9, 2009, Virgin Media Finance issued $600 million aggregate principal amount of 8.375% senior notes due 2019 and £350 million aggregate principal amount of 8.875% senior notes due 2019. The senior notes due 2019 are unsecured senior obligations of Virgin Media Finance and rank pari passu with Virgin Media Finance's outstanding senior notes due 2014 and 2016. Interest is payable on April 15 and October 15 of each year. The senior notes due 2019 mature on October 15, 2019 and are guaranteed on a senior basis by Virgin Media Inc., Virgin Media Group LLC, Virgin Media Holdings Inc., Virgin Media (UK) Group, Inc. and Virgin Media Communications Limited and on a senior subordinated basis by VMIH and VMIL. We used the net proceeds to make repayments totaling £658.8 million on our senior notes due 2014.

        On January 19, 2010, Virgin Media Secured Finance PLC issued $1.0 billion aggregate principal amount of 6.50% senior secured notes due 2018 and £875 million aggregate principal amount of 7.00% senior secured notes due 2018. Interest is payable on June 15 and December 15 each year, beginning on June 15, 2010. The senior secured notes due 2018 rank pari passu with our senior credit facility and, subject to certain exceptions, share in the same guarantees and security which have been granted in favor of our senior credit facility. We used the net proceeds, together with cash on hand, to make repayments totaling £1,453.0 million under our senior credit facility.

        On April 12, 2010, Virgin Media Finance issued redemption notices to the holders of our senior notes due 2014 pursuant to which we redeemed the full outstanding principal amount of these notes plus accrued interest on May 12, 2010. The redemption price was 102.917% of the principal amount of the notes denominated in U.S. dollars and euros and 103.250% of the principal amount of the notes denominated in sterling. The estimated cost of redemption of these notes, inclusive of the cost to unwind derivative contracts entered in to as economic hedges of these notes, was £193.9 million.

Senior Credit Facility

        On April 19, 2010, we drew down an aggregate principal amount of £1,675.0 million under our new senior credit facility dated March 16, 2010, as amended and restated, or the new senior credit facility, and applied the proceeds towards the repayment of all amounts outstanding under our old senior credit facility and for general corporate purposes. The new senior credit facility comprises a term loan A facility in an aggregate principal amount of £1,000 million, a term loan B facility in an aggregate principal amount of £675 million and a revolving credit facility in aggregate principal amount of £250 million. We also utilized £20.4 million of the new revolving credit facility for bank guarantees and standby letters of credit.

        The principal amount outstanding under our old senior credit facility at December 31, 2009 was £3,112.8 million. Our old senior credit facility comprised a term facility denominated in a combination of pounds sterling, U.S. dollars and euros in aggregate principal amounts of £2,481.0 million, $445.1 million and €402.1 million, and a revolving facility of £100.0 million. At December 31, 2009, the sterling equivalent of £3,112.8 million of the term facility had been drawn and £11.6 million of the revolving credit facility had been utilized for bank guarantees and standby letters of credit.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8—Long Term Debt (Continued)

        The old senior credit facility bears interest at LIBOR, US LIBOR or EURIBOR plus a margin currently ranging from 1.25% to 3.625% and the applicable cost of complying with any reserve requirement. The margins on £963.4 million of the term loan facilities and on the revolving credit facility ratchet range from 1.25% to 3.125% based on leverage ratios. Interest is payable at least semi-annually. Principal repayments in respect of £963.4 million of the term loan facilities are due semi-annually beginning in March 2010 and ending on March 3, 2011, and the remaining term loan facilities are repayable in full on their maturity dates, which are September 3, 2012 and March 3, 2013. We are also required to make principal repayments out of excess cash flows if certain criteria are met.

        On November 10, 2008, we amended our senior credit facility. Among other things, this amendment allowed us to defer over 70.3% of the remaining principal payments due in 2010 and 2011 to June 2012, extend the maturity of over 72.3% of the existing revolving facility from March 2011 to June 2012 and reset certain financial covenant ratios. These changes became effective in June 2009 following our satisfaction of the repayment condition under the senior credit facility. Upon satisfaction of the repayment condition, the applicable interest margin in respect of the principal amounts that were deferred and the extended revolving facility also increased by 1.375%, and we were required to pay £11.5 million in fees.

        The facility is secured through a guarantee from Virgin Media Finance. In addition, the bulk of the facility is secured through guarantees and first priority pledges of the shares and assets of substantially all of our operating subsidiaries and of receivables arising under any intercompany loans to those subsidiaries. We are subject to financial maintenance tests under the facility, including a test of liquidity, coverage and leverage ratios applied to us and certain of our subsidiaries. As of December 31, 2009, we were in compliance with these covenants.

        On April 16, 2008, we made a voluntary prepayment of £504.0 million predominantly utilizing the proceeds of the senior convertible notes.

        The agreements governing the senior notes and the senior credit facility significantly, and, in some cases, absolutely restrict our ability and the ability of most of our subsidiaries to:

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 8—Long Term Debt (Continued)

        Long term debt repayments, excluding capital leases as of December 31, 2009, are due as follows (in millions):

Year ending December 31:
   
 

2010

  £ 0.5  

2011

    286.1  

2012

    2,589.2  

2013

    300.1  

2014

    176.0  

Thereafter

    3,125.6  
       

Total debt payments

  £ 6,477.5  
       

        On a pro forma basis taking into account the issuance of the senior secured notes on January 19, 2010 and the related repayment of our old senior credit facility and the concurrent drawings under the new senior credit facility along with the early redemption of the senior notes due 2014 on May 12, 2010, the long term debt repayments, excluding capital leases, as of December 31, 2009, are due as follows (in millions):

Year ending December 31:
   
 

2010

  £ 0.4  

2011

    150.4  

2012

    237.2  

2013

    200.1  

2014

    200.0  

Thereafter

    5,569.1  
       

Total debt payments

  £ 6,357.2  
       

Note 9—Fair Value Measurements

        U.S. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The inputs used to measure fair value are classified into the following hierarchy:

Level 1   Unadjusted quoted prices in active markets for identical assets or liabilities

Level 2

 

Unadjusted quoted prices in active markets for similar assets or liabilities, or

 

 

Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or

 

 

Inputs other than quoted prices that are observable for the asset or liability

Level 3

 

Unobservable inputs for the asset or liability

        We endeavor to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 9—Fair Value Measurements (Continued)


value measurement. We have determined that all of our financial assets and liabilities that are stated at fair value fall in levels 1 and 2 in the fair value hierarchy described above.

        In estimating the fair value of our other financial instruments, we used the following methods and assumptions:

        Cash and cash equivalents, and restricted cash:    The carrying amounts reported in the consolidated balance sheets approximate fair value due to the short maturity and nature of these financial instruments.

        Derivative financial instruments:    As a result of our financing activities, we are exposed to market risks from changes in interest and foreign currency exchange rates, which may adversely affect our operating results and financial position. When deemed appropriate, we minimize our risks from interest and foreign currency exchange rate fluctuations through the use of derivative financial instruments. The foreign currency forward rate contracts, interest rate swaps and cross-currency interest rate swaps are valued using broker quotations, or market transactions in either the listed or over-the counter markets, adjusted for non-performance risk. As such, these derivative instruments are classified within level 2 in the fair value hierarchy. The carrying amounts of our derivative financial instruments are disclosed in note 10.

        Long term debt:    In the following table the fair value of our senior credit facility is based upon quoted trading prices in inactive markets for this debt, which incorporates non-performance risk. The fair values of our other debt in the following table are based on the quoted market prices in active markets for the underlying third party debt and incorporates non-performance risk. Accordingly, the inputs used to value these debt instruments are classified within level 1 of the fair value hierarchy.

        The carrying amounts and fair values of our long term debt are as follows (in millions):

 
  December 31, 2009   December 31, 2008  
 
  Carrying
Amount
  Fair
Value
  Carrying
Amount
  Fair
Value
 

Senior credit facility

  £ 3,112.8   £ 3,043.5   £ 4,189.4   £ 3,048.0  

8.75% U.S. dollar loan notes due 2014

    55.3     57.7     290.7     246.7  

9.75% sterling loan notes due 2014

    78.8     81.6     375.0     292.5  

8.75% euro loan notes due 2014

    41.9     43.7     214.2     158.8  

9.125% U.S. dollar senior notes due 2016

    340.2     359.4     376.2     313.1  

6.50% U.S. dollar loan notes due 2016

    606.8     723.1     671.1     299.3  

9.50% U.S. dollar senior notes due 2016

    810.9     895.8          

9.50% euro senior loan notes due 2016

    152.9     173.5          

8.375% U.S. dollar senior notes due 2019

    365.1     377.0          

8.875% sterling senior notes due 2019

    344.5     355.3          

Floating rate loan notes due 2012

    61.9     61.9     68.4     68.4  

Other loan notes due to affiliates

    462.8     462.8     472.5     472.5  

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 9—Fair Value Measurements (Continued)

Concentrations of Credit Risk

        Our financial instruments that are exposed to concentrations of credit risk consist primarily of cash, trade receivables and derivative contracts.

        At December 31, 2009 and 2008, we had £415.9 million and £170.7 million, respectively, in cash and cash equivalents. These cash and cash equivalents are on deposit with major financial institutions and, as part of our cash management process, we perform regular evaluations of the credit standing of these institutions using a range of metrics. We have not experienced any losses in cash balances and do not believe we are exposed to any significant credit risk on our cash balances.

        Concentrations of credit risk with respect to trade receivables are limited because of the large number of customers and their dispersion across geographic areas. We perform periodic credit evaluations of our Business segment customers' financial condition and generally do not require collateral. No single group or customer represents greater than 10% of total accounts receivable.

        Concentrations of credit risk with respect to derivative contracts are focused within a limited number of international financial institutions with which we operate and relate only to derivatives with recorded asset balances at December 31, 2009. We perform regular reviews of the financial institutions with which we operate as to their credit worthiness and financial condition. We have not experienced non-performance by any of our derivative counterparties nor do we expect there to be non-performance risks associated with our counterparties. At December 31, 2009, based on market values, we had 68.2% of our derivative contracts with three financial institutions, each with more than 10% of our total exposure. At December 31, 2008, we had 54.4% of our contracts by market value with three financial institutions, each with more than 10% of our total exposure.

Note 10—Derivative Financial Instruments and Hedging Activities

Strategies and Objectives for Holding Derivative Instruments

        Our results are materially impacted by changes in interest rates and foreign currency exchange rates. In an effort to manage these risks, we periodically enter into various derivative instruments including interest rate swaps, cross- currency interest rate swaps and foreign exchange forward rate contracts. We are required to recognize all derivative instruments as either assets or liabilities at fair value on our consolidated balance sheets, and to recognize certain changes in the fair value of derivative instruments on our consolidated statements of operations.

        We have entered into cross-currency interest rate swaps and foreign currency forward rate contracts to manage interest rate and foreign exchange rate currency exposures with respect to our U.S. dollar ($) and euro (€) denominated debt obligations. Additionally, we have entered into interest rate swaps to manage interest rate exposures resulting from variable rates of interest we pay on our U.K. pound sterling (£) denominated debt obligations. We have also entered into U.S. dollar, euro and South African rand (ZAR) forward rate contracts to manage our foreign exchange rate currency exposures related to certain committed and forecasted purchases.

        Whenever it is practical to do so, we will designate a derivative contract as either a cash flow or fair value hedge for accounting purposes. These derivatives are referred to as "Accounting Hedges" below. When a derivative contract is not designated as an Accounting Hedge, the derivative will be

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 10—Derivative Financial Instruments and Hedging Activities (Continued)


treated as an economic hedge with mark-to-market movements and realized gains or losses recognized through gains (losses) on derivative instruments in the statements of operations. These derivatives are referred to as "Economic Hedges" below. We do not enter into derivatives for speculative trading purposes.

        In respect to Accounting Hedges, we believe our hedge contracts will be highly effective during their term in offsetting changes in cash flow or fair value attributable to the hedged risk. We perform, at least quarterly, both a prospective and retrospective assessment of the effectiveness of our hedge contracts, including assessing the possibility of counterparty default. If we determine that a derivative is no longer expected to be highly effective, we discontinue hedge accounting prospectively and recognize subsequent changes in the fair value of the derivative in gains or losses on derivative instruments in the statement of operations. As a result of our effectiveness assessment at December 31, 2009, we believe our derivative contracts that are designated and qualify for hedge accounting will continue to be highly effective in offsetting changes in cash flow or fair value attributable to the hedged risk.

        The foreign currency forward rate contracts, interest rate swaps and cross-currency interest rate swaps are valued using counterparty valuations, or market transactions in either the listed or over-the-counter markets, adjusted for non-performance risk. As such, these derivative instruments are classified within level 2 in the fair value hierarchy. Derivative instruments which are subject to master netting arrangements are not offset and we have not provided, nor do we require, cash collateral with any counterparty.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 10—Derivative Financial Instruments and Hedging Activities (Continued)

        The fair values of our derivative instruments recorded on our consolidated balance sheet were as follows (in millions):

 
  December 31,
2009
  December 31,
2008
 

Included within current assets:

             
 

Accounting Hedge

             
   

Foreign currency forward rate contracts

  £ 0.3   £ 37.6  
   

Interest rate swaps

        6.1  
   

Cross-currency interest rate swaps

        61.5  
 

Economic Hedge

             
   

Foreign currency forward rate contracts

    1.9     63.2  
           

  £ 2.2   £ 168.4  
           

Included within non-current assets:

             
 

Accounting Hedge

             
   

Cross-currency interest rate swaps

  £ 63.7   £ 136.1  
 

Economic Hedge

             
   

Cross-currency interest rate swaps

    169.5     299.6  
 

Other

    1.9      
           

  £ 235.1   £ 435.7  
           

Included within current liabilities:

             
 

Accounting Hedge

             
   

Foreign currency forward rate contracts

  £ 0.3   £  
   

Interest rate swaps

    12.0     2.2  
 

Economic Hedge

             
   

Foreign currency forward rate contracts

    2.4     79.6  
   

Interest rate swaps

    3.1     2.6  
           

  £ 17.8   £ 84.4  
           

Included within non-current liabilities:

             
 

Accounting Hedge

             
   

Interest rate swaps

  £ 21.0   £ 11.5  
   

Cross-currency interest rate swaps

    27.6      
 

Economic Hedge

             
   

Cross-currency interest rate swaps

    58.2     31.1  
           

  £ 106.8   £ 42.6  
           

Cross-Currency Interest Rate Swaps—Hedging the Interest Payments of Senior Notes and Senior Credit Facility

        As of December 31, 2009, we had outstanding cross-currency interest rate swaps to mitigate the interest and foreign exchange rate risks relating to the pound sterling value of interest payments on the U.S. dollar and euro denominated senior notes and senior credit facility.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 10—Derivative Financial Instruments and Hedging Activities (Continued)

        The terms of our outstanding cross-currency interest rate swaps at December 31, 2009 were as follows:

Hedged item/Maturity date
  Hedge type   Notional
amount
due from
counterparty
  Notional
amount
due to
counterparty
  Weighted average
interest rate due
from counterparty
  Weighted average
interest rate due
to counterparty
 
   
  (in millions)
  (in millions)
   
   

$89.3m senior notes due 2014

                       
 

October 2011

  Economic   $ 89.3   £ 62.9   8.75%   9.42%

$550m senior notes due 2016

                       
 

August 2016

  Accounting     550.0     301.2   9.13%   8.54%

$1,350m senior notes due 2016

                       
 

August 2016

  Accounting     1,350.0     835.5   9.50%   9.98%

$1,000m senior notes due 2016

                       
 

November 2016

  Economic     1,000.0     505.6   6.50%   6.95%

$600m senior notes due 2019

                       
 

October 2019

  Accounting     264.3     159.8   8.38%   9.03%
 

October 2011

  Economic     335.7     228.0   8.38%   9.23%
 

October 2011 to October 2019

  Accounting     335.7     203.0   8.38%   9.00%

Senior credit facility

                       
 

September 2012

  Economic     445.1     241.5   3 month   3 month

                  $ LIBOR + 2.00%   £ LIBOR + 2.13%
                     

      $ 4,370.1   £ 2,537.5        
                     

€47.3m senior notes due 2014

                       
 

October 2011

  Economic   47.3   £ 43.8   8.75%   8.90%

€180m senior notes due 2016

                       
 

August 2016

  Accounting     180.0     158.6   9.50%   10.18%

Senior credit facility

                       
 

September 2012

  Economic     402.2     278.9   3 month   3 month

                  EURIBOR + 2.00%   LIBOR + 2.16%
                     

      629.5   £ 481.3        
                     

Other

                       
 

December 2012

  Economic   56.7   £ 40.3   3 month   3 month

                  EURIBOR + 2.38%   LIBOR + 2.69%
 

December 2013

  Economic     43.3     30.7   3 month   3 month

                  EURIBOR + 2.88%   LIBOR + 3.26%
                     

      100.0   £ 71.0        
                     
 

December 2012

  Economic   £ 38.8   56.7   3 month   3 month

                  LIBOR + 2.40%   EURIBOR + 2.38%
 

December 2013

  Economic     29.7     43.3   3 month   3 month

                  LIBOR + 2.90%   EURIBOR + 2.88%
                     

      £ 68.5   100.0        
                     

        All of our cross-currency interest rate swaps include exchanges of the notional amounts at the start and end of the contract except for the contracts maturing in November 2016 hedging the $1,000 million senior notes due 2016.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 10—Derivative Financial Instruments and Hedging Activities (Continued)

Interest Rate Swaps—Hedging of Interest Rate Sensitive Obligations

        As of December 31, 2009, we had outstanding interest rate swap agreements to manage the exposure to variability in future cash flows on the interest payments associated with our senior credit facility, which accrue at variable rates based on LIBOR. The interest rate swaps allow us to receive interest based on three month LIBOR in exchange for payments of interest at fixed rates.

        The terms of our outstanding interest rate swap contracts at December 31, 2009 were as follows:

Hedged item/Maturity date
  Hedge type   Notional amount   Weighted average interest rate due from counterparty   Weighted average interest rate due to counterparty  
 
   
  (in millions)
   
   
 

Senior credit facility

                     
 

April 2010

  Accounting   £ 2,400.0   3 month LIBOR     2.31 %
 

April 2010

  Economic     600.0   3 month LIBOR     1.66 %
 

April 2010 to April 2011

  Accounting     200.0   3 month LIBOR     2.58 %
 

April 2010 to September 2012

  Accounting     1,300.0   3 month LIBOR     3.07 %
 

April 2010 to March 2013

  Accounting     300.0   3 month LIBOR     3.28 %

Foreign Currency Forward Rate Contracts—Hedging Committed and Forecasted Transactions

        As of December 31, 2009, we had outstanding foreign currency forward rate contracts to purchase U.S. dollars, euros and South African rand to hedge committed and forecasted purchases. The terms of our outstanding foreign currency forward rate contracts at December 31, 2009 were as follows:

Hedged item/Maturity date
  Hedge type   Notional
amount
due from
counterparty
  Notional
amount
due to
counterparty
  Weighted
average
exchange
rate
 
 
   
  (in millions)
  (in millions)
   
 

Commited and forecasted purchases

                       
 

January 2010 to December 2010

  Economic   $ 140.4   £ 87.3     1.6079  
 

March 2010 to December 2010

  Accounting   $ 11.3   £ 7.2     1.5730  
 

January 2010

  Accounting   0.2   £ 0.2     1.1250  
 

January 2010 to June 2010

  Accounting   ZAR 26.1   £ 2.0     13.0024  

Cash Flow Hedges

        For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. In our consolidated statement of cash flows, we recognize the cash flows resulting from derivative contracts that are treated as Accounting Hedges in the same category where the cash flows from the underlying exposure are recognized. All other cash flows from derivative contracts are recognized as operating activities in the consolidated statement of cash flows.

        Gains or losses representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized as gains or losses on derivative instruments in the statement

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 10—Derivative Financial Instruments and Hedging Activities (Continued)


of operations in the period in which they occur. During the year ended December 31, 2009, we recognized a loss totaling £0.6 million, relating to ineffectiveness. The following tables present the effective amount of gain or (loss) recognized in other comprehensive income and amounts reclassified to earnings during the year ended December 31, 2009 (in millions):

 
  Total   Interest rate swaps   Cross-currency interest rate swaps   Forward foreign exchange contracts   Tax Effect  

Balance at December 31, 2008

  £ 40.1   £ (7.9 ) £ 64.0   £   £ (16.0 )

Amounts recognized in other comprehensive income

    (216.6 )   (50.6 )   (165.8 )   (0.2 )    

Amounts reclassified as a result of cash flow hedge discontinuance

    6.5     2.0     4.5          

Amounts reclassified to earnings impacting:

                               
 

Foreign exchange losses

    90.6         90.6          
 

Interest expense

    23.9     24.1     (0.2 )        
 

Operating costs

    0.2             0.2      

Tax effect recognized

                     
                       

Balance at December 31, 2009

  £ (55.3 ) £ (32.4 ) £ (6.9 ) £   £ (16.0 )
                       

        Assuming no change in interest rates or foreign exchange rates for the next twelve months, the amount of pre-tax losses that would be reclassified from other comprehensive income to earnings would be £30.3 million, nil and nil relating to interest rate swaps, cross-currency interest rate swaps and forward foreign exchange contracts, respectively.

Note 11—Employee Benefit Plans

Defined Benefit Plans

        Certain of our subsidiaries operate defined benefit pension plans in the U.K. The assets of the plans are held separately from those of ourselves and are invested in specialized portfolios under the management of investment groups. The pension cost is calculated using the projected unit method. Our policy is to fund amounts to the defined benefit plans necessary to comply with the funding requirements as prescribed by the laws and regulations in the U.K. Our defined benefit pension plans use a measurement date of December 31.

Employer Contributions

        In April 2007, we agreed with the trustees of one of our pension plans to a new funding arrangement whereby we will initially be paying £8.6 million per annum towards the deficit for the next three years. Additionally, in June 2007, we effected a merger of our three other defined benefit plans. The merger of these plans was subject to the approval of the trustees and, as a condition of trustee approval, we agreed to make a specific one-time contribution of £4.5 million. The funding arrangements with respect to this plan included an agreement to pay a further £2.6 million to fund the deficit for each of the next seven years. For the year ended December 31, 2009, we contributed

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11—Employee Benefit Plans (Continued)


£13.4 million to our pension plans. We anticipate contributing a total of £17.2 million to fund our pension plans in 2010.

Obligations and Funded Status

        The change in projected benefit obligation was as follows (in millions):

 
  Year ended December 31,  
 
  2009   2008  

Benefit obligation at beginning of year

  £ 307.8   £ 323.9  

Service cost

    1.2     1.4  

Interest cost

    17.4     18.3  

Members' contributions

    0.3     0.4  

Plan amendments

        0.1  

Actuarial loss (gain)

    66.4     (24.9 )

Benefits paid

    (15.3 )   (11.4 )
           

Benefit obligation at end of year

  £ 377.8   £ 307.8  
           

        The change in plan assets was as follows (in millions):

 
  Year ended December 31,  
 
  2009   2008  

Fair value of plan assets at beginning of year

  £ 273.9   £ 318.6  

Actual return on plan assets

    33.9     (47.2 )

Employer contributions

    13.4     13.5  

Employee contributions

    0.3     0.4  

Benefits paid

    (15.3 )   (11.4 )
           

Fair value of plan assets at end of year

  £ 306.2   £ 273.9  
           

        The funded status as of December 31, 2009 and 2008 was as follows (in millions):

 
  Year ended December 31,  
 
  2009   2008  

Projected benefit obligation

  £ 377.8   £ 307.8  

Plan assets

    306.2     273.9  
           

Funded status

    (71.6 )   (33.9 )
           

Non-current liability

  £ (71.6 ) £ (33.9 )
           

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11—Employee Benefit Plans (Continued)

        The following table presents information for pension plans with a projected benefit obligation in excess of plan assets (in millions):

 
  December 31,  
 
  2009   2008  

Projected benefit obligation

  £ 377.8   £ 307.8  

Fair value of plan assets

    306.2     273.9  

        The accumulated benefit obligation for all defined benefit plans was £366.6 million and £301.4 million at December 31, 2009 and 2008, respectively. As at December 31, 2009 and 2008, all pension plans had accumulated benefit obligations in excess of plan assets.

Amount Included in Other Comprehensive Income

        The amount included in other comprehensive income for the years ended December 31, 2009 and 2008 consisted of (in millions):

 
  Year ended December 31,  
 
  2009   2008  

Actuarial loss recognized in other comprehensive income

  £ 50.8   £ 43.8  

Prior year service cost recognized in other comprehensive income

        0.1  
           

Amount included in other comprehensive income

  £ 50.8   £ 43.9  
           

        The following table presents the amounts recognized in accumulated other comprehensive income as at December 31, 2009 and 2008 that have not yet been recognized as components of net periodic benefit cost (in millions):

 
  Year ended December 31,  
 
  2009   2008  

Net actuarial loss

  £ 94.8   £ 44.0  

Net prior year service cost

    0.1     0.1  
           

Amount included in accumulated other comprehensive income

  £ 94.9   £ 44.1  
           

        We expect to recognize £3.6 million of actuarial losses in the net periodic benefit cost for the year ended December 31, 2010.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11—Employee Benefit Plans (Continued)

Net Periodic Benefit Costs

        The components of net periodic benefit costs were as follows (in millions):

 
  Year ended December 31,  
 
  2009   2008   2007  

Service cost

  £ 1.2   £ 1.4   £ 2.4  

Interest cost

    17.4     18.3     16.7  

Expected return on plan assets

    (18.3 )   (21.5 )   (19.0 )

Plan settlements

            0.2  
               

Total net periodic benefit cost

  £ 0.3   £ (1.8 ) £ 0.3  
               

        As a result of the sale of various business operations in prior periods, we have retained the earned pension and other post-retirement benefits liabilities related to certain employees of those operations. Accordingly, the information disclosed in the tables above includes amounts relating to liabilities of these employees.

Assumptions

        The weighted-average assumptions used to determine benefit obligations were as follows:

 
  December 31,  
 
  2009   2008  

Discount rate

    5.75 %   5.75 %

Rate of compensation increase

    4.00 %   3.00 %

        The weighted-average assumptions used to determine net periodic benefit costs were as follows:

 
  December 31,  
 
  2009   2008  

Discount rate

    5.75 %   5.75 %

Expected long term rate of return on plan assets

    5.92 %   6.68 %

Rate of compensation increase

    3.00 %   3.50 %

        Where investments are held in bonds and cash, the expected long term rate of return is taken to be yields generally prevailing on such assets at the measurement date. A higher rate of return is expected on equity investments, which is based more on realistic future expectations than on the returns that have been available historically. The overall expected long term rate of return on plan assets is then the average of these rates taking into account the underlying asset portfolios of the pension plans.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11—Employee Benefit Plans (Continued)

Plan Assets

        Our pension plan weighted-average asset allocations at December 31, 2009 and 2008 by asset category and by fair value hierarchy were as follows:

 
  December 31, 2009    
 
 
  Fair Value Hierarchy    
 
 
  December 31,
2008
 
Asset category
  Level 1   Level 2   Level 3   Total  

Equity Securities

  £ 115.2   £   £   £ 115.2   £ 90.9  

Government Bonds

    100.3             100.3     105.3  

Corporate Bonds

    55.2             55.2     46.0  

Real Estate

    4.1             4.1     5.2  

Hedge Funds

        27.6         27.6     24.7  

Cash

    3.8             3.8     1.8  
                       

Total

  £ 278.6   £ 27.6   £   £ 306.2   £ 273.9  
                       

        The trustees of the main defined benefit pension plan, which makes up approximately 81% of the assets of our two defined benefit pension plans, have in place an investment strategy that targets an allocation of 40% equities, 10% fund of hedge funds, 3% property and 47% bonds and cash, at December 31, 2009. The assets are managed by a number of fund managers, which means as markets move relative to each other the assets move away from the target investment strategy. Relatively small deviations from the target investment strategy are permitted; however rebalancing of the assets will be carried out from time to time. As the main defined benefit pension scheme is now closed to new entrants, it is anticipated that the investment strategy will move towards a higher proportion of bonds over time to reflect the steadily maturing profile of liabilities and the improvement in the funding position.

        There were no directly owned shares of our common stock included in the equity securities at December 31, 2009 or 2008.

Estimated Future Benefit Payments

        The benefits expected to be paid out of the pension plans in total are set out below for each of the next five years and the following five years in aggregate. The benefits expected to be paid are based on the same assumptions used to measure our benefit obligation at December 31, 2009 and include estimated future employee services (in millions):

Year ending December 31:
  Pension Benefits  

2010

  £ 11.9  

2011

    12.7  

2012

    13.5  

2013

    14.3  

2014

    15.3  

Years 2015-2019

    92.3  

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 11—Employee Benefit Plans (Continued)

Defined Contribution Pension Plans

        Our subsidiaries operate defined contribution pension plans in the U.K. The total expense in relation to these plans was £15.1 million, £14.7 million and £15.3 million for the years ended December 31, 2009, 2008 and 2007, respectively.

Note 12—Restructuring and other charges

        Restructuring and other charges in the year to December 31, 2009 related primarily to employee termination and lease exit costs in connection with the restructuring program initiated in 2008 as discussed below.

        Restructuring and other charges in the year to December 31, 2008 related primarily to lease and contract exit costs in connection with the restructuring program initiated in 2008.

        During the fourth quarter of 2008, we commenced the implementation of a restructuring plan aimed at driving further improvements in our operational performance and eliminating inefficiencies in order to create a fully- integrated, customer-focused organization. This plan involves the incurrence of substantial operating and capital expenditures, including certain costs which may be treated as restructuring costs. In total, we expect to incur operating expenditures of between £140 million to £155 million and capital expenditures of between £40 million to £45 million in connection with this plan over a three-year period.

        The following table summarizes, for the years ended December 31, 2009, 2008 and 2007, our historical restructuring accruals, the restructuring accruals resulting from the acquisitions made by us

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 12—Restructuring and other charges (Continued)


during 2006 and the accruals for our restructuring plans announced in the fourth quarter of 2008 (in millions):

 
  Historical
Restructuring
Accruals
  2006 Acquisition
Restructuring Accruals
  2008
Restructuring Accruals
   
 
 
  Lease
Exit Costs
  Involuntary
Employee
Termination
and Related
Costs
  Lease
Exit Costs
  Involuntary
Employee
Termination
and Related
Costs
  Lease and
Contract
Exit Costs
  Total  

Balance, December 31, 2006

  £ 40.7   £ 20.4   £ 63.4   £   £   £ 124.5  
 

Amendments offset against goodwill

            (11.3 )           (11.3 )
 

Charged to expense

    3.4     26.4     5.3             35.1  
 

Revisions

    (0.1 )       (7.8 )           (7.9 )
 

Utilized

    (10.0 )   (34.9 )   (10.7 )           (55.6 )
                           

Balance, December 31, 2007

    34.0     11.9     38.9             84.8  
 

Charged to expense

    2.2         3.4     1.9     13.5     21.0  
 

Revisions

    (1.0 )   (1.6 )   3.6             1.0  
 

Utilized

    (19.2 )   (10.3 )   (7.8 )           (37.3 )
                           

Balance, December 31, 2008

    16.0         38.1     1.9     13.5     69.5  
 

Amendments offset against goodwill

            (5.7 )           (5.7 )
 

Charged to expense

    2.8         3.9     23.5     19.4     49.6  
 

Revisions

    (2.7 )       (2.4 )   (5.2 )   (0.1 )   (10.4 )
 

Utilized

    (3.9 )       (6.9 )   (18.5 )   (17.8 )   (47.1 )
                           

Balance, December 31, 2009

  £ 12.2   £   £ 27.0   £ 1.7   £ 15.0   £ 55.9  
                           

Note 13—Income Taxes

        The benefit (expense) for income taxes consists of the following (in millions):

 
  Year ended December 31,  
 
  2009   2008   2007  

Current:

                   
 

U.K. taxes

  £ 4.9   £ 4.7   £ 4.9  
               

Total current

    4.9     4.7     4.9  
               

Deferred:

                   
 

U.K. taxes

        3.4      
 

U.S. taxes

    (3.8 )   1.8     (5.5 )
               

Total deferred

    (3.8 )   5.2     (5.5 )
               

Total

  £ 1.1   £ 9.9   £ (0.6 )
               

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 13—Income Taxes (Continued)

        There are significant current year losses in the U.K. The current tax benefit relates to amounts receivable in respect of the sale of U.K. tax losses to an equity method investee. The federal deferred tax expense relates to holding an equity method investment. The foreign deferred tax benefit relates to the decrease in our deferred tax asset valuation allowance resulting from the recording of certain deferred tax liabilities related to amounts recognized in the statement of other comprehensive income during the year that are expected to reverse in future periods and will allow us to offset such amounts against certain deferred tax assets.

        Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred tax liabilities and assets are as follows (in millions):

 
  December 31,  
 
  2009   2008  

Deferred tax liabilities:

             
 

Intangibles

  £ 74.0   £ 143.2  
 

Equity investments

    83.0     79.2  
 

Derivative instruments

        15.7  
           

Total deferred tax liabilities

    157.0     238.1  
           

Deferred tax assets:

             
 

Net operating losses

    927.4     970.0  
 

Capital losses

    3,440.7     3,388.6  
 

Depreciation and amortization

    2,124.3     2,046.4  
 

Accrued expenses

    79.8     88.1  
 

Derivative instruments

    11.0      
 

Capitalized costs and other

    103.5     110.9  
           

Total deferred tax assets

    6,686.7     6,604.0  

Valuation allowance for deferred tax assets

    (6,612.7 )   (6,445.1 )
           

Net deferred tax assets

    74.0     158.9  
           

Net deferred tax liabilities

  £ 83.0   £ 79.2  
           

        The following table summarizes the movements in our deferred tax valuation allowance during the years ended December 31, 2009, 2008 and 2007 (in millions):

 
  Year ended December 31,  
 
  2009   2008   2007  

Balance, January 1

  £ 6,445.1   £ 6,375.6   £ 6,541.4  
 

Acquisitions

             
 

Effect of changes in tax rates

            (446.6 )
 

Increase in UK deferred tax attributes

    167.6     69.5     280.8  
               

Balance, December 31

  £ 6,612.7   £ 6,445.1   £ 6,375.6  
               

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 13—Income Taxes (Continued)

        A valuation allowance is recorded to reduce the deferred tax asset to an amount that is more likely than not to be realized. To the extent that the portion of the valuation allowance is reduced, the benefit will be recognized as a reduction of income tax expense.

        At December 31, 2009, we had U.K. net operating loss carryforwards of £3.3 billion that have no expiration date. Pursuant to U.K. law, these losses are only available to offset income of the separate entity that generated the loss. A portion of the U.K. net operating loss carryforwards relates to dual resident companies, of which the U.S. net operating loss carryforward amount is £1.5 billion that expires between 2010 and 2029. U.S. tax rules will limit our ability to utilize the U.S. losses. We also have U.K. capital loss carryforwards of £12.3 billion that have no expiration date. However, we do not expect to realize any significant benefit from these capital losses, which can only be used to the extent we generate U.K. taxable capital gain income in the future from assets held by subsidiaries held by the group prior to the merger with Telewest.

        At December 31, 2009, we had fixed assets on which future U.K. tax deductions can be claimed of £12.1 billion. The maximum amount that can be claimed in any one year is 20% of the remaining balance, after additions, disposals and prior claims.

        The reconciliation of income taxes computed at U.K. statutory rates to income tax benefit (expense) is as follows (in millions):

 
  Year ended December 31,  
 
  2009   2008   2007  

Benefit at U.K. statutory rate (2009: 28%, 2008 28.5% and 2007: 30%)

  £ 90.7   £ 261.1   £ 136.8  

Add:

                   

Permanent book-tax differences

    (9.5 )   (132.7 )   (6.3 )

Foreign losses with no benefit

    (80.1 )   (121.9 )   (131.1 )

Foreign tax benefit offsetting OCI tax expense

        3.4      
               

Benefit (provision) for income taxes

  £ 1.1   £ 9.9   £ (0.6 )
               

        A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in millions):

 
  2009   2008  

Balance at January 1,

  £ 1.5   £ 1.1  
 

Additions based on tax positions related to the current year

         
 

Additions for tax provisions of prior years

        0.4  
 

Reductions for tax provisions of prior years

    (1.5 )    
 

Reductions for lapse of applicable statute of limitation

         

Settlements

         
           

Balance at December 31,

  £   £ 1.5  
           

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 13—Income Taxes (Continued)

        The total amount of unrecognized tax benefits as of December 31, 2009 and 2008 were nil and £1.5 million, respectively. We do not expect that the amount of unrecognized tax benefits will significantly increase or decrease in the next twelve months.

        We recognize interest and penalties related to unrecognized tax benefits in income tax expense. We have accrued interest in respect of unrecognized tax benefits of nil and £0.2 million at December 31, 2009 and 2008, respectively. There was a benefit in respect of interest accrual of £0.2 million in income tax expense for the year ended December 31, 2009.

        The statute of limitations is open for the years 2006 to 2009 in the U.S. and 2007 to 2009 in the U.K., our major tax jurisdictions.

        At each period end, it is necessary for us to make certain estimates and assumptions to compute the provision for income taxes including, but not limited to the expected operating income (or loss) for the year, projections of the proportion of income (or loss) earned and taxed in the U.K. and the extent to which this income (or loss) may also be taxed in the United States, permanent and temporary differences, the likelihood of deferred tax assets being recovered and the outcome of contingent tax risks. In the normal course of business, our tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax and interest assessments by these taxing authorities for uncertain tax positions taken in respect to matters such as business acquisitions and disposals and certain financing transactions including intercompany transactions, amongst others. We accrue a liability when we believe an assessment may be probable and the amount is estimable. In accordance with generally accepted accounting principles, the impact of revisions to these estimates is recorded as income tax expense or benefit in the period in which they become known. Accordingly, the accounting estimates used to compute the provision for income taxes have and will change as new events occur, as more experience is acquired, as additional information is obtained and our tax environment changes.

Note 14—Related Party Transactions

Virgin Media Inc. and its consolidated subsidiaries

        We are wholly owned subsidiaries of Virgin Media. We charge Virgin Media and our other group companies for operating costs and selling, general and administrative expenses incurred by us on their behalf. The following information summarizes our significant related party transactions with Virgin Media and its group companies (in millions):

 
  Year ended December 31,  
 
  2009   2008   2007  

Operating costs

  £ 45.5   £ 48.6   £ 45.1  

Selling, general and administrative expenses

    45.2     46.8     59.7  
               

  £ 90.7   £ 95.4   £ 104.8  
               

        The above recharges are recorded in operating costs and selling, general and administrative expenses and offset the respective costs incurred.

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 14—Related Party Transactions (Continued)

Virgin Enterprises Limited

        We have identified Virgin Enterprises Limited as a related party to us. Virgin Entertainment Investment Holdings Limited became a holder of Virgin Media Inc's common stock as a result of its acquisition of Virgin Mobile on July 4, 2006. As of December 31, 2009, Virgin Entertainment Investment Holdings Limited beneficially owned 6.5% of Virgin Media Inc.'s common stock (based on SEC filings). Virgin Enterprises Limited is a wholly owned subsidiary of Virgin Entertainment Investment Holdings Limited. In addition, Gordon McCallum is a member of Virgin Media Inc.'s Board of Directors and is a Director at Virgin Enterprises Limited.

        We own and have the right to use registered trademarks, including the exclusive right to use the "Virgin" name and logo in connection with our corporate activities and in connection with the activities of our consumer and a large part of our content businesses under license from Virgin Enterprises Limited. This license with Virgin Enterprises Limited is for a 30-year term and exclusive to us within the U.K., Ireland and Luxembourg. The license entitles us to use the "Virgin" name for the TV, broadband internet, telephone and mobile phone services we provide to our residential customers, as well as the acquisition and branding of sports, movies and other premium television content and the sale of certain communications equipment, such as set top boxes and cable modems. For our content operations, we are entitled to use the "Virgin Media Television" name for the creation, distribution and management of our wholly owned television channels, and to use the "Virgin" name for our television channel, Virgin1. Our license agreement provides for an annual royalty of 0.25% of certain consumer and content revenues, subject to a minimum annual royalty of £8.7 million, except for Virgin1, where we pay an annual royalty of 0.5% of revenues received by Virgin1, subject to a minimum of £100,000. As part of the agreement, we have the right to adopt, and have adopted, a company name for our parent, Virgin Media Inc., over which together with the name "Virgin Media", we retain worldwide exclusivity. Under a related agreement, Virgin Enterprises Limited has the right to propose a candidate to fill a seat on Virgin Media Inc.'s Board of Directors. Pursuant to this right, Virgin Enterprises Limited proposed Gordon McCallum who was appointed to Virgin Media Inc.'s Board of Directors. During the years ended December 31, 2009, 2008 and 2007 we incurred expenses of £9.0 million, £8.9 million and £8.7 million, respectively, for charges in respect of brand licensing and promotion, of which £2.3 million and £4.5 million was payable at December 31, 2009 and December 31, 2008, respectively.

        Subsequent to the year end, ntl:Telewest Business announced that it would rebrand using the Virgin trade marks to "Virgin Media Business." Virgin Media has entered into a trade mark license with Virgin Enterprises Limited under which an annual royalty is payable of 0.25% of revenues from our business division, subject to a minimum annual payment of £1.5 million.

Virgin Retail Limited

        We had previously identified Virgin Retail Limited, an affiliate of Virgin Enterprises Limited, as a related party to us. We had agreements with Virgin Retail Limited in respect to sales of our communications services (such as internet, television, fixed line telephone and mobile telephone services), through the various Virgin Megastores outlets. On September 17, 2007, the Virgin Group sold its interest in Virgin Megastores and it therefore ceased to be a related party. As part of the agreement, Virgin Retail Limited passed through proceeds on sales of mobile handsets, vouchers and

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 14—Related Party Transactions (Continued)


other stock items to us. We recognized revenues totaling £6.5 million and incurred expenses of £2.3 million in connection with this agreement during the period from January 1, 2007 to September 17, 2007.

Other Virgin Companies

        As a licensee of the "Virgin" brand name, we participate in mutually beneficial activities with other Virgin companies. These arrangements are in the ordinary course of business and believed to be on arm's length terms.

UKTV Joint Ventures

        Through our wholly owned subsidiary, Flextech Broadband Limited, we own a 50% equity investment in the UKTV joint venture companies. We have therefore identified the UKTV joint venture companies as related parties to us. We also carry the UKTV channels in our pay television packages available to our customers. As at December 31, 2009 and 2008, included in the balance sheet were amounts related to our share of net assets, loans receivable, redeemable preference shares, and other payables and receivables in respect of the UKTV joint ventures totaling £359.9 million and £353.5 million, respectively.

        We pay UKTV for purchases of television programming rights and receive payments in respect of advertising and other business support services provided to UKTV. During the year ended December 31, 2009, 2008 and 2007, the net expense recognized in respect to these transactions through the consolidated statement of operations totaled £24.3 million, £22.1 million and £21.4 million, respectively. These amounts are settled on a net basis at regular intervals.

        During the years ended December 31, 2009, 2008 and 2007, we received cash payments from UKTV for loan principal payments, interest, dividends and consortium tax relief totaling £21.1 million, £46.7 million and £38.3 million, respectively.

Note 15—Commitments and Contingent Liabilities

        At December 31, 2009, we were committed to pay £816.6 million for equipment and services. This amount includes £311.4 million for operations and maintenance contracts and other commitments from January 1, 2011 to 2031. The aggregate amount of the fixed and determinable portions of these obligations for the succeeding five fiscal years and thereafter is as follows (in millions):

Year ending December 31:
   
 

2010

  £ 505.2  

2011. 

    121.6  

2012. 

    72.5  

2013. 

    36.2  

2014. 

    19.4  

Thereafter

    61.7  
       

  £ 816.6  
       

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 15—Commitments and Contingent Liabilities (Continued)

        We are involved in lawsuits, claims, investigations and proceedings, consisting of intellectual property, commercial, employee and employee benefits which arise in the ordinary course of our business. In accordance with the Contingencies Topic of the FASB ASC, we recognize a provision for a liability when management believes that it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We believe we have adequate provisions for any such matters. We review these provisions at least quarterly and adjust these provisions to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. Whilst litigation is inherently unpredictable, we believe that we have valid defenses with respect to legal matters pending against us. Nevertheless, it is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies, or because of the diversion of management's attention and the creation of significant expenses.

        Our revenue generating activities are subject to Value Added Tax, or VAT. The U.K. tax authorities are seeking to challenge our VAT treatment of certain of these activities. As a result, we have estimated contingent losses totaling £27.9 million as of December 31, 2009 that are not accrued for, as we do not deem them to be probable of resulting in a liability. We continue to evaluate the likelihood of the contingent losses as additional information becomes available and, to the extent an accrual becomes necessary, it will be recognized in earnings in the period when such amount becomes probable. Any challenge made could be subject to court proceedings before any settlement would be required and therefore the timescale for resolution is not expected to occur within the next financial year.

        Our banks have provided guarantees in the form of performance bonds and stand by letters of credit on our behalf as part of our contractual obligations. The fair value of the guarantees has been calculated by reference to the monetary value for each performance bond. The amount of commitment expires over the following periods (in millions):

Year ending December 31:
   
 

2010

  £ 12.1  

2011

    0.9  

2012

     

2013

     

2014

     

Thereafter

    8.3  
       

  £ 21.3  
       

Note 16—Industry Segments

        Our reporting segments are based on our method of internal reporting along with the criteria used by our chief executive officer, who is our chief operating decision maker (CODM), to evaluate segment performance, the availability of separate financial information and overall materiality considerations. In the first quarter of 2009, we changed our operating segments. While VMIH and VMIL have operating segments, consisting of Consumer, Business and Content, which are consistent with Virgin Media's

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 16—Industry Segments (Continued)


operating segments, financial information is only prepared and reviewed by the CODM at the consolidated level. As such, there are no separable reportable segments for VMIH and VMIL.

        As a result of the business reorganization initiated in the last quarter of 2008, Virgin Media realigned its internal reporting structure and the related financial information used by management and the CODM. These have been revised to build a customer-focused organization able to respond effectively to rapid changes in the market, technology and consumer demands through three new customer-based segments: Consumer, Business and Content.

        Virgin Media's Consumer segment, part of which was previously included within its Cable segment, is its primary segment, consisting of the distribution of television programming, broadband and fixed line telephone services to consumers on the cable network and, to a lesser extent, off the cable network. The Consumer segment also includes Virgin Media's former Mobile segment consisting of its mobile telephony and broadband business.

        Virgin Media's Business segment, which was previously part of its Cable segment, comprises its operations carried out through Virgin Media Business which provides a complete portfolio of voice, data and internet solutions to leading businesses, public sector organizations and service providers in the U.K.

        Virgin Media operates its Content segment through Virgin Media TV, which supplies television programming to the U.K. pay-television broadcasting market.

        Segment contribution, which is operating income (loss) before network operating costs, corporate costs, depreciation, amortization, goodwill and intangible asset impairments and restructuring and other charges, is management's measure of segment profit. Segment contribution excludes the impact of certain costs and expenses that are not directly attributable to the reporting segments, such as the costs of operating the network, corporate costs and depreciation and amortization. Restructuring and other charges, and goodwill and intangible asset impairments are excluded from segment contribution as management believes they are not characteristic of our underlying business operations. Assets are reviewed on a consolidated basis and are not allocated to segments for management reporting since the primary asset of the business is the cable network infrastructure, which is shared by Virgin Media's Consumer and Business segments.

        The 2008 and 2007 fiscal year amounts have been adjusted to conform to the current period presentation. The following segment information is based on the consolidated results of Virgin Media for the years ended December 31, 2009, 2008 and 2007 (in millions):

 
  Year ended December 31, 2009  
 
  Consumer   Business   Content   Total  

Revenue

  £ 3,083.1   £ 580.8   £ 140.5   £ 3,804.4  

Inter segment revenue

            27.3     27.3  

Segment contribution

  £ 1,841.9   £ 339.7   £ 11.8   £ 2,193.4  

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VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED AND SUBSIDIARIES
VIRGIN MEDIA INVESTMENTS LIMITED AND SUBSIDIARIES

COMBINED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 16—Industry Segments (Continued)

 

 
  Year ended December 31, 2008  
 
  Consumer   Business   Content   Total  

Revenue

  £ 3,029.0   £ 626.0   £ 121.8   £ 3,776.8  

Inter segment revenue

        0.4     25.7     26.1  

Segment contribution

  £ 1,803.6   £ 335.2   £ (4.6 ) £ 2,134.2  

 

 
  Year ended December 31, 2007  
 
  Consumer   Business   Content   Total  

Revenue

  £ 3,087.3   £ 641.8   £ 109.5   £ 3,838.6  

Inter segment revenue

        0.4     24.4     24.8  

Segment contribution

  £ 1,805.4   £ 338.4   £ 8.4   £ 2,152.2  

        Revenues in the table above include £106.1 million, £110.8 million and £114.3 million for the three years ended December 31, 2009, 2008 and 2007, respectively, related to companies that are not consolidated in VMIH and VMIL. The reconciliation of total segment contribution to our consolidated operating income (loss) is as follows (in millions):

 
  Year ended December 31,  
 
  2009   2008   2007  

Total segment contribution

  £ 2,193.4   £ 2,134.2   £ 2,152.2  
 

Other operating and corporate costs

    832.7     832.5     871.8  
 

Restructuring and other charges

    40.4     22.7     28.7  
 

Depreciation

    930.5     902.8     922.3  
 

Amortization

    243.1     285.8     301.0  
 

Goodwill and intangible asset impairment

    4.7     362.2      
 

Operating loss of companies not consolidated in VMIH and VMIL

    (6.4 )   (8.1 )   (21.8 )
               

Consolidated operating income (loss)

  £ 148.4   £ (263.7 ) £ 50.2  
               

Note 17—Subsequent Events

        On June 4, 2010, we entered into a sale and purchase agreement with British Sky Broadcasting Limited, or BSkyB, pursuant to which we agreed to sell the entire issued share capital of our wholly owned subsidiaries Virgin Media TV and Virgin Media Television Rights Limited, as well as certain assets. The companies and the assets being sold comprise our television channels business known as Virgin Media TV. The transaction is subject to certain regulatory approvals.

        On June 4, 2010, we entered into a long term carriage agreement with BSkyB for its basic channels, the newly acquired Virgin Media TV channels and its sports and movies channels in standard definition to continue to be distributed on our cable television platform. The carriage agreements also provide us with the distribution of BSkyB's basic channels and a selection of premium sports and movies channels in high definition.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders
Virgin Media Inc.

        We have audited the consolidated balance sheets of Virgin Media Inc. and subsidiaries (the "Company") as of December 31, 2009 and 2008, and the related consolidated statements of operations, shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2009 (not included herein). Our audits also included the financial statement schedule (not included herein) and the accompanying condensed consolidating financial information. The Company financial statements, financial statement schedule and the accompanying condensed consolidating financial information are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements, financial statement schedule and condensed consolidating financial information based on our audits.

        We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

        In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Virgin Media Inc. and subsidiaries at December 31, 2009 and 2008, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December 31, 2009, in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule and the accompanying condensed consolidating financial information, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

        As discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for its convertible debt with the adoption of the guidance originally issued in FASB staff position APB14-1 "Accounting for Convertible Debt Instruments that may be Settled in Cash upon Conversion (Including Partial Cash Settlement)" (codified in FASB ASC Topic 470, Debt) effective January 1, 2009.

        We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), Virgin Media Inc. and subsidiaries' internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 26, 2010 expressed an unqualified opinion thereon.

/s/ Ernst & Young LLP

London, England
February 26, 2010,
except as to the accompanying
condensed consolidating financial information
as to which the date is June 15, 2010

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VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION

Overview

        The Securities and Exchange Commission's rules require that condensed consolidating financial information be provided for wholly owned subsidiaries that have guaranteed debt issued where each such guarantee is full and unconditional. Set forth below is condensed consolidating financial information presenting the financial position, results of operations and cash flows of (i) Virgin Media Inc. (the "Company"), (ii) the issuer of our senior secured senior notes, Virgin Media Secured Finance PLC (the "Issuer"), (iii) on a combined basis, each of the companies guaranteeing the senior secured notes (collectively, the "Guarantor Subsidiaries"), (iv) the direct and indirect non-guarantor subsidiaries of the Company (the "Non-Guarantor Subsidiaries") on a combined basis and (v) the adjustments and eliminations necessary to arrive at the information for the Company on a consolidated basis.

        This condensed consolidating financial information should be read in conjunction with the consolidated financial statements of the Company.

Basis of Presentation

        In presenting the condensed consolidating financial information, the equity method of accounting has been applied to (i) the Company's interests in the Guarantor Subsidiaries, (ii) the Guarantor Subsidiaries' interests in the Non-Guarantor Subsidiaries and (iii) the Non-Guarantor Subsidiaries' interests in the Guarantor Subsidiaries, where applicable, even though all such subsidiaries meet the requirements to be consolidated under accounting principles generally accepted in the United States. All intercompany balances and transactions between the Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries have been eliminated, as shown in the column "Adjustments."

        The Company's accounting bases in goodwill and identified intangible assets have been allocated and "pushed down" to the applicable subsidiaries. Interest income (expense) is determined based on third-party debt and the relevant intercompany amounts within the respective legal entity.

        Certain transfers of cash between subsidiaries and their parent companies are reflected as cash flows from investing and financing activities in the accompanying condensed consolidating statements of cash flows. All other intercompany activity, including intercompany dividends, is reflected in cash flows from operations.

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Table of Contents


VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)

 
  December 31, 2009  
Balance sheets
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Cash and cash equivalents

  £ 12.4   £   £ 413.3   £ 4.8   £   £ 430.5  

Restricted cash

            6.0             6.0  

Other current assets

    4.3         523.7     77.9         605.9  
                           
 

Total current assets

    16.7         943.0     82.7         1,042.4  

Fixed assets, net

   
   
   
5,017.9
   
31.3
   
   
5,049.2
 

Goodwill and intangible assets, net

            2,290.9     46.9         2,337.8  

Investments in, and loans to, parent and subsidiary companies

    1,977.8         (47.4 )   1,577.0     (3,147.5 )   359.9  

Other assets, net

    10.4         386.4     1.3         398.1  
                           
 

Total assets

  £ 2,004.9   £   £ 8,590.8   £ 1,739.2   £ (3,147.5 ) £ 9,187.4  
                           

Other current liabilities

 
£

9.1
 
£

 
£

2,055.8
 
£

42.7
 
£

(716.8

)

£

1,390.8
 

Long term debt, net of current portion

    504.5         5,153.7     275.3         5,933.5  

Other long term liabilities

            367.8     4.0         371.8  

Shareholders' equity

    1,491.3         1,013.5     1,417.2     (2,430.7 )   1,491.3  
                           
 

Total liabilities and shareholders' equity

  £ 2,004.9   £   £ 8,590.8   £ 1,739.2   £ (3,147.5 ) £ 9,187.4  
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)

 
  December 31, 2008  
Balance sheets
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Cash and cash equivalents

  £ 9.9   £   £ 166.0   £ 5.7   £   £ 181.6  

Restricted cash

            6.1             6.1  

Other current assets

    3.5         684.8     123.3         811.6  

Current assets held for sale

            56.2             56.2  
                           
 

Total current assets

    13.4         913.1     129.0         1,055.5  

Fixed assets, net

   
   
   
5,308.0
   
34.1
   
   
5,342.1
 

Goodwill and intangible assets, net

            2,538.8     53.8         2,592.6  

Investments in, and loans to, parent and subsidiary companies

    2,544.9         (283.7 )   2,158.2     (4,065.9 )   353.5  

Other assets, net

    13.2         575.1     1.3         589.6  
                           
 

Total assets

  £ 2,571.5   £   £ 9,051.3   £ 2,376.4   £ (4,065.9 ) £ 9,933.3  
                           

Other current liabilities

 
£

9.4
 
£

 
£

2,061.4
 
£

44.6
 
£

(636.0

)

£

1,479.4
 

Current liabilities held for sale

            36.2             36.2  
                           
 

Total current liabilities

    9.4         2,097.6     44.6     (636.0 )   1,515.6  

Long term debt, net of current portion

   
545.9
   
   
5,175.1
   
408.6
   
   
6,129.6
 

Other long term liabilities

            268.6     3.3         271.9  

Shareholders' equity

    2,016.2         1,510.0     1,919.9     (3,429.9 )   2,016.2  
                           
 

Total liabilities and shareholders' equity

  £ 2,571.5   £   £ 9,051.3   £ 2,376.4   £ (4,065.9 ) £ 9,933.3  
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)

 
  Year ended December 31, 2009  
Statements of operations
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Revenue

  £   £   £ 3,599.3   £ 205.1   £   £ 3,804.4  

Operating costs

            (1,499.0 )   (136.7 )       (1,635.7 )

Selling, general and administrative expenses

    (19.5 )       (662.4 )   (126.1 )       (808.0 )

Restructuring and other charges

            (40.2 )   (0.2 )       (40.4 )

Depreciation and amortization

            (1,162.7 )   (10.9 )       (1,173.6 )

Goodwill and intangible asset impairments

            (4.6 )   (0.1 )       (4.7 )
                           

Operating income (loss)

    (19.5 )       230.4     (68.9 )       142.0  

Interest and other income, net

    43.1         723.6     146.2     (906.7 )   6.2  

Interest expense

    (56.9 )       (1,180.3 )   (124.6 )   906.7     (455.1 )

Loss on extinguishment of debt

            (54.5 )           (54.5 )

Share of income from equity investments

            14.1             14.1  

Losses on derivative instruments

            (114.5 )           (114.5 )

Foreign currency gains (losses)

    1.3         128.9     (5.9 )       124.3  

Income tax benefit

    1.3         1.1     0.1         2.5  
                           

(Loss) income from continuing operations

    (30.7 )       (251.2 )   (53.1 )       (335.0 )

Loss from discontinued operations, net of tax

            (22.8 )           (22.8 )

Equity in net income (loss) of subsidiaries

    (327.1 )       (76.4 )   (274.0 )   677.5      
                           

Net (loss) income

  £ (357.8 ) £   £ (350.4 ) £ (327.1 ) £ 677.5   £ (357.8 )
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)


 
  Year ended December 31, 2008  
Statements of operations
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Revenue

  £   £   £ 3,506.0   £ 270.8   £   £ 3,776.8  

Operating costs

            (1,433.9 )   (213.2 )       (1,647.1 )

Selling, general and administrative expenses

    (19.9 )       (753.5 )   (54.6 )       (828.0 )

Restructuring and other charges

            (23.2 )   0.5         (22.7 )

Depreciation and amortization

            (1,169.2 )   (19.4 )       (1,188.6 )

Goodwill and intangible asset impairments

            (352.4 )   (9.8 )       (362.2 )
                           

Operating (loss) income

    (19.9 )       (226.2 )   (25.7 )       (271.8 )

Interest and other income, net

    25.0         981.7     120.5     (1,101.1 )   26.1  

Interest expense

    (34.0 )       (1,471.3 )   (95.2 )   1,101.1     (499.4 )

Loss on extinguishment of debt

            (9.6 )           (9.6 )

Share of income (loss) from equity investments

            14.4             14.4  

Gains on derivative instruments

            283.7             283.7  

Foreign currency (losses) gains

    (1.8 )       (412.8 )   11.0         (403.6 )

Income tax benefit (expense)

            9.9     (3.1 )       6.8  
                           

(Loss) income from continuing operations

    (30.7 )       (830.2 )   7.5         (853.4 )

Loss from discontinued operations, net of tax

            (66.6 )           (66.6 )

Equity in net (loss) income of subsidiaries

    (889.3 )       (13.1 )   (896.8 )   1,799.2      
                           

Net (loss) income

  £ (920.0 ) £   £ (909.9 ) £ (889.3 ) £ 1,799.2   £ (920.0 )
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)


 
  Year ended December 31, 2007  
Statements of operations
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Revenue

  £   £   £ 3,590.5   £ 248.1   £   £ 3,838.6  

Operating costs

            (1,459.8 )   (192.4 )       (1,652.2 )

Selling, general and administrative expenses

    (3.9 )       (837.7 )   (64.4 )       (906.0 )

Restructuring and other charges

    (0.3 )       (10.5 )   (17.9 )       (28.7 )

Depreciation and amortization

            (1,202.5 )   (20.8 )       (1,223.3 )

Goodwill and intangible asset impairments

                         
                           

Operating (loss) income

    (4.2 )       80.0     (47.4 )       28.4  

Interest and other income, net

    0.6         1,205.2     76.4     (1,263.9 )   18.3  

Interest expense

            (1,753.0 )   (25.0 )   1,263.9     (514.1 )

Loss on extinguishment of debt

            (3.2 )           (3.2 )

Share of income from equity investments

            17.7             17.7  

Loss on derivative instruments

            (2.5 )           (2.5 )

Foreign currency gains (losses)

            (3.7 )   8.8         5.1  

Income tax (expense)

    (0.1 )       (0.6 )   (1.8 )       (2.5 )
                           

(Loss) income from continuing operations

    (3.7 )       (460.1 )   11.0         (452.8 )

Loss from discontinued operations, net of tax

            (10.7 )           (10.7 )

Equity in net (loss) income of subsidiaries

    (459.8 )       62.8     (470.8 )   867.8      
                           

Net (loss) income

  £ (463.5 ) £   £ (408.0 ) £ (459.8 ) £ 867.8   £ (463.5 )
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)

 
  Year ended December 31, 2009  
Statement of cash flows
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Net cash provided by (used in) operating activities

  £ (8.5 ) £   £ 916.4   £ (7.3 ) £   £ 900.6  

Investing activities:

                                     

Purchase of fixed and intangible assets

            (567.6 )   (1.4 )       (569.0 )

Principal repayments on loans to equity investments

            12.5             12.5  

Principal (repayments) drawdowns on loans to group companies

            (54.8 )   54.8          

Disposal of sit-up, net

            (17.5 )           (17.5 )

Other

            1.7             1.7  
                           

Net cash (used in) provided by investing activities

            (625.7 )   53.4         (572.3 )
                           

Financing activities:

                                     

New borrowings, net of financing fees

            1,610.2             1,610.2  

Proceeds from employee stock option exercises

    2.8                     2.8  

Principal payments on long term debt and capital leases

            (1,690.4 )   (47.0 )       (1,737.4 )

Intercompany funding movements

    43.6         (43.6 )            

Dividends paid

    (33.3 )                   (33.3 )

Realized gain on derivatives

            88.3             88.3  

Other

    (0.3 )                   (0.3 )
                           

Net cash (used in) provided by financing activities

    12.8         (35.5 )   (47.0 )       (69.7 )
                           

Cash flow from discontinued operations

                                     

Net cash used in operating activities

            (7.9 )           (7.9 )
                           

Net cash used in discontinued operations

            (7.9 )           (7.9 )
                           

Effect of exchange rates on cash and cash equivalents

    (1.8 )                   (1.8 )

Increase in cash and cash equivalents

    2.5         247.3     (0.9 )       248.9  

Cash and cash equivalents at beginning of period

    9.9         166.0     5.7         181.6  
                           

Cash and cash equivalents at end of period

  £ 12.4   £   £ 413.3   £ 4.8   £   £ 430.5  
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)


 
  Year ended December 31, 2008  
Statement of cash flows
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Net cash provided by (used in) operating activities

  £ (49.4 ) £   £ 810.3   £ (2.2 ) £   £ 758.7  

Investing activities:

                                     

Purchase of fixed and intangible assets

            (474.2 )   (3.7 )       (477.9 )

Principal repayments on loans to equity investments

            8.6             8.6  

Principal (repayments) drawdowns on loans to group companies

    (477.3 )       413.8     63.5          

Purchase of investments

            (1.5 )           (1.5 )

Other

            2.1             2.1  
                           

Net cash (used in) provided by investing activities

    (477.3 )       (51.2 )   59.8         (468.7 )
                           

Financing activities:

                                     

New borrowings, net of financing fees

    496.7         (49.0 )           447.7  

Proceeds from employee stock option exercises

    0.6                     0.6  

Principal payments on long term debt and capital leases

            (794.1 )   (52.2 )       (846.3 )

Intercompany funding movements

    64.9         (51.4 )   (13.5 )        

Dividends paid

    (29.3 )                   (29.3 )
                           

Net cash (used in) provided by financing activities

    532.9         (894.5 )   (65.7 )       (427.3 )
                           

Cash flow from discontinued operations

                                     

Net cash used in operating activities

            (3.0 )           (3.0 )

Net cash used in investing activities

            (1.9 )           (1.9 )
                           

Net cash used in discontinued operations

            (4.9 )           (4.9 )
                           

Effect of exchange rates on cash and cash equivalents

    2.4                     2.4  

(Decrease) increase in cash and cash equivalents

    8.6         (140.3 )   (8.1 )       (139.8 )

Cash and cash equivalents at beginning of period

    1.3         306.3     13.8         321.4  
                           

Cash and cash equivalents at end of period

  £ 9.9   £   £ 166.0   £ 5.7   £   £ 181.6  
                           

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Table of Contents


VIRGIN MEDIA INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)


 
  Year ended December 31, 2007  
Statement of cash flows
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Net cash provided by (used in) operating activities

  £ (17.6 ) £   £ 728.0   £ 0.4   £   £ 710.8  

Investing activities:

                                     

Purchase of fixed and intangible assets

            (530.4 )   (3.3 )       (533.7 )

Principal repayments on loans to equity investments

            16.4             16.4  

Principal (repayments) drawdowns on loans to group companies

    22.7         0.4     (23.1 )        

Proceeds from sale of investments

            3.8     6.0         9.8  

Acquisitions, net of cash acquired

            (1.0 )           (1.0 )

Proceeds from sale of fixed assets

            3.3             3.3  

Other

            (2.1 )           (2.1 )
                           

Net cash (used in) provided by investing activities

    22.7         (509.6 )   (20.4 )       (507.3 )
                           

Financing activities:

                                     

New borrowings, net of financing fees

            874.5             874.5  

Proceeds from employee stock option exercises

    15.0                     15.0  

Principal payments on long term debt and capital leases

            (1,170.8 )           (1,170.8 )

Dividends paid

    (21.2 )                   (21.2 )
                           

Net cash (used in) provided by financing activities

    (6.2 )       (296.3 )           (302.5 )
                           

Cash flow from discontinued operations

                                     

Net cash provided by operating activities

            5.2             5.2  

Net cash used in investing activities

            (2.5 )           (2.5 )
                           

Net cash provided by discontinued operations

            2.7             2.7  
                           

Effect of exchange rates on cash and cash equivalents

                (0.8 )       (0.8 )

Decrease in cash and cash equivalents

    (1.1 )       (75.2 )   (20.8 )       (97.1 )

Cash and cash equivalents at beginning of period

    2.4         381.5     34.6         418.5  
                           

Cash and cash equivalents at end of period

  £ 1.3   £   £ 306.3   £ 13.8   £   £ 321.4  
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATING FINANCIAL INFORMATION

 
  March 31, 2010  
Balance sheets
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Cash and cash equivalents

  £ 15.4   £   £ 399.5   £ 5.8   £   £ 420.7  

Restricted cash

            6.0             6.0  

Other current assets

    5.6         513.4     105.7         624.7  
                           
 

Total current assets

    21.0         918.9     111.5         1,051.4  

Fixed assets, net

   
   
   
4,951.5
   
31.1
   
   
4,982.6
 

Goodwill and intangible assets, net

            2,254.5     45.9         2,300.4  

Investments in, and loans to, parent and subsidiary companies

    1,867.8         166.4     1,322.7     (2,997.5 )   359.4  

Other assets, net

    10.7         430.4     1.3         442.4  
                           
 

Total assets

  £ 1,899.5   £   £ 8,721.7   £ 1,512.5   £ (2,997.5 ) £ 9,136.2  
                           

Other current liabilities

 
£

19.3
 
£

 
£

2,106.6
 
£

56.1
 
£

(864.1

)

£

1,317.9
 

Long term debt, net of current portion

    540.2         5,383.3     181.7         6,105.2  

Other long term liabilities

            367.7     5.4         373.1  

Shareholders' equity

    1,340.0         864.1     1,269.3     (2,133.4 )   1,340.0  
                           
 

Total liabilities and shareholders' equity

  £ 1,899.5   £   £ 8,721.7   £ 1,512.5   £ (2,997.5 ) £ 9,136.2  
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)


 
  Three months ended March 31, 2010  
Statements of operations
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Revenue

  £   £   £ 917.9   £ 45.3   £   £ 963.2  

Operating costs

            (374.7 )   (24.4 )       (399.1 )

Selling, general and administrative expenses

    (4.6 )       (191.8 )   (11.3 )       (207.7 )

Restructuring and other charges

            (0.4 )           (0.4 )

Depreciation and amortization

            (278.2 )   (1.8 )       (280.0 )

Goodwill and intangible asset impairments

                         
                           

Operating income (loss)

    (4.6 )       72.8     7.8         76.0  

Interest and other income, net

   
10.3
   
   
244.5
   
31.0
   
(284.7

)
 
1.1
 

Interest expense

    (14.4 )       (363.6 )   (30.0 )   284.7     (123.3 )

Loss on extinguishment of debt

            (32.9 )           (32.9 )

Share of income from equity investments

            7.6             7.6  

Losses on derivative instruments

            (21.0 )           (21.0 )

Foreign currency gains (losses)

    (0.2 )       (67.2 )   (2.4 )       (69.8 )

Income tax benefit

            2.1     (0.2 )       1.9  
                           

(Loss) income from continuing operations

    (8.9 )       (157.7 )   6.2         (160.4 )

Equity in net income (loss) of subsidiaries

    (151.5 )       10.7     (157.7 )   298.5      
                           

Net (loss) income

  £ (160.4 ) £   £ (147.0 ) £ (151.5 ) £ 298.5   £ (160.4 )
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)


 
  Three months ended March 31, 2009  
Statements of operations
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Revenue

  £   £   £ 879.0   £ 56.7   £   £ 935.7  

Operating costs

            (373.6 )   (40.1 )       (413.7 )

Selling, general and administrative expenses

    (5.1 )       (193.8 )   (10.8 )       (209.7 )

Restructuring and other charges

            (5.4 )           (5.4 )

Depreciation and amortization

            (290.6 )   (3.3 )       (293.9 )

Goodwill and intangible asset impairments

                         
                           

Operating income (loss)

    (5.1 )       15.6     2.5         13.0  

Interest and other income, net

   
11.3
   
   
191.4
   
40.2
   
(239.6

)
 
3.3
 

Interest expense

    (15.4 )       (303.5 )   (29.7 )   239.6     (109.0 )

Loss on extinguishment of debt

            (3.1 )   3.1          

Share of income from equity investments

            26.0     (23.5 )       2.5  

Losses on derivative instruments

            (21.2 )           (21.2 )

Foreign currency gains (losses)

            (11.9 )           (11.9 )

Income tax benefit

            (9.5 )   (0.1 )       (9.6 )
                           

(Loss) income from continuing operations

    (9.2 )       (116.2 )   (7.5 )       (132.9 )

Loss from discontinued operations, net of tax

            (21.1 )           (21.1 )

Equity in net income (loss) of subsidiaries

    (144.8 )       (12.9 )   (137.3 )   295.0      
                           

Net (loss) income

  £ (154.0 ) £   £ (150.2 ) £ (144.8 ) £ 295.0   £ (154.0 )
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)

 
  Three months ended March 31, 2010  
Statement of cash flows
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Net cash provided by (used in) operating activities

  £ (6.4 ) £   £ 201.8   £ (8.1 ) £   £ 187.3  

Investing activities:

                                     

Purchase of fixed and intangible assets

            (181.0 )   (0.5 )       (181.5 )

Principal repayments on loans to equity investments

            1.2             1.2  

Principal (repayments) drawdowns on loans to group companies

    10.0     (1,468.0 )   1,356.6     101.4          

Other

            1.0             1.0  
                           

Net cash (used in) provided by investing activities

    10.0     (1,468.0 )   1,177.8     100.9         (179.3 )
                           

Financing activities:

                                     

New borrowings, net of financing fees

        1,468.0     (20.2 )           1,447.8  

Proceeds from employee stock option exercises

    5.6                     5.6  

Principal payments on long term debt and capital leases

            (1,373.1 )   (91.8 )       (1,464.9 )

Dividends paid

    (8.8 )                   (8.8 )
                           

Net cash (used in) provided by financing activities

    (3.2 )   1,468.0     (1,393.3 )   (91.8 )       (20.3 )
                           

Effect of exchange rates on cash and cash equivalents

    2.6                     2.6  

Increase in cash and cash equivalents

    3.0         (13.7 )   1.0         (9.7 )

Cash and cash equivalents at beginning of period

    12.4         413.3     4.8         430.5  
                           

Cash and cash equivalents at end of period

  £ 15.4   £   £ 399.6   £ 5.8   £   £ 420.8  
                           

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VIRGIN MEDIA INC. AND SUBSIDIARIES

UNAUDITED CONDENSED CONSOLIDATING FINANCIAL INFORMATION (Continued)


 
  Three months ended March 31, 2009  
Statement of cash flows
  Company   Virgin Media
Secured
Finance PLC
  Guarantors   Non-
Guarantors
  Adjustments   Total  
 
  (in millions)
 

Net cash provided by (used in) operating activities

  £ (2.5 ) £   £ 132.2   £ (0.5 ) £   £ 129.2  

Investing activities:

                                     

Purchase of fixed and intangible assets

            (144.2 )   (0.2 )       (144.4 )

Principal repayments on loans to equity investments

            1.2             1.2  

Principal (repayments) drawdowns on loans to group companies

            (1.2 )   1.2          

Other

            1.5             1.5  
                           

Net cash (used in) provided by investing activities

            (142.7 )   1.0         (141.7 )
                           

Financing activities:

                                     

New borrowings, net of financing fees

                         

Proceeds from employee stock option exercises

                         

Principal payments on long term debt and capital leases

            (12.4 )           (12.4 )

Intercompany funding movements

    15.0         (15.0 )            

Dividends paid

    (9.0 )                   (9.0 )
                           

Net cash (used in) provided by financing activities

    6.0         (27.4 )           (21.4 )
                           

Cash flow from discontinued operations

                                     

Net cash used in operating activities

            (7.9 )           (7.9 )
                           

Net cash used in discontinued operations

            (7.9 )           (7.9 )
                           

Effect of exchange rates on cash and cash equivalents

    (0.2 )                   (0.2 )

Increase in cash and cash equivalents

    3.3         (45.8 )   0.5         (42.0 )

Cash and cash equivalents at beginning of period

    9.9         166.0     5.7         181.6  
                           

Cash and cash equivalents at end of period

  £ 13.2   £   £ 120.2   £ 6.2   £   £ 139.6  
                           

F-70


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Virgin Media Secured Finance PLC



GRAPHIC



Exchange Offer
for
$1,000,000,000 6.50% Senior Secured Notes due 2018
£875,000,000 7.00% Senior Secured Notes due 2018


Table of Contents


PART II

Information Not Required in Prospectus

Item 20.    Indemnification of Directors and Officers

Delaware

Delaware Corporations

        Section 145 of the Delaware General Corporation Law authorizes a Delaware corporation to indemnify its directors, officers, employees and agents against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement reasonably incurred, including liabilities under the U.S. Securities Act of 1933, or the Securities Act. In order to receive indemnification, the director, officer, employee or agent must have acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the corporation. However, in the case of proceedings brought by or on behalf of the corporation, indemnification is limited to expenses and is not permitted if the individual is adjudged liable to the corporation, unless the court determines otherwise.

        Section 102(b)(7) of the Delaware General Corporation Law authorizes a corporation to limit or eliminate its directors' liability to the corporation or its stockholders for monetary damages for breaches of fiduciary duties, other than for breaches of the duty of loyalty to the corporation or its stockholders, acts or omissions not in good faith or that involve intentional misconduct or knowing violations of law, unlawful payments of dividends, stock purchases or redemptions, or transactions from which a director derives an improper personal benefit.

        Section 145 of the Delaware General Corporation Law authorizes a corporation to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or agent of the corporation against any liability asserted against him or her and incurred by him or her in his or her capacity as a director, officer, employee or agent of the corporation, or arising out of his or her status as a director, officer, employee or agent of the corporation.

        The certificates of incorporation and restated bylaws of each of the Delaware corporation registrants permit and/or require such entities to indemnify their officers and directors to the full extent permitted by Delaware law, and limit to the full extent permitted by Delaware law their directors' liability to such companies and their stockholders for monetary damages for breaches of fiduciary duty. The indemnification permitted under Delaware is not exclusive of any other rights to which these persons may be entitled. The certificates of incorporation and restated bylaws of each of our Delaware corporations also provide that we may, to the full extent permitted by law, purchase and maintain insurance on behalf of any of our directors, officers, employees or agents against any liability that may be asserted against him or her.

Delaware Limited Liability Companies

        Section 108 of the Delaware Limited Liability Company Act permits and grants a Delaware limited liability company the power to indemnify and hold harmless any member or manager or other person from and against any and all claims and demands whatsoever, subject to such standards and restrictions, if any, as are set forth in its limited liability company agreement.

        The limited liability company agreement of each of the Delaware limited liability company registrants requires that, to the fullest extent permitted by law, each such company shall indemnify and hold harmless each member, director and officer from and against any and all losses, claims, demands, liabilities, expenses, judgments, fines, settlements and other amounts arising from any and all claims, demands, actions, suits or proceedings (civil, criminal, administrative or investigative) in which such person may be involved, or threatened to be involved as a party or otherwise, by reason of its management of the business and affairs of such company or which relates to or arises out of such

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company or its property, business and affairs. Such persons are not entitled to this indemnification if they have engaged in fraud, willful misconduct, bad faith or gross negligence, or in respect of a claim initiated by such person which was not brought to enforce their rights or consented to by the board.

Delaware Limited Partnerships

        Section 108 of the Delaware Revised Uniform Limited Partnership Act permits and grants a Delaware limited partnership the power to indemnify and hold harmless any partner or other person from and against any and all claims and demands whatsoever, subject to such standards and restrictions, if any, as are set forth in its partnership agreement.

        The partnership agreement of our Delaware limited partnership registrant requires it to indemnify, defend and hold harmless its general partner, and any of its or the partnership's agents, employees, advisors and consultants, in their respective capacities from and against any loss, liability, damage, cost or expenses (including reasonable attorney's fees and expenses) against the partnership. Provided, however, that there shall be no indemnification to the extent that the acts or omissions of the general partner were not taken in accordance with the standards set forth in the Delaware Revised Uniform Limited Partnership Act or have violated such other standard of conduct as would prohibit such indemnification under applicable law.

England and Wales; Scotland

England and Wales and Scotland Private Limited Companies, Public Limited Companies and Unlimited Companies

        Section 234 of the Companies Act 2006 (the "2006 Act") authorises public limited companies, private limited companies and unlimited companies incorporated in England and Wales or Scotland to indemnify a director against any liability incurred by the director to a person other than the company or an associated company other than in respect of (a) any liability of the director to pay a fine imposed in criminal proceedings, or a sum payable to a regulatory authority by way of a penalty in respect of non-compliance with any requirement of a regulatory nature (however arising), or (b) any liability incurred by the director in defending criminal proceedings in which he or she is convicted, in defending civil proceedings brought by the company, or an associated company, in which judgment is given against him or her, or in connection with an application of relief in which the court refuses to grant him or her relief, in respect of a final decision in any such proceedings.

        Except as otherwise permitted by the 2006 Act, including Section 234, Section 232 of the 2006 Act provides that any provision that purports to exempt a director of any such company, to any extent, from any liability that would otherwise attach to him or her in connection with any negligence, default, breach of duty or breach of trust in relation to the company is void. Nevertheless, Section 233 of the 2006 Act permits a company to purchase and maintain for a director of the company, or of an associated company, insurance against against any liability attaching to him or her in connection with any negligence, default, breach of duty or breach of trust in relation to the company of which he or she is a director.

        The articles of incorporation and restated bylaws of each of the public limited company, private limited company and unlimited company registrants formed in England and Wales or Scotland permit and/or require us to indemnify our officers and directors against losses and liabilities which they may sustain as directors or officers of such companies, including in any civil or criminal proceedings in which judgment is given in their favor. The articles of incorporation and restated bylaws of each of our public limited companies, private limited companies and unlimited companies incorporated in England and Wales or Scotland also provide that we may, to the full extent permitted by law, purchase and maintain insurance on behalf of any of our directors, officers, employees or agents against any liability that may be asserted against them.

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England and Wales Partnerships

        The Partnership Act 1890 does not prohibit the England and Wales partnership registrants from entering into indemnification arrangements with their partners or other controlling persons.

Colorado

Colorado General Partnerships

        Section 7-64-401 of the Colorado Uniform Partnership Act (1997) provides that a partnership shall indemnify a partner for liabilities incurred by the partner in the ordinary course of the business of the partnership, unless the liabilities were incurred in violation of the partner's duties to the partnership or the other partners.

        The partnership agreement of each of the Colorado general partnership registrants provides that none of the partners or managing partners, or their respective officers, agents and employees, shall be liable to the partnership or any partner for their good faith actions, or failure to act, or for any errors of judgement, or for any act or omission believed in good faith to be within the scope of authority conferred by the partnership agreement, but shall only be liable for wilfull misconduct or gross negligence. The Colorado general partnerships are required to indemnify and hold harmless their respective managing partners, partners, and their respective officers, agents and employees, as to third parties, against any personal loss, liability or damage incurred as a result of any act or omission of such person believed in good faith to be within the scope of authority conferred by the partnership agreement, except for wilfull misconduct or gross negligence. The Colorado general partnerships' indemnification of their managing partners, partners and their officers, agents and employees as to third parties is only with respect to loss, liability or damage that is not otherwise compensated for by insurance carried for the benefit of the partnerships.

        In addition, the partnership agreements of the Colorado general partnerships require that the partnerships maintain in force at all times for the protection of their respective partners such insurance as their managing partners believe warranted for the operations being conducted.

Colorado Limited Partnerships

        Section 7-62-403 of the Colorado Uniform Limited Partnership Act of 1981 provides that a general partner of a limited partnership has the same rights, powers and liabilities as a general partner in a general partnership.

        The limited partnership agreement of each of the Colorado limited partnership registrants provides that neither the general partners nor their respective officers, agents or employees shall be liable to their respective partnerships or their partners for their good faith actions or failures to act, or for any good faith errors of judgment, or for any act or omission believed in good faith to be within the scope of authority conferred by the limited partnership agreement, but shall only be liable for willful misconduct or gross negligence. The Colorado limited partnerships are required to indemnify and hold harmless each of their respective general partners, and their respective officers, agents and employees, as to third parties, from any personal loss, liability or damage incurred as a result of any act or omission of such person believed in good faith to be within the scope of authority conferred by the limited partnership agreement, except for wilfull misconduct or gross negligence. The Colorado limited partnerships' indemnification of their partners and their officers, agents and employees as to third parties is only with respect to loss, liability or damage that is not otherwise compensated for by insurance carried for the benefit of the partnerships.

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Jersey

Jersey Limited Companies

        Section 77 of the Companies (Jersey) Law 1991 permits a company to indemnify any director against, inter alia, (a) any liabilities incurred in defending any proceedings (whether civil or criminal) (i) in which judgment is given in his or her favour or he or she is acquitted, (ii) which are discontinued except in circumstances where the proceedings are discontinued for some benefit conferred by him or her (or on his or her behalf) or for some detriment suffered by him or her, or (iii) which are settled on terms which include such benefit or detriment and, in the opinion of a majority of the directors of the company (excluding any director who conferred such benefit or on whose behalf such benefit was conferred or who suffered such detriment), the director or officer was substantially successful on the merits in his or her resistance to the proceedings, and (b) any liability incurred otherwise than to the company if he or she acted in good faith with a view to the best interests of the company.

        Section 77 authorizes a company to purchase and maintain insurance on behalf of any person who is or was a director against any liability asserted against him or her and incurred by him or her in his or her capacity as a director of the company, or arising out of his or her status as a director, officer, employee or agent of the company. The indemnification permitted under law is not exclusive of any other rights to which these persons may be entitled.

        The articles of association of the Jersey limited company registrant require that, in so far as the law allows, every present or former officer of the Company shall be indemnified out of the assets of the Company against any loss or liability incurred by him or her by reason of being or having been such an officer.

Luxembourg

Luxembourg Société à Responsabilité Limiteé

        Future Entertainment SARL ("FES") is a private limited liability company (société à responsabilité limitée, or SARL) incorporated under the Law of the Grand-Duchy of Luxembourg. Luxembourg law usually refers to a "manager" of a SARL, as opposed to a "director" for a public limited liability company (société anonyme). Article 192 of the law dated 10 August 1915 on commercial companies (the "Law") referring to private limited liability companies (SARL) provides for the following: "the managers shall be liable in accordance with Article 59." Article 59 of the Law states that: "The directors shall be liable to the company in accordance with general law for the execution of the mandate given to them and for any misconduct in the management of the company's affairs. They shall be jointly and severally liable both towards the company and any third parties for damages resulting from the violation of this law or the bylaws of the company. They shall be discharged from such liability in the case of a violation to which they were not a party provided no misconduct is attributable to them and they have reported such violation to the first general meeting after they had acquired knowledge thereof."

        Furthermore, in the event of bankruptcy of the company, according to article 495-1 of the Luxembourg Commercial Code, the Luxembourg court may hold the company's directors liable to reimburse any indebtedness of the bankrupt company, whenever the company's assets are not sufficient and the director's serious and wrongful offences have led to the bankruptcy of the company. Under article 495 of the Luxembourg Commercial Code, directors may be declared personally bankrupt if (i) they abusively pursued, for their interest, a non profitable business which resulted in the company becoming insolvent, or (ii) they disposed of corporate assets in the same manner as if those had been their own personal assets, or (iii) they carried out business on behalf of the company for their personal interest. In addition, articles 162 and following of the Law provide for criminal provisions, mainly in cases of gross negligence or wilful misconduct. Lastly, managers' general liability can be challenged on

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the basis of article 1382 and following, of the Luxembourg Civil Code, when damage is found to result from negligence.

        Nevertheless, several contractual alternatives may be envisaged to manage the potential risks faced by the managers; it being understood that supporting the financial consequences of the managers' challenged responsibility merely transfers the financial costs of the managers' responsibility on others (the company). These alternatives may include (i) disclaimers, (ii) comfort letters, (iii) liability insurance underwritings and (iv) discharge by way of "quitus". In this respect, article 16 of the Bylaws of FES provides for the indemnification of the managers as follows: "Art. 16. The managers do not assume, by reason of their position, any personal liability in relation to commitments regularly made by them in the name of the Company. They are authorized agents only and are therefore merely responsible for the execution of their mandate." Moreover, FES' Manager's Agreement entered into between FES's sole Shareholder and each manager provides as follows in Article 1.6: "The Company shall indemnify, defend and hold harmless the manager from and against all claims, actions, judgments, liabilities, damages, losses and expenses ("Losses") arising out of or resulting from actions or omissions of the manager, provided that neither the Shareholder nor the Company shall be liable for, and shall indemnify, defend and hold harmless the Shareholder and the Company from and against all Losses arising from the manager's negligence, wilful misconduct, or any action or omission done without instructions from or the approval of the Company." Art. 1.7 further provides: "The Manager shall be covered by the "Directors and Officers Insurance Policy" arranged by Virgin Media Inc on behalf of all group companies, including Future Entertainment SARL."

        Each year a "quitus" is usually required and granted by the shareholders of a company, in favour of its managers. The "quitus" can be defined as the shareholders' special votes on the discharge of the managers of the company. Such discharge is generally granted during the annual shareholders meeting. This specific discharge then prevents any further action to be lodged by the company against the managers. However, it should be noted that the various indemnification procedures to be implemented only cover civil liability, criminal actions in Luxembourg remaining necessarily personal.

Insurance and Indemnity Agreements

        We have liability insurance covering our directors and officers for claims asserted against them or incurred by them in their capacity as directors and officers, including claims brought under the Securities Act. We provide indemnity agreements to our officers and directors. Under these indemnity agreements, we must indemnify an indemnitee to the fullest extent permitted by the Delaware General Corporation Law, or any other applicable law, for losses and expenses incurred in connection with actions in which the indemnitee is involved by reason of having been a director or officer of ours. We are also obligated to advance expenses an indemnitee may incur in connection with these actions before any resolution of the action. The form of indemnity agreement provided to our directors and officers has been filed as Exhibit 10.40 to our Annual Report on Form 10-K for the year ended December 31, 2006, and is incorporated herein by reference.

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Item 21.    Exhibits and Financial Statement Schedules

Exhibit No.   Description
  4.1   Indenture, dated as of January 19, 2010, among Virgin Media Secured Finance PLC, the guarantors party thereto, The Bank of New York Mellon as trustee and paying agent and The Bank of New York Mellon (Luxembourg) S.A. as Luxembourg paying agent (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on January 20, 2010).

 

4.2

 

Form of Notes (included in Exhibit 4.1).

 

4.3

 

Registration Rights Agreement, dated as of January 19, 2010, among Virgin Media Secured Finance PLC, Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited and the initial purchasers party thereto (Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on January 20, 2010).

 

4.4

 

Group Intercreditor Deed, dated March 3, 2006, as amended and restated on January 8, 2010, between, among others, Deutsche Bank AG, London Branch as Facility Agent and Security Trustee and the Seniors Lenders, the Intergroup Debtors and the Intergroup Creditors named therein (Incorporated by reference to Exhibit 4.3 to the Quarterly Report on Form 10-Q of Virgin Media Inc. as filed with the Securities and Exchange Commission on May 6, 2010).

 

4.5

 

High Yield Intercreditor Deed, dated April 13, 2004, as amended and restated on December 30, 2009, among Virgin Media Finance PLC as Issuer, Virgin Media Investment Holdings Limited as Borrower and as High Yield Guarantor, Deutsche Bank AG, London Branch as Facility Agent and Bank Group Security Trustee, The Bank of New York Mellon as High Yield Trustee, the Senior Lenders named therein, the Intergroup Debtor named therein and the Intergroup Creditor named therein (Incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on February 26, 2010).

 

4.6*

 

First Supplemental Indenture, dated as of April 19, 2010, among Virgin Media SFA Finance Limited, Virgin Media Secured Finance PLC and The Bank of New York Mellon as trustee.

 

4.7*

 

Second Supplemental Indenture, dated as of May 17, 2010, among General Cable Investments Limited, NTL Funding Limited, Telewest Communications Holdco Limited, VM Sundial Limited, Virgin Media Secured Finance PLC and The Bank of New York Mellon as trustee.

 

4.8*

 

Third Supplemental Indenture, dated as of June 10, 2010, among Telewest Communications (Cumbernauld) Limited, Telewest Communications (Dumbarton) Limited, Telewest Communications (Falkirk) Limited, Telewest Communications (Glenrothes) Limited, Barnsley Cable Communications Limited, Doncaster Cable Communications Limited, Halifax Cable Communications Limited, Wakefield Cable Communications Limited, Virgin Media Secured Finance PLC and The Bank of New York Mellon as trustee.

 

4.9*

 

Release of Note Guarantee, dated as of April 29, 2010, among Virgin Media Secured Finance PLC, Virgin Media Dover LLC and The Bank of New York Mellon as trustee.

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Exhibit No.   Description
  4.10*   Release of Note Guarantee, dated as of April 29, 2010, among Virgin Media Secured Finance PLC, Virgin Media Television Rights Limited, Virgin Media Television Limited, Challenge TV, Bravo TV Limited, Living TV Limited, Trouble TV Limited and The Bank of New York Mellon as trustee.

 

4.11**

 

Composite Debenture dated June 29, 2010 made between the companies listed in schedule 1 thereto, the partnerships listed in schedule 2 thereto and Deutsche Bank AG, London Branch.

 

4.12**

 

Charge over Shares relating to the shares in the companies listed in schedule 2 thereto dated January 19, 2010 and made between the companies listed in schedule 1 thereto and Deutsche Bank AG, London Branch.

 

4.13**

 

Blocked Account Charge dated February 9, 2010 and made between Virgin Media Investment Holdings Limited and Deutsche Bank AG, London Branch.

 

4.14**

 

Charge dated April 15, 2010 over the shares of Virgin Media Investment Holdings Limited made between Virgin Media Finance PLC and Deutsche Bank AG, London Branch.

 

4.15**

 

Assignment of Loans dated April 15, 2010 made between Virgin Media Finance PLC and Deutsche Bank AG, London Branch.

 

4.16**

 

Composite Debenture dated April 15, 2010 made between Virgin Media SFA Finance Limited and Deutsche Bank AG, London Branch.

 

4.17**

 

Composite Debenture dated May 17, 2010 made between General Cable Investments Limited, NTL Funding Limited, Telewest Communications Holdco Limited and Deutsche Bank AG, London Branch.

 

4.18**

 

Assignment of Loans dated May 17, 2010 made between VM Sundial Limited and Deutsche Bank AG, London Branch.

 

4.19**

 

Composite Debenture dated June 10, 2010 made between Barnsley Cable Communications Limited, Doncaster Cable Communications Limited, Halifax Cable Communications Limited, Telewest Communications (Cumbernauld) Limited, Telewest Communications (Dumbarton) Limited, Telewest Communications (Falkirk) Limited, Telewest Communications (Glenrothes) Limited, Wakefield Cable Communications Limited and Deutsche Bank AG, London Branch.

 

4.20**

 

Standard Security dated January 19, 2010 and made between CableTel (UK) Limited and Deutsche Bank AG, London Branch.

 

4.21**

 

Ranking Agreement dated January 19, 2010 and made between CableTel (UK) Limited and Deutsche Bank AG, London Branch.

 

4.22**

 

Share Pledge dated January 19, 2010 and made between Virgin Media Limited and Deutsche Bank AG, London Branch.

 

4.23**

 

Share Pledge dated January 19, 2010 and made between NTL Glasgow and Deutsche Bank AG, London Branch.

 

4.24**

 

Share Pledge dated January 19, 2010 and made between Telewest Limited and Deutsche Bank AG, London Branch.

 

4.25**

 

Share Pledge dated January 19, 2010 and made between Telewest Communications (Scotland Holdings) Limited and Deutsche Bank AG, London Branch.

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Exhibit No.   Description
  4.26**   Bond and Floating Charge dated January 19, 2010 and made between Prospectre Limited and Deutsche Bank AG, London Branch.

 

4.27**

 

Bond and Floating Charge dated January 19, 2010 and made between NTL Glasgow and Deutsche Bank AG, London Branch.

 

4.28**

 

Bond and Floating Charge dated January 19, 2010 and made between CableTel Scotland Limited and Deutsche Bank AG, London Branch.

 

4.29**

 

Bond and Floating Charge dated January 19, 2010 and made between Telewest Communications (Scotland Holdings) Limited and Deutsche Bank AG, London Branch.

 

4.30**

 

Bond and Floating Charge dated January 19, 2010 and made between Telewest Communications (Scotland) Limited and Deutsche Bank AG, London Branch.

 

4.31**

 

Bond and Floating Charge dated January 19, 2010 and made between Telewest Communications (Motherwell) Limited and Deutsche Bank AG, London Branch.

 

4.32**

 

Bond and Floating Charge dated January 19, 2010 and made between Telewest Communications (Dundee & Perth) Limited and Deutsche Bank AG, London Branch.

 

4.33**

 

Security Agreement dated January 19, 2010 and made between Birmingham Cable Limited and Deutsche Bank AG, London Branch.

 

4.34**

 

Amended and Restated Pledge Agreement dated January 19, 2010 and made between NTL Victoria Limited and Deutsche Bank AG, London Branch.

 

4.35**

 

Amended and Restated Pledge Agreement dated January 19, 2010 and made between the parties listed on the signature pages thereto and Deutsche Bank AG, London Branch.

 

4.36**

 

Amended and Restated Security Agreement dated January 19, 2010 and made between the parties listed on the signature pages thereto and Deutsche Bank AG, London Branch.

 

4.37**

 

Amended and Restated Pledge and Security Agreement re: the interests in Avon Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.

 

4.38**

 

Amended and Restated Pledge and Security Agreement re: the interests in Cotswolds Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.

 

4.39**

 

Amended and Restated Pledge and Security Agreement re: the interests in Edinburgh Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch

 

4.40**

 

Amended and Restated Pledge and Security Agreement re: the interests in Estuaries Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.

 

4.41**

 

Amended and Restated Pledge and Security Agreement re: the interests in Tyneside Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.

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Exhibit No.   Description
  4.42**   Amended and Restated Pledge and Security Agreement re: the interests in United Cable (London South) Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.

 

4.43**

 

Amended and Restated Pledge and Security Agreement re: the interests in TCI/US West Cable Communications Group dated January 19, 2010 and made between Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.

 

4.44**

 

Amended and Restated Pledge and Security Agreement re: the interests in London South Cable Partnership dated January 19, 2010 and made between United Cable (London South) Limited Partnership, Crystal Palace Radio Limited and Deutsche Bank AG, London Branch.

 

4.45**

 

Amendment and Restatement Agreement dated January 19, 2010 and made between Future Entertainment S.à r.l. and Deutsche Bank AG, London Branch in relation to the Luxembourg Accounts Pledge Agreement.

 

4.46**

 

English law Assignment of Contracts dated January 19, 2010 and made between Future Entertainment S.à r.l. and Deutsche Bank AG, London Branch.

 

4.47**

 

Share Pledge Agreement dated January 19, 2010 and made between Virgin Media Investments Limited, Future Entertainment S.à r.l. and Deutsche Bank AG, London Branch.

 

5.1*

 

Opinion of Fried, Frank, Harris, Shriver & Jacobson (London) LLP, as to the legality of the securities being registered.

 

5.2*

 

Opinion of Fried, Frank, Harris, Shriver & Jacobson (London) LLP under English law.

 

5.3*

 

Opinion of Ballard Spahr LLP under Colorado law.

 

5.4*

 

Opinion of HBJ Gateley Wareing (Scotland) LLP under Scottish law.

 

5.5*

 

Opinion of Mourant Ozannes under Jersey law.

 

5.6*

 

Opinion of LG@vocats under Luxembourg law.

 

12.1*

 

Statement re computation of ratios of earnings to fixed charges.

 

23.1**

 

Consent of Ernst & Young LLP for Virgin Media Inc. and subsidiaries.

 

23.2**

 

Consent of Ernst & Young LLP for Virgin Media Investment Holdings Limited and subsidiaries.

 

23.3**

 

Consent of Ernst & Young LLP for Virgin Media Investments Limited and subsidiaries.

 

23.4*

 

Consent of Fried, Frank, Harris, Shriver & Jacobson (London) LLP (included in its opinion filed as Exhibit 5.1).

 

23.5*

 

Consent of Fried, Frank, Harris, Shriver & Jacobson (London) LLP (included in its opinion filed as Exhibit 5.2).

 

23.6*

 

Consent of Ballard Spahr LLP (included in its opinion filed as Exhibit 5.3).

 

23.7*

 

Consent of HBJ Gateley Wareing (Scotland) LLP (included in its opinion filed as Exhibit 5.4).

 

23.8*

 

Consent of Mourant Ozannes (included in its opinion filed as Exhibit 5.5).

II-9


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Exhibit No.   Description
  23.9*   Consent of LG@vocats (included in its opinion filed as Exhibit 5.6).

 

24.1*

 

Power of Attorney in respect of directors and officers of Virgin Media Inc.

 

24.2*

 

Power of Attorney in respect of officers of Virgin Media Investment Holdings Limited.

 

24.3*

 

Power of Attorney in respect of Authorized Representative in the United States.

 

24.4*

 

Power of Attorney (included on the signature pages of the Registration Statement).

 

25.1*

 

Statement of Eligibility of The Bank of New York Mellon, as Trustee under the Indenture, on Form T-1.

 

99.1**

 

Form of Letter of Transmittal.

*
Filed with the Registration Statement on June 15, 2010.

**
Filed with this Amendment No. 1 to the Registration Statement.

Item 22.   Undertakings

        (a)   The undersigned Registrant hereby undertakes:

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        (b)   The undersigned Registrant hereby undertakes to respond to requests for information that is incorporated by reference into the prospectus pursuant to Items 4, 10(b), 11, or 13 of this Form, within one business day of receipt of such request, and to send the incorporated documents by first class mail or other equally prompt means. This includes information contained in documents filed subsequent to the effective date of the registration statement through the date of responding to the request.

        (c)   The undersigned Registrant hereby undertakes to supply by means of a post-effective amendment all information concerning a transaction, and the company being acquired involved therein, that was not the subject of and included in the registration statement when it became effective.

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SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    VIRGIN MEDIA INC.

 

 

By:

 

/s/ BRYAN H. HALL

Name: Bryan H. Hall
Title:
Secretary

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

Signature
 
Title
 
Date

 

 

 

 

 

 

 
*

Neil A. Berkett
  Chief Executive Officer and Director
(Principal Executive Officer)
  June 30, 2010

*

Eamonn O'Hare

 

Chief Financial Officer
(Principal Financial Officer)

 

June 30, 2010

*

Robert C. Gale

 

Vice President—Controller
(Principal Accounting Officer)

 

June 30, 2010

*

Charles L. Allen

 

Director

 

June 30, 2010

*

James A. Chiddix

 

Director

 

June 30, 2010

*

Andrew J. Cole

 

Director

 

June 30, 2010

*

William R. Huff

 

Director

 

June 30, 2010

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Signature
 
Title
 
Date

 

 

 

 

 

 

 
*

Gordon D. McCallum
  Director   June 30, 2010

*

James F. Mooney

 

Director

 

June 30, 2010

*

John N. Rigsby

 

Director

 

June 30, 2010

*

Steven J. Simmons

 

Director

 

June 30, 2010

  

Doreen A. Toben

 

Director

 

 

*

George R. Zoffinger

 

Director

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.
   

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SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    VIRGIN MEDIA SECURED FINANCE PLC

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director
(Principal Executive Officer)
  June 30, 2010

*

Robert C. Gale

 

Director
(Principal Financial and Accounting Officer)

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.    

** By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.
   

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SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    VIRGIN MEDIA INVESTMENT
HOLDINGS LIMITED

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director   June 30, 2010

*

Robert C. Gale

 

Director
(Principal Accounting Officer)

 

June 30, 2010

**

Neil A. Berkett

 

Chief Executive Officer
(Principal Executive Officer)

 

June 30, 2010

**

Eamonn O'Hare

 

Chief Financial Officer
(Principal Financial Officer)

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative
in the United States

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.

** By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.

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SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    VIRGIN MEDIA FINANCE PLC

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated.

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director
(Principal Executive Officer)
  June 30, 2010

*

Robert C. Gale

 

Director
(Principal Financial and Accounting Officer)

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.

** By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.

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SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

 

ANDOVER CABLEVISION LIMITED

 

ANGLIA CABLE COMMUNICATIONS LIMITED

 

BARNSLEY CABLE COMMUNICATIONS LIMITED

 

BCMV LIMITED

 

BERKHAMSTED PROPERTIES & BUILDING CONTRACTORS LIMITED

 

BIRMINGHAM CABLE CORPORATION LIMITED

 

BIRMINGHAM CABLE LIMITED

 

CABLE CAMDEN LIMITED

 

CABLE ENFIELD LIMITED

 

CABLE HACKNEY & ISLINGTON LIMITED

 

CABLE HARINGEY LIMITED

 

CABLE LONDON LIMITED

 

CABLE TELEVISION LIMITED

 

CABLE THAMES VALLEY LIMITED

 

CABLETEL (UK) LIMITED

 

CABLETEL CARDIFF LIMITED

 

CABLETEL CENTRAL HERTFORDSHIRE LIMITED

 

CABLETEL HERTFORDSHIRE LIMITED

 

CABLETEL HERTS AND BEDS LIMITED

 

CABLETEL INVESTMENTS LIMITED

 

CABLETEL NEWPORT

 

CABLETEL NORTH BEDFORDSHIRE LIMITED

 

CABLETEL SURREY AND HAMPSHIRE LIMITED

 

CABLETEL TELECOM SUPPLIES LIMITED

 

CABLETEL WEST GLAMORGAN LIMITED

 

CABLETEL WEST RIDING LIMITED

 

CAMBRIDGE CABLE SERVICES LIMITED

 

CAMBRIDGE HOLDING COMPANY LIMITED

 

CCL CORPORATE COMMUNICATION SERVICES LIMITED

 

CENTRAL CABLE HOLDINGS LIMITED

 

COLUMBIA MANAGEMENT LIMITED

 

COMTEL CABLE SERVICES LIMITED

 

COMTEL COVENTRY LIMITED

 

CONTINENTAL SHELF 16 LIMITED

 

CREDIT-TRACK DEBT RECOVERY LIMITED

 

CRYSTAL PALACE RADIO LIMITED

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DIAMOND CABLE COMMUNICATIONS LIMITED

 

DIGITAL TELEVISION NETWORK LIMITED

 

DONCASTER CABLE COMMUNICATIONS LIMITED

 

DTELS LIMITED

 

EAST COAST CABLE LIMITED

 

ED STONE LIMITED

 

EMS INVESTMENTS LIMITED

 

ENABLIS LIMITED

 

EUROBELL (HOLDINGS) LIMITED

 

EUROBELL (IDA) LIMITED

 

EUROBELL (NO. 2) LIMITED

 

EUROBELL (NO. 3) LIMITED

 

EUROBELL (NO. 4) LIMITED

 

EUROBELL (SOUTH WEST) LIMITED

 

EUROBELL (SUSSEX) LIMITED

 

EUROBELL (WEST KENT) LIMITED

 

EUROBELL CPE LIMITED

 

EUROBELL INTERNET SERVICES LIMITED

 

EUROBELL LIMITED

 

FILEGALE LIMITED

 

FLEXIMEDIA LIMITED

 

FLEXTECH (1992) LIMITED

 

FLEXTECH (KINDERNET INVESTMENT) LIMITED

 

FLEXTECH (TRAVEL CHANNEL) LIMITED

 

FLEXTECH BROADBAND LIMITED

 

FLEXTECH BROADCASTING LIMITED

 

FLEXTECH BUSINESS NEWS LIMITED

 

FLEXTECH CHILDRENS CHANNEL LIMITED

 

FLEXTECH COMMUNICATIONS LIMITED

 

FLEXTECH DIGITAL BROADCASTING LIMITED

 

FLEXTECH DISTRIBUTION LIMITED

 

FLEXTECH FAMILY CHANNEL LIMITED

 

FLEXTECH IVS LIMITED

 

FLEXTECH LIMITED

 

FLEXTECH MEDIA HOLDINGS LIMITED

 

FLEXTECH MUSIC PUBLISHING LIMITED

 

FLEXTECH VIDEO GAMES LIMITED

 

FLEXTECH-FLEXINVEST LIMITED

 

GENERAL CABLE GROUP LIMITED

 

GENERAL CABLE HOLDINGS LIMITED

 

GENERAL CABLE INVESTMENTS LIMITED

 

GENERAL CABLE LIMITED

 

HALIFAX CABLE COMMUNICATIONS LIMITED

 

HEARTLAND CABLEVISION (UK) LIMITED

 

HEARTLAND CABLEVISION II (UK) LIMITED

 

HERTS CABLE LIMITED

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INTERACTIVE DIGITAL SALES LIMITED

 

JEWEL HOLDINGS

 

LANBASE EUROPEAN HOLDINGS LIMITED

 

LANBASE LIMITED

 

LICHFIELD CABLE COMMUNICATIONS LIMITED

 

M&NW NETWORK LIMITED

 

M&NW NETWORK II LIMITED

 

MAZA LIMITED

 

METRO HERTFORDSHIRE LIMITED

 

METRO SOUTH WALES LIMITED

 

MIDDLESEX CABLE LIMITED

 

NORTHAMPTON CABLE TELEVISION LIMITED

 

NTL (AYLESBURY AND CHILTERN) LIMITED

 

NTL (B) LIMITED

 

NTL (BROADLAND) LIMITED

 

NTL (CITY AND WESTMINSTER) LIMITED

 

NTL (COUNTY DURHAM) LIMITED

 

NTL (CRUK)

 

NTL (CWC HOLDINGS)

 

NTL (CWC) CORPORATION LIMITED

 

NTL (CWC) LIMITED

 

NTL (CWC) MANAGEMENT LIMITED

 

NTL (CWC) NO. 2 LIMITED

 

NTL (CWC) NO. 3 LIMITED

 

NTL (CWC) NO. 4 LIMITED

 

NTL (CWC) PROGRAMMING LIMITED

 

NTL (CWC) UK

 

NTL (EALING) LIMITED

 

NTL (FENLAND) LIMITED

 

NTL (GREENWICH AND LEWISHAM) LIMITED

 

NTL (HAMPSHIRE) LIMITED

 

NTL (HARROGATE) LIMITED

 

NTL (HARROW) LIMITED

 

NTL (KENT) LIMITED

 

NTL (LAMBETH AND SOUTHWARK) LIMITED

 

NTL (LEEDS) LIMITED

 

NTL (NORWICH) LIMITED

 

NTL (PETERBOROUGH) LIMITED

 

NTL (SOUTH EAST) LIMITED

 

NTL (SOUTH LONDON) LIMITED

 

NTL (SOUTHAMPTON AND EASTLEIGH) LIMITED

 

NTL (SUNDERLAND) LIMITED

 

NTL (THAMESMEAD) LIMITED

 

NTL (V)

 

NTL (WANDSWORTH) LIMITED

 

NTL (WEARSIDE) LIMITED

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NTL (WEST LONDON) LIMITED

 

NTL (YORCAN) LIMITED

 

NTL (YORK) LIMITED

 

NTL ACQUISITION COMPANY LIMITED

 

NTL BOLTON CABLEVISION HOLDING COMPANY

 

NTL BUSINESS (IRELAND) LIMITED

 

NTL BUSINESS LIMITED

 

NTL CABLECOMMS BOLTON

 

NTL CABLECOMMS BROMLEY

 

NTL CABLECOMMS BURY AND ROCHDALE

 

NTL CABLECOMMS CHESHIRE

 

NTL CABLECOMMS DERBY

 

NTL CABLECOMMS EAST LANCASHIRE

 

NTL CABLECOMMS GREATER MANCHESTER

 

NTL CABLECOMMS GROUP LIMITED

 

NTL CABLECOMMS HOLDINGS NO. 1 LIMITED

 

NTL CABLECOMMS HOLDINGS NO. 2 LIMITED

 

NTL CABLECOMMS LANCASHIRE NO. 1

 

NTL CABLECOMMS LANCASHIRE NO. 2

 

NTL CABLECOMMS LIMITED

 

NTL CABLECOMMS MACCLESFIELD

 

NTL CABLECOMMS MANCHESTER LIMITED

 

NTL CABLECOMMS OLDHAM AND TAMESIDE

 

NTL CABLECOMMS SOLENT

 

NTL CABLECOMMS STAFFORDSHIRE

 

NTL CABLECOMMS STOCKPORT

 

NTL CABLECOMMS SURREY

 

NTL CABLECOMMS SUSSEX

 

NTL CABLECOMMS WESSEX

 

NTL CABLECOMMS WEST SURREY LIMITED

 

NTL CABLECOMMS WIRRAL

 

NTL CAMBRIDGE LIMITED

 

NTL CHARTWELL HOLDINGS LIMITED

 

NTL COMMUNICATIONS SERVICES LIMITED

 

NTL DARLINGTON LIMITED

 

NTL DERBY CABLEVISION HOLDING COMPANY

 

NTL EQUIPMENT NO. 1 LIMITED

 

NTL EQUIPMENT NO. 2 LIMITED

 

NTL FINANCE LIMITED

 

NTL FUNDING LIMITED

 

NTL GLASGOW HOLDINGS LIMITED

 

NTL HOLDINGS (BROADLAND) LIMITED

 

NTL HOLDINGS (EAST LONDON) LIMITED

 

NTL HOLDINGS (FENLAND) LIMITED

 

NTL HOLDINGS (LEEDS) LIMITED

 

NTL HOLDINGS (NORWICH) LIMITED

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NTL HOLDINGS (PETERBOROUGH) LIMITED

 

NTL INTERNET LIMITED

 

NTL INTERNET SERVICES LIMITED

 

NTL IRISH HOLDINGS LIMITED

 

NTL KIRKLEES

 

NTL KIRKLEES HOLDINGS LIMITED

 

NTL LIMITED

 

NTL MANCHESTER CABLEVISION HOLDING COMPANY

 

NTL MICROCLOCK SERVICES LIMITED

 

NTL MIDLANDS LIMITED

 

NTL MILTON KEYNES LIMITED

 

NTL NATIONAL NETWORKS LIMITED

 

NTL NETWORKS LIMITED

 

NTL PARTCHEER COMPANY LIMITED

 

NTL RECTANGLE LIMITED

 

NTL SIDEOFFER LIMITED

 

NTL SOLENT TELEPHONE AND CABLE TV COMPANY LIMITED

 

NTL SOUTH CENTRAL LIMITED

 

NTL SOUTH WALES LIMITED

 

NTL STREETUNIQUE PROJECTS LIMITED

 

NTL STREETUNIT PROJECTS LIMITED

 

NTL STREETUSUAL SERVICES LIMITED

 

NTL STREETVISION SERVICES LIMITED

 

NTL STREETVITAL SERVICES LIMITED

 

NTL STREETWARM SERVICES LIMITED

 

NTL STREETWIDE SERVICES LIMITED

 

NTL STRIKEAGENT TRADING LIMITED

 

NTL STRIKEAMOUNT TRADING LIMITED

 

NTL STRIKEAPART TRADING LIMITED

 

NTL SYSTEMS LIMITED

 

NTL TECHNICAL SUPPORT COMPANY LIMITED

 

NTL TEESSIDE LIMITED

 

NTL TELECOM SERVICES LIMITED

 

NTL UK TELEPHONE AND CABLE TV HOLDING COMPANY LIMITED

 

NTL VICTORIA II LIMITED

 

NTL VICTORIA LIMITED

 

NTL WESTMINSTER LIMITED

 

NTL WINSTON HOLDINGS LIMITED

 

NTL WIRRAL TELEPHONE AND CABLE TV COMPANY

 

OXFORD CABLE LIMITED

 

SCREENSHOP LIMITED

 

SECURE BACKUP SYSTEMS LIMITED

 

SHEFFIELD CABLE COMMUNICATIONS LIMITED

 

SOUTHERN EAST ANGLIA CABLE LIMITED

II-21


Table of Contents

 

SOUTHWESTERN BELL INTERNATIONAL HOLDINGS LIMITED

 

STAFFORD COMMUNICATIONS LIMITED

 

SWINDON CABLE LIMITED

 

TAMWORTH CABLE COMMUNICATIONS LIMITED

 

TELEWEST COMMUNICATIONS (CENTRAL LANCASHIRE) LIMITED

 

TELEWEST COMMUNICATIONS (COTSWOLDS) LIMITED

 

TELEWEST COMMUNICATIONS (LIVERPOOL) LIMITED

 

TELEWEST COMMUNICATIONS (LONDON SOUTH) LIMITED

 

TELEWEST COMMUNICATIONS (MIDLANDS AND NORTH WEST) LIMITED

 

TELEWEST COMMUNICATIONS (MIDLANDS) LIMITED

 

TELEWEST COMMUNICATIONS (NOMINEES) LIMITED

 

TELEWEST COMMUNICATIONS (NORTH EAST) LIMITED

 

TELEWEST COMMUNICATIONS (NORTH WEST) LIMITED

 

TELEWEST COMMUNICATIONS (SOUTH EAST) LIMITED

 

TELEWEST COMMUNICATIONS (SOUTH THAMES ESTUARY) LIMITED

 

TELEWEST COMMUNICATIONS (SOUTH WEST) LIMITED

 

TELEWEST COMMUNICATIONS (ST HELENS & KNOWSLEY) LIMITED

 

TELEWEST COMMUNICATIONS (TYNESIDE) LIMITED

 

TELEWEST COMMUNICATIONS (WIGAN) LIMITED

 

TELEWEST COMMUNICATIONS CABLE LIMITED

 

TELEWEST COMMUNICATIONS HOLDCO LIMITED

 

TELEWEST COMMUNICATIONS HOLDINGS LIMITED

 

TELEWEST COMMUNICATIONS NETWORKS LIMITED

 

TELEWEST LIMITED

 

TELEWEST PARLIAMENTARY HOLDINGS LIMITED

 

TELEWEST UK LIMITED

 

TELSO COMMUNICATIONS LIMITED

 

THE CABLE CORPORATION LIMITED

 

THE YORKSHIRE CABLE GROUP LIMITED

II-22


Table of Contents

 

THESEUS NO.1 LIMITED

 

THESEUS NO.2 LIMITED

 

TVS PENSION FUND TRUSTEES LIMITED

 

TVS TELEVISION LIMITED

 

UNITED ARTISTS INVESTMENTS LIMITED

 

VIRGIN MEDIA BUSINESS LIMITED

 

VIRGIN MEDIA INVESTMENTS LIMITED

 

VIRGIN MEDIA LIMITED

 

VIRGIN MEDIA PAYMENTS LTD

 

VIRGIN MEDIA SFA FINANCE LIMITED

 

VIRGIN MEDIA WHOLESALE LIMITED

 

VIRGIN MOBILE GROUP (UK) LIMITED

 

VIRGIN MOBILE HOLDINGS (UK) LIMITED

 

VIRGIN MOBILE TELECOMS LIMITED

 

VIRGIN NET LIMITED

 

VISION NETWORKS SERVICES UK LIMITED

 

VMIH SUB LIMITED

 

VM SUNDIAL LIMITED

 

WAKEFIELD CABLE COMMUNICATIONS LIMITED

 

WESSEX CABLE LIMITED

 

WINDSOR TELEVISION LIMITED

 

XL DEBT RECOVERY AGENCY LIMITED

 

X-TANT LIMITED

 

YORKSHIRE CABLE COMMUNICATIONS LIMITED

 

By:

 

/s/ ROBERT M. MACKENZIE


Name: Robert M. Mackenzie
Title:
Director

II-23


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        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director
(Principal Executive Officer)
  June 30, 2010

*

Robert C. Gale

 

Director
(Principal Financial and Accounting Officer)

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.    

 

 

 

 

 

 

 

** By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.
   

II-24


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    AVON CABLE JOINT VENTURE, by its partners:
         
    Avon Cable Limited Partnership

 

 

By:

 

Theseus No. 1 Limited, the General Partner
of Avon Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

By:

 

Theseus No. 2 Limited, the General Partner
of Avon Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

Telewest Communications (South West) Limited

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

II-25


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        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of (i) Theseus No. 1 Limited and Theseus No.2 Limited, the General Partners of Avon Cable Limited Partnership and (ii) Telewest Communications (South West) Limited. Avon Cable Limited Partnership and Telewest Communications (South West) Limited are partners of Avon Cable Joint Venture.***   June 30, 2010

*

Robert C. Gale

 

Director of (i) Theseus No. 1 Limited and Theseus No.2 Limited, the General Partners of Avon Cable Limited Partnership and (ii) Telewest Communications (South West) Limited. Avon Cable Limited Partnership and Telewest Communications (South West) Limited are partners of Avon Cable Joint Venture.***

 

June 30, 2010

 

 

 

 

 

 

 
**

James F. Mooney
  Authorized Representative in the United States   June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 
* By:   /s/ ROBERT M. MACKENZIE

       
    Robert M. Mackenzie, attorney-in-fact.

 

 

 

 

 

 

 
** By:   /s/ BRYAN H. HALL

       
    Bryan H. Hall, attorney-in-fact.

 

 

 

 

 

 

 
***   Avon Cable Joint Venture has no principal executive officer, principal financial officer or principal accounting officer. Robert M. Mackenzie and Robert C. Gale are directors of (i) Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of Avon Cable Limited Partnership and (ii) Telewest Communications (South West) Limited. Avon Cable Limited Partnership and Telewest Communications (South West) Limited are partners of Avon Cable Joint Venture.

II-26


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    TELEWEST COMMUNICATIONS (COTSWOLDS) VENTURE, by its partners:
         
    Cotswolds Cable Limited Partnership

 

 

By:

 

Theseus No. 1 Limited, the General Partner
of Cotswolds Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

By:

 

Theseus No. 2 Limited, the General Partner
of Cotswolds Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

Telewest Communications (Cotswolds) Limited

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

II-27


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        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of Cotswolds Cable Limited Partnership and (ii) Telewest Communications (Cotswolds) Limited. Cotswolds Cable Limited Partnership and Telewest Communications (Cotswolds) Limited are partners of Telewest Communication (Cotswolds) Venture.***   June 30, 2010

*

Robert C. Gale

 

Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of Cotswolds Cable Limited Partnership and (ii) Telewest Communications (Cotswolds) Limited. Cotswolds Cable Limited Partnership and Telewest Communications (Cotswolds) Limited are partners of Telewest Communication (Cotswolds) Venture.***

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.

** By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.

***

 

Telewest Communication (Cotswolds) Venture has no principal executive officer, principal financial officer or principal accounting officer. Robert M. Mackenzie and Robert C. Gale are directors of (i) Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of Cotswolds Cable Limited Partnership and (ii) Telewest Communications (Cotswolds) Limited. Cotswolds Cable Limited Partnership and Telewest Communications (Cotswolds) Limited are partners of Telewest Communication (Cotswolds) Venture.

II-28


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    TELEWEST COMMUNICATIONS
(LONDON SOUTH) JOINT VENTURE,
by its partners:
         
    London South Cable Limited Partnership

 

 

By:

 

United Cable (London South) Limited Partnership, the Managing Partner of London South Cable Limited Partnership

 

 

By:

 

Theseus No. 1 Limited, the General Partner of United Cable (London South) Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

By:

 

Theseus No. 2 Limited, the General Partner of United Cable (London South) Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

Telewest Communications (London South) Limited

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

II-29


Table of Contents

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of United Cable (London South) Limited Partnership, the managing partner of London South Cable Partnership and (ii) Telewest Communications (London South) Limited. London South Cable Limited Partnership and Telewest Communications (London South) Limited are partners of Telewest Communication (London South) Venture.***   June 30, 2010

*

Robert C. Gale

 

Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of United Cable (London South) Limited Partnership, the managing partner of London South Cable Partnership and (ii) Telewest Communications (London South) Limited. London South Cable Limited Partnership and Telewest Communications (London South) Limited are partners of Telewest Communication (London South) Venture.***

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States

 

June 30, 2010

II-30


Table of Contents


 

 

 

 

 

 

 
* By:   /s/ ROBERT M. MACKENZIE

       
    Robert M. Mackenzie, attorney-in-fact.

 

 

 

 

 

 

 
** By:   /s/ BRYAN H. HALL

       
    Bryan H. Hall, attorney-in-fact.

 

 

 

 

 

 

 
***   Telewest Communication (London South) Venture has no principal executive officer, principal financial officer or principal accounting officer. Robert M. Mackenzie and Robert C. Gale are directors of (i) Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of United Cable (London South) Limited Partnership, the managing partner of London South Cable Limited Partnership, and (ii) Telewest Communications (London South) Limited. London South Cable Limited Partnership and Telewest Communications (London South) Limited are partners of Telewest Communication (London South) Venture.

II-31


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    TELEWEST COMMUNICATIONS (NORTH EAST)
    PARTNERSHIP, by its partners:

 

 

Tyneside Cable Limited Partnership

 

 

By:

 

Theseus No. 1 Limited, the General Partner of Tyneside Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

By:

 

Theseus No. 2 Limited, the General Partner of Tyneside Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

Telewest Communications (Tyneside) Limited

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

Telewest Communications (North East) Limited

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

II-32


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        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of Tyneside Cable Limited Partnership, (ii) Telewest Communications (Tyneside) Limited and (iii) Telewest Communications (North East) Limited. Tyneside Cable Limited Partnership, Telewest Communications (Tyneside) Limited and Telewest Communications (North East) Limited are partners of Telewest Communication (North East) Venture.***   June 30, 2010

*

Robert C. Gale

 

Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of Tyneside Cable Limited Partnership, (ii) Telewest Communications (Tyneside) Limited and (iii) Telewest Communications (North East) Limited. Tyneside Cable Limited Partnership, Telewest Communications (Tyneside) Limited and Telewest Communications (North East) Limited are partners of Telewest Communication (North East) Venture.***

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.

** By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.

***

 

Telewest Communication (North East) Venture has no principal executive officer, principal financial officer or principal accounting officer. Robert M. Mackenzie and Robert C. Gale are directors of (i) Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of Tyneside Cable Limited Partnership, (ii) Telewest Communications (Tyneside) Limited and (iii) Telewest Communications (North East) Limited. Tyneside Cable Limited Partnership, Telewest Communications (Tyneside) Limited and Telewest Communications (North East) Limited are partners of Telewest Communication (North East) Venture.

II-33


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    TELEWEST COMMUNICATIONS (SCOTLAND) VENTURE, by its partners:
         
    Edinburgh Cable Limited Partnership

 

 

By:

 

Theseus No. 1 Limited, the General Partner
of Edinburgh Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

By:

 

Theseus No. 2 Limited, the General Partner
of Edinburgh Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

Telewest Communications (Scotland) Limited

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

II-34


Table of Contents

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of Edinburgh Cable Limited Partnership and (ii) Telewest Communications (Scotland) Limited. Edinburgh Cable Limited Partnership and Telewest Communications (Scotland) Limited are partners of Telewest Communication (Scotland) Venture.***   June 30, 2010

*

Robert C. Gale

 

Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of Edinburgh Cable Limited Partnership and (ii) Telewest Communications (Scotland) Limited. Edinburgh Cable Limited Partnership and Telewest Communications (Scotland) Limited are partners of Telewest Communication (Scotland) Venture.***

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States.

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.

** By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.

***

 

Telewest Communication (Scotland) Venture has no principal executive officer, principal financial officer or principal accounting officer. Robert M. Mackenzie and Robert C. Gale are directors of (i) Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of Edinburgh Cable Limited Partnership and (ii) Telewest Communications (Scotland) Limited. Edinburgh Cable Limited Partnership and Telewest Communications (Scotland) Limited are partners of Telewest Communication (Scotland) Venture.

II-35


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    TELEWEST COMMUNICATIONS
(SOUTH EAST) PARTNERSHIP, by its partners:
         
    Estuaries Cable Limited Partnership

 

 

By:

 

Theseus No. 1 Limited, the General Partner
of Estuaries Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

By:

 

Theseus No. 2 Limited, the General Partner
of Estuaries Cable Limited Partnership

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

Telewest Communications (South East) Limited

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

Telewest Communications (South Thames Estuary) Limited

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

II-36


Table of Contents

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of Estuaries Cable Limited Partnership, (ii) Telewest Communications (South East) Limited and (iii) Telewest Communications (South Thames Estuary) Limited. Estuaries Cable Limited Partnership, Telewest Communications (South East) Limited and Telewest Communications (South Thames Estuary) Limited are partners of Telewest Communication (South East) Partnership.***   June 30, 2010

 

 

 

 

 

 

 
*

Robert C. Gale
  Director of (i) Theseus No.1 Limited and Theseus No.2 Limited, General Partners of Estuaries Cable Limited Partnership, (ii) Telewest Communications (South East) Limited and (iii) Telewest Communications (South Thames Estuary) Limited. Estuaries Cable Limited Partnership, Telewest Communications (South East) Limited and Telewest Communications (South Thames Estuary) Limited are partners of Telewest Communication (South East) Partnership.***   June 30, 2010

 

 

 

 

 

 

 
**

James F. Mooney
  Authorized Representative in the United States   June 30, 2010

II-37


Table of Contents

* By:   /s/ ROBERT M. MACKENZIE

       
    Robert M. Mackenzie, attorney-in-fact.

 

 

 

 

 

 

 
** By:   /s/ BRYAN H. HALL

       
    Bryan H. Hall, attorney-in-fact.

 

 

 

 

 

 

 
***   Telewest Communication (South East) Partnership has no principal executive officer, principal financial officer or principal accounting officer. Robert M. Mackenzie and Robert C. Gale are directors of (i) Theseus No.1 Limited, Theseus No.2 Limited, the General Partners of Estuaries Cable Limited Partnership, (ii) Telewest Communications (South East) Limited and (iii) Telewest Communications (South Thames Estuary) Limited. Estuaries Cable Limited Partnership, Telewest Communications (South East) Limited and Telewest Communications (South Thames Estuary) Limited are partners of Telewest Communication (South East) Partnership.

II-38


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    NNS U.K. HOLDINGS 2, INC.
NORTH CABLECOMMS HOLDINGS, INC.
NORTH CABLECOMMS MANAGEMENT, INC.
NTL BROMLEY COMPANY
NTL CABLECOMMS GROUP, INC.
NTL CHARTWELL HOLDINGS 2, INC.
NTL CHARTWELL HOLDINGS, INC.
NTL NORTH CABLECOMMS HOLDINGS, INC.
NTL NORTH CABLECOMMS MANAGEMENT, INC.
NTL PROGRAMMING SUBSIDIARY COMPANY
NTL SOLENT COMPANY
NTL SOUTH CABLECOMMS HOLDINGS, INC.
NTL SOUTH CABLECOMMS MANAGEMENT, INC.
NTL SURREY COMPANY
NTL SUSSEX COMPANY
NTL UK CABLECOMMS HOLDINGS, INC.
NTL WESSEX COMPANY
NTL WINSTON HOLDINGS, INC.
NTL WIRRAL COMPANY
SOUTH CABLECOMMS HOLDINGS, INC.
SOUTH CABLECOMMS MANAGEMENT, INC.

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
President

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director and President
(Principal Executive Officer)
  June 30, 2010

*

Robert C. Gale

 

Director and Vice President
(Principal Financial and Accounting Officer)

 

June 30, 2010


* By:


 


/s/ ROBERT M. MACKENZIE



 


 


 


 
    Robert M. Mackenzie, attorney-in-fact.

II-39


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    NNS U.K. HOLDINGS 1 LLC
NTL (TRIANGLE) LLC

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
President

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Manager and President
(Principal Executive Officer)
  June 30, 2010

*

Robert C. Gale

 

Manager and Vice President
(Principal Financial and Accounting Officer)

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.

II-40


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, t thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    NORTH CABLECOMMS L.L.C.
SOUTH CABLECOMMS L.L.C.
WINSTON INVESTORS L.L.C.

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Manager

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Manager
(Principal Executive Officer)
  June 30, 2010

*

Robert C. Gale

 

Manager
(Principal Financial and Accounting Officer)

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.

II-41


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    CHARTWELL INVESTORS L.P.

 

 

By:

 

NTL Chartwell Holdings Limited, its General Partner

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of NTL Chartwell Holdings Limited, the General Partner of Chartwell Investors L.P.**   June 30, 2010

 

 

 

 

 

 

 
*

Robert C. Gale
  Director of NTL Chartwell Holdings Limited, the General Partner of Chartwell Investors L.P.**   June 30, 2010
             
* By:   /s/ ROBERT M. MACKENZIE

Robert M. Mackenzie, attorney-in-fact.
       

** Chartwell Investors L.P. has no principal executive officer, principal financial officer or principal accounting officer. Robert M. Mackenzie and Robert C. Gale are directors of NTL Chartwell Holdings Limited, the General Partner of Chartwell Investors L.P.

II-42


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

 

AVON CABLE LIMITED PARTNERSHIP

 

COTSWOLDS CABLE LIMITED PARTNERSHIP

 

EDINBURGH CABLE LIMITED PARTNERSHIP

 

ESTUARIES CABLE LIMITED PARTNERSHIP

 

TCI/US WEST CABLE COMMUNICATIONS GROUP

 

TYNESIDE CABLE LIMITED PARTNERSHIP

 

UNITED CABLE (LONDON SOUTH) LIMITED PARTNERSHIP

 

By: Theseus No. 1 Limited, its General Partner

 

By:

 

/s/ ROBERT M. MACKENZIE


Name: Robert M. Mackenzie
Title:
Director

 

By: Theseus No. 2 Limited, its General Partner

 

By:

 

/s/ ROBERT M. MACKENZIE


Name: Robert M. Mackenzie
Title:
Director

II-43


Table of Contents

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of Avon Cable Limited Partnership, Cotswolds Cable Limited Partnership, Edinburgh Cable Limited Partnership, Estuaries Cable Limited Partnership, TCI/US West Cable Limited Partnership, United Cable (London South) Limited Partnership.**   June 30, 2010

*

Robert C. Gale

 

Director of Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of Avon Cable Limited Partnership, Cotswolds Cable Limited Partnership, Edinburgh Cable Limited Partnership, Estuaries Cable Limited Partnership, TCI/US West Cable Limited Partnership, United Cable (London South) Limited Partnership.**

 

June 30, 2010

* By:

 

/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie, attorney-in-fact.

 

 

 

 

** Avon Cable Limited Partnership, Cotswolds Cable Limited Partnership, Edinburgh Cable Limited Partnership, Estuaries Cable Limited Partnership, TCI/US West Cable Limited Partnership, United Cable (London South) Limited Partnership do not have principal executive officers, principal financial officers or principal accounting officers. Robert M. Mackenzie and Robert C. Gale are directors of Theseus No.1 Limited and Theseus No.2 Limited, which are the General Partners of the above listed partnerships.

II-44


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SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

 

LONDON SOUTH CABLE PARTNERSHIP

 

By: United Cable (London South) Limited Partnership, its Managing Partner

 

By: Theseus No. 1 Limited, its General Partner

 

By:

 

/s/ ROBERT M. MACKENZIE


Name: Robert M. Mackenzie
Title:
Director

 

By: Theseus No. 2 Limited, its General Partner

 

By:

 

/s/ ROBERT M. MACKENZIE


Name: Robert M. Mackenzie
Title:
Director

II-45


Table of Contents

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director of Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of United Cable (London South) Limited Partnership, the managing partner of London South Cable Partnership.**   June 30, 2010

*

Robert C. Gale

 

Director of Theseus No.1 Limited and Theseus No.2 Limited, the General Partners of United Cable (London South) Limited Partnership, the managing partner of London South Cable Partnership.**

 

June 30, 2010

* By:

 

/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie, attorney-in-fact.

 

 

 

 

** London South Cable Partnership has no principal executive officer, principal financial officer or principal accounting officer. Robert M. Mackenzie and Robert C. Gale are directors of Theseus No.1 Limited and Theseus No.2 Limited, which are the General Partners of United Cable (London South) Limited Partnership, the managing partner of London South Cable Partnership.

II-46


Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    CABLETEL SCOTLAND LIMITED
NTL GLASGOW
PROSPECTRE LIMITED
TELEWEST COMMUNICATIONS
    (CUMBERNAULD) LIMITED
TELEWEST COMMUNICATIONS
    (DUMBARTON) LIMITED
TELEWEST COMMUNICATIONS
    (DUNDEE & PERTH) LIMITED
TELEWEST COMMUNICATIONS
    (FALKIRK) LIMITED
TELEWEST COMMUNICATIONS
    (GLENROTHES) LIMITED
TELEWEST COMMUNICATIONS
    (MOTHERWELL) LIMITED
TELEWEST COMMUNICATIONS
    (SCOTLAND) LIMITED
TELEWEST COMMUNICATIONS
    (SCOTLAND HOLDINGS) LIMITED

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

 

 

in the presence of:-

 

 

 

 

/s/ LUCY MERRITT


 

Witness
    Lucy Merritt   Full Name
    Virgin Media Limited   Address
    Media House
Bartley Wood Business Park
Hook
Hampshire
RG27 9UP
   

II-47


Table of Contents

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director
(Principal Executive Officer)
  June 30, 2010

*

Robert C. Gale

 

Director
(Principal Financial and Accounting Officer)

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE


 

 

 

 
    Robert M. Mackenzie, attorney-in-fact.

** By:

 

/s/ BRYAN H. HALL


 

 

 

 
    Bryan H. Hall, attorney-in-fact.

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SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Luxembourg, Luxembourg, on the 30th day of June, 2010.

    FUTURE ENTERTAINMENT SÀRL

 

 

By:

 

/s/ EMMA JONES

Name: Emma Jones
Title:
General Manager

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ EMMA JONES

Emma Jones
  General Manager
(Principal Executive, Financial and Accounting Officer)
  June 30, 2010

 

 

 

 

 

 

 
*

Stéphan le Goueff
  Manager   June 30, 2010

 

 

 

 

 

 

 
*

Ron Paans
  Manager   June 30, 2010

 

 

 

 

 

 

 
*

Willem Zoethout
  Manager   June 30, 2010

 

 

 

 

 

 

 
/s/ JAMES F. MOONEY

James F. Mooney
  Authorized Representative in the United States   June 30, 2010

 

 

 

 

 

 

 
* By:   /s/ EMMA JONES

Emma Jones, attorney-in-fact.
       

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Table of Contents


SIGNATURES

        Pursuant to the requirements of the Securities Act, the Registrant has duly caused this Amendment No. 1 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of London, United Kingdom, on the 30th day of June, 2010.

    BIRMINGHAM CABLE FINANCE LIMITED

 

 

By:

 

/s/ ROBERT M. MACKENZIE

Name: Robert M. Mackenzie
Title:
Director

        Pursuant to the requirements of the Securities Act of 1933, this Amendment No. 1 to the Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature
 
Title
 
Date

 

 

 

 

 

 

 
/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie
  Director
(Principal Executive Officer)
  June 30, 2010

*

Robert C. Gale

 

Director
(Principal Financial and
Accounting Officer)

 

June 30, 2010

**

James F. Mooney

 

Authorized Representative in the United States

 

June 30, 2010

 

 

 

 

 

 

 

* By:

 

/s/ ROBERT M. MACKENZIE

Robert M. Mackenzie, attorney-in-fact.

 

 

 

 

** By:

 

/s/ BRYAN H. HALL

Bryan H. Hall, attorney-in-fact.

 

 

 

 

II-50



INDEX TO EXHIBITS

Exhibit No.   Description                    
  4.1   Indenture, dated as of January 19, 2010, among Virgin Media Secured Finance PLC, the guarantors party thereto, The Bank of New York Mellon as trustee and paying agent and The Bank of New York Mellon (Luxembourg) S.A. as Luxembourg paying agent (Incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on January 20, 2010).
  4.2   Form of Notes (included in Exhibit 4.1).
  4.3   Registration Rights Agreement, dated as of January 19, 2010, among Virgin Media Secured Finance PLC, Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited and the initial purchasers party thereto (Incorporated by reference to Exhibit 4.2 to the Current Report on Form 8-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on January 20, 2010).
  4.4   Group Intercreditor Deed, dated March 3, 2006, as amended and restated on January 8, 2010, between, among others, Deutsche Bank AG, London Branch as Facility Agent and Security Trustee and the Seniors Lenders, the Intergroup Debtors and the Intergroup Creditors named therein (Incorporated by reference to Exhibit 4.3 to the Quarterly Report on Form 10-Q of Virgin Media Inc. as filed with the Securities and Exchange Commission on May 6, 2010).
  4.5   High Yield Intercreditor Deed, dated April 13, 2004, as amended and restated on December 30, 2009, among Virgin Media Finance PLC as Issuer, Virgin Media Investment Holdings Limited as Borrower and as High Yield Guarantor, Deutsche Bank AG, London Branch as Facility Agent and Bank Group Security Trustee, The Bank of New York Mellon as High Yield Trustee, the Senior Lenders named therein, the Intergroup Debtor named therein and the Intergroup Creditor named therein (Incorporated by reference to Exhibit 4.1 to the Annual Report on Form 10-K of Virgin Media Inc. as filed with the Securities and Exchange Commission on February 26, 2010).
  4.6*   First Supplemental Indenture, dated as of April 19, 2010, among Virgin Media SFA Finance Limited, Virgin Media Secured Finance PLC and The Bank of New York Mellon as trustee.
  4.7*   Second Supplemental Indenture, dated as of May 17, 2010, among General Cable Investments Limited, NTL Funding Limited, Telewest Communications Holdco Limited, VM Sundial Limited, Virgin Media Secured Finance PLC and The Bank of New York Mellon as trustee.
  4.8*   Third Supplemental Indenture, dated as of June 10, 2010, among Telewest Communications (Cumbernauld) Limited, Telewest Communications (Dumbarton) Limited, Telewest Communications (Falkirk) Limited, Telewest Communications (Glenrothes) Limited, Barnsley Cable Communications Limited, Doncaster Cable Communications Limited, Halifax Cable Communications Limited, Wakefield Cable Communications Limited, Virgin Media Secured Finance PLC and The Bank of New York Mellon as trustee.
  4.9*   Release of Note Guarantee, dated as of April 29, 2010, among Virgin Media Secured Finance PLC, Virgin Media Dover LLC and The Bank of New York Mellon as trustee.
  4.10*   Release of Note Guarantee, dated as of April 29, 2010, among Virgin Media Secured Finance PLC, Virgin Media Television Rights Limited, Virgin Media Television Limited, Challenge TV, Bravo TV Limited, Living TV Limited, Trouble TV Limited and The Bank of New York Mellon as trustee.

Exhibit No.   Description                    
  4.11**   Composite Debenture dated June 29, 2010 made between the companies listed in schedule 1 thereto, the partnerships listed in schedule 2 thereto and Deutsche Bank AG, London Branch.
  4.12**   Charge over Shares relating to the shares in the companies listed in schedule 2 thereto dated January 19, 2010 and made between the companies listed in schedule 1 thereto and Deutsche Bank AG, London Branch.
  4.13**   Blocked Account Charge dated February 9, 2010 and made between Virgin Media Investment Holdings Limited and Deutsche Bank AG, London Branch.
  4.14**   Charge dated April 15, 2010 over the shares of Virgin Media Investment Holdings Limited made between Virgin Media Finance PLC and Deutsche Bank AG, London Branch.
  4.15**   Assignment of Loans dated April 15, 2010 made between Virgin Media Finance PLC and Deutsche Bank AG, London Branch.
  4.16**   Composite Debenture dated April 15, 2010 made between Virgin Media SFA Finance Limited and Deutsche Bank AG, London Branch.
  4.17**   Composite Debenture dated May 17, 2010 made between General Cable Investments Limited, NTL Funding Limited, Telewest Communications Holdco Limited and Deutsche Bank AG, London Branch.
  4.18**   Assignment of Loans dated May 17, 2010 made between VM Sundial Limited and Deutsche Bank AG, London Branch.
  4.19**   Composite Debenture dated June 10, 2010 made between Barnsley Cable Communications Limited, Doncaster Cable Communications Limited, Halifax Cable Communications Limited, Telewest Communications (Cumbernauld) Limited, Telewest Communications (Dumbarton) Limited, Telewest Communications (Falkirk) Limited, Telewest Communications (Glenrothes) Limited, Wakefield Cable Communications Limited and Deutsche Bank AG, London Branch.
  4.20**   Standard Security dated January 19, 2010 and made between CableTel (UK) Limited and Deutsche Bank AG, London Branch.
  4.21**   Ranking Agreement dated January 19, 2010 and made between CableTel (UK) Limited and Deutsche Bank AG, London Branch.
  4.22**   Share Pledge dated January 19, 2010 and made between Virgin Media Limited and Deutsche Bank AG, London Branch.
  4.23**   Share Pledge dated January 19, 2010 and made between NTL Glasgow and Deutsche Bank AG, London Branch.
  4.24**   Share Pledge dated January 19, 2010 and made between Telewest Limited and Deutsche Bank AG, London Branch.
  4.25**   Share Pledge dated January 19, 2010 and made between Telewest Communications (Scotland Holdings) Limited and Deutsche Bank AG, London Branch.
  4.26**   Bond and Floating Charge dated January 19, 2010 and made between Prospectre Limited and Deutsche Bank AG, London Branch.
  4.27**   Bond and Floating Charge dated January 19, 2010 and made between NTL Glasgow and Deutsche Bank AG, London Branch.
  4.28**   Bond and Floating Charge dated January 19, 2010 and made between CableTel Scotland Limited and Deutsche Bank AG, London Branch.
  4.29**   Bond and Floating Charge dated January 19, 2010 and made between Telewest Communications (Scotland Holdings) Limited and Deutsche Bank AG, London Branch.

Exhibit No.   Description                    
  4.30**   Bond and Floating Charge dated January 19, 2010 and made between Telewest Communications (Scotland) Limited and Deutsche Bank AG, London Branch.
  4.31**   Bond and Floating Charge dated January 19, 2010 and made between Telewest Communications (Motherwell) Limited and Deutsche Bank AG, London Branch.
  4.32**   Bond and Floating Charge dated January 19, 2010 and made between Telewest Communications (Dundee & Perth) Limited and Deutsche Bank AG, London Branch.
  4.33**   Security Agreement dated January 19, 2010 and made between Birmingham Cable Limited and Deutsche Bank AG, London Branch.
  4.34**   Amended and Restated Pledge Agreement dated January 19, 2010 and made between NTL Victoria Limited and Deutsche Bank AG, London Branch.
  4.35**   Amended and Restated Pledge Agreement dated January 19, 2010 and made between the parties listed on the signature pages thereto and Deutsche Bank AG, London Branch.
  4.36**   Amended and Restated Security Agreement dated January 19, 2010 and made between the parties listed on the signature pages thereto and Deutsche Bank AG, London Branch.
  4.37**   Amended and Restated Pledge and Security Agreement re: the interests in Avon Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.
  4.38**   Amended and Restated Pledge and Security Agreement re: the interests in Cotswolds Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.
  4.39**   Amended and Restated Pledge and Security Agreement re: the interests in Edinburgh Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch
  4.40**   Amended and Restated Pledge and Security Agreement re: the interests in Estuaries Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.
  4.41**   Amended and Restated Pledge and Security Agreement re: the interests in Tyneside Cable Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.
  4.42**   Amended and Restated Pledge and Security Agreement re: the interests in United Cable (London South) Limited Partnership dated January 19, 2010 and made between TCI/US West Cable Communications Group, Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.
  4.43**   Amended and Restated Pledge and Security Agreement re: the interests in TCI/US West Cable Communications Group dated January 19, 2010 and made between Theseus No.1 Limited, Theseus No.2 Limited and Deutsche Bank AG, London Branch.
  4.44**   Amended and Restated Pledge and Security Agreement re: the interests in London South Cable Partnership dated January 19, 2010 and made between United Cable (London South) Limited Partnership, Crystal Palace Radio Limited and Deutsche Bank AG, London Branch.

Exhibit No.   Description                    
  4.45**   Amendment and Restatement Agreement dated January 19, 2010 and made between Future Entertainment S.à r.l. and Deutsche Bank AG, London Branch in relation to the Luxembourg Accounts Pledge Agreement.
  4.46**   English law Assignment of Contracts dated January 19, 2010 and made between Future Entertainment S.à r.l. and Deutsche Bank AG, London Branch.
  4.47**   Share Pledge Agreement dated January 19, 2010 and made between Virgin Media Investments Limited, Future Entertainment S.à r.l. and Deutsche Bank AG, London Branch.
  5.1*   Opinion of Fried, Frank, Harris, Shriver & Jacobson (London) LLP, as to the legality of the securities being registered.
  5.2*   Opinion of Fried, Frank, Harris, Shriver & Jacobson (London) LLP under English law.
  5.3*   Opinion of Ballard Spahr LLP under Colorado law.
  5.4*   Opinion of HBJ Gateley Wareing (Scotland) LLP under Scottish law.
  5.5*   Opinion of Mourant Ozannes under Jersey law.
  5.6*   Opinion of LG@vocats under Luxembourg law.
  12.1*   Statement re computation of ratios of earnings to fixed charges.
  23.1**   Consent of Ernst & Young LLP for Virgin Media Inc. and subsidiaries.
  23.2**   Consent of Ernst & Young LLP for Virgin Media Investment Holdings Limited and subsidiaries.
  23.3**   Consent of Ernst & Young LLP for Virgin Media Investments Limited and subsidiaries.
  23.4*   Consent of Fried, Frank, Harris, Shriver & Jacobson (London) LLP (included in its opinion filed as Exhibit 5.1).
  23.5*   Consent of Fried, Frank, Harris, Shriver & Jacobson (London) LLP (included in its opinion filed as Exhibit 5.2).
  23.6*   Consent of Ballard Spahr LLP (included in its opinion filed as Exhibit 5.3).
  23.7*   Consent of HBJ Gateley Wareing (Scotland) LLP (included in its opinion filed as Exhibit 5.4).
  23.8*   Consent of Mourant Ozannes (included in its opinion filed as Exhibit 5.5).
  23.9*   Consent of LG@vocats (included in its opinion filed as Exhibit 5.6).
  24.1*   Power of Attorney in respect of directors and officers of Virgin Media Inc.
  24.2*   Power of Attorney in respect of officers of Virgin Media Investment Holdings Limited.
  24.3*   Power of Attorney in respect of Authorized Representative in the United States.
  24.4*   Power of Attorney (included on the signature pages of the Registration Statement).
  25.1*   Statement of Eligibility of The Bank of New York Mellon, as Trustee under the Indenture, on Form T-1.
  99.1**   Form of Letter of Transmittal.

*
Filed with the Registration Statement on June 15, 2010.

**
Filed with this Amendment No. 1 to the Registration Statement.



Exhibit 4.11

 

EXECUTION VERSION

 

Dated 28 June 2010

 

COMPOSITE DEBENTURE

 

Between

 

THE COMPANIES LISTED IN SCHEDULE 1
as Original Charging Companies

 

THE PARTNERSHIPS LISTED IN SCHEDULE 2
as Original Charging Partnerships

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

INTERPRETATION

1

2.

SECURED OBLIGATIONS

10

3.

CHARGES

10

4.

SET-OFF

16

5.

UNDERTAKINGS

17

6.

REAL PROPERTY: PERFECTION

20

7.

FURTHER ASSURANCE

21

8.

CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

22

9.

APPOINTMENT AND POWERS OF RECEIVER OR ADMINISTRATOR

24

10.

APPLICATION OF PROCEEDS; PURCHASERS

27

11.

INDEMNITIES; COSTS AND EXPENSES

28

12.

ENFORCEMENT

29

13.

POWER OF ATTORNEY

30

14.

CONTINUING SECURITY AND OTHER MATTERS

31

15.

CURRENCIES

33

16.

THE SECURITY TRUST AGREEMENT

34

17.

MISCELLANEOUS

34

18.

NOTICES

37

19.

LAW AND JURISDICTION

37

SCHEDULE 1 ORIGINAL CHARGING COMPANIES

39

 

Part 1 English Companies

39

 

Part 2 Scottish Companies

63

 

Part 3 Jersey Companies

64

SCHEDULE 2 ORIGINAL CHARGING PARTNERSHIPS

65

SCHEDULE 3 THE PRIOR CHARGES

68

SCHEDULE 4 NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

69

 

Part 1 Intercompany Indebtedness

69

 

Part 1A Form of Notice of Assignment

69

 

Part 1B Form of Acknowledgement of Assignment

71

 

Part 2 Insurances

73

 

Part 2A Form of Notice of Assignment

73

 

Part 2B Form of Acknowledgement of Assignment

76

SCHEDULE 5 DETAILS OF CHARGED LAND

77

 

Part 1 English Charged Land

77

 

Part 1A Registered Land

77

 

Part 1B Unregistered Land

84

 

Part 2 Scottish Charged Land

85

SCHEDULE 6 REGISTERED, INTELLECTUAL PROPERTY RIGHTS

86

SCHEDULE 7 INTERCOMPANY LOANS

95

 

i



 

SCHEDULE 8 FORM OF SCOTS STANDARD SECURITY

98

 

ii



 

THIS COMPOSITE DEBENTURE is dated 28 June 2010 and made

 

BETWEEN:

 

(1)                                 THE COMPANIES whose respective registered names, registered numbers and shareholders are set out in Schedule 1 (the “Original Charging Companies”);

 

(2)                                 THE PARTNERSHIPS whose respective names and partners are set out in Schedule 2 (the “Original Charging Partnerships”); and

 

(3)                                 DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

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

 

(B)                                Virgin Media Secured Finance PLC has issued and sold the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

(D)                               The board of directors or the partners (as the case may be) of each Chargor are satisfied that such Chargor is entering into this Deed for the purposes of carrying on its business and that its doing so benefits such Chargor.

 

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

 

NOW THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                                 Definitions

 

In this Deed, unless the context otherwise requires:

 

Acknowledgement” means a duly completed acknowledgement of assignment in the form set out in the relevant Part of Schedule 4 (Notices of Assignment/Acknowledgements) being:

 

(a)                                  Schedule 4Part 1B, in the case of Intercompany Indebtedness; and

 

1



 

(b)                                 Schedule 4Part 2B, in the case of Insurances.

 

Assigned Assets” means, in relation to each Chargor, all the assets of such Chargor described in Clause 3.2 (Assignments);

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Charged Assets” means all the undertaking, goodwill, property, assets and rights of the Chargors described in Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge);

 

Charged Land” means the English Charged Land and the Scottish Charged Land;

 

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

 

Default Rate” means the rate specified in clause 28.2 (Default Rate) of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

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

 

disposal” includes any sale, lease, sub-lease, assignment or transfer, the grant of an option or similar right, the grant of any easement, right or privilege, the creation of a trust or other equitable interest in favour of a third party, a sharing or parting with possession or occupation whether by way of licence or otherwise and the granting of access to any other person over any intellectual property, and “dispose” and “disposition” shall be construed accordingly;

 

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

 

English Charged Land” means, in respect of each Chargor, the English Real Property specified in Part 1 of Schedule 5 next to the name of such Chargor;

 

English Real Property” means, at any time and in respect of any Chargor, freehold or leasehold property in England and Wales in which such Chargor has an interest, including all rights, easements and privileges from time to time attached or appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon ;

 

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Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

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

 

Excluded Charged Assets” has the meaning given to such term in Clause 3.14(b) (Rule 3-16 Limitation) of this Deed;

 

Existing Debenture” means the Debenture dated 19 January 2010 (as amended and restated from time to time) between the Chargors listed therein and the Security Trustee;

 

Fixtures” means, in relation to any Real Property, all fixtures and fittings (including trade fixtures and fittings) and fixed plant, machinery and equipment and other items attached to the relevant Real Property whether or not constituting a fixture at law;

 

Floating Charge Assets” means the assets of the Chargors from time to time expressed to be charged by this Deed by way of floating charge pursuant to Clause 3.4 (Floating Charge);

 

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

 

Indemnified Party” has the meaning set out in Clause 11.3 (Indemnity from Charged Assets);

 

Insurances” means, in relation to a Chargor, all present and future contracts or policies of insurance (including life policies) in which that Chargor from time to time has an interest;

 

Intellectual Property Rights” means all patents, trade marks, service marks, designs, design rights, utility models, business names, topographical or similar rights, copyrights, moral rights, database rights, rights in inventions, computer software, know-how, trade secrets and confidential information and other intellectual property rights and any interests (including by way of licence) subsisting anywhere in the world in any of the foregoing (in each case whether registered or not and including all applications for the same) owned by any Chargor;

 

Intercompany Indebtedness” means indebtedness owing by any member of the Group to any Chargor under each of the loan agreements or other debt instruments listed in Schedule 7 (Intercompany Loans) and any other such indebtedness from time to time outstanding;

 

Investments” means the Shares (but excluding any Shares of ntl Victoria Limited in Virgin Media Dover LLC) and any other stocks, debentures, bonds, warrants and other securities of any kind whatsoever and any units in Unit Trust Schemes;

 

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Lease” means any present or future lease, sublease, licence, tenancy or other agreement or right to occupy whether on a fixed term or periodic basis governing the use or occupation of any freehold, heritable or leasehold property;

 

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

 

Notice of Assignment” means a duly completed notice of assignment in the form set out in the relevant Part of Schedule 4 (Notices of Assignment/Acknowledgements) being:

 

(a)                                  Part 1, in the case of Intercompany Indebtedness; and

 

(b)                                 Part 2, in the case of Insurances;

 

Permitted Borrowing” means any Financial Indebtedness permitted under clause 25.4 (Financial Indebtedness) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Permitted Disposal” means any disposal permitted under clause 25.6 (Disposals) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

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

 

Pledge and Security Agreements” means each of the pledge and security agreements dated on or about the date hereof and entered into in favour of the Security Trustee by each of the partners of the Original Charging Partnerships formed in the State of Colorado, and “Pledge and Security Agreement” means any one of them.

 

Prior Charged Land” means all interests the subject of the security created by each of the legal charges listed as Prior Charges in items (B) to (G) (inclusive) of Schedule 3 (Details of Charged Land);

 

Prior Charges” means the existing Permitted Encumbrances, brief particulars of which are set out in Schedule 3 (but only to the extent therein specified);

 

Real Property” means the English Real Property and the Scottish Heritable Property and any other land, buildings or erections anywhere in the world and any estate or interest therein and any reference to Real Property includes all rights, easements and privileges from time to time attached or appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon;

 

Realisation Account” means each account maintained from time to time by the Security Trustee for the purposes of Clause 8.9 (Realisation Accounts).

 

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Receiver” means a receiver and manager, or any other receiver (whether appointed pursuant to this Deed or any statute, by a court or otherwise) of all or any of the Charged Assets and shall, where permitted by law, include an administrative receiver;

 

Related Rights” means, in relation to any Investment of any Chargor:

 

(a)                                  any proceeds of and any right or option to receive any dividend, distribution, interest or other income paid or payable in relation to any such Investment; and

 

(b)                                 any right or option to receive, call for delivery of or otherwise acquire any stocks, shares, debentures, bonds, loan stocks, warrants, securities, monies or other property of any kind, accruing or offered at any time or deriving therefrom, whether in addition to or in substitution for such Investment,

 

but excluding partnership interests in the Original Charging Partnerships that are organised in the United States of America to the extent that such interests are subject to a valid and binding Pledge and Security Agreement.

 

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

 

Restricted Freehold” means the freehold property known as Unit 11, Capstan Centre, Tilbury;

 

Restricted Lease” means any lease to which a Chargor is a party which would be breached, if the consent of the relevant landlord and any other relevant party was not obtained prior to such lease becoming subject to any security interest created pursuant to this Deed;

 

Rule 3-16” has the meaning given to such term in “Designated Secured Obligations”.

 

Scottish Charged Land” means, in respect of each Chargor, the Scottish Heritable Property specified in Part 2 of Schedule 5 next to the name of such Chargor;

 

Scottish Heritable Property” means, at any time and in respect of any Chargor, any heritable or leasehold property in Scotland in which such Chargor has an interest, including all rights, easements and privileges from time to time attached or

 

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appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon;

 

SEC” means the United States Securities and Exchange Commission;

 

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

 

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

 

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

 

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

 

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

 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on 19 January 2010, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited and the companies named therein as Original Obligors;

 

Senior Facilities Agreement” means the senior facilities agreement dated 16 March 2010 (as amended, restated, supplemented or novated from time to time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crédit Agricole Corporate and Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International, J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London Branch as Security Trustee and the financial and other institutions named in it as Lenders;

 

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

 

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

 

Senior Secured Notes Indenture” means the indenture dated on 19 January 2010 governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time;

 

Shares” means all shares in the capital of any member of the Group, any Joint Venture or any other person now or in the future legally or beneficially owned by any Chargor and/or any nominee on behalf of any such Chargor;

 

Standard Security” means a standard security in terms of the Conveyancing and Feudal Reform (Scotland) Act 1970 substantially in the form set out in Schedule 8;

 

Unit Trust Scheme” has the meaning set out in Section 237(2) of the Financial Services and Markets Act 2000; and

 

1.2                                 Successors and Assigns

 

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

 

1.3                                 Agreement Definitions

 

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

 

1.4                                 Headings

 

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

 

1.5                                 Construction of Certain Terms

 

In this Deed, unless the context otherwise requires:

 

(a)                                  references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Deed and references to this Deed include its schedules;

 

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(b)                                 references to (or to any specified provision of) this Deed or any other agreement or document shall be construed as references to this Deed, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

(i)                                     references to “business” in relation to any Chargor means any business referred to in the definition of Group Business in the Relevant Facilities Agreement which such Chargor engages in, and references to “ordinary course of business” in relation to any Chargor shall be similarly construed.

 

1.6                                 Implied Covenants

 

In accordance with Rule 68 of the Land Registration Rules 2003:

 

(a)                                  the covenants set out in section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994 shall extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge) save for the words “other than any charges, encumbrances or rights which that person does not and could not reasonably be expected to know about”; and

 

(b)                                 the covenants set out in section 3(2) of the Law of Property (Miscellaneous Provisions) Act 1994 shall extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge) save for the words “except to the extent that such liabilities and rights are, by reason of (a) being, at the time of the disposition, only potential liabilities and rights in relation to the property

 

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or (b) being liabilities and rights imposed or conferred in relation to property generally, not such as to constitute defects in title”; and

 

(c)                                  the covenants set out in section 6(2) of the Law of Property (Miscellaneous Provisions) Act 1994,

 

shall not extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge).

 

1.7                                 Nominees

 

If the Security Trustee requires shares or any other asset to be registered in the name of a nominee for the Security Trustee, any reference in this Deed to the Security Trustee shall, if the context so permits or requires, be construed as a reference to each of the Security Trustee and such nominee.

 

1.8                                 Third Party Rights

 

A person which is not a party to this Deed (a “third party”) shall have no rights to enforce the provisions of this Deed save for:

 

(a)                                  those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and

 

(b)                                 a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Security Trust Agreement whether or not it is a party to the Security Trust Agreement.

 

provided also that this Deed may be rescinded or altered without the consent of any third party referred to in paragraph (b) of this Clause 1.8.

 

1.9                                 Effect as a Deed

 

This Deed is intended to take effect as a deed notwithstanding that the Security Trustee or any other party hereto may have executed it under hand only.

 

1.10                           Group Intercreditor Deed

 

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

 

1.11                           Secured Obligations

 

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

 

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

 

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

 

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2.                                      SECURED OBLIGATIONS

 

2.1                                 Covenant to Pay

 

Each Chargor hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid provided that before any such demand is made on a Restricted Guarantor, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.

 

2.2                                 Statements of Account

 

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

 

2.3                                 No Security

 

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

 

2.4                                 Payments by the Chargors

 

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

 

3.                                      CHARGES

 

3.1                                 Fixed Charge

 

Each Chargor, with full title guarantee and as continuing security for the payment, discharge and performance of the Secured Obligations, hereby charges in favour of the Security Trustee to hold the same on trust for the Beneficiaries on the terms set out in the Group Intercreditor Deed and the Security Trust Agreement:

 

(a)                                  by way of first legal mortgage, all of the English Charged Land and all other Real Property now vested in any Chargor and the proceeds of sale of all or any part thereof;

 

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(b)                                 by way of first fixed charge (but in the case of paragraphs (iii) and (iv) only if and to the extent the rights in question have not been effectively assigned pursuant to Clause 3.2 (Assignments) or such rights have been effectively assigned but such assignment has not been perfected by the service of the appropriate Notice of Assignment):

 

(i)                                     to the extent not effectively charged pursuant to Clause 3.1(a) (Fixed Charge), all estates or interests in any Real Property (whether such interests are freehold, leasehold or licenses) vested in, or acquired by, it now or after the date of this Deed and the proceeds of sale of all or any part thereof;

 

(ii)                                  to the extent not effectively charged pursuant to Clauses 3.1(a) (Fixed Charge) or 3.1(b)(i) (Fixed Charge), all plant and machinery, equipment, computers, vehicles and other chattels (excluding any for the time being forming part of such Chargor’s stock-in-trade or work in progress) now or in the future owned by such Chargor or (to the extent of such interest) in which the relevant Chargor has an interest and the benefit of all contracts and warranties relating to the same;

 

(iii)                               all Investments and all Related Rights now or in the future beneficially and/or legally owned by such Chargor;

 

(iv)                              all of its rights, title, interests and benefits in, to or in respect of the Insurances and all claims (and proceeds) and returns of premiums to which such Chargor is now or may at any future time become entitled;

 

(v)                                 any interest, claim or entitlement of such Chargor in, to or in respect of any pension fund;

 

(vi)                              all the present and future goodwill of such Chargor (including all brand names not otherwise subject to a fixed charge or assignment under this Deed);

 

(vii)                           all of its rights, title, interests and benefits in, to or in respect of all present and future licences, consents and authorisations (statutory or otherwise) held in connection with the business of such Chargor or the use of any asset of such Chargor and the right to recover and receive all compensation which may at any time become payable to it in respect of any such licence;

 

(viii)                        all its present and future uncalled capital; and

 

(ix)                                all its present and future patents, registered trade marks and registered designs (if any) including applications for any of the same in any part of the world and including, without limitation, the patents, registered designs and trade marks specified in Schedule 6 (Registered, Intellectual Property Rights); and

 

(c)                                  by way of second fixed charge, all of the Prior Charged Land.

 

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3.2                                 Assignments

 

Subject to Clause 3.3 (Non-Assignable Rights), each relevant Chargor with full title guarantee hereby assigns absolutely by way of continuing security for the payment and discharge of the Secured Obligations to the Security Trustee:

 

(a)                                  all its present and future rights, title, benefit and interests under and in respect of the Intercompany Indebtedness and any other amounts payable in respect thereof, including under any other loan agreements from time to time entered into by the relevant Chargor;

 

(b)                                 all of its rights, title, interests and benefits in, to or in respect of the Insurances (including all proceeds) and all claims and returns of premiums in respect thereof to which the relevant Chargor is now or may at any future time become entitled; and

 

(c)                                  to the extent not charged under the provisions of Clause 3.1(b) (Fixed Charge) all of its present and future Intellectual Property Rights .

 

3.3                                 Non-Assignable Rights

 

Each Chargor declares that to the extent that any right, title, interest or benefit described in Clause 3.2 (Assignments) is for any reason not effectively assigned pursuant to Clause 3.2 (Assignments) for whatever reason, the relevant Chargor shall:

 

(a)                                  hold the benefit of the same on trust for the Security Trustee as security for the payment and discharge of the Secured Obligations; and

 

(b)                                 promptly notify the Security Trustee of the same and the reasons therefor and thereafter take such steps as the Security Trustee may reasonably require to attempt to remove any relevant prohibition or other reason for such failure.

 

3.4                                 Floating Charge

 

Each Chargor with full title guarantee (or, in relation to rights or assets situated in or governed by the law of Scotland, with absolute warrandice) hereby charges to the Security Trustee by way of first floating charge and as a continuing security for the payment and discharge of the Secured Obligations its undertaking and all its property, assets and rights whatsoever and wheresoever both present and future, other than any property or assets from time to time effectively charged by way of fixed charge or assignment pursuant to Clauses 3.1 (Fixed Charge) and 3.2 (Assignments) and including (without limitation and whether or not so effectively charged) any of its property and assets situated in Scotland, provided that, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not such Chargor.  The parties to this Deed agree that the floating charge created by this Clause 3.4 is a qualifying floating charge for the purposes of paragraph 14 of schedule B1 to the Insolvency Act 1986.

 

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3.5                                 Automatic Conversion of Floating Charge

 

Notwithstanding anything expressed or implied in this Deed, if:

 

(a)                                  any Chargor creates or attempts to create any other Encumbrance over all or any of the Floating Charge Assets without the prior consent in writing of the Security Trustee or otherwise as permitted by the Senior Finance Documents;

 

(b)                                 any person levies or attempts to levy any distress, execution, sequestration or other process against any of the Charged Assets or takes any steps to enforce any rights against any of the Floating Charge Assets; or

 

(c)                                  any meeting of the members of any Chargor is convened to consider a resolution to wind up such Chargor or a petition is presented or application made to wind up any Chargor,

 

the floating charge created by Clause 3.4 (Floating Charge) over the property or asset concerned shall thereupon automatically without notice be converted into a fixed charge.  Nothing in this Clause 3.5 shall cause the floating charge created by Clause 3.4 (Floating Charge) to crystallise solely because a moratorium has been obtained by any person in relation to any Chargor or any person has taken any steps with a view to obtaining a moratorium in relation to any Chargor under Section 1A and Schedule A1 of the Insolvency Act 1986.

 

3.6                                 Conversion of Floating Charge by Notice

 

Notwithstanding anything expressed or implied in this Deed, the Security Trustee shall be entitled at any time by giving notice in writing to that effect to the relevant Chargors to convert the floating charge over all or any part of the Floating Charge Assets into a fixed charge if and to the extent that the Security Trustee reasonably considers the assets specified in such notice may be in danger of being seized or sold under or pursuant to any form of distress or execution, or may otherwise be in jeopardy or the Security Trustee otherwise considers (acting reasonably) such conversion to be necessary or desirable to protect the priority of the Security.

 

3.7                                 Scotland

 

(a)                                  Each Chargor, as security for the payment and discharge of the Secured Obligations hereby undertakes and binds and obliges itself forthwith to execute and deliver to the Security Trustee a Standard Security over its right, title and interest in the Scottish Charged Land owned by it at the date hereof.

 

(b)                                 Clauses 3.5 (Automatic Conversion of Floating Charge) and 3.6 (Conversion of Floating Charge by Notice) shall not apply to any Chargor’s property and assets situated in Scotland if and to the extent that a Receiver would not be capable of exercising its powers in Scotland in relation thereto pursuant to section 72 of the Insolvency Act 1986 by reason of any automatic conversion.

 

3.8                                 Subsequent Encumbrances

 

If any Beneficiary receives notice of any subsequent Encumbrance affecting the Charged Assets or any part thereof, such Beneficiary may open a new account for the

 

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Chargor concerned but if it does not do so then unless such Beneficiary gives express written notice to the contrary to the Chargor concerned it shall nevertheless be treated as if it had opened a new account at the time when it received such notice and as from that time all payments made by or on behalf of the Chargor concerned to such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount due from that Chargor to such Beneficiary at the time when it received such notice.

 

3.9                                 Section 94(1)(c) Law of Property Act 1925

 

The obligation on the part of the Senior Lenders to make further advances to the Borrowers under the Senior Facilities Agreement or on the part of any creditors under any other Senior Finance Document, as the case may be, shall be deemed to be incorporated in this Deed for the purposes of section 94(1)(c) Law of Property Act 1925.

 

3.10                           Blocking of Accounts

 

Each Chargor irrevocably and unconditionally agrees that at any time after the Enforcement Date if there shall from time to time be any credit balance on any of its accounts with any of the Beneficiaries, such Beneficiary shall have the absolute right to refuse to permit such credit balance to be utilised or withdrawn by such Chargor whether in whole or in part if and to the extent that at that time there are outstanding any of the Secured Obligations.

 

3.11                           Dividends and Voting Rights

 

Subject to Clause 8.1 (The Investments), each Chargor may, prior to the occurrence of an Event of Default which is continuing (a) exercise all voting and other rights and powers attached to the Investments and (b) receive, retain and deal with free from this Deed all dividends, distributions, interest and other moneys paid on and received by it in respect of the Investments.

 

3.12                           Prior Charges

 

The Prior Charges shall rank, together with interest thereon and costs in relation thereto, in priority to the charges created by this Deed as a continuing security for repayment of all moneys, obligations and liabilities thereby secured.  Such priority shall not be affected by any fluctuations in the amount from time to time due or by the existence at any time of a credit balance on any current or other account.

 

3.13                           Consents of Third Parties

 

Notwithstanding Clause 3.1 (Fixed Charge) or 3.4 (Floating Charge):

 

(a)                                  unless and until the relevant Chargor has obtained the consent of the relevant landlord and any other relevant party (each being a “Consent”) the fixed and floating charges granted pursuant to Clause 3.1 (Fixed Charge) and 3.4 (Floating Charge) respectively shall not extend to such Chargor’s rights over any Restricted Lease;

 

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(b)                                 unless and until the relevant Chargor has obtained a certificate from any relevant party (each being a “Certificate”) the fixed and floating charges granted pursuant to Clause 3.1 (Fixed Charge) and 3.4 (Floating Charge) respectively shall not extend to such Chargor’s rights over any Restricted Freehold; and

 

(c)                                  unless the relevant Chargor has received written confirmation from the Security Trustee that the Certificate or a particular Consent is not required, the relevant Chargors hereby undertake to use their reasonable endeavours to obtain the Certificate and the Consents.  On obtaining the Certificate and each Consent:

 

(i)                                     the relevant Restricted Lease and/or the Restricted Freehold, as the case may be, shall thereupon automatically become subject to the fixed charge created pursuant to Clause 3.1 (Fixed Charge) and the floating charge created pursuant to Clause 3.4 (Floating Charge); and

 

(ii)                                  the relevant Chargor shall immediately produce the Certificate or evidence of such Consent to the Security Trustee.

 

3.14                           Rule 3-16 Limitation

 

(a)                                  Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating Charge) of this Deed notwithstanding, the Excluded Charged Assets are not charged under this Deed to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)                                     all other Charged Assets remain charged or assigned (as the case may be) under this Deed to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain charged under Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating Charge) of this Deed to secure any Secured Obligations that are not Designated Secured Obligations.

 

(b)                                 Excluded Charged Assets” in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited and Virgin Media Investment Holdings Limited or, in each case, any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by any Chargor to the extent that charging or pledging such Shares or other securities under this Deed to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger

 

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or other restructuring, a principal purpose of which is to provide for the limitation of the charge on any Shares or other securities pursuant to Clause 3.14(a).

 

(c)                                  In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Deed may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in paragraph (a)(ii) of this Clause 3.14) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

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

 

4.                                      SET-OFF

 

4.1                                 Set-off

 

Each Chargor hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of such Chargor jointly with others),

 

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whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.

 

4.2                                 Purchase of Currencies

 

For the purpose of Clause 4.1 (Set-Off), each Chargor authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

5.                                      UNDERTAKINGS

 

5.1                                 Undertakings

 

Each Chargor hereby undertakes with the Security Trustee that during the continuance of this security such Chargor will:

 

(a)                                  Deposit of deeds

 

deposit with the Security Trustee (to be held at the risk of such Chargor save where such Chargor suffers any loss, costs or expenses as a result of the Security Trustee’s gross negligence or wilful default):

 

(i)                                     all certificates and documents of title relating to its Investments and such deeds of transfer in blank and other documents as the Security Trustee may from time to time reasonably require for perfecting the title of the Security Trustee to such Investments (duly executed by or signed on behalf of the registered holder) or for vesting or enabling it to vest the same in itself or its nominees or in any purchaser; and

 

(ii)                                  all such other documents relating to its Charged Assets as are in its possession or which it can reasonably obtain as the Security Trustee may from time to time reasonably require,

 

save to the extent precluded by the terms of the Prior Charges and to the extent that any certificates, documents of title or all such other documents relating to any of the Investments or Charged Assets (“Supporting Documents”) which are required to be deposited with the Security Trustee pursuant to this Clause 5.1(a) have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of perfecting the security interests over such Investments or Charged Assets pursuant to the terms of the Existing Debenture, the requirements of this Clause 5.1(a) shall be deemed satisfied,  provided that, in the event that any

 

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security interests under the Existing Debenture have been unconditionally discharged and released in full in accordance with the terms of the Existing Debenture, each Chargor shall fulfil its delivery obligations under this Clause 5.1(a) as soon as reasonably practicable following receipt of the relevant Supporting Documents.

 

(b)                                 Calls, etc

 

duly and promptly pay all calls, instalments or other moneys which may from time to time become due in respect of any of its Investments it being acknowledged by such Chargor that neither the Security Trustee nor any of the Beneficiaries shall in any circumstances incur any liability whatsoever in respect of any such calls, instalments or other moneys;

 

(c)                                  Provision of information

 

forthwith inform the Security Trustee of any claim or notice relating to the Investments received from any other party and likely to materially prejudice the value of the Investments and of all matters relevant thereto;

 

(d)                                 Purchase of shares

 

not, save as otherwise permitted or not restricted under each of the Senior Finance Documents, (without the prior consent in writing of the Security Trustee) redeem or purchase any of its own shares or pay any dividend, other than a dividend permitted or not restricted to be paid under each of the Senior Finance Documents;

 

(e)                                  Options

 

save to the extent expressly permitted or not restricted under each of the Senior Finance Documents not, without the prior consent of the Security Trustee, grant any option with respect to any of the Investments;

 

(f)                                    Notification

 

forthwith inform the Security Trustee of any material claims or notice relating to any Assigned Assets received from any other party and all other matters relevant or in any way material thereto;

 

(g)                                 Reports

 

ensure that the relevant Chargors report to the Security Trustee on a monthly basis as to whether the Certificate and the Consents referred to in Clause 3.13 (Consents of Third Parties) have been obtained, such reports to be provided until the earlier of (a) the Certificate and all of the Consents having been obtained, or (ii) the relevant Chargor confirming that the same will not be provided;

 

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(h)                                 Notice of assignment

 

deliver to the Security Trustee, or procure the delivery to the Security Trustee of, a duly executed Notice of Assignment to each relevant party in relation to the Assigned Assets, and will use reasonable endeavours to procure delivery to the Security Trustee of duly executed Acknowledgments thereof until (in each case) requested to do so by the Security Trustee upon or following the occurrence of an Event of Default which is continuing whereupon it shall do so forthwith, provided that in respect of any Intercompany Indebtedness where the relevant intercompany debtor is also a Chargor, such Notice of Assignment shall be deemed to have been delivered by the relevant Chargor, and acknowledged by such intercompany debtor, in each case by their respective signatures to this Deed;

 

(i)                                     Insurances

 

(i)                                     procure that a note of the interest of the Security Trustee is endorsed, and the Security Trustee is endorsed as loss payee, upon all Insurances (other than those referred to in Clause 10.2(c) (Insurance Proceeds)) which shall at any time during the subsistence of this Security be effected, maintained or held by the relevant Chargor or any person; and

 

(ii)                                  not do or omit to do, or permit or suffer to be done or omitted to be done, anything which might render any of the Insurances void, voidable or unenforceable;

 

(j)                                     Intellectual Property

 

if requested by the Security Trustee, execute all such documents and do all acts that the Security Trustee may reasonably require to record the interest of the Security Trustee in any registers relating to any registered Intellectual Property owned by such Chargor.

 

5.2                                 Power to Remedy

 

If any Chargor at any time defaults in complying with any of its obligations contained in this Deed, the Security Trustee shall, without prejudice to any other rights of the Security Trustee arising as a consequence of such default, be entitled (but not bound) to make good such default and such Chargor hereby irrevocably authorises the Security Trustee and its employees and agents by way of security to do all such things (including, without limitation, entering such Chargor’s property having given such notice as is reasonable in the circumstances) necessary or reasonably desirable in connection therewith.  Any moneys so expended by the Security Trustee shall be repayable by such Chargor to the Security Trustee within 30 days of demand together with interest at the Default Rate from the date being 30 days after the date of demand until such repayment, both before and after judgment.  No exercise by the Security Trustee of its powers under this Clause 5.2 shall make it or any of the Beneficiaries liable to account as a mortgagee in possession.

 

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6.                                      REAL PROPERTY: PERFECTION

 

6.1                                 Modification of Law of Property (Miscellaneous Provisions) Act 1994

 

Section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994 will be amended as follows (in so far as it applies to Clause 3 (Charges)) :

 

(a)                                  after “from all charges and encumbrances (whether monetary or not)” add “other than Permitted Encumbrances” and after the words “other than any charges, encumbrances or rights which that person does not and would not reasonably be expected to know about” add “but not so as to include any such charges, encumbrances or rights affecting the English Charged Land disclosed by the following searches:

 

(i)                                     in the case of registered English Charged Land listed in Part 1A of Schedule 5 (Details of Charged Land), OS1/2 Land Registry searches; and

 

(ii)                                  in relation to the unregistered English Charged Land listed in Part 1B of Schedule 5 (Details of Charged Land), land charges searches made against all relevant estate owners since the date of the grant of the relevant lease or as the case may be the date of the root conveyance.”

 

6.2                                 Notices of Charge in respect of Charged Land

 

Each Chargor which owns or leases Charged Land shall (unless an alternative course of action is agreed between such Chargor and the Security Trustee) deliver to the Security Trustee (or procure delivery of) notices of charge duly executed by, or on behalf of, such Chargor, together with all relevant fees and addresses, in relation to all landlords from which such Chargor leases any Charged Land owned or leased by such Chargor in respect of each Lease under which such Chargor leases such Charged Land in existence on the date hereof, as soon as reasonably practicable following execution of this Deed, the relevant Standard Security and in each case shall use all reasonable endeavours to procure that each notice is acknowledged by the relevant landlord.  Such Chargor shall have no liability in the event that, having used such reasonable endeavours, the relevant landlord refuses to give such acknowledgement.

 

6.3                                 Real Property: Delivery of Documents of Title

 

(a)                                  Each Chargor shall (unless an alternative course of action is agreed between such Chargor and the Security Trustee) in respect of all Charged Land set out in Part 1B of Schedule 5 (Details of Charged Land) next to the name of such Chargor (if any), as soon as reasonably practicable after the execution of this Deed, deliver (or procure delivery) to the Security Trustee of, and the Security Trustee shall be entitled to hold and retain, all deeds, certificates and other documents of title relating to such property.

 

(b)                                 No Chargor shall be in breach of this Clause 6.3 if it does not deliver any such documents on account of its not having possession of the same provided that it uses all reasonable endeavours to obtain any such document and delivers such document promptly to the Security Trustee upon receipt.

 

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6.4                                 Land Registration

 

In respect of the English Charged Land the title to which is registered at the Land Registry and English Real Property which is acquired by or on behalf of any Chargor, the title to which is required to be registered at the Land Registry under the Land Registration Act 2002 the parties hereto agree to make or procure that there is made a due and proper application to the Land Registry (with the Security Trustee’s consent as proprietor of the relevant registered charge):

 

(a)                                  for a restriction in the following terms to be entered on the Proprietorship Register relating thereto:

 

“No disposition of the registered estate by the proprietor of the registered estate or by the proprietor of any registered charge is to be registered without a written consent signed by the proprietor for the time being of the charge dated [insert date] in favour of [insert name of Security Trustee] referred to in the Charges Register or signed on such proprietor’s behalf by its secretary or conveyancer”;

 

(b)                                 to enter a note of the obligation to make further advances by the Beneficiaries on the Charges Register of any registered land forming part of the Charged Assets; and

 

(c)                                  to note this Deed on the Charges Register.

 

7.                                      FURTHER ASSURANCE

 

7.1                                 Further Assurance

 

Each Chargor shall at any time if and when required by the Security Trustee execute such further Encumbrances and assurances in favour of the Security Trustee and/or the Beneficiaries and do all such acts and things as the Security Trustee shall from time to time reasonably require over or in relation to all or any of the Charged Assets to secure the Secured Obligations or to perfect or protect the security intended to be created by this Deed over the Charged Assets or any part thereof or, on or after the Enforcement Date, to facilitate the realisation of the same.

 

7.2                                 Certain Documentary Requirements

 

Such further Encumbrances and assurances shall be prepared by or on behalf of the Security Trustee at the expense of the relevant Chargor (such expense to be reasonable and properly incurred) and shall contain (a) an immediate power of sale without notice, (b) a clause excluding section 93 Law of Property Act 1925 and the restrictions contained in section 103 Law of Property Act 1925 and (c) such other clauses for the benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

7.3                                 Specific Security Documents Required

 

Each Chargor covenants with the Security Trustee that after the Enforcement Date if and when required by the Security Trustee (acting reasonably) it will to give notice in a form acceptable to the Security Trustee to such persons as the Security Trustee may

 

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require of the security over all or any part of the Charged Assets constituted by this Deed or granted pursuant to it.

 

8.                                      CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

8.1                                 The Investments

 

Each Chargor further covenants and agrees with the Security Trustee that:

 

(a)                                  the Security Trustee and its nominees at the discretion of the Security Trustee may after an Event of Default has occurred and so long as the same is continuing, exercise in the name of each Chargor or otherwise at any time whether before or after demand for payment and without any further consent or authority on the part of such Chargor (but subject to Clause 8.1(d) in respect of the Investments), any voting rights and/or powers given to trustees by section 10(3) and (4) Trustee Act 1925 (as amended by section 9 Trustee Investments Act 1961) in respect of securities or property subject to a trust and any powers or rights which may be exercisable by the person in whose name any of the Investments are registered or by the bearer thereof;

 

(b)                                 each Chargor will if so requested by the Security Trustee after an Event of Default has occurred and so long as the same is continuing transfer all or any of the Investments to the Security Trustee or such nominees or agents as the Security Trustee may select, provided that, for the avoidance of doubt, the Security Trustee may not request any such transfer prior to the occurrence of an Event of Default;

 

(c)                                  until the Enforcement Date, the Security Trustee will hold all dividends, distributions, interest and other moneys paid on and received by it in respect of any Investments which are transferred to it pursuant to Clause 8.1(b) for the account of the relevant Chargor; and

 

(d)                                 until the Enforcement Date the Security Trustee will exercise all voting and other rights and powers attached to the Investments which are given to it pursuant to the Trustee Act 1925 (as referred to in Clause 8.1(a) of this Deed) or which relate to the Investments which are transferred to it pursuant to Clause 8.1(b) as the relevant Chargor may from time to time in writing direct provided that the Security Trustee shall be under no obligation to comply with any such direction where compliance would, in the Security Trustee’s reasonable opinion, be prejudicial to the security created by this Deed or to the interests of the Beneficiaries in relation to the relevant assets.

 

8.2                                 Power of Sale

 

At any time on or after the Enforcement Date, the Security Trustee may (without notice to the Chargors) sell or otherwise dispose of the Charged Assets or any of them and shall be entitled to apply the proceeds of such sale or other disposal in paying the costs of such sale or disposal and thereafter in or towards the discharge of the Secured Obligations or otherwise as provided for in this Deed.

 

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8.3                                 Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Deed.

 

8.4                                 Law of Property Act

 

At any time on or after the Enforcement Date or if requested by the Chargor concerned, the Security Trustee may, without further notice, without the restrictions contained in sections 93 and 103 of the Law of Property Act 1925 and whether or not a Receiver shall have been appointed, exercise all the powers conferred upon mortgagees by the Law of Property Act 1925 as varied or extended by this Deed and all the powers and discretions conferred by this Deed on a Receiver either expressly or by reference and also, in the case of the Investments, all rights or powers which may be exercisable by the registered holder or beneficial owner of the same.

 

8.5                                 Statutory Power of Leasing

 

The statutory powers of leasing conferred on the Security Trustee shall be extended so as to authorise the Security Trustee to lease and make agreements for leases at a premium or otherwise, to accept surrenders of leases and to grant options on such terms as the Security Trustee shall consider expedient and without the need to observe any of the provisions of sections 99 and 100 Law of Property Act 1925, and Clause 8.2 (Power of Sale) shall operate as a variation and extension of section 101 of such Act.

 

8.6                                 Distributions

 

On or after the Enforcement Date all dividends, interest and other distributions relating to the Investments may be applied by the Security Trustee as though they were proceeds of sale under this Deed.

 

8.7                                 Settlement of Accounts

 

Any sale or other disposition by the Security Trustee or by any of its nominees or by a Receiver may be made either subject to or discharged from the Prior Charges or upon such terms as to indemnity as the Security Trustee or such Receiver may think fit.  The Security Trustee or the Receiver may settle and pass the accounts of any person in whom the Prior Charges may from time to time be vested and any accounts so settled and passed shall as between the Security Trustee, the Receiver and the Chargor concerned be deemed to be properly settled and passed and shall be binding on that Chargor accordingly.

 

8.8                                 Redemption of Prior Charge

 

At any time on or after the Enforcement Date, the Security Trustee may pay off all or any of the Prior Charges and take a transfer of the benefit thereof or redeem the same, and the money so expended by the Security Trustee and all costs of and incidental to the transaction incurred by the Security Trustee shall be repayable by the Chargor concerned to the Security Trustee on demand and shall bear interest at the Default Rate from the date of payment by the Security Trustee.

 

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8.9                                 Realisation Accounts

 

If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the Security the Security Trustee (or such Receiver) may:

 

(a)                                  open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

(b)                                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

(c)                                  subject to the payment of any claims having priority to this Security, withdraw amounts standing to the credit of the Realisation Accounts to:

 

(i)                                     discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

(ii)                                  pay remuneration to the Receiver as and when the same becomes due and payable; and

 

(iii)                               discharge the Secured Obligations as and when the same become due and payable.

 

8.10                           Right of Appropriation

 

To the extent the Charged Assets constitute “financial collateral” and this Deed constitutes a “security financial collateral arrangement” (as defined in the Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226) the Security Trustee may appropriate all or any part of the Charged Assets in or towards satisfaction of the Secured Obligations, the value of the assets so appropriated being such amount as the Security Trustee shall determine in a commercially reasonable manner.

 

9.                                      APPOINTMENT AND POWERS OF RECEIVER OR ADMINISTRATOR

 

9.1                                 Appointment of Administrator

 

At any time on or after the Enforcement Date the Security Trustee may appoint an administrator pursuant to the power contained in paragraph 14 of Schedule B1 to the Insolvency Act 1986.

 

9.2                                 Appointment of Receivers

 

The Security Trustee may at any time on or after the Enforcement Date or if any Chargor requests it to do so, by written instrument and without notice to such Chargor, appoint any one or more persons as Receiver of such part of the Charged Assets as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of the relevant Chargor and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925.  The Security Trustee may from time to time by writing under its hand remove any Receiver

 

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appointed by it and may, whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

9.3                                 Receiver as agent

 

A Receiver shall be the agent of the Chargor in respect of which he is appointed and (subject to the provisions of this Deed) such Chargor shall be solely responsible for his acts or defaults and for his remuneration.

 

9.4                                 Powers of Receiver

 

A Receiver shall have all the powers conferred from time to time on receivers and administrative receivers by statute (in the case of powers conferred by the Law of Property Act 1925, without the restrictions contained in section 103 of that Act) and power on behalf and at the expense of the Chargor concerned (notwithstanding liquidation of such Chargor) to do or omit to do anything which such Chargor could do or omit to do in relation to the Charged Assets or any part thereof.  In particular (but without limitation) a Receiver shall have power to do all or any of the following acts and things:

 

(a)                                  Take possession

 

take possession of, collect and get in all or any of the Charged Assets and exercise in respect of the Investments, all voting or other powers or rights available to a registered holder thereof in such manner as he may think fit;

 

(b)                                 Carry on business

 

carry on, manage, develop, reconstruct, amalgamate or diversify the business of such Chargor or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Deed;

 

(c)                                  Borrow money

 

raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to this security or otherwise;

 

(d)                                 Dispose of assets

 

without the restrictions imposed by section 103 Law of Property Act 1925 or the need to observe any of the provisions of sections 99 and 100 of such Act, sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Chargor concerned or otherwise and so that covenants and contractual obligations may be granted

 

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and assumed in the name of and so as to bind such Chargor (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of such Chargor;

 

(e)                                  Form Subsidiaries

 

promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 

(f)                                    Compromise contracts

 

make any arrangement or compromise or enter into or cancel any contracts which he shall think expedient;

 

(g)                                 Repair and maintain assets

 

make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

(h)                                 Appoint employees

 

appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 9 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

(i)                                     Exercise statutory leasehold powers

 

without any further consent by or notice to the Chargor concerned exercise for and on behalf of such Chargor all the powers and provisions conferred on a landlord or a tenant by the Landlord and Tenant Acts, the Rent Acts, the Housing Acts or the Agricultural Holdings Act or any other legislation from time to time in force in any relevant jurisdiction relating to rents or agriculture in respect of any part of the Charged Assets but without any obligation to exercise any of such powers and without any liability in respect of powers so exercised or omitted to be exercised;

 

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(j)                                     Make calls and legal proceedings

 

make calls conditionally or unconditionally on the members of the Chargor concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

(k)                                  Execute documents

 

sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security of the Security Trustee and the Beneficiaries and to use the name of the Chargor concerned for all the purposes aforesaid;

 

(l)                                     Insolvency Act powers

 

do all the acts and things described in schedules 1 or 2 to the Insolvency Act 1986 as if the words “he” and “him” referred to the Receiver and “company” referred to the Chargor concerned; and

 

(m)                               General Powers

 

do all such other acts and things as it may consider desirable or necessary for realising all or any part of the Charged Assets over which he is appointed or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of this Deed; to exercise in relation to all or any part of the Charged Assets over which he is appointed all such powers, authorities and things as he would be capable of exercising if he were the absolute beneficial owner of the same; and to use the name of any Chargor for all or any of such purposes.

 

9.5                                 Remuneration of Receiver

 

The Security Trustee may from time to time determine the remuneration of any Receiver appointed by it without the limitations imposed by section 109 of the Law of Property Act 1925.  A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

10.                               APPLICATION OF PROCEEDS; PURCHASERS

 

10.1                           Application of Proceeds

 

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

 

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10.2                           Insurance Proceeds

 

With the exception of those moneys:

 

(a)                                  which relate to a particular claim and do not exceed £2,500,000;

 

(b)                                 are paid under third party liability insurance to the relevant third party; or

 

(c)                                  which relate to (a) Insurances of leasehold property or leasehold equipment in cases where the relevant lessor is named as loss payee, and (b) Insurances in favour of lenders to any member of the Group where the relevant borrowing is (A) a Permitted Borrowing and (B) either a Finance Lease or secured by a Permitted Encumbrance and (C) either the relevant lender is named as loss payee or naming the Security Trustee would be contrary to the terms of the relevant borrowing;

 

all moneys receivable by virtue of any of the Insurances on or after the Enforcement Date shall be paid to the Security Trustee (or if not paid by the insurers directly to the Security Trustee shall be held on trust for the Security Trustee) and shall, at the option of the Security Trustee, be (i) applied in replacing, restoring or reinstating the property or assets destroyed, damaged or lost (any deficiency being made good by the Chargor which owned the same) or (ii) (except where the Chargor concerned is obligated (as landlord or tenant) to lay out such moneys under any lease of any of the Charged Assets) credited (for a period not exceeding 30 days at the end of which period such moneys shall, at the option of the Security Trustee, be applied in accordance with either (i) above or (iii) below) to an account charged to the Security Trustee (on behalf of the Beneficiaries) in a manner acceptable to the Security Trustee and at the cost of the Chargor concerned as a continuing security for the payment and discharge of the Secured Obligations or (iii) (except where the Chargor concerned is obliged (as landlord, tenant, lessor or lessee) to lay out such insurance moneys under the provisions of any lease of any of the Charged Assets) applied in reduction of the Secured Obligations.  Without prejudice to the foregoing provisions of this Clause 10 the Security Trustee agrees to negotiate with the Chargor concerned in good faith as to the application of any insurance proceeds paid to or held on trust for the Security Trustee.

 

11.                               INDEMNITIES; COSTS AND EXPENSES

 

11.1                           Enforcement Costs

 

Each Chargor hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee or any Receiver shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Deed or any of the Charged Assets on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the relevant Chargor (both before and after judgment) provided that before any such demand is made on a Restricted Guarantor, demand for payment of such expenses shall first have been made on any Chargor which is not a Restricted Guarantor.

 

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11.2                           No liability as Mortgagee in Possession

 

None of the Beneficiaries, the Security Trustee or any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Charged Assets or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such except in the case of fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as the case may be).

 

11.3                           Indemnity from Charged Assets

 

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

 

(a)                                  anything done or omitted in the exercise or purported exercise of the powers contained in this Deed; or

 

(b)                                 any breach by a Chargor of any of its obligations under this Deed; or

 

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

 

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

 

11.4                           Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Charged Assets may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Charged Assets whether or not a Receiver is or has been appointed.

 

12.                               ENFORCEMENT

 

12.1                           When Enforceable

 

If (and only if) the Enforcement Date has occurred then the charges created pursuant to this Deed shall become enforceable.  Section 103 Law of Property Act 1925 shall not apply in respect of any Charged Assets.

 

29



 

12.2                           Authority

 

No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Deed has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

13.                               POWER OF ATTORNEY

 

13.1                           Power of Attorney

 

Each Chargor, by way of security for the performance of its obligations under this Deed, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the Charged Assets and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)                                  to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

(b)                                 to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 6 (Real Property: Perfection) in accordance with the terms thereof; and

 

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

 

13.2                           Ratification

 

Each Chargor ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 (Power of Attorney) shall do or purport to do in the exercise of his powers under such clause.

 

13.3                           General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and each Chargor hereby covenants with the Security Trustee and separately with any such Receiver to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

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14.                               CONTINUING SECURITY AND OTHER MATTERS

 

14.1                           Continuing Security

 

This Deed and the obligations of each Chargor under this Deed shall:

 

(a)                                  secure the ultimate balance of the Secured Obligations from time to time owing notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of such Chargor or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

(b)                                 be in addition to, and shall not merge with or otherwise prejudice or affect, any present or future Security Document, Encumbrance, right or remedy held by or available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)                                  not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

14.2                           Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Documents or other means of payment now or hereafter held by or available to it before enforcing this Deed and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of any Chargor nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

14.3                           New Accounts

 

Notwithstanding that any charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of any Chargor or other Security Provider or open one or more new accounts and the liability of each Chargor hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of any such account.

 

14.4                           Settlements Conditional

 

Any release, discharge or settlement between one or more of the Chargors and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by any of the Chargors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or

 

31



 

law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Deed subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.

 

14.5                           No Release

 

The liability of each Chargor shall not be affected nor shall the charge hereby created be discharged or diminished by reason of:

 

(a)                                  the Incapacity or any change in the name, style or constitution of any Chargor or any other person liable; or

 

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

 

(c)                                  any act or omission which would not have discharged or affected the liability of such Chargor had it been principal debtor instead of guarantor or by anything done or omitted which but for this provision might operate to exonerate such Chargor.

 

14.6                           Restriction of the Chargors’ Rights

 

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

 

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

 

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

 

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

 

(d)                                 claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Security Provider or Chargor or claim or prove in

 

32



 

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

 

14.7                           Recoveries by a Chargor

 

If contrary to Clause 2.3 (No Security) or 14.6 (Restriction of the Chargors’ Rights) any Chargor takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

14.8                           Treatment of “claims”

 

Each Chargor hereby agrees not to assert or enforce (whether by or in a legal or equitable proceeding or otherwise) any, “claims” (as defined in section 101(4) of the United States Bankruptcy Code) against any other Chargor, whether arising under any applicable law or otherwise, to which the Chargor is or would be entitled.  It is hereby acknowledged by the Security Trustee that this Clause 14.8 does not restrict the right of any Chargor to assert or enforce any “claims” against any other Chargor to the extent that such “claims” arise after all the Chargors have been released from all their respective obligations and liabilities hereunder.

 

15.                               CURRENCIES

 

15.1                           Conversion of Currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Deed at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the relevant Chargor shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to any Chargor in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

15.2                           Currency Indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of any Chargor in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the

 

33



 

extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against such Chargor and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

16.                               THE SECURITY TRUST AGREEMENT

 

Each Chargor and the Security Trustee hereby acknowledges that the covenants of such Chargor contained in this Deed and the security and other rights, titles and interests constituted by this Deed and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Deed are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

17.                               MISCELLANEOUS

 

17.1                           Exchange of Information

 

Each Chargor hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Charged Assets unless such information is the subject of a duty of confidentiality on the part of the Security Trustee or any Beneficiary not to disclose such information.

 

17.2                           Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

17.3                           Representations and Warranties

 

Each Chargor represents and warrants to the Security Trustee that:

 

(a)                                  Partners

 

each of the Original Charging Partnerships has as its partners those partners set out in Schedule 2 (Notices of Assignment/Acknowledgements) (with the percentage interest set out therein) and no others;

 

(b)                                 Companies

 

each of the Original Charging Companies has as its shareholders those persons set out in Schedule 1 (Original Charging Companies) (with the percentage interest set out therein) and no others;

 

(c)                                  Assets charged

 

each Chargor has charged all or substantially all of the assets it owns pursuant to the provisions of this Deed; and

 

34



 

(d)                                 Repetition

 

the representation and warranty contained in Clause 17.3(c) shall be deemed to be repeated by each Chargor on the date on which all or any of the representations and warranties contained in clause 21 (Representations and Warranties) of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 

17.4                           No Breach of Memorandum and Articles of Association or Partnership Documents

 

It is hereby certified by each Chargor that neither the execution of this Deed nor the creation of the charges contained in this Deed contravenes any of the provisions of the Memorandum and Articles of Association of such Chargor or partnership documents of such Chargor (as the case may be).

 

17.5                           Statutory Power of Leasing

 

During the continuance of this security the statutory and any other powers of leasing, letting, entering into agreements for leases or lettings and accepting or agreeing to accept surrenders of leases or tenancies shall not be exercised by any Chargor in relation to the Charged Assets or any part thereof.

 

17.6                           Successors

 

Any appointment or removal of a Receiver under Clause 9 (Appointment and Powers of Receiver or Administrator) and any consents under this Deed may be made or given in writing signed or sealed by any successor Security Trustee appointed pursuant to the terms of the Security Trust Agreement and their respective successors in title and accordingly each Chargor hereby irrevocably appoints each successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title to be its attorney in the terms and for the purposes set out therein.

 

17.7                           Consolidation

 

Section 93 Law of Property Act 1925 shall not apply to the security created by this Deed or to any security given to the Security Trustee or any of the Beneficiaries pursuant to this Deed.

 

17.8                           Reorganisation

 

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

 

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17.9                           Unfettered Discretion

 

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

 

17.10                     Provisions Severable

 

Each of the provisions of this Deed is severable and distinct from the others and if any one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Deed shall not in any way be affected or impaired thereby.

 

17.11                     Law of Property (Miscellaneous Provisions) Act 1989

 

For the purposes of the Law of Property (Miscellaneous Provisions) Act 1989 any provisions of any Senior Finance Document relating to any disposition of an interest in land shall be deemed to be incorporated in this Deed.

 

17.12                     No Assignment by the Chargors

 

None of the Chargors may assign or transfer any of its rights or obligations under this Deed.

 

17.13                     Joint and Several Liabilities

 

The covenants, agreements, obligations and liabilities of the Chargors contained in this Deed or implied on their part are joint and several and shall be construed accordingly.

 

17.14                     Liabilities Survive Deficiencies and Releases

 

Each Chargor agrees to be bound by this Deed notwithstanding that any person intended to execute or to be bound by this Deed may not do so or may not be effectually bound and notwithstanding that any charges contained in this Deed may be terminated or released or may be or become invalid or unenforceable against any other Chargor whether or not the deficiency is known to the Security Trustee or any of the Beneficiaries.

 

17.15                     Letters of Non-crystallisation

 

The Security Trustee shall, at the request and cost of any Chargor, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Floating Charge Assets.

 

17.16                     Release

 

Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 14.4 (Settlements Conditional), the Security Trustee shall, at the request and cost of the relevant Chargor, execute and do all such

 

36



 

deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

17.17                     Droit de Discussion / Droit de Division

 

(a)                                  Any right which at any time any Chargor may have under the existing or future laws of Jersey whether by virtue of the droit de discussion or otherwise to require that recourse be had to the assets of any other person before any claim is enforced against such Chargor in respect of the obligations assumed by such Chargor under or in connection with any Senior Finance Document is hereby waived; and

 

(b)                                 any right which at any time any Chargor may have under the existing or future laws of Jersey whether by virtue of the droit de division or otherwise to require that any liability under any guarantee or indemnity given in or in connection with any Senior Finance Document be divided or apportioned with any other person or reduced in any manner whatsoever is hereby waived.

 

18.                               NOTICES

 

18.1                           Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Deed shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on a Chargor in the manner and at the address set out in clause 20 (Notices) of the Group Intercreditor Deed.

 

18.2                           Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Deed shall, save for manifest error, be conclusive and binding upon a Chargor if signed by an officer of the Security Trustee.

 

19.                               LAW AND JURISDICTION

 

19.1                           Governing Law

 

This Deed, including all non-contractual obligations arising out of or in connection with it, shall be governed by English law.

 

19.2                           Submission to Jurisdiction

 

Each Chargor agrees for the benefit of the Security Trustee that any legal action or proceedings in connection with this Deed against any Chargor or any of their respective assets may be brought in the English courts.  Each Chargor irrevocably and unconditionally submits to the jurisdiction of such courts and in the case of each Chargor which is not incorporated or organised under the laws of England and Wales irrevocably designates, appoints and empowers Virgin Media Investment Holdings Limited at its registered office from time to time to receive for it and on its behalf, service of process issued out of the English courts in any legal action or proceedings arising out of or in connection with this Deed.  The submission to such jurisdiction

 

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shall not (and shall not be construed so as to) limit the right of the Security Trustee or any of the Beneficiaries to enforce any judgment obtained in any court referred to in this Clause 19.2 in any jurisdiction in which any of the assets of the Chargor concerned are situated, nor shall the taking of proceedings in any one or more jurisdiction referred to in this Clause 19.2 preclude the taking of proceedings in any other such jurisdiction, whether concurrently or not.

 

19.3                           Inconvenient Forum

 

Each Chargor irrevocably waives any objection it may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in Clause 19.2 (Submission to Jurisdiction) and any claim it may have now or hereafter that any action or proceeding brought in such courts or jurisdiction has been brought in an inconvenient forum.

 

IN WITNESS whereof this Deed has been executed and delivered by or on behalf of the parties on the date stated at the beginning of this Deed.

 

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SCHEDULE 1

 

ORIGINAL CHARGING COMPANIES

 

Part 1

 

English Companies

 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Virgin Media Wholesale Limited (formerly known as Telewest Communications Group Limited)

 

2514287

 

Telewest Communications Holdings Limited

 

1,735,850,552 Ordinary

 

 

 

 

 

 

 

Telewest Communications Cable Limited

 

2883742

 

Telewest Limited

 

1,001,244,940 Ordinary

 

 

 

 

 

 

 

Telewest UK Limited

 

4925679

 

Virgin Media Investments Limited

 

141 Ordinary

 

 

 

 

 

 

 

Telewest Communications Holdings Limited

 

2982404

 

Telewest Communications Networks Limited

 

217 Ordinary

 

 

 

 

 

 

 

Telewest Communications Networks Limited

 

3071086

 

Telewest UK Limited

 

40,652,839,062 Ordinary

 

 

 

 

 

 

 

Telewest Parliamentary Holdings Limited

 

2514316

 

Telewest Communications Holdings Limited

 

2 Ordinary

 

 

 

 

 

 

 

Theseus No 1 Limited

 

2994027

 

Telewest Communications Cable Limited

 

100,000 Ordinary

 

 

 

 

 

 

 

Theseus No 2 Limited

 

2994061

 

Telewest Communications Cable Limited

 

100,000 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Cotswolds) Limited

 

1743081

 

Telewest Communications (Nominees) Ltd.

 

600 B Ordinary
300,000 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

Theseus No. 1 Limited

 

37,500 A Ordinary
75 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

Theseus No. 2 Limited

 

37,500 A Ordinary
75 B Ordinary

 

39



 

 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Telewest Communications (Midlands and North West) Limited

 

2795350

 

Telewest Limited

 

1,386,180,477 Ordinary

 

 

 

 

 

 

 

Southwestern Bell International Holdings Limited

 

2378768

 

Telewest Communications (Midlands and North West) Limited

 

109,348,680 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Midlands) Limited

 

1882074

 

Southwestern Bell International Holdings Limited

 

87,826 Ordinary

 

 

 

 

 

 

 

Telewest Communications (North West) Limited

 

2321124

 

Southwestern Bell International Holdings Limited

 

114,298 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Wigan) Limited

 

2451112

 

Telewest Communications (North West) Limited

 

15,117,731 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Central Lancashire) Limited

 

1737862

 

Telewest Communications (North West) Limited

 

22,544,826 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Liverpool) Limited

 

1615567

 

Telewest Communications (North West) Limited

 

20,772,125 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Cable Communications Limited

 

250,251 Ordinary

 

 

 

 

 

 

 

Telewest Communications (St. Helens & Knowsley) Limited

 

2466599

 

Telewest Communications (North West) Limited

 

2 Ordinary

 

 

 

 

 

 

 

Telewest Communications (London South) Limited

 

1697437

 

Crystal Palace Radio Limited

 

415,490 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Theseus No. 1 Limited

 

52,149 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Theseus No. 2 Limited

 

52,148 Ordinary

 

 

 

 

 

 

 

 

 

 

 

United Cable (London South) Limited Partnership

 

1,389,794 Ordinary

 

40



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Telewest Communications (South West) Limited

 

2271287

 

Telewest Communications (Nominees) Limited on behalf of TCI/US West Cable Communications Group

 

5,072,148 Ordinary

 

 

 

 

 

 

 

Birmingham Cable Corporation Limited

 

2170379

 

Telewest Limited

 

51,073,486 Ordinary

 

 

 

 

 

 

 

Birmingham Cable Limited

 

2244565

 

Virgin Media Wholesale Limited (formerly known as Telewest Communications Group Limited)

 

98,779,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Telewest Limited

 

52,907,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Yorkshire Cable Communications Limited

 

48,362,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Birmingham Cable Corporation Limited

 

2 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Cotswold Cable Limited Partnership

 

405,600 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Estuaries Cable Limited Partnership

 

73,260 Ordinary

 

 

 

 

 

 

 

 

 

 

 

General Cable Limited

 

2,317,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Telewest Communications (Cotswolds) Limited

 

101,400 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Telewest Communications (London South) Limited

 

1,286,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Telewest Communications (Midlands) Limited

 

3,128,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Telewest Communications (North West) Limited

 

1,227,000 Ordinary

 

41



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

 

 

 

 

Telewest Communications (South East) Limited

 

370 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Telewest Communications (South Thames Estuary) Limited

 

370 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Telewest Communications Holdings Limited

 

1,251,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

The Cable Corporation

 

162,000 Ordinary

 

 

 

 

 

 

 

Central Cable Holdings Limited

 

3008567

 

Birmingham Cable Corporation Limited

 

2 Ordinary

 

 

 

 

 

 

 

General Cable Limited

 

2369824

 

Telewest Communications Networks Limited

 

366,453,843 Ordinary

 

 

 

 

 

 

 

General Cable Holdings Limited

 

2798236

 

Telewest Limited

 

100 Deferred Shares
71,295,618 Warrant to Bearer
6,187,735 Ordinary

 

 

 

 

 

 

 

The Cable Corporation Limited

 

2075227

 

General Cable Holdings Limited

 

18,225,389 Ordinary
1,000,000 B Ordinary
2 Special

 

 

 

 

 

 

 

Windsor Television Limited

 

1745542

 

The Cable Corporation Limited

 

3,305,716 Ordinary

 

 

 

 

 

 

 

Middlesex Cable Limited

 

2460325

 

The Cable Corporation Limited

 

2 Ordinary

 

 

 

 

 

 

 

The Yorkshire Cable Group Limited

 

2782818

 

General Cable Holdings Limited

 

88,950,048 Ordinary 10p
88,950,048 Ordinary US$0.01
88,950,048 Deferred

 

 

 

 

 

 

 

Sheffield Cable Communications Limited

 

2465953

 

The Yorkshire Cable Group Limited

 

1,530,750 Ordinary

 

42



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Yorkshire Cable Communications Limited

 

2490136

 

The Yorkshire Cable Group Limited

 

51,808,773 Ordinary

 

 

 

 

 

 

 

Filegale Limited

 

2804553

 

General Cable Holdings Limited

 

511,890 Ordinary

 

 

 

 

 

 

 

Virgin Media Business Limited (formerly known as Imminus Limited)

 

1785381

 

Filegale Limited

 

1,000 Ordinary

 

 

 

 

 

 

 

General Cable Group Limited

 

2872852

 

General Cable Holdings Limited

 

1 Ordinary

 

 

 

 

 

 

 

Cable London Limited

 

01794264

 

Telewest Limited

 

55,572,916 Ordinary

 

 

 

 

 

 

 

Cable Hackney & Islington Limited

 

01795641

 

Cable London Limited

 

26,501,200 Ordinary

 

 

 

 

 

 

 

Cable Camden Limited

 

01795642

 

Cable London Limited

 

1,892 Ordinary

 

 

 

 

 

 

 

Cable Enfield Limited

 

02466511

 

Cable London Limited

 

1,457 Ordinary

 

 

 

 

 

 

 

Cable Haringey Limited

 

01808589

 

Cable London Limited

 

3,496 Ordinary

 

 

 

 

 

 

 

Telewest Limited

 

03291383

 

Telewest Communications Networks Limited

 

7,732,635 Ordinary

 

 

 

 

 

 

 

Telewest Communications (North East) Limited

 

2378214

 

Telewest Communications (Nominees) Limited on behalf of TCI/US West Cable Communications Group

 

1,000 Ordinary

 

 

 

 

 

 

 

Telewest Communications (South East) Limited

 

2270764

 

Telewest Communications (Nominees) Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

TCI/US West Cable Communications Group

 

1 Ordinary

 

 

 

 

 

 

 

Telewest Communications (South Thames Estuary) Limited

 

2270763

 

Telewest Communications (Nominees) Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

TCI/US West Cable Communications Group

 

1 Ordinary

 

43


 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Crystal Palace Radio Limited

 

01459745

 

TCI/US West Cable Communications Group

 

757,951 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Tyneside) Limited

 

2407676

 

Telewest Communications (North East) Limited

 

2 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Nominees) Limited

 

2318746

 

Telewest Communications Holdings Limited

 

2 Ordinary

 

 

 

 

 

 

 

Eurobell (Holdings) Limited

 

2904215

 

Telewest Limited

 

74,354,075 Ordinary

 

 

 

 

 

 

 

Eurobell (Sussex) Limited

 

2272340

 

Eurobell (Holdings) Limited

 

25,500,000 Ordinary

 

 

 

 

 

 

 

Eurobell (South West) Limited

 

1796131

 

Eurobell (Holdings) Limited

 

112,500,000 Ordinary

 

 

 

 

 

 

 

Eurobell (West Kent) Limited

 

2886001

 

Eurobell (Holdings) Limited

 

2 Ordinary

 

 

 

 

 

 

 

Eurobell (IDA) Limited

 

3373001

 

Eurobell (Holdings) Limited

 

1 Ordinary

 

 

 

 

 

 

 

Eurobell Internet Services Limited

 

3172207

 

Eurobell (Holdings) Limited

 

1 Ordinary

 

 

 

 

 

 

 

Eurobell CPE Limited

 

2742145

 

Eurobell (Holdings) Limited

 

2 Ordinary

 

 

 

 

 

 

 

Eurobell Limited

 

2983427

 

Eurobell (Holdings) Limited

 

1 Ordinary

 

 

 

 

 

 

 

EMS Investments Limited

 

3373057

 

Eurobell (IDA) Ltd

 

1 Ordinary

 

 

 

 

 

 

 

Eurobell (No.2) Limited

 

3405634

 

Eurobell Limited

 

1 Ordinary

 

 

 

 

 

 

 

Eurobell (No.3) Limited

 

3006948

 

Eurobell Limited

 

1,430,042 Ordinary

 

 

 

 

 

 

 

Eurobell (No.4) Limited

 

2983110

 

Eurobell Limited

 

2 Ordinary

 

 

 

 

 

 

 

Ed Stone Limited

 

4170969

 

Telewest Communications Networks Limited

 

2 Ordinary

 

 

 

 

 

 

 

United Artists Investments Limited

 

2761569

 

Telewest Communications Networks Limited

 

2 Non-Voting

 

44



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

 

 

 

 

Telewest Communications Networks Limited

 

100 Voting

 

 

 

 

 

 

 

Flextech Business News Limited

 

02954531

 

Flextech Broadband Limited

 

2 Ordinary

 

 

 

 

 

 

 

Flextech Broadband Limited

 

4125315

 

Telewest Communications Networks Limited

 

1,670,600,007 Ordinary

 

 

 

 

 

 

 

Flextech Broadcasting Limited

 

4125325

 

Telewest Communications Networks Limited

 

1,131,810,002 Ordinary

 

 

 

 

 

 

 

Continental Shelf 16 Limited

 

03005499

 

Flextech Broadband Limited

 

2 Ordinary

 

 

 

 

 

 

 

TVS Television Limited

 

0591652

 

Flextech Broadband Limited

 

1,000,000,000 Ordinary

 

 

 

 

 

 

 

TVS Pension Fund Trustees Limited

 

1539051

 

TVS Television Limited

 

2 Ordinary

 

 

 

 

 

 

 

Telso Communications Limited

 

2067186

 

TVS Television Limited

 

7,100,002 Ordinary

 

 

 

 

 

 

 

Screenshop Limited

 

3529106

 

Flextech Broadband Limited

 

2 Ordinary

 

 

 

 

 

 

 

Interactive Digital Sales Limited

 

4257717

 

Flextech Broadband Limited

 

2 Ordinary

 

 

 

 

 

 

 

Flextech Music Publishing Limited

 

3673917

 

Flextech Broadband Limited

 

2 Ordinary

 

 

 

 

 

 

 

Flextech (1992) Limited

 

1190025

 

Flextech Broadband Limited

 

550,104,472 Ordinary

 

 

 

 

 

 

 

Flextech Media Holdings Limited

 

2678886

 

Flextech (1992) Limited

 

1,000 Ordinary

 

 

 

 

 

 

 

Flextech (Kindernet Investment) Limited

 

1260228

 

Flextech (1992) Limited

 

604,788 Ordinary

 

 

 

 

 

 

 

Flextech-Flexinvest Limited

 

1192945

 

Flextech (1992) Limited

 

2 Ordinary

 

 

 

 

 

 

 

Flextech IVS Limited

 

2678882

 

Flextech (1992) Limited

 

10 Ordinary

 

45



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

 

 

 

 

Flextech Media Holdings Limited

 

990 Ordinary

 

 

 

 

 

 

 

Flextech Family Channel Limited

 

2856303

 

Flextech Media Holdings Limited

 

2 Ordinary

 

 

 

 

 

 

 

Flextech Distribution Limited

 

2678883

 

Flextech Media Holdings Limited

 

1,000 Ordinary

 

 

 

 

 

 

 

Flextech Childrens Channel Limited

 

2678881

 

Flextech Media Holdings Limited

 

1,000 Ordinary

 

 

 

 

 

 

 

Flextech Communications Limited

 

2588902

 

Flextech (1992) Limited

 

2,991,256 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Flextech Childrens Channel Limited

 

6,121,786 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Flextech Childrens Channel Limited

 

21 Deferred Ordinary shares

 

 

 

 

 

 

 

Flextech (Travel Channel) Limited

 

3427763

 

Telewest Communications Networks Limited

 

2 Ordinary

 

 

 

 

 

 

 

Flextech Digital Broadcasting Limited

 

3298737

 

Telewest Communications Networks Limited

 

2 Ordinary

 

 

 

 

 

 

 

Flextech Video Games Limited

 

2670821

 

Telewest Communications Networks Limited

 

2 Ordinary

 

 

 

 

 

 

 

Andover Cablevision Limited

 

1932254

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

Berkhamsted Properties & Building Contractors Limited

 

0958564

 

Virgin Media Limited

 

200 Ordinary

 

 

 

 

 

 

 

Cable Television Limited

 

0683065

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

CableTel (UK) Limited

 

2835551

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

CableTel Cardiff Limited

 

2740659

 

CableTel Newport

 

1 Ordinary

 

 

 

 

 

 

 

CableTel Central Hertfordshire Limited

 

2347168

 

Virgin Media Limited

 

1 Ordinary

 

46



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

CableTel Hertfordshire Limited

 

2381354

 

Virgin Media Limited

 

302 Ordinary

 

 

 

 

 

 

 

CableTel Herts and Beds Limited

 

1785533

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

CableTel Investments Limited

 

3157216

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

CableTel Newport

 

2478879

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

CableTel North Bedfordshire Limited

 

2455397

 

Virgin Media Limited

 

302 Ordinary

 

 

 

 

 

 

 

CableTel Surrey and Hampshire Limited

 

2740651

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

CableTel Telecom Supplies Limited

 

2919285

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

CableTel West Glamorgan Limited

 

0623197

 

NTL South Wales Limited

 

852,825 Ordinary

 

 

 

 

 

 

 

CableTel West Riding Limited

 

2372564

 

Virgin Media Communications Limited

 

4 Ordinary

 

 

 

 

 

 

 

Columbia Management Limited

 

2361163

 

Virgin Media Limited

 

200 Ordinary

 

 

 

 

 

 

 

ComTel Cable Services Limited

 

2265315

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

ComTel Coventry Limited

 

0277802

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

Digital Television Network Limited

 

3288768

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

DTELS Limited

 

2834403

 

Virgin Media Limited

 

4 Ordinary

 

 

 

 

 

 

 

Enablis Limited

 

3144815

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

Heartland Cablevision (UK) Limited

 

2415170

 

Virgin Media Limited

 

2 Ordinary

 

47



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Heartland Cablevision II (UK) Limited

 

2443617

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

Herts Cable Limited

 

2390426

 

Maza Limited

 

161 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Virgin Media Limited

 

40 Ordinary

 

 

 

 

 

 

 

Lanbase European Holdings Limited

 

2529290

 

NTL Business Limited

 

128,976 Ordinary

 

 

 

 

 

 

 

Lanbase Limited

 

2617729

 

Lanbase European Holdings Limited

 

50,100 Ordinary

 

 

 

 

 

 

 

Lichfield Cable Communications Limited

 

3016595

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

Maza Limited

 

2785299

 

NTL South Central Limited

 

324 Ordinary

 

 

 

 

 

 

 

Metro Hertfordshire Limited

 

3092899

 

Virgin Media Limited

 

100 Ordinary, 1p

 

 

 

 

 

 

 

Metro South Wales Limited

 

3092897

 

NTL South Wales Limited

 

1 Ordinary

 

 

 

 

 

 

 

Northampton Cable Television Limited

 

2475464

 

Maza Limited

 

161 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Virgin Media Limited

 

40 Ordinary

 

 

 

 

 

 

 

NTL (Aylesbury and Chiltern) Limited

 

2416084

 

NTL (B) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (B) Limited

 

2735732

 

NTL (CWC) Limited

 

7,742,382,438 Ordinary

 

 

 

 

 

 

 

NTL (Broadland) Limited

 

2443741

 

NTL Holdings (Broadland) Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Holdings (Fenland) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL (City and Westminster) Limited

 

2809080

 

NTL (B) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (County Durham) Limited

 

3128449

 

NTL (B) Limited

 

1 Ordinary

 

48


 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL (CRUK)

 

2329254

 

NTL (B) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL (CWC Holdings)

 

3922682

 

NTL Networks Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Rectangle Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL (CWC) Corporation Limited

 

2719477

 

NTL (B) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (CWC) Limited

 

3288998

 

NTL Rectangle Limited

 

1,497,908,912 Ordinary

 

 

 

 

 

 

 

NTL (CWC) Management Limited

 

2924200

 

NTL (B) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL (CWC) No. 2 Limited

 

2441766

 

NTL (B) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (CWC) No. 3 Limited

 

2441768

 

NTL (B) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (CWC) No. 4 Limited

 

2351068

 

NTL (Hampshire) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (CWC) Programming Limited

 

3403986

 

NTL (CWC) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL (CWC) UK

 

2463427

 

Virgin Media Wholesale Limited (formerly known as Telewest Communications Group Limited)

 

1,742,948 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Networks Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL (Ealing) Limited

 

1721894

 

NTL (B) Limited

 

3,092,004 Ordinary

 

 

 

 

 

 

 

BCMV Limited

 

3074517

 

NTL (B) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL (Fenland) Limited

 

2459153

 

NTL Holdings (Broadland) Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Holdings (Fenland) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL (Greenwich and Lewisham) Limited

 

2254009

 

NTL (South London) Limited

 

100 Ordinary

 

49



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL (Hampshire) Limited

 

2351070

 

NTL (B) Limited

 

11,514,450 Ordinary

 

 

 

 

 

 

 

NTL (Harrogate) Limited

 

2404019

 

NTL (YorCan) Limited

 

9,100 Ordinary

 

 

 

 

 

 

 

NTL (Harrow) Limited

 

2459179

 

NTL (B) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (Kent) Limited

 

2456153

 

NTL (South East) Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL (Lambeth and Southwark) Limited

 

2277986

 

NTL (South London) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (Leeds) Limited

 

2400103

 

NTL Holdings (Leeds) Limited

 

16,092,892 Ordinary

 

 

 

 

 

 

 

NTL (Norwich) Limited

 

2332233

 

NTL Holdings (Fenland) Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Holdings (Norwich) Limited

 

3,256,265 Ordinary

 

 

 

 

 

 

 

NTL (Peterborough) Limited

 

2332232

 

NTL Holdings (Norwich) Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Holdings (Peterborough) Limited

 

3,409,351 Ordinary

 

 

 

 

 

 

 

NTL (South East) Limited

 

1870928

 

NTL Holdings (East London) Limited

 

317,520 Ordinary

 

 

 

 

 

 

 

NTL (South London) Limited

 

0657093

 

NTL (B) Limited

 

53,783,358 Ordinary £1.00

 

 

 

 

 

 

 

NTL (Southampton and Eastleigh) Limited

 

1866504

 

NTL (B) Limited

 

11,443,824 Ordinary

 

 

 

 

 

 

 

NTL (Sunderland) Limited

 

2402393

 

NTL (Wearside) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (Thamesmead) Limited

 

2461140

 

NTL (B) Limited

 

10 Ordinary

 

 

 

 

 

 

 

NTL (V) 

 

2719474

 

NTL (B) Limited

 

5,555 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL (CRUK) Limited

 

4,445 Ordinary

 

50



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL (Wandsworth) Limited

 

1866178

 

NTL (South London) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL (Wearside) Limited

 

2475099

 

NTL (B) Limited

 

2,000 Ordinary

 

 

 

 

 

 

 

NTL (West London) Limited

 

1735664

 

NTL (B) Limited

 

3,273,306 Ordinary

 

 

 

 

 

 

 

NTL (YorCan) Limited

 

2371785

 

NTL (B) Limited

 

138,040,090 Ordinary

 

 

 

 

 

 

 

NTL (York) Limited

 

2406267

 

NTL (YorCan) Limited

 

9,100 Ordinary

 

 

 

 

 

 

 

NTL Acquisition Company Limited

 

2270117

 

NTL (B) Limited

 

63,173,881 Ordinary

 

 

 

 

 

 

 

NTL Bolton Cablevision Holding Company

 

2422198

 

NTL CableComms Holdings No. 1 Limited

 

90,162,097 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc.

 

1,073,358 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Streetwide Services Limited

 

1,735,000 Preference

 

 

 

 

 

 

 

NTL Business (Ireland) Limited

 

3284482

 

NTL Business Limited

 

400,000 Ordinary

 

 

 

 

 

 

 

NTL Business Limited

 

3076222

 

Virgin Media Investments Limited

 

35,456,963 Ordinary

 

 

 

 

 

 

 

NTL CableComms Bolton

 

1883383

 

NTL Bolton Cablevision Holding Company

 

86,055,967 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc.

 

869,253 Ordinary

 

 

 

 

 

 

 

NTL CableComms Bromley

 

2422195

 

NTL CableComms Holdings No. 2 Limited

 

24,141,871 A Ordinary 24,764,085 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc

 

496,507 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Bromley Company

 

248,254 B Ordinary

 

51



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

 

 

 

 

NTL Partcheer Company Limited

 

100 Preference

 

 

 

 

 

 

 

NTL CableComms Bury and Rochdale

 

2446183

 

NTL CableComms Holdings No. 1 Limited

 

95,505,035 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

1,136,965 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Manchester Limited

 

2 Preference

 

 

 

 

 

 

 

NTL CableComms Cheshire

 

2379804

 

NTL CableComms Holdings No. 1 Limited

 

123,149,322 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

1,466,063 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Streetunique Projects Limited

 

300 Preference

 

 

 

 

 

 

 

NTL CableComms Derby

 

2387713

 

NTL Derby Cablevision Holding Company

 

1,794,994,086 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

18,131,254 Ordinary

 

 

 

 

 

 

 

NTL CableComms East Lancashire

 

2114543

 

NTL CableComms Holdings No. 1 Limited

 

112,201,720 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

1,335,735 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Streetusual Services Limited

 

14,220,961 Preference

 

 

 

 

 

 

 

NTL CableComms Greater Manchester

 

2407924

 

NTL Manchester Cablevision Holding Company

 

2,229,436,871 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

22,519,566 Ordinary

 

 

 

 

 

 

 

NTL CableComms Group Limited

 

3024703

 

NTL (CWC) Limited

 

2,428 Ordinary

 

52



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL CableComms Holdings No. 1 Limited

 

3709869

 

NTL North CableComms Management, Inc

 

949,541,999 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Wirral Company

 

3,172,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Holdings, Inc

 

19,386,000 Ordinary

 

 

 

 

 

 

 

 

 

 

 

North CableComms LLC

 

1 Ordinary

 

 

 

 

 

 

 

NTL CableComms Holdings No. 2 Limited

 

3709840

 

NTL South CableComms Management, Inc

 

879 Ordinary

 

 

 

 

 

 

 

 

 

 

 

South CableComms LLC

 

114 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Holdings, Inc

 

7 Ordinary

 

 

 

 

 

 

 

NTL CableComms Lancashire No. 1

 

2453249

 

NTL (CWC) Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL UK Telephone and Cable TV Holding Company Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL CableComms Lancashire No. 2

 

2453059

 

NTL (CWC) Limited

 

1 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL UK Telephone and Cable TV Holding Company Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL CableComms Limited

 

2664006

 

NTL UK Telephone and Cable TV Holding Company Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL CableComms Macclesfield

 

2459067

 

NTL CableComms Holdings No. 1 Limited

 

33,778,100 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

402,120 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Streetvision Services Limited

 

2 Preference

 

 

 

 

 

 

 

NTL CableComms Manchester Limited

 

2511868

 

NTL UK Telephone and Cable TV Holding Company Limited

 

3 Ordinary

 

53


 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL CableComms Oldham and Tameside

 

2446185

 

NTL CableComms Holdings No. 1 Limited

 

113,537,455 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

1,351,636 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Manchester Limited

 

2 Preference

 

 

 

 

 

 

 

NTL CableComms Solent

 

2422654

 

NTL CableComms Holdings No. 2 Limited

 

41,560,074 A Ordinary 42,584,122 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc

 

1,024,067 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Solent Company

 

170,678 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Solent Telephone and Cable TV Company Limited

 

282,464 Preference

 

 

 

 

 

 

 

NTL CableComms Staffordshire

 

2379800

 

NTL CableComms Holdings No. 1 Limited

 

134,479,059 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

1,600,941 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Streetunit Projects Limited

 

300 Preference

 

 

 

 

 

 

 

NTL CableComms Stockport

 

2443484

 

NTL CableComms Holdings No. 1 Limited

 

79,519,276 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

946,658 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Strikeagent Trading Limited

 

2 Preference

 

 

 

 

 

 

 

NTL CableComms Surrey

 

2531586

 

NTL CableComms Holdings No. 2 Limited

 

21,039,729 A Ordinary 21,558,169 B Ordinary

 

54



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc

 

518,433 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Surrey Company

 

86,406B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Streetwarm Services Limited

 

299,684 Preference

 

 

 

 

 

 

 

NTL CableComms Sussex

 

2266092

 

NTL CableComms Holdings No. 2 Limited

 

28,978,224 A Ordinary 29,691,974 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc

 

714,039 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Sussex Company

 

119,007 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Streetvital Services Limited

 

3,335 Preference

 

 

 

 

 

 

 

NTL CableComms Wessex

 

2410378

 

NTL CableComms Holdings No. 2 Limited

 

12,843,915 A Ordinary
13,174,944 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc

 

264,151 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Wessex Company

 

132,075 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Microclock Services Limited

 

100 Preference

 

 

 

 

 

 

 

NTL CableComms West Surrey Limited

 

2512757

 

NTL UK Telephone and Cable TV Holding Company Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL CableComms Wirral

 

2531604

 

NTL CableComms Holdings No. 1 Limited

 

3,800,200 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Wirral Company

 

3,815,452 B Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Sideoffer Limited

 

230,805 Preference

 

55



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL Chartwell Holdings Limited

 

3290823

 

NTL (CWC) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Communications Services Limited

 

3403985

 

NTL (CWC) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Derby Cablevision Holding Company

 

2422310

 

NTL CableComms Holdings No. 1 Limited

 

68,876,047 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management Inc

 

819,953 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Strikeamount Trading Limited

 

1,000 Preference

 

 

 

 

 

 

 

NTL Equipment No. 1 Limited

 

2794518

 

NTL (South East) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Equipment No. 2 Limited

 

2071491

 

NTL (B) Limited

 

24,002 Ordinary

 

 

 

 

 

 

 

NTL Glasgow Holdings Limited

 

4170072

 

CableTel West Riding Limited

 

2,150 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Virgin Media Communications Limited

 

2,850 Ordinary

 

 

 

 

 

 

 

Virgin Media Limited

 

2591237

 

Virgin Media Investments Limited

 

5,179,802 Ordinary 5,179,680 New Ordinary

 

 

 

 

 

 

 

NTL Holdings (Broadland) Limited

 

2427172

 

NTL (B) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL Holdings (East London) Limited

 

2032186

 

NTL Acquisition Company Limited

 

8,000,020 Ordinary

 

 

 

 

 

 

 

NTL Holdings (Fenland) Limited

 

2427199

 

NTL (B) Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL Holdings (Leeds) Limited

 

02766909

 

NTL (B) Limited

 

2,450,000 Deferred
88,065,987 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL (CWC) Management Limited

 

1 Ordinary

 

56



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL Holdings (Norwich) Limited

 

2412962

 

NTL (B) Limited

 

976,000 Ordinary

 

 

 

 

 

 

 

NTL Holdings (Peterborough) Limited

 

2888397

 

NTL (B) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Internet Limited

 

2985161

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

Virgin Media Investment Holdings Limited

 

3173552

 

Virgin Media Finance PLC

 

224,552 Ordinary

 

 

 

 

 

 

 

NTL Kirklees

 

2495460

 

CableTel West Riding Limited

 

50 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Kirklees Holdings Limited

 

1,994 Ordinary

 

 

 

 

 

 

 

NTL Kirklees Holdings Limited

 

4169826

 

CableTel West Riding Limited

 

2,150 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Virgin Media Communications Limited

 

2,850 Ordinary

 

 

 

 

 

 

 

NTL Limited

 

2586701

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL Manchester Cablevision Holding Company

 

2455631

 

NTL CableComms Holdings No. 1 Limited

 

255,446,878 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

3,041,034 A Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Strikeapart Trading Limited

 

2 Preference

 

 

 

 

 

 

 

NTL Microclock Services Limited

 

2861856

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Milton Keynes Limited

 

2410808

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Networks Limited

 

3045209

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Partcheer Company Limited

 

2861817

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

57



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL Rectangle Limited

 

4329656

 

Virgin Media Limited

 

1,001 Ordinary

 

 

 

 

 

 

 

NTL Sideoffer Limited

 

2927099

 

NTL UK Telephone and Cable TV Holding Company Limited

 

89 Deferred

 

 

 

 

 

 

 

 

 

 

 

NTL UK CableComms Holdings, Inc

 

11 Deferred

 

 

 

 

 

 

 

 

 

 

 

NTL UK Telephone and Cable TV Holding Company Limited

 

89 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Warrant to Bearer

 

11 Ordinary

 

 

 

 

 

 

 

NTL Solent Telephone and Cable TV Company Limited

 

2511653

 

NTL UK Telephone and Cable TV Holding Company Limited

 

12 Ordinary

 

 

 

 

 

 

 

NTL South Central Limited

 

2387692

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL South Wales Limited

 

2857050

 

CableTel Newport

 

1 Ordinary

 

 

 

 

 

 

 

NTL Streetunique Projects Limited

 

2851203

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Streetunit Projects Limited

 

2851201

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Streetusual Services Limited

 

2851019

 

NTL UK Telephone and Cable TV Holding Company Limited

 

4,294,775 Ordinary

 

 

 

 

 

 

 

NTL Streetvision Services Limited

 

2851020

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Streetvital Services Limited

 

2851021

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

58


 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL Streetwarm Services Limited

 

2851011

 

NTL UK Telephone and Cable TV Holding Company Limited

 

92 Deferred

 

 

 

 

 

 

 

 

 

 

 

NTL UK CabelComms Holdings, Inc

 

9 Deferred

 

 

 

 

 

 

 

 

 

 

 

NTL UK Telephone and Cable TV Holding Company Limited

 

92 Ordinary

 

 

 

 

 

 

 

 

 

 

 

Warrant to Bearer

 

9 Ordinary

 

 

 

 

 

 

 

NTL Streetwide Services Limited

 

2851013

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Strikeagent Trading Limited

 

2851014

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Strikeamount Trading Limited

 

2851015

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Strikeapart Trading Limited

 

2851018

 

NTL UK Telephone and Cable TV Holding Company Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Systems Limited

 

3217975

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL Technical Support Company Limited

 

2512756

 

NTL UK Telephone and Cable TV Holding Company Limited

 

2 Ordinary

 

 

 

 

 

 

 

ntl Telecom Services Limited

 

2937788

 

Virgin Media Wholesale Limited (formerly known as Telewest Communications Group Limited)

 

910,000 Ordinary

 

 

 

 

 

 

 

NTL UK Telephone and Cable TV Holding Company Limited

 

2511877

 

NTL UK CableComms Holdings, Inc

 

2 Deferred

 

 

 

 

 

 

 

 

 

 

 

Warrant to Bearer

 

2

 

59



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

NTL Westminster Limited

 

1735641

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Winston Holdings Limited

 

3290821

 

NTL (CWC) Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Wirral Telephone and Cable TV Company

 

2511873

 

NTL CableComms East Lancashire

 

49,790,204 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc

 

501,599 Ordinary

 

 

 

 

 

 

 

Secure Backup Systems Limited

 

3130333

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

Southern East Anglia Cable Limited

 

02905929

 

NTL Cambridge Limited

 

2 Ordinary

 

 

 

 

 

 

 

Stafford Communications Limited

 

2381842

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

Swindon Cable Limited

 

0318216

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

Tamworth Cable Communications Limited

 

3016602

 

Virgin Media Limited

 

2 Ordinary

 

 

 

 

 

 

 

Vision Networks Services UK Limited

 

3135501

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

Wessex Cable Limited

 

2433185

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

X-Tant Limited

 

3580901

 

Virgin Media Limited

 

372,000 Ordinary

 

 

 

 

 

 

 

Anglia Cable Communications Limited

 

2433857

 

ntl Cambridge Limited

 

2 Ordinary

 

 

 

 

 

 

 

Cable Thames Valley Limited

 

2254089

 

Virgin Media Limited

 

4 Ordinary

 

 

 

 

 

 

 

Cambridge Cable Services Limited

 

3262220

 

ntl Cambridge Limited

 

2 Ordinary

 

 

 

 

 

 

 

CCL Corporate Communications Services Limited

 

2955679

 

ntl Cambridge Limited

 

2 Ordinary

 

60



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Credit-Track Debt Recovery Ltd

 

2425789

 

ntl Cambridge Limited

 

800 Ordinary

 

 

 

 

 

 

 

East Coast Cable Limited

 

2352468

 

ntl Cambridge Limited

 

10,100 Ordinary

 

 

 

 

 

 

 

NTL Darlington Limited

 

2533674

 

NTL (Triangle) LLC

 

93,623 Ordinary

 

 

 

 

 

 

 

NTL Finance Limited

 

5537678

 

Virgin Media Investment Limited

 

2 Ordinary

 

 

 

 

 

 

 

NTL Teesside Limited

 

2532188

 

NTL (Triangle) LLC

 

367,988 Ordinary

 

 

 

 

 

 

 

XL Debt Recovery Agency Limited

 

3303903

 

NTL Teesside Limited

 

2 Ordinary

 

 

 

 

 

 

 

Cambridge Holding Company Limited

 

2670603

 

NTL (Triangle) LLC

 

132 Ordinary

 

 

 

 

 

 

 

Diamond Cable Communications Limited

 

2965241

 

Virgin Media Investments Limited
VMIH Sub Limited

 

44,354,139 Ordinary

14,784,713 Ordinary

 

 

 

 

 

 

 

Jewel Holdings

 

3085518

 

Diamond Cable Communications Limited

 

40 Ordinary

 

 

 

 

 

 

 

ntl Cambridge Limited

 

2154841

 

Cambridge Holding Company Limited

 

186,587,842 Ordinary

 

 

 

 

 

 

 

ntl Midlands Limited

 

2357645

 

Diamond Cable Communications Limited

 

29,016,691 Ordinary

 

 

 

 

 

 

 

Virgin Net Limited

 

2833330

 

NTL Internet Services Limited

 

13,317,888 Ordinary

 

 

 

 

 

 

 

NTL Internet Services Limited

 

4038930

 

VMIH Sub Limited

 

142 Ordinary

 

 

 

 

 

 

 

NTL National Networks Limited

 

5174655

 

Virgin Media Wholesale Limited (formerly known as Telewest Communications Group Limited)

 

2 Ordinary

 

 

 

 

 

 

 

ntl Irish Holdings Limited

 

5313953

 

NTL (Triangle) LLC

 

100 Ordinary

 

61



 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

VMIH Sub Limited

 

5316140

 

Virgin Media Investments Limited

 

610 Ordinary

 

 

 

 

 

 

 

NTL Victoria Limited

 

5685196

 

Virgin Media Investments Limited

 

100 Ordinary

 

 

 

 

 

 

 

NTL Victoria II Limited

 

5685189

 

Flextech Broadband Limited

 

2 Ordinary

 

 

 

 

 

 

 

Oxford Cable Limited

 

2450228

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

M&NW Network Limited

 

6763496

 

Telewest Communications (Midlands & North West) Limited

 

1 Ordinary

 

 

 

 

 

 

 

M&NW Network II Limited

 

6765761

 

Telewest Communications (Midlands & North West) Limited

 

1 Ordinary

 

 

 

 

 

 

 

Flextech Limited

 

02688411

 

Telewest UK Limited

 

158,978,780 Ordinary

 

 

 

 

 

 

 

Fleximedia Limited

 

02654520

 

Flextech Limited

 

34,304,471 Ordinary

 

 

 

 

 

 

 

Virgin Mobile Telecoms Limited

 

03707664

 

Virgin Mobile Group (UK) Limited

 

19,574 Ordinary

 

 

 

 

 

 

 

Virgin Mobile Group (UK) Limited

 

05050748

 

Virgin Mobile Holdings (UK) Limited

 

4 Ordinary

 

 

 

 

 

 

 

Virgin Mobile Holdings (UK) Limited

 

03741555

 

Virgin Media Investments Limited

 

264,695,403 Ordinary

 

 

 

 

 

 

 

Virgin Media Payments Ltd

 

06024812

 

Virgin Media Limited

 

1,000 Ordinary

 

 

 

 

 

 

 

Virgin Media Investments Limited

 

7108297

 

Virgin Media Investment Holdings Limited

 

1,000,143 Ordinary

 

 

 

 

 

 

 

Virgin Media Secured Finance Plc

 

7108352

 

Virgin Media Investment Holdings Limited

Virgin Media Limited

 

49,999 Ordinary



1 Ordinary

 

62


 

Part 2

 

Scottish Companies

 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Telewest Communications (Dundee & Perth) Limited

 

SC096816

 

Telewest Communications Scotland Holdings Limited

 

17,560,989 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Motherwell) Limited

 

SC121617

 

Telewest Communications Scotland Holdings Limited

 

113,637,702 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Scotland) Limited

 

SC080891

 

Telewest Communications Scotland Holdings Limited

 

480,000 Ordinary

 

 

 

 

 

 

 

Telewest Communications (Scotland Holdings) Limited

 

SC150058

 

Telewest Limited

 

48,236,221 Ordinary

 

 

 

 

 

 

 

Prospectre Limited

 

SC145280

 

Virgin Media Limited

 

1 Ordinary

 

 

 

 

 

 

 

NTL Glasgow

 

SC075177

 

NTL Glasgow Holdings Limited

 

16,493,454 Ordinary

 

 

 

 

 

 

 

 

 

 

 

CableTel Scotland Limited

 

6,796,816 Ordinary

 

 

 

 

 

 

 

CableTel Scotland Limited

 

SC119938

 

Virgin Media Communications Limited

 

83,533,237 Ordinary

 

 

 

 

 

 

 

 

 

 

 

NTL Glasgow

 

7,977,812 Ordinary

 

63



 

Part 3

 

Jersey Companies

 

(1)
COMPANY NAME

 

(2)
COMPANY
NUMBER

 

(3)
SHAREHOLDER

 

(4)
NO. OF SHARES

 

 

 

 

 

 

 

Birmingham Cable Finance Limited

 

60972

 

Birmingham Cable Limited

 

175,020 Ordinary

 

64



 

SCHEDULE 2

 

ORIGINAL CHARGING PARTNERSHIPS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE OF
BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

 

 

 

 

 

 

 

Cotswolds Cable Limited Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

 

 

 

 

 

 

Estuaries Cable Limited Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

 

 

 

 

 

 

TCI/US WEST Cable Communications Group

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

50% - Theseus No.1 Limited
50% - Theseus No.2 Limited

 

Colorado General

 

 

 

 

 

 

 

Tyneside Cable Limited Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

 

 

 

 

 

 

Telewest Communications (North East) Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

99% - Tyneside Cable Limited Partnership
0.9% - Telewest Communications (North East) Limited
0.1% - Telewest Communications (Tyneside) Limited

 

English General

 

 

 

 

 

 

 

Telewest Communications (South East) Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

99% - Estuaries Cable Limited Partnership
0.5% - Telewest Communications (South East) Limited
0.5% - Telewest Communications (South Thames Estuary) Limited

 

English General

 

65



 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE OF
BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

 

 

 

 

 

 

 

London South Cable Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

97.75% - United Cable (London South) Limited Partnership
2.25% - Crystal Palace Radio Limited

 

Colorado General

 

 

 

 

 

 

 

Avon Cable Limited Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group
0% - Limited - Avon Cable Investments Limited

 

Colorado Limited

 

 

 

 

 

 

 

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

 

 

 

 

 

 

United Cable (London South) Limited Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

 

 

 

 

 

 

Avon Cable Joint Venture

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

95% - Avon Cable Partnership
5% - Telewest Communications (South West) Limited

 

English General

 

 

 

 

 

 

 

Telewest Communications (London South) Joint Venture(1)

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

75% - London South Cable Partnership
25% - Telewest Communications (London South) Limited

 

English General

 


(1)  Division of profits and losses depends on operation of formula

 

66



 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE OF
BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

 

 

 

 

 

 

 

Telewest Communications (Cotswolds) Venture

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

80% - Cotswolds Cable Limited Partnership
20% - Telewest Communications (Cotswolds) Limited

 

English General

 

 

 

 

 

 

 

Telewest Communications (Scotland) Venture

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

99% - Edinburgh Cable Limited Partnership
1% - Telewest Communications (Scotland) Limited

 

English General

 

 

 

 

 

 

 

Chartwell Investors Limited Partnership

 

2930 East Third Avenue Denver
Colorado
80206
USA

 

20% - NTL Chartwell Holdings Limited (General Partner and Limited Partner)
43.1% - NTL Chartwell Holdings, Inc (Limited Partner)
36.9% - NTL Chartwell Holdings 2, Inc (Limited Partner) 36.9%.

 

Delaware Limited Partnership

 

67


 

SCHEDULE 3

 

THE PRIOR CHARGES

 

 

Company/Partnership

 

Encumbrance

 

 

 

 

(A)

Telewest Communications (South East) Limited

 

(a)                                  Mortgage of deposited moneys dated 21st January, 1994 with Electricity Supply Nominees Limited.

 

 

 

 

 

 

 

(b)                                 Deed of Variation and Further Charge dated 26th June, 1995 with Electricity Supply Nominees Limited.

 

 

 

 

(B)

Sheffield Cable Communications Limited

 

Legal Charge (i) dated 24 December 1996 granted over 1 Chippingham Street, Sheffield and (ii) dated 12 November 1999 leasehold property known as 1.62 acres of land at Sheffield Technology Park, each in favour of Barclays Bank PLC.

 

 

 

 

(C)

Yorkshire Cable Communications Limited

 

Legal Charge dated 16 June 1992 granted over Units 8, 9, 10 and adjoining land, Mayfair Business Park, Sticker Lane, Bradford, West Yorkshire in favour of Barclays Bank PLC.

 

 

 

 

(D)

Yorkshire Cable Communications Limited

 

Legal Charge dated 24 December 1996 granted over Units 4 and 5, Mayfair Business Park, Broad Lane, Bradford in favour of Barclays Bank PLC.

 

 

 

 

(E)

Yorkshire Cable Communications Limited

 

Legal Charge dated 24 December 1996 granted over Units 8, 9, 10 and adjoining land, Mayfair Business Park, Broad Lane, Bradford in favour of Barclays Bank PLC.

 

 

 

 

(F)

Yorkshire Cable Communications Limited

 

Legal Charge dated 24 December 1996 granted over Units 6 and 7, Mayfair Business Park, Broad Lane, Bradford in favour of Barclays Bank PLC.

 

 

 

 

(G)

Yorkshire Cable Properties Limited

 

Legal Charge dated 24 December 1996 granted over Units 8, 9, 10 and adjoining land, Mayfair Business Park, Broad Lane, Bradford in favour of Barclays Bank PLC.

 

 

 

 

(H)

The Yorkshire Cable Group Limited

 

Collateral Account Security Assignment dated on or about the date hereof in favour of Robert Fleming Leasing (Number 4) Limited.

 

68



 

SCHEDULE 4

 

NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

 

Part 1

 

Intercompany Indebtedness

 

Part 1A

 

Form of Notice of Assignment

 

To:                              [specify relevant intercompany debtor]

 

[Date]

 

Dear Sirs,

 

We, [specify relevant Chargor], hereby give you notice that:

 

1.                                       pursuant to a debenture dated [·] (the “Debenture”) (a copy of which is appended hereto) entered into by (inter alios) us in favour of [·] as security trustee for the Beneficiaries as therein defined (the “Security Trustee”) we have assigned the following assets to the Security Trustee:

 

(a)                                  all our present and future rights, title, benefits and interests in and under the loan agreements dated [specify] (the “Intercompany Loan Agreement(s)”);

 

(b)                                 all our present and future rights, title benefit and interest in and to all principal and interest payable under the Intercompany Loan Agreement(s) and any other amounts payable in respect thereof;

 

2.                                       the Security Trustee has agreed that, until such time as the Security Trustee notifies you to the contrary, we may continue to exercise all of our rights under the Intercompany Loan Agreement(s);

 

3.                                       upon the security granted by the Debenture becoming enforceable, we may not vary extend release determine or rescind any of the Intercompany Loan Agreement(s) or grant time for payment or indulgence or compound with discharge waive release set off or vary the liability of any other person thereunder or consent to any act or omission as would otherwise constitute a breach or concur in accepting or varying any compromise arrangement or settlement relating thereto or do or suffer any act or thing or permit any set off whereby the recovery of any moneys payable may be delayed or impeded;

 

4.                                       the authority and instructions herein contained cannot be revoked or varied by us without the prior written consent of the Security Trustee.

 

69



 

Please acknowledge receipt of this notice by signing the acknowledgement attached to the enclosed copy letter and returning the same to the Security Trustee.

 

Yours faithfully,

 

 

 

For and on behalf of

 

[Specify relevant Chargor]

 

 

 

 

 

 

 

Authorised Officer

 

 

70



 

Part 1B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:                              [·]

 

[Date]

 

Dear Sirs,

 

1.                                       We refer to the notice of assignment issued to us by [specify relevant Chargor].

 

2.                                       Unless the context otherwise requires, terms defined in, or incorporated by reference into, the Debenture (as defined below) shall bear the same meaning herein.

 

3.                                       We hereby:

 

(a)                                  acknowledge receipt of notice from [specify relevant Chargor] that, by a debenture dated [·] (the “Debenture”) and made between (inter alios) [specify relevant Chargor] and the Security Trustee, [specify relevant Chargor] has assigned to the Security Trustee all of its present and future rights, title, benefits and interests in and under the Intercompany Loan Agreement(s), as therein defined;

 

(b)                                 agree to, and accept, the making of such assignment;

 

(c)                                  undertake to the Security Trustee to accept as valid, and act upon and observe where required, any notices or demands given or made by the Security Trustee in respect of the Intercompany Loan Agreement(s) in place of [specify relevant Chargor];

 

(d)                                 agree to deliver to the Security Trustee copies of all notices delivered by us to [specify relevant Chargor];

 

(e)                                  acknowledge that the making of the assignment referred to above shall not affect the liability of [specify relevant Chargor] to perform all the obligations assumed by it under the Intercompany Loan Agreement(s) and that the Security Trustee shall have no obligations (whether in place of [specify relevant Chargor] or otherwise) in respect of the Intercompany Loan Agreement(s) except insofar as such obligations may arise as a result of the Security Trustee exercising any of those rights conferred upon it under any agreement between (inter alios) us and the Security Trustee relating to the Assigned Assets; and

 

(f)                                    confirm that we have not received any prior notice of assignment, transfer or charge in respect of [specify relevant Chargor], rights, title, benefits and interests in and under the Intercompany Loan Agreement(s).

 

71



 

4.                                       This Acknowledgement including all non-contractual obligations arising out of or in connection with it, shall be governed by English law.

 

Yours faithfully,

 

 

 

For and on behalf of

 

[·]

 

 

 

 

 

 

 

Authorised Officer

 

 

72



 

Part 2

 

Insurances

 

Part 2A

 

Form of Notice of Assignment

 

To:                              [insert name of insurer]

 

[Date]

 

Dear Sirs,

 

We, [specify relevant Chargor], hereby give you notice that:

 

(i)                                     pursuant to a debenture dated [·] (the “Debenture”) we have charged and assigned to [  ] (as security trustee for the Beneficiaries referred to in the Debenture, the “Security Trustee”) all our rights, title, interests and benefits in, to or in respect of the insurance policies with you detailed in Part 1 of the Schedule attached hereto (the “Insurances”) including all claims and returns of premiums in respect thereof to which we are, or may at any future time become, entitled.

 

With effect from your receipt of this notice we hereby request and instruct that:

 

1.                                       you immediately name the Beneficiaries (details of whom are set out in Part 2 of the Schedule attached hereto) and the Security Trustee (in its capacity as security trustee) as loss payee in respect of each of the Insurances);

 

2.                                       upon the security granted by the Debenture in respect of the Insurances becoming enforceable (as notified to you by the Security Trustee):

 

(a)                                  all payments under or arising from the Insurances are to be made to the Security Trustee or to its order;

 

(b)                                 all remedies provided for in the Insurances or available at law or in equity are to be exercisable by the Security Trustee;

 

(c)                                  all rights to compel the performance of the Insurances are to be exercisable by the Security Trustee; and

 

(d)                                 all rights, title, interests and benefits whatsoever accruing to or the benefit of ourselves arising from the Insurances shall belong to the Security Trustee; and

 

3.                                       you give notice to the Security Trustee promptly in writing:

 

(a)                                  if we propose to cancel or give notice of cancellation of any Insurance, at least 30 days before such cancellation is to take effect;

 

(b)                                 of any material alteration or the termination or expiry of any such Insurance, at least 30 days before such alteration, termination or expiry is to take effect; and

 

73



 

(c)                                  of any default in the payment of any premium or failure to renew any such Insurance and shall give the Security Trustee not less than 30 days in which to pay the defaulted premium without cancelling the policy during such 30 days period.

 

Please confirm your receipt of this notice and your acknowledgement of the matters and instructions set out above by signing and dating the Acknowledgement of Assignment set out on the enclosed copy of this notice, and returning the same to the Security Trustee with a copy to ourselves.

 

Yours faithfully,

 

 

 

For and on behalf of

 

[Specify relevant Chargor]

 

 

 

 

 

 

 

Authorised Officer

 

 

74


 

SCHEDULE

 

Part 1

 

Relevant Insurance Policies

 

[List All Policies in respect of which notice given]

 

Part 2

 

Beneficiaries

 

[List Beneficiaries]

 

75



 

Part 2B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [·]

as Security Trustee

 

[Date]

 

Dear Sirs,

 

We hereby acknowledge receipt of a notice in the terms set out above (the “Notice”).

 

We confirm that we shall hereafter act in accordance with the Notice and that we have not received any other notice of any other third party interests whether by way of assignment or charge in respect of any of the Insurances.

 

We further confirm that no amendment or termination of any of the Insurances shall be effective unless we have given you [30] days’ prior written notice of our intention to so amend or terminate the same.

 

Yours faithfully,

 

 

 

 

 

(Authorised Signatory)

 

 

 

[INSURER]

 

 

 

Date:

 

 

76



 

SCHEDULE 5

 

DETAILS OF CHARGED LAND

 

Part 1

 

English Charged Land

 

Part 1A

 

Registered Land

 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

 

 

 

 

 

 

 

 

 

 

 

CableTel Herts and Beds Limited

 

All that freehold land and buildings to the west of Duke Street and in Burr Street Luton Bedfordshire

 

Leasehold

 

BD238006

 

20 years from 01/03/1994

 

22 December 1995

 

 

 

 

 

 

 

 

 

 

 

CableTel (UK) Limited

 

Units 2 and 3 Guildford Industrial Estate Middleton Road Guildford Surrey GU2 8YT

 

Leasehold

 

SY640470

 

20/09/1993 to 25/03/2016

 

7 January 1994

 

 

 

 

 

 

 

 

 

 

 

NTL (South East) Limited

 

Unit 2 Waltham Park Billett Road Walthamstow London E17

 

Leasehold

 

EGL471928

 

20 years from 15/06/1994

 

15 June 1994

 

 

 

 

 

 

 

 

 

 

 

NTL (Broadband) Limited

 

Premises situated on the west side of Owen Road Great Yarmouth

 

Leasehold

 

NK240261

 

25 years from 01/01/1998

 

25 October 1999

 

 

 

 

 

 

 

 

 

 

 

BCMV Limited

 

Belmont House 11-29 (odd) Belmont Hill London SE13

 

Freehold

 

279230 SGL10137

 

 

 

 

 

77



 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

 

 

 

 

 

 

 

 

 

 

 

 

 

5AU

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BCMV Limited

 

1 Middleton Grove Leeds

 

Freehold

 

YWE43447

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL (Norwich) Limited

 

Unit D1 Wensum Point Whiffler Road Norwich

 

Leasehold

 

NK90114

 

25 years from 25/03/1990

 

4 May 1990

 

 

 

 

 

 

 

 

 

 

 

BCMV Limited

 

Land and buildings on the north side of Westfield Road Peterborough Cambridgeshire PE3 9TJ

 

Freehold

 

CB184393

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BCMV Limited

 

Site BT77/2 Pennywell Industrial Estate Sunderland Tyne & Wear SR4 9EN

 

Freehold

 

TY318087

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL (YorCan) Limited

 

Land on the north east side of Millfield Land Nether Poppleton Harrogate North Yorkshire

 

Freehold

 

NYK170592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Bromley

 

Beeline House Farwig Lane Bromley and land on the north side of Farwig Lane Bromley

 

Freehold

 

SGL412982 SGL447749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Derby Limited

 

Units B and C Chequers Business Park Chequers

 

Freehold

 

DY257942

 

 

 

 

 



 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

 

 

 

 

 

 

 

 

 

 

 

 

 

Lane Derby DE1 6AT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Limited

 

Land on the north west side of Moss Street East Ashton Under Lyne Tameside Manchester

 

Freehold

 

GM679465

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land on the east side of Shield Drive Wardley Industrial Estate Worsley Manchester M28 2AA

 

Freehold

 

GM655008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Land and buildings on the east side of Holmsfield Road Warrington Cheshire WA1 2DS

 

Leasehold

 

CH101039

 

99 years from 01/08/1974

 

31 December 1974
As varied on 31 July 1984

 

 

 

 

 

 

 

 

 

 

 

 

 

Windsor House Southmoor Road Wythenshaw Manchester M23 9WX

 

Freehold

 

GM856408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Oldham and Tameside

 

Unit 8 Westwood Business Centre Featherstall Road South Oldham Greater Manchester OL9 6HN

 

Leasehold

 

GM687716

 

25 years from 03/11/1994

 

23 February 1995

 

78



 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Solent

 

Unit 6 and land between units 6 and 7 Acorn Business Centre Northarbour Road Cosham Portsmouth Hampshire PO6 3TH

 

Leasehold

 

HP466046

 

999 years from 24/06/1989

 

15 June 1993
Supplemental lease dated 22 October 1993

 

 

 

 

 

 

 

 

 

 

 

 

 

Unit 7 Acorn Business Centre Northarbour Road Corsham Portsmouth Hampshire

 

Leasehold

 

HP434616

 

25 years from 23/03/1991

 

3 October 1991

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Staffordshire 

 

Unit G & H Dewsbury Road Fenton Stock on Trent Staffordshire (referred to as land on the south east side of Dewsbury Road Bury Hill Industrial Estate Fenton ST4 2XJ on the registered entries)

 

Freehold

 

SF347453

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Stockport 

 

Unit 1 Milton Court Bredbury Industrial Part Horsfield Way Stockport

 

Leasehold

 

GM673079

 

25 years from 05/09/1994

 

5 September 1994

 



 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Manchester

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Surrey 

 

Land on the north eastern side of Kingston Road Ewell Epsom

 

Freehold

 

SY700327

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Conder Building North Weylands Industrial Estate Molesey Road Hersham Surrey Walton on Thames KT12 3PL

 

Leasehold

 

SY634976

 

25 years from 01/11/1992

 

17 May 1993

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Sussex

 

Land on the south side of Basin Road South Portslade Hove

 

Leasehold

 

ESX186551

 

25 years from 29/09/1991

 

30 January 1992

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Wirral

 

Unit BT379/25 Croft Business Park Bromborough Wirral Merseyside

 

Leasehold

 

MS362086

 

125 years from 01/12/1994

 

9 December 1994

 

 

 

 

 

 

 

 

 

 

 

NTL Communications Services Limited

 

Volvo House Second Avenue Millbrook Trading Estate Southampton

 

Leasehold

 

HP602575

 

25 years from 29/09/2000

 

22 March 2001

 

 

 

 

 

 

 

 

 

 

 

NTL (CWC) Limited

 

Matrix Court Swansea Enterprise Park Swansea

 

Leasehold

 

CYM49909

 

125 years (less 10 days) from 29/09/1990

 

28 June 1999

 

79


 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

 

 

 

 

 

 

 

 

 

 

 

Virgin Media Limited (formerly NTL Group Limited)

 

All that freehold land and buildings on the north west side of Gladstone Road Northampton

 

Freehold

 

NN202140

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Virgin Media Limited (formerly NTL Group Limited)

 

All that leasehold property known as Unit G Heathrow West Business Park Heron Drive Parlaunt Road Langley Slough Berkshire

 

Leasehold

 

BK395754

 

02/07/1998
To
24/12/2018

 

2 July 1998

 

 

 

 

 

 

 

 

 

 

 

NTL South Wales Limited

 

Unit 29, Portmanmoor Road Industrial Estate Portmanmoor Road Cardiff CF24 5HB

 

Freehold

 

WA719526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Wirral Telephone and Cable TV Company

 

Land lying to the south east of Phillips Road Blackburn Lancashire

 

Freehold

 

LA626118

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Cambridge Limited

 

All the freehold property known as land on the east side of Ainsworth Street Cambridge

 

Freehold

 

CB27930

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

82



 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

 

 

 

 

 

 

 

 

 

 

 

NTL Teeside Limited

 

All the freehold property known as Moss Way Preston Farm Business Park Stockton on Tees Cleveland

 

Freehold

 

CE136840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL (South East) Limited

 

Unit 4a Goodmayes Retail Park High Road Chadwell Heath Redbridge

 

Leasehold

 

EGL507847

 

25 years from 25/12/1988

 

23 September 1994

 

 

 

 

 

 

 

 

 

 

 

Virgin Mobile Telecoms Limited

 

Pavilian 1,
Whitehorse
Business Park
Trowbridge

 

Leasehold

 

WT239557

 

10 years from 20/04/2005

 

20 April 2005

 

 

 

 

 

 

 

 

 

 

 

Virgin Mobile Telecoms Limited

 

Pavilian 2,
Whitehorse
Business Park
Trowbridge

 

Leasehold

 

WT239559

 

10 years from 20/04/2005

 

20 April 2005

 

 

 

 

 

 

 

 

 

 

 

Virgin Mobile Telecoms Limited

 

Pavilian 3,
Whitehorse
Business Park
Trowbridge

 

Leasehold

 

WT239556

 

10 years from 20/04/2005

 

20 April 2005

 

 

 

 

 

 

 

 

 

 

 

East Coast Cable Limited

 

Land on the north side of Newcomen Way, Colchester

 

Freehold

 

EX529079

 

10 years from 20/04/05

 

20 April 2005

 

 

 

 

 

 

 

 

 

 

 

Virgin Media Limited (formerly NTL Group Limited)

 

Unit 1
Chequers Lane
Derby

 

Leasehold

 

DY402901

 

15 years from 18/05/2006

 

18 May 2006

 

83



 

Part 1B

 

Unregistered Land

 

The freehold/leasehold property known as and comprised in the following title deed(s) or other document(s) of title:

 

CHARGOR

 

ADDRESS

 

FREEHOLD/LEASEHOLD

 

DATE OF LEASE
(IF
LEASEHOLD)

 

 

 

 

 

 

 

NTL (CWC) Corporation Limited

 

Unit 5 Bittacy
Business Centre,
Mill Hill, London,
NW7

 

Leasehold

 

5 July 1996

 

 

 

 

 

 

 

 

 

Unit 3 Bittacy
Business Centre,
Mill Hill, London,
NW7

 

Leasehold

 

5 July 1996

 

 

 

 

 

 

 

NTL Kirklees

 

Unit 11 Shaw Park
Silver Street
Huddersfield

 

Leasehold

 

6 February 1995

 

 

 

 

 

 

 

 

 

Land to the east of
Unit 11 Shaw Park
Silver Street
Huddersfield

 

Leasehold

 

22 May 1995

 

84



 

Part 2

 

Scottish Charged Land

 

Name of
Chargor

 

Address

 

Freehold /
Leasehold

 

Title
Number

 

Term (if
Leasehold)

 

Date of
Lease (if
Leasehold)

 

 

 

 

 

 

 

 

 

 

 

CableTel (UK) Limited

 

Warehouses at Glasgow Road, Renfrew

 

Leasehold

 

REN93989

 

 

 

 

 

85


 

SCHEDULE 6

 

REGISTERED, INTELLECTUAL PROPERTY RIGHTS

 

A.            UNITED KINGDOM TRADE MARKS

 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

 

 

 

 

 

 

 

 

 

 

TELEWEST

 

2034119

 

14 Sept 95

 

9, 38, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

EARTH BROADBAND

 

2246090

 

19 Sept 00

 

9, 16, 38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

EARTH DIGITAL

 

2246094

 

19 Sept 00

 

9, 16, 38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

STARZ

 

2271555

 

1 Jun 01

 

9, 38, 41

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

Device mark

 

2279951

 

5 Sept 01

 

9, 16, 38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

TV DRIVE

 

2391986

 

13 May 05

 

9, 16, 25, 38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

TELEPORT

 

2390515

 

27 Apr 05

 

9, 16, 38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

TELEPORT Device mark (Series of 4)

 

2394369

 

14 Jun 05

 

9, 16, 38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 



 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

 

 

 

 

 

 

 

 

 

 

BLUE YONDER/BLUEYONDER (Series of 2)

 

2220019

 

20 Jan 00

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

ACTIVEMAIL

 

2224010

 

29 Feb 00

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

BLUE YONDER WORKWISE/BLUEYONDER WORKWISE/BLUE YONDER WORKWISE/BLUEYONDER WORKWISE (Series of 4)

 

2253678

 

21 Nov 00

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

TELEWEST

 

2042414

 

24 Oct 95

 

41

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL Device mark

 

1576982

 

31 Oct 94

 

9

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL: Device mark (series of 2)

 

2198162

 

21 May 99

 

9, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTLWORLD

 

2227172

 

24 Mar 00

 

9, 36, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL: DIGITALPLUS

 

2232720

 

17 May 00

 

9, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL: IT’S YOUR TURN NOW

 

2243654

 

25 Aug 00

 

9, 35, 37, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

IT’S MY TURN NOW

 

2243663

 

25 Aug 00

 

9, 35, 37, 38,

 

Virgin Media Limited

 

Registered

 

87



 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

41, 42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL: Device mark (series of 2)

 

2246219

 

20 Sept 00

 

9, 35, 36, 37, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL: BUSINESS ESSENTIALS

 

2273480

 

25 Jun 01

 

9, 35, 36, 37, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL: HOME/NTL HOME/NTLHOME (Series of 3)

 

2273482

 

22 Jun 01

 

9, 35, 36, 37, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

BROADBAND MEDIC

 

2349113

 

17 Nov 03

 

9, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL: NETGUARD

 

2386318

 

7 Mar 05

 

9, 38, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

LOUD MOUTH

 

2404345

 

19 Oct 05

 

9, 35, 36, 37, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

PAYMENTZONE

 

2227506

 

29 Mar 00

 

36, 38, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL Device mark

 

1576983

 

31 Oct 94

 

37

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL Device mark

 

1576986

 

31 Oct 94

 

37, 38, 41, 42, 45

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL Device mark

 

1576984

 

31 Oct 94

 

38

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

SIMON SAYS …

 

2295914

 

20 Mar 02

 

38, 41

 

Virgin Media Limited

 

Registered

 

88



 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

 

 

 

 

 

 

 

 

 

 

THE WIZARD SAYS …

 

2295918

 

20 Mar 02

 

38, 41

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

DTELS

 

1552497

 

3 Nov 93

 

40

 

Arqiva Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL Device mark

 

1576985

 

31 Oct 94

 

40

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

Device mark

 

1353556

 

3 Aug 88

 

38

 

NTL Cambridge Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

WORKPLACE TECHNOLOGIES Device mark

 

1537779

 

5 Jun 93

 

9

 

NTL Business Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

Device mark

 

2137593

 

1 Jul 97

 

9, 37, 42

 

NTL Business Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

WORKPLACE TECHNOLOGIES Device mark

 

1537780

 

5 Jun 93

 

37

 

NTL Business Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

MATE

 

1164404

 

10 Nov 81

 

9

 

National Transcommunications Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

TRAVELEYE

 

2220104

 

22 Jan 00

 

9, 42

 

X-Tant Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

RETAILEYE

 

2231628

 

6 May 00

 

9, 42

 

X-Tant Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

FRONT ROW/FRONTROW (Series of 2)

 

2150312

 

6 Nov 97

 

38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

MUSIC FISH/MUSICFISH (SERIES OF 2)

 

2528983

 

19 Oct 2009

 

9, 16, 21, 25, 28, 35, 38, 41

 

Virgin Media Limited

 

Pending

 

89



 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

 

 

 

 

 

 

 

 

 

 

SIREN

 

2443169

 

10 Jan 2007

 

9, 41

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

QUADCAST

 

2436223

 

20 Oct 2006

 

9, 16, 35, 38, 41

 

Virgin Media Limited

 

Registered

 

B.            COMMUNITY TRADE MARKS

 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

 

 

 

 

 

 

 

 

 

 

TELECENTREX

 

1285360

 

17 Aug 99

 

9, 16, 38

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

ENTERPRISE CONNECT

 

1285428

 

17 Aug 99

 

9, 16, 38

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

Device mark

 

2378206

 

5 Sept 01

 

9, 16, 38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

TV UNLIMITED

 

2510444

 

20 Dec 01

 

9, 38, 41

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

ALLTV

 

1289370

 

23 Aug 99

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

ACTIVE DIGITAL

 

1311687

 

9 Sept 99

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

90


 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

 

 

 

 

 

 

 

 

 

 

SURFUNLIMITED

 

1432780

 

10 Dec 99

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

BLUEYONDER

 

1478635

 

20 Jan 00

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

Device mark

 

1630409

 

26 Apr 00

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

BLUEYONDER WORKWISE

 

1986157

 

21 Nov 00

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

TALK UNLIMITED

 

2223121

 

18 May 01

 

38

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

WORKWISER

 

2716611

 

29 May 02

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

WORKWISE

 

2716629

 

29 May 02

 

38, 41, 42

 

Telewest Communications Networks Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL

 

1034321

 

30 Dec 98

 

9, 35, 36, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTLWORLD

 

1653039

 

3 May 00

 

9, 36, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL: Device mark

 

1847953

 

23 Aug 00

 

9, 35, 36, 37, 38, 41,

 

Virgin Media Limited

 

Registered

 

91



 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL: Device mark

 

1850064

 

23 Aug 00

 

9, 35, 36, 37, 38, 41,42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL HOME

 

2286003

 

22 Jun 01

 

9, 35, 36, 37, 38, 41, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL MOBILISE

 

2847234

 

5 Sept 02

 

9, 35, 38, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL FORMALISE

 

2847242

 

5 Sept 02

 

9, 35, 38, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

NTL: NETGUARD Device mark

 

4439477

 

29 Apr 05

 

9, 38, 42

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

electric!

 

6255699

 

5 Sep 07

 

9, 16, 41

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

VIP

 

5626395

 

8 Jan 07

 

9, 38, 41

 

Virgin Media Limited

 

Registered

 

 

 

 

 

 

 

 

 

 

 

VIP Very Impressive Package

 

5626387

 

8 Jan 07

 

9, 38, 41

 

Virgin Media Limited

 

Registered

 

EP PATENTS

 

PATENT NUMBER

 

TITLE

 

DATE OF FILING

 

STATUS

 

 

 

 

 

 

 

EP1142337

 

AUTOMATIC ELECTRONIC PROGRAMME SCHEDULING

 

23 DEC 99

 

GRANTED

 

92



 

 

 

SYSTEM.

 

 

 

IN FORCE IN GB, IE

 

 

 

 

 

 

 

EP1142334

 

ELECTRONIC PROGRAMME BREAK REPLACEMENT SYSTEM.

 

23 DEC 99

 

GRANTED
IN FORCE IN GB, IE

 

 

 

 

 

 

 

 

EP1145555

 

ELECTRONIC PROGRAMME SCHEDULING SYSTEM.

 

23 DEC 99

 

REVOKED BY EPO 31.10.2005

 

 

 

 

 

 

 

EP1142338

 

USER GROUP IDENTIFICATION SYSTEM.

 

23 DEC 99

 

GRANTED

IN FORCE IN GB, IE

 

 

 

 

 

 

 

 

EP1387583

 

AUTOMATIC ELECTRONIC PROGRAMME SCHEDULING SYSTEM.

 

23 DEC 99

 

GRANTED

IN FORCE IN GB

 

 

 

 

 

 

 

 

EP1420591

 

ELECTRONIC PROGRAMME SCHEDULING SYSTEM.

 

23 DEC 99

 

GRANTED

IN FORCE GB, IRELAND

OPPOSITION SUCCESSFULLY REJECTED; DECISION CURRENTLY UNDER APPEAL

 

93



 

GB PATENTS

 

PATENT NUMBER

 

TITLE

 

DATE OF FILING

 

STATUS

 

 

 

 

 

 

 

GB2374492

 

COMMUNICATION SYSTEM.

 

12 APR 01

 

CEASED

 

 

 

 

 

 

 

GB2373404

 

COMMUNICATIONS METHODS AND APPARATUS.

 

23 JAN 01

 

CEASED

 

 

 

 

 

 

 

GB2373405

 

COMMUNICATIONS SETUP SYSTEMS.

 

23 JAN 01

 

CEASED

 

 

 

 

 

 

 

GB2373134

 

COMMUNICATIONS SYSTEMS AND RELATED METHODS.

 

23 JAN 01

 

CEASED

 

 

 

 

 

 

 

GB2361145

 

DATA COMMUNICATIONS SYSTEMS.

 

27 JAN 00

 

CEASED

 

 

 

 

 

 

 

GB2366687

 

MOBILE COMMUNICATIONS SYSTEMS.

 

15 MAY 00

 

CEASED

 

 

 

 

 

 

 

GB2370170

 

SIGNAL TRANSMISSION SYSTEMS.

 

15 DEC 00

 

GRANTED

 

94


 

SCHEDULE 7

 

INTERCOMPANY LOANS

 

COMPANY NAME
(CREDITOR)

 

BALANCE (DEBTOR)

 

BALANCE IN GBP AS AT
30 NOVEMBER 2009

 

 

 

 

 

(US GAAP)

 

 

 

 

 

 

 

FLEXTECH (1992) LIMITED

 

ACTIONS STATIONS (LAKESIDE) LIMITED

 

5,879,915.00

 

 

 

 

 

 

 

VIRGIN MEDIA WHOLESALE LIMITED (FORMERLY KNOWN AS TELEWEST COMMUNICATIONS GROUP LIMITED)

 

CABLE ADNET LIMITED

 

3,755,436.16

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS (LONDON SOUTH) LIMITED

 

CRYSTALVISION PRODUCTIONS LIMITED

 

20,167.00

 

 

 

 

 

 

 

FLEXTECH (1992) LIMITED

 

FLEXTECH HOME SHOPPING LIMITED

 

8,952,702.00

 

 

 

 

 

 

 

FLEXTECH DIGITAL BROADCASTING LIMITED

 

FLEXTECH INTERACTIVE LIMITED

 

2,930.00

 

 

 

 

 

 

 

GENERAL CABLE LIMITED

 

GENERAL CABLE PROGRAMMING LIMITED

 

160,000.50

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS NETWORKS LIMITED

 

GENERAL CABLE PROGRAMMING LIMITED

 

23,400.00

 

 

 

 

 

 

 

VIRGIN MEDIA BUSINESS LIMITED (FORMERLY KNOWN AS IMMINUS LIMITED)

 

IMMINUS (IRELAND) LIMITED

 

77,007.68

 

 

 

 

 

 

 

EUROBELL (HOLDINGS) LIMITED

 

MATCHCO LIMITED

 

2,239,000.00

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS (SCOTLAND) VENTURE

 

PERTH CABLE TELEVISION LIMITED

 

79,237.00

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS (NORTH WEST) LIMITED

 

TELEWEST COMMUNICATIONS (FYLDE & WYRE) LIMITED

 

23,234,484.84

 

 

 

 

 

 

 

TELEWEST

 

TELEWEST

 

9,315,198.72

 

 

95



 

COMMUNICATIONS (NORTH WEST) LIMITED

 

COMMUNICATIONS (SOUTHPORT) LIMITED

 

 

 

 

 

 

 

 

 

YORKSHIRE CABLE COMMUNICATIONS LIMITED

 

TELEWEST COMMUNICATIONS HOLDCO LIMITED

 

1,545,208.21

 

 

 

 

 

 

 

YORKSHIRE CABLE COMMUNICATIONS LIMITED

 

YORKSHIRE CABLE TELECOM LIMITED

 

7,324.00

 

 

 

 

 

 

 

NTL RECTANGLE LIMITED

 

VIRGIN MEDIA COMMUNICATIONS LIMITED

 

1,000.00

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS NETWORKS LIMITED

 

VIRGIN MEDIA INC.

 

23,655,559.89

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS (SCOTLAND) VENTURE

 

TELEWEST COMMUNICATIONS (CUMBERNAULD) LIMITED

 

32,275,218.78

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS (SCOTLAND) VENTURE

 

TELEWEST COMMUNICATIONS (DUMBARTON) LIMITED

 

41,283,087.67

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS (SCOTLAND) VENTURE

 

TELEWEST COMMUNICATIONS (FALKIRK) LIMITED

 

60,059,534.80

 

 

 

 

 

 

 

TELEWEST COMMUNICATIONS (SCOTLAND) VENTURE

 

TELEWEST COMMUNICATIONS (GLENROTHES) LIMITED

 

38,726,689.91

 

 

 

 

 

 

 

YORKSHIRE CABLE COMMUNICATIONS LIMITED

 

BARNSLEY CABLE COMMUNICATIONS LIMITED

 

44,031,802.57

 

 

 

 

 

 

 

YORKSHIRE CABLE COMMUNICATIONS LIMITED

 

DONCASTER CABLE COMMUNICATIONS LIMITED

 

76,752,713.70

 

 

 

 

 

 

 

YORKSHIRE CABLE COMMUNICATIONS LIMITED

 

HALIFAX CABLE COMMUNICATIONS LIMITED

 

34,786,117.03

 

 

 

 

 

 

 

YORKSHIRE CABLE COMMUNICATIONS LIMITED

 

WAKEFIELD CABLE COMMUNICATIONS LIMITED

 

51,371,124.05

 

 

 

 

 

 

 

VIRGIN MEDIA WHOLESALE LIMITED (FORMERLY KNOWN AS TELEWEST COMMUNICATIONS

 

NTL FUNDING LIMITED

 

79,652,918.01

 

 

96



 

GROUP LIMITED)

 

 

 

 

 

 

 

 

 

 

 

VIRGIN MEDIA WHOLESALE LIMITED (FORMERLY KNOWN AS TELEWEST COMMUNICATIONS GROUP LIMITED)

 

VIRGIN MEDIA HOLDINGS INC.

 

43,580,962.17

 

 

 

 

 

 

 

 

 

TOTAL

 

583,003,797.34

 

 

97


 

SCHEDULE 8

 

FORM OF SCOTS STANDARD SECURITY

 

WE, [·] LIMITED, incorporated under the Companies Acts (Company Number [·]) and having our Registered Office at [·] (the “Chargor”) CONSIDERING THAT:

 

(1)                                  the Chargor has entered into the senior facilities agreement dated 16 March 2010 (as amended, restated, supplemented or novated from time to time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crédit Agricole Corporate and Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International, J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London Branch as Security Trustee and the financial and other institutions named in it as Lenders (which senior facilities agreement as supplemented, amended, extended, renewed or replaced from time to time is hereinafter referred as the “Senior Facilities Agreement”) in terms of which inter alia certain loan facilities have been made available to the Chargor;

 

(2)                                  the Chargor has entered into the Senior Secured Notes Indenture dated 19 January 2010, made between, among others, Virgin Media Secured Finance PLC, as issuer, Virgin Media Inc. as parent, the intermediate guarantors, the subsidiary guarantors and Deutsche Bank AG, London Branch as Security Trustee;

 

(3)                                  pursuant to the Senior Facilities Agreement and Senior Secured Notes Indenture, the Chargor has granted a debenture in favour of Deutsche Bank AG, London Branch as security trustee for the Beneficiaries (as defined in the Debenture) (who and whose successors are hereinafter referred to as the “Security Trustee”) dated [·] as such Debenture may be amended or restated from time to time (hereinafter referred to as the “Debenture”) in security of the Secured Obligations (as defined in the Debenture);

 

(4)                                  pursuant to the terms of the Senior Facilities Agreement and the Senior Secured Notes Indenture, the Chargor has agreed to grant this Standard Security; and

 

(5)                                  words and expressions defined in the Senior Facilities Agreement or the Debenture shall, unless the context otherwise requires, have the same meaning in this Standard Security:

 

NOW THEREFORE the Chargor in security of the payment, discharge and performance of the Secured Obligations HEREBY GRANTS a Standard Security in favour of the Security Trustee over ALL and WHOLE [·]; Together with (1) the whole parts, privileges and pertinents effeiring thereto; (2) the whole fixtures and fittings therein and thereon; and (3) the Chargor’s whole right, title and interest, present and future, in and to the said subjects (hereinafter referred to as the “Security Subjects”); The Standard Conditions specified in

 

98



 

Schedule 3 to the Conveyancing and Feudal Reform (Scotland) Act 1970 as amended (the “1970 Act”) and any lawful variation thereof operative for the time being shall apply; And the Chargor agrees that (1) the Standard Conditions shall be varied in so far as lawful and applicable by the Senior Facilities Agreement, Senior Secured Notes Indenture and Debenture (each of which shall be deemed to be incorporated herein) under declaration that in the event of there being any inconsistency between the Standard Conditions and the Senior Facilities Agreement and/or Senior Secured Notes Indenture and/or the Debenture, the terms of the Senior Facilities Agreement and/or Senior Secured Notes Indenture and/or the Debenture shall prevail and (2) for the purposes of Standard Condition 9, the debtor shall be held to be in default in any of the events constituting an Event of Default as defined in the Debenture; Declaring that (a) words and expressions which are incorporated in the foregoing variation and which are defined in the 1970 Act or in the said Schedule thereto (as in each case so amended) shall be deemed to be so defined for the purpose of the foregoing also, and (b) each and every provision of this Standard Security shall be separately given the fullest effect permitted by law and if at any time one or more of the provisions of this Standard Security shall be or become unenforceable or in any respect under any law the validity, legality and enforceability of the remaining provisions of this Standard Security shall not in any way be affected or impaired thereby and the provision or provisions affected by such unenforceability shall be given effect in all other respects other than that in which it is/they are unenforceable;  And the Chargor grants warrandice; And the Chargor consents to registration of these presents for preservation and execution:

 

IN WITNESS WHEREOF these presents consisting of this and the [·] preceding pages are subscribed as follows:-

 

Subscribed for and on behalf of

 

[·] LIMITED

 

At

 

On

 

By

 

Director

 

Director/Secretary

 

99



 

SIGNATURES

 

Executed as a deed by VIRGIN MEDIA WHOLESALE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST UK LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

1



 

Executed as a deed by TELEWEST COMMUNICATIONS NETWORKS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST PARLIAMENTARY HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by THESEUS NO. 1 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by THESEUS NO. 2 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by TELEWEST COMMUNICATIONS (COTSWOLDS) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (MIDLANDS AND NORTH WEST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by SOUTHWESTERN BELL INTERNATIONAL HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (MIDLANDS) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by TELEWEST COMMUNICATIONS (NORTH WEST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (WIGAN) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (CENTRAL LANCASHIRE) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (LIVERPOOL) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by TELEWEST COMMUNICATIONS (ST. HELENS & KNOWSLEY) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (LONDON SOUTH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (SOUTH WEST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by BIRMINGHAM CABLE CORPORATION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by BIRMINGHAM CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CENTRAL CABLE HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by GENERAL CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by GENERAL CABLE HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by THE CABLE CORPORATION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by WINDSOR TELEVISION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by MIDDLESEX CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by THE YORKSHIRE CABLE GROUP LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 


 

Executed as a deed by SHEFFIELD CABLE COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by YORKSHIRE CABLE COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FILEGALE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by VIRGIN MEDIA BUSINESS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by GENERAL CABLE GROUP LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLE LONDON LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLE HACKNEY & ISLINGTON LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLE CAMDEN LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by CABLE ENFIELD LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLE HARINGEY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (NORTH EAST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by TELEWEST COMMUNICATIONS (SOUTH EAST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (SOUTH THAMES ESTUARY) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CRYSTAL PALACE RADIO LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (TYNESIDE) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by TELEWEST COMMUNICATIONS (NOMINEES) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EUROBELL (HOLDINGS) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EUROBELL (SUSSEX) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EUROBELL (SOUTH WEST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by EUROBELL (WEST KENT) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EUROBELL (IDA) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EUROBELL INTERNET SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EUROBELL CPE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by EUROBELL LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EMS INVESTMENTS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EUROBELL (NO.2) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EUROBELL (NO.3) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by EUROBELL (NO.4) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by ED STONE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by UNITED ARTISTS INVESTMENTS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH BUSINESS NEWS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by FLEXTECH BROADBAND LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH BROADCASTING LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CONTINENTAL SHELF 16 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TVS TELEVISION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 


 

Executed as a deed by TVS PENSION FUND TRUSTEES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELSO COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by SCREENSHOP LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by INTERACTIVE DIGITAL SALES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by FLEXTECH MUSIC PUBLISHING LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH (1992) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH MEDIA HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH (KINDERNET INVESTMENT) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by FLEXTECH-FLEXINVEST LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH IVS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH FAMILY CHANNEL LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH DISTRIBUTION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by FLEXTECH CHILDRENS CHANNEL LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH (TRAVEL CHANNEL) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXTECH DIGITAL BROADCASTING LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by FLEXTECH VIDEO GAMES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by ANDOVER CABLEVISION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by BERKHAMSTED PROPERTIES & BUILDING CONTRACTORS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLE TELEVISION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by CABLETEL (UK) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL CARDIFF LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL CENTRAL HERTFORDSHIRE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL HERTFORDSHIRE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by CABLETEL HERTS AND BEDS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL INVESTMENTS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL NEWPORT acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL NORTH BEDFORDSHIRE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by CABLETEL SURREY AND HAMPSHIRE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL TELECOM SUPPLIES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL WEST GLAMORGAN LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL WEST RIDING LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by COLUMBIA MANAGEMENT LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by COMTEL CABLE SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by COMTEL COVENTRY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by DIGITAL TELEVISION NETWORK LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by DTELS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by ENABLIS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by HEARTLAND CABLEVISION (UK) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by HEARTLAND CABLEVISION II (UK) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 


 

Executed as a deed by HERTS CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by LANBASE EUROPEAN HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by LANBASE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by LICHFIELD CABLE COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by MAZA LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by METRO HERTFORDSHIRE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by METRO SOUTH WALES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NORTHAMPTON CABLE TELEVISION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL (AYLESBURY AND CHILTERN) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (B) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (BROADLAND) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CITY AND WESTMINSTER) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL (COUNTY DURHAM) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CRUK) acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CWC HOLDINGS) acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CWC) CORPORATION LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL (CWC) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CWC) MANAGEMENT LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CWC) NO. 2 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CWC) NO. 3 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL (CWC) NO. 4 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CWC) PROGRAMMING LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (CWC) UK acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (EALING) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by BCMV LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (FENLAND) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (GREENWICH AND LEWISHAM) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (HAMPSHIRE) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL (HARROGATE) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (HARROW) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (KENT) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (LAMBETH AND SOUTHWARK) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL (LEEDS) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (NORWICH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (PETERBOROUGH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (SOUTH EAST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL (SOUTH LONDON) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (SOUTHAMPTON AND EASTLEIGH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (SUNDERLAND) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (THAMESMEAD) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 


 

Executed as a deed by NTL (V) acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (WANDSWORTH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (WEARSIDE) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (WEST LONDON) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL (YORCAN) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL (YORK) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL ACQUISITION COMPANY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL BOLTON CABLEVISION HOLDING COMPANY acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL BUSINESS (IRELAND) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL BUSINESS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS BOLTON acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS BROMLEY acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL CABLECOMMS BURY AND ROCHDALE acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS CHESHIRE acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS DERBY acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS EAST LANCASHIRE acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL CABLECOMMS GREATER MANCHESTER acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS GROUP LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS HOLDINGS NO. 1 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS HOLDINGS NO. 2 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL CABLECOMMS LANCASHIRE NO. 1 acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS LANCASHIRE NO. 2 acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS MACCLESFIELD acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL CABLECOMMS MANCHESTER LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS OLDHAM AND TAMESIDE acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS SOLENT acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS STAFFORDSHIRE acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL CABLECOMMS STOCKPORT acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS SURREY acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS SUSSEX acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS WESSEX acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL CABLECOMMS WEST SURREY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CABLECOMMS WIRRAL acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL CHARTWELL HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL COMMUNICATIONS SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL DERBY CABLEVISION HOLDING COMPANY acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL EQUIPMENT NO. 1 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL EQUIPMENT NO. 2 LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL GLASGOW HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 


 

Executed as a deed by VIRGIN MEDIA LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL HOLDINGS (BROADLAND) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL HOLDINGS (EAST LONDON) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL HOLDINGS (FENLAND) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL HOLDINGS (LEEDS) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL HOLDINGS (NORWICH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL HOLDINGS (PETERBOROUGH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL INTERNET LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL KIRKLEES acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL KIRKLEES HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL MANCHESTER CABLEVISION HOLDING COMPANY acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL MICROCLOCK SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL MILTON KEYNES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL NETWORKS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL PARTCHEER COMPANY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL RECTANGLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL SIDEOFFER LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL SOLENT TELEPHONE AND CABLE TV COMPANY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL SOUTH CENTRAL LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL SOUTH WALES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL STREETUNIQUE PROJECTS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL STREETUNIT PROJECTS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL STREETUSUAL SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL STREETVISION SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL STREETVITAL SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL STREETWARM SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL STREETWIDE SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL STRIKEAGENT TRADING LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL STRIKEAMOUNT TRADING LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL STRIKEAPART TRADING LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL SYSTEMS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL TECHNICAL SUPPORT COMPANY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL TELECOM SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL UK TELEPHONE AND CABLE TV HOLDING COMPANY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL WESTMINSTER LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL WINSTON HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL WIRRAL TELEPHONE AND CABLE TV COMPANY acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by SECURE BACKUP SYSTEMS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 


 

Executed as a deed by SOUTHERN EAST ANGLIA CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by STAFFORD COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by SWINDON CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TAMWORTH CABLE COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by VISION NETWORKS SERVICES UK LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by WESSEX CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by X-TANT LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by ANGLIA CABLE COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by CABLE THAMES VALLEY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CAMBRIDGE CABLE SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CCL CORPORATE COMMUNICATION SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CREDIT-TRACK DEBT RECOVERY LTD acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by EAST COAST CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL DARLINGTON LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL FINANCE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL TEESSIDE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by XL DEBT RECOVERY AGENCY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CAMBRIDGE HOLDING COMPANY LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by DIAMOND CABLE COMMUNICATIONS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by JEWEL HOLDINGS acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL CAMBRIDGE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL MIDLANDS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by VIRGIN NET LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL INTERNET SERVICES LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL NATIONAL NETWORKS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL IRISH HOLDINGS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by VMIH SUB LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL VICTORIA LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by NTL VICTORIA II LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by OXFORD CABLE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by M&NW NETWORK LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by M&NW NETWORK II LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by FLEXTECH LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by FLEXIMEDIA LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by VIRGIN MOBILE TELECOMS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by VIRGIN MOBILE GROUP (UK) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by VIRGIN MOBILE HOLDINGS (UK) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by VIRGIN MEDIA PAYMENTS LTD acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by VIRGIN MEDIA INVESTMENTS LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by VIRGIN MEDIA SECURED FINANCE PLC acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by TELEWEST COMMUNICATIONS (DUNDEE & PERTH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (MOTHERWELL) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (SCOTLAND) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 


 

 

Executed as a deed by PROSPECTRE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by NTL GLASGOW acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by CABLETEL SCOTLAND LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by BIRMINGHAM CABLE FINANCE LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by the partners of TELEWEST COMMUNICATIONS (NORTH EAST) PARTNERSHIP:

 

 

TYNESIDE CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

TELEWEST COMMUNICATIONS (NORTH EAST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

TELEWEST COMMUNICATIONS (TYNESIDE) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by the partners of TELEWEST COMMUNICATIONS (SOUTH EAST) PARTNERSHIP:

 

 

ESTUARIES CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

TELEWEST COMMUNICATIONS (SOUTH EAST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

TELEWEST COMMUNICATIONS (SOUTH THAMES ESTUARY) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by the partners of AVON CABLE JOINT VENTURE:

 

 

AVON CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

TELEWEST COMMUNICATIONS (SOUTH WEST) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by the partners of TELEWEST COMMUNICATIONS (LONDON SOUTH) JOINT VENTURE:

 

 

LONDON SOUTH CABLE PARTNERSHIP by its managing partner United Cable (London South) Limited Partnership by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

TELEWEST COMMUNICATIONS (LONDON SOUTH) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by the partners of TELEWEST COMMUNICATIONS (COTSWOLDS) VENTURE:

 

 

COTSWOLDS CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

TELEWEST COMMUNICATIONS (COTSWOLDS) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by the partners of TELEWEST COMMUNICATIONS (SCOTLAND) VENTURE:

 

 

EDINBURGH CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

TELEWEST COMMUNICATIONS (SCOTLAND) LIMITED acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by the partners of CHARTWELL INVESTORS L.P.:

 

 

NTL CHARTWELL HOLDINGS LIMITED as general partner by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

NTL CHARTWELL HOLDINGS LIMITED as limited partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

NTL CHARTWELL HOLDINGS, INC. as limited partner acting by:

 

 

Robert Mackenzie, President

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, Vice President

 

/s/ ROBERT GALE

 

 

 

NTL CHARTWELL HOLDINGS 2, INC. as limited partner acting by:

 

 

Robert Mackenzie, President

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, Vice President

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by AVON CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by COTSWOLDS CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by EDINBURGH CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by ESTUARIES CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by LONDON SOUTH CABLE PARTNERSHIP by United Cable (London) South Limited Partnership, its managing partner acting by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 


 

 

Executed as a deed by TCI/US WEST CABLE COMMUNICATIONS GROUP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Executed as a deed by TYNESIDE CABLE LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

Executed as a deed by UNITED CABLE (LONDON SOUTH) LIMITED PARTNERSHIP by:

 

 

Theseus No. 1 Limited, its general partner acting by:

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 

 

Theseus No. 2 Limited, its general partner acting by:

 

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

Robert Gale, a director

 

/s/ ROBERT GALE

 

 



 

THE SECURITY TRUSTEE

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

By:

 

By:

 

Address:

 

Fax Number:

 

Attention:

 


 



Exhibit 4.12

 

 

EXECUTION VERSION

 

 

 

 

 

 

Dated 19 January 2010

 

CHARGE OVER SHARES
RELATING TO
THE SHARES IN THE COMPANIES LISTED IN SCHEDULE 2

 

between

 

THE COMPANIES LISTED IN SCHEDULE 1
as Chargors

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee

 

 

 

 

White & Case LLP

5 Old Broad Street

London  EC2N 1DW

 



 

TABLE OF CONTENTS

 

 

 

 

Page

 

 

 

 

1.

INTERPRETATION

 

1

2.

COVENANT TO PAY

 

7

3.

CHARGING CLAUSE

 

7

4.

REPRESENTATIONS AND WARRANTIES

 

10

5.

COVENANTS BY THE CHARGORS

 

12

6.

FURTHER ASSURANCE

 

14

7.

CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

15

8.

APPOINTMENT AND POWERS OF RECEIVER

 

17

9.

ENFORCEMENT

 

19

10.

INDEMNITIES, EXCLUSION OF LIABILITY, COSTS AND EXPENSES

 

19

11.

POWER OF ATTORNEY

 

21

12.

CONTINUING SECURITY AND OTHER MATTERS

 

21

13.

CURRENCIES

 

24

14.

THE SECURITY TRUST AGREEMENT

 

24

15.

MISCELLANEOUS

 

25

16.

NOTICES

 

27

17.

GOVERNING LAW

 

27

18.

JURISDICTION

 

27

SCHEDULE 1

THE CHARGORS

 

29

SCHEDULE 2

DETAILS OF SHARES

 

30

 



 

THIS DEED is dated 19 January 2010 and is made

 

BETWEEN:

 

(1)                                 THE COMPANIES LISTED IN SCHEDULE 1 (together, the “Chargors”); and

 

(2)                                 DEUTSCHE BANK LONDON AG, LONDON BRANCH as security trustee for the Beneficiaries, (the “Security Trustee”).

 

WHEREAS:

 

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

 

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

 

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

 

(D)                               The board of directors of each Chargor are satisfied that such Chargor is entering into this Deed for the purposes of carrying on its business, and that its doing so benefits such Chargor.

 

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

 

NOW THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                                 Definitions

 

In this Deed, unless the context otherwise requires:

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Charged Company” means any company the Shares and all other rights, moneys, benefits and other property referred to in Clause 3.1(b) of which form part of the Secured Property;

 

Default Rate” means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn

 



 

commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

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

 

disposal” includes any sale, assignment or transfer, the grant of an option or similar right, the grant of any right or privilege, the creation of a trust or other equitable interest in favour of a third party and “dispose” and “disposition” shall be construed accordingly;

 

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

 

Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

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

 

Excluded Charged Assets” has the meaning given to such term in Clause 3.4(b) of this Deed;

 

Existing Charge” means the Charge over Shares dated 3 March 2006 (as amended and restated on 31 July 2006 and as further amended and restated from time to time) between the Chargors listed therein and the Security Trustee;

 

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

 

Indemnified Party” has the meaning set out in Clause 10.3;

 

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

 

Receiver” means a receiver and manager, (whether appointed pursuant to this Deed or any statute, by a court or otherwise) in respect of all or any of the Secured Property and shall, where permitted by law include an administrative receiver;

 

2



 

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

 

Rule 3-16” has the meaning given to such term in “Designated Secured Obligations”;

 

SEC” means the United States Securities and Exchange Commission;

 

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

 

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

 

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

 

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

 

Secured Property” means the Shares and all other rights, moneys, benefits and other property referred to in Clause 3.1(b);

 

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

 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

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

 

3



 

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

 

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

 

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

 

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

 

Shares” means, in respect of each Chargor, all of the shares specified in Schedule 2 next to the name of such Chargor in which such Chargor (and/or its respective nominee or trustee) may, at the date of this Deed or at any time thereafter, have any right, title, or interest.

 

1.2                                 Successors and Assigns

 

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

 

1.3                                 Headings

 

Clause headings and the table of contents are inserted for convenience of reference only and shall be ignored in the interpretation of this Deed.

 

4



 

1.4                                 Construction of Certain Terms

 

In this Deed, unless the context otherwise requires:

 

(a)                                  references to clauses are to be construed as references to the clauses of this Deed;

 

(b)                                 references to (or to any specified provision of) this Deed or any other agreement or document shall be construed as references to this Deed, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

(g)                                 references to “assets” include all or part of any business, undertaking, real property, personal property, uncalled capital and any rights (whether actual or contingent, present or future) to receive, or require delivery of, any of the foregoing;

 

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

 

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

 

1.5                                 Effect as a Deed

 

This Deed is intended to take effect as a deed notwithstanding that the Security Trustee may have executed it under hand only.

 

1.6                                 Agreement Definitions

 

Unless the context otherwise requires or unless otherwise defined in this Deed, words and expressions defined in the Group Intercreditor Deed and (unless otherwise

 

5



 

defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Deed (including its recitals).

 

1.7                                 Implied Covenants

 

The following provisions of the Law of Property (Miscellaneous Provisions) Act 1994 will not apply to Clause 3.1 or Clause 5.1:

 

(a)                                  the words “other than any charges, encumbrances or rights which that person does not and could not reasonably be expected to know about” in section 3(1);

 

(b)                                 the words “except to the extent that” and all the words thereafter in section 3(2); and

 

(c)                                  section 6(2).

 

1.8                                 Nominees

 

If the Security Trustee causes or requires the Secured Property to be registered in the name of a nominee for the Security Trustee, any reference in this Deed to the Security Trustee shall, if the context so permits or requires, be construed as a reference to each of the Security Trustee and such nominee.

 

1.9                                 Third Party Rights

 

(a)                                  A person which is not a party to this Deed (a “third party”) shall have no rights to enforce any of its provisions except that:

 

(i)                                     a third party shall have those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect;

 

(ii)                                  Clause 13.2 shall be enforceable by any third party referred to in such clause as if such third party were a party to this Deed; and

 

(iii)                               a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Principal Intercreditor Agreement whether or not it is a party to the Principal Intercreditor Agreement.

 

(b)                                 The parties to this Deed may without the consent of any third party vary or rescind this Deed.

 

1.10                           Certificates

 

A certificate of any Beneficiary as to the amount of the Secured Obligation owed to it shall be prima facie evidence of the existence and amount of such Secured Obligation.

 

1.11                           Statutes

 

Any reference in this Deed to a statute or statutory provision shall, unless the contrary is indicated, be construed as a reference to such statute or statutory provision as the same shall have been amended or re-enacted.

 

6


 

1.12                           Group Intercreditor Deed

 

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

 

1.13                           Secured Obligations

 

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

 

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

 

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

 

2.                                      COVENANT TO PAY

 

2.1                                 Covenant to Pay

 

Each Chargor agrees as primary obligor and not only as surety that it will pay and discharge the Secured Obligations promptly on demand of the Security Trustee provided that before any such demand is made on a Restricted Guarantor, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.

 

2.2                                 Payments

 

Any payment made by the Chargors under this Deed shall be made free and clear of and without any deduction for or on account of any set-off or counterclaim and in such manner as the Security Trustee may require.

 

3.                                      CHARGING CLAUSE

 

3.1                                 Charges

 

Each Chargor, with full title guarantee and as a continuing security for the payment and discharge of the Secured Obligations hereby mortgages and charges and agrees to mortgage and charge to the Security Trustee to hold the same on trust for the Beneficiaries on the terms set out in the Group Intercreditor Deed and the Security Trust Agreement:

 

(a)                                  all its rights, title and interest in and to the Shares by way of a first equitable charge (until the Shares are transferred to the Security Trustee or its nominee or agent pursuant to Clause 7.2) or legal mortgage (following such transfer); and

 

(b)                                 by way of first fixed charge all rights, moneys, benefits and other property which may at any time accrue or be offered or arise by way of conversion, redemption, bonus, preference, option, distribution, interest or otherwise in

 

7



 

respect of any of the Shares or in substitution or exchange for any of the Shares.

 

3.2                                 Dividends and Voting Rights

 

Subject to Clause 7, and notwithstanding Clause 3.1(b), each Chargor may, prior to the Enforcement Date, in its absolute discretion (a) exercise all voting and other rights and powers attached to the Secured Property and (b) receive, retain and deal with free from this Deed (but subject to the Group Intercreditor Deed) all dividends paid on and received by it in respect of the Secured Property.

 

3.3                                 Suspense Accounts

 

Any money received by the Security Trustee pursuant to this Deed (whether before or after any Incapacity of any Chargor or any Charged Company) may be placed to the credit of an interest-bearing suspense account with a view to preserving the rights of the Beneficiaries to prove for the whole of their respective claims against any Chargor or any other person liable or may be applied in or towards satisfaction of such of the Secured Obligations as the Security Trustee may from time to time conclusively determine in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement notwithstanding any appropriation (or purported appropriation) by any Chargor.

 

3.4                                 Rule 3-16 Limitation

 

(a)                                  Clause 3.1 (Charges) of this Deed notwithstanding, the Excluded Charged Assets are not charged under this Deed to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)                                     all other Shares remain charged or mortgaged (as the case may be) under this Deed to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain charged under Clause 3.1 (Charges) of this Deed to secure any Secured Obligations that are not Designated Secured Obligations.

 

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

 

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reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the charge on any  Shares or other securities pursuant to Clause 3.4(a).

 

(c)                                  In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Deed may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in paragraph (a)(ii) of this Clause 3.4) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

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

 

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4.                                      REPRESENTATIONS AND WARRANTIES

 

4.1                                 Representations and Warranties

 

Each Chargor hereby represents and warrants to the Security Trustee as trustee for the Beneficiaries that:

 

(a)                                  Shares Fully Paid

 

the Shares are fully paid or credited as fully paid and no calls have been, or can be, made in respect of the Shares and the terms of each Share and of the Memorandum and Articles of Association of the relevant Charged Company do not restrict or otherwise limit such Chargor’s right to transfer or charge the Shares;

 

(b)                                 Due Incorporation

 

it is duly incorporated, validly existing as a limited liability company and has all requisite corporate power and authority to own its property and other assets and to carry on its business as it is now being conducted and is authorised to do business in each jurisdiction where such qualification or authorisation is required, except where the failure to so qualify, to be so authorised or to be in good standing would not have a material adverse effect on such Chargor’s ability to perform any of its obligations under this Deed;

 

(c)                                  Power of the Chargors

 

it has all requisite power to execute, deliver and perform its obligations under this Deed and compliance has been made with all necessary requirements and all necessary action has been taken to authorise the execution, delivery and performance of the same;

 

(d)                                 Binding Obligations

 

this Deed constitutes its valid and legally binding obligations enforceable in accordance with its terms subject, to the extent applicable, to equivalent qualifications to those contained in the legal opinions referred to in schedule 4 to the Senior Facilities Agreement (or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement) which relate to Security Documents governed by English law;

 

(e)                                  No Conflict with Other Obligations

 

the execution and delivery of, the performance of its obligations under, and compliance with the provisions of, this Deed by it, will not:

 

(i)                                     contravene any existing applicable law, statute, rule or regulation or any judgment, decree or permit to which it is subject except where such contravention would not or would not be likely to have a material adverse effect on the ability of such Chargor to perform any of its obligations under or otherwise to comply with the terms of this Deed;

 

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(ii)                                  contravene or conflict with any provision of its Memorandum and Articles of Association;

 

(iii)                               conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement (other than the Existing Credit Facilities) constituting or evidencing Indebtedness of such Chargor to which such Chargor is a party or is subject or by which it or any of its property is bound except where such breach or default would not or would not be likely to have a material adverse effect on the ability of such Chargor to perform any of its obligations under or otherwise to comply with the terms of this Deed; or

 

(iv)                              result in the creation or imposition of or oblige such Chargor to create any Encumbrance (other than those created by the Security Documents) on any of such Chargor’s material undertakings, assets, rights or revenues;

 

(f)                                    Choice of Law

 

the choice by such Chargor of English law to govern this Deed is valid and binding;

 

(g)                                 No Filings Required

 

it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of this Deed that it or any other instrument be notarised, filed, recorded, registered or enrolled in any court, public office in the United Kingdom (save for any registration pursuant to section 860 of the Companies Act 2006, to the extent required thereunder) or that any stamp, registration or similar tax or charge be paid in the United Kingdom on or in relation to this Deed;

 

(h)                                 No Disposals

 

save as contemplated in or not prohibited by this Deed or in each of the Senior Finance Documents, it has not transferred, mortgaged, charged or otherwise disposed of (or agreed to transfer, mortgage, charge or otherwise dispose of) whether by way of security or otherwise, the benefit of all or any of its right, title and interest in and to the Secured Property;

 

(i)                                     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 such Chargor (i) to authorise the execution and delivery of this Deed or the performance by such Chargor of its obligations under this Deed or (ii) to ensure the validity, enforceability or admissibility in evidence of this Deed has been obtained or made and is in full force and effect and there has been no material default in the observance of the conditions or restrictions (if any) imposed in, or in connection with, any of the same which would, in any such case, adversely affect the execution, delivery, validity, enforceability or

 

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admissibility in evidence of this Deed or the performance by such Chargor of its obligations under this Deed; and

 

(j)                                     No Security from any Obligor

 

it has not requested, taken or received any Encumbrance from any Obligor for any obligations or Liabilities of any Obligor to it.

 

4.2                                 Repetition of Representations and Warranties

 

The representations and warranties in Clause 4.1 shall be deemed to be repeated by each Chargor on and as of the date of this Deed and on the date on which all or any of the representations and warranties contained in Clause 21 of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments therunder such equivalent provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 

5.                                      COVENANTS BY THE CHARGORS

 

5.1                                 Supporting Documents

 

Each Chargor hereby covenants with the Security Trustee that during the continuance of the security created by this Deed it will at all times deposit with the Security Trustee or its nominees and permit the Security Trustee or its nominees during the continuance of this security to hold and retain:

 

(a)                                  Certificates

 

all stock and share certificates and documents of title relating to the Shares together with any other documents of title relating to the Secured Property;

 

(b)                                 Transfers

 

such stock transfer forms or other instruments of transfer in respect of the Shares and, if appropriate, the other Secured Property duly completed in favour of the Security Trustee or its nominees or otherwise as the Security Trustee may reasonably direct; and

 

(c)                                  Further Documents

 

all such other documents as are in its possession or which it can reasonably obtain as the Security Trustee may from time to time reasonably require for perfecting its title to the Shares and/or the Secured Property (duly executed by or signed on behalf of the registered holder) or for vesting or enabling it to vest the same in itself or its nominees or in any purchaser to the intent that the Security Trustee may at any time without notice present them for registration,

 

provided that, to the extent that any certificates, documents of title or all such other documents relating to any of the Shares and/or the Secured Property (“Supporting Documents”) which are required to be deposited with the Security Trustee pursuant to this Clause 5.1 have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of perfecting the security

 

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interests over such Shares and/or the Secured Property pursuant to the terms of the Existing Charge, the requirements of this Clause 5.1 shall be deemed satisfied, provided further that, in the event that the security interests under the Existing Charge have been unconditionally discharged and released in full in accordance with the terms of the Existing Charge, each Chargor shall fulfil its delivery obligations under this Clause 5.1 as soon as reasonably practicable following receipt of the relevant Supporting Documents.

 

5.2                                 Continuing Covenant

 

Each Chargor hereby further covenants with the Security Trustee, its nominee or any Receiver, that during the continuance of the security created by this Deed the such Chargor will at all times:

 

(a)                                  Prompt Payment

 

duly and promptly pay all calls, instalments or other payments which from time to time become due in respect of any of the Shares, and neither the Security Trustee nor any of the Beneficiaries shall in any circumstances incur any liability whatsoever in respect of any calls, instalments or otherwise in connection with the Shares;

 

(b)                                 New Certificates

 

after an Event of Default has occurred and is continuing, use reasonable endeavours to procure that the directors of the relevant Charged Company (i) duly register all transfers of the Shares from time to time lodged with them by or on behalf of the Security Trustee, its nominee or any Receiver and (ii) issue, and deliver to the Security Trustee, its nominee or any Receiver, a new certificate or certificates for the Shares in the name of the Security Trustee, its nominee or any Receiver as soon as reasonably possible following receipt of such transfers from the Security Trustee, its nominee or any Receiver;

 

(c)                                  Negative Undertakings

 

not (without the prior written consent of the Security Trustee, its nominee or any Receiver) or as otherwise permitted or not restricted under each of the Senior Finance Documents:

 

(i)                                     create or permit to subsist any Encumbrance on or over the Secured Property or any part thereof or interest therein (other than any Encumbrance created hereby);

 

(ii)                                  permit any person other than the relevant Chargor, the Security Trustee, any nominee of the Security Trustee or any Receiver to be registered as holder of the Secured Property or of any part thereof;

 

(iii)                               sell, transfer, assign or otherwise dispose of the Secured Property (other than a sale, transfer, assignment or disposal of all of the Shares to the Security Trustee) or any part thereof or interest therein or attempt or agree so to do;

 

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(iv)                              suffer or permit the relevant Charged Company to cancel, increase, create or issue or agree to issue or put under option or agree to put under option any equity or other share capital or obligation now or hereafter convertible into equity or other share capital of or in such Charged Company of any class or call any uncalled capital provided, however, that such Charged Company may issue or agree to issue equity or other share capital to the relevant Chargor provided that such equity or other share capital is the subject of an Encumbrance in favour of, and to the satisfaction of, the Security Trustee;

 

(v)                                 suffer or permit the relevant Charged Company to make any alteration to, grant any rights in relation to, re-organise, redeem or purchase or otherwise reduce its equity or any other share capital or reserves or any uncalled or unpaid liability in respect thereof or reduce the amount (if any) for the time being standing to the credit of its share premium account or capital redemption or other undistributable reserve in any manner save for any alteration as aforesaid which arises directly in connection with an issue of equity or other share capital to the relevant Chargor which is permitted under paragraph (iv) above but which does not involve any action or event otherwise prohibited by this Clause 5.2(c)(v);

 

(vi)                              convene any meeting with a view either to the alteration of any of the provisions of the relevant Charged Company’s Memorandum and Articles of Association in any way which would restrict the ability of the Security Trustee to exercise its rights under this Deed or to passing a resolution that such Charged Company be wound up;

 

(vii)                           do or cause or permit to be done anything which may in any material way (i) depreciate, jeopardise or otherwise prejudice the value or marketability of the Secured Property or (ii) prejudice the validity, binding effect or enforceability of the Encumbrances created or evidenced by this Deed; and

 

(viii)                        save as permitted pursuant to Clause 3.2, receive, retain or deal with any dividends, distributions, interest or other moneys in respect of the Secured Property; and

 

(d)                                 No Encumbrance

 

not take or receive any Encumbrance from any Charged Company or any other Obligor in respect of the liability of any Chargor under this Deed.

 

6.                                      FURTHER ASSURANCE

 

6.1                                 Further Assurance

 

Each Chargor shall if and when required by the Security Trustee execute such further Encumbrances and assurances in favour of the Security Trustee and/or any Beneficiary and do all such acts and things as the Security Trustee may from time to time reasonably require over or in relation to all or any of the Secured Property to

 

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secure the Secured Obligations or to perfect or protect the security intended to be created by this Deed over the Secured Property or any part thereof or to facilitate the realisation of the same.

 

6.2                                 Certain Documentary Requirements

 

Such further Encumbrances or assurances shall be prepared by or on behalf of the Security Trustee at the expense of the relevant Chargor (such expense to be reasonable and properly incurred) and shall contain (a) an immediate power of sale without notice; (b) a clause excluding section 93 of the Law of Property Act 1925 and the restrictions contained in section 103 of the Law of Property Act 1925; and (c) such other clauses for the benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

6.3                                 Law of Property (Miscellaneous Provisions) Act 1994

 

The obligations of each Chargor under this Clause 6 are in addition to the covenants for further assurance implied by the Law of Property (Miscellaneous Provisions) Act 1994.

 

7.                                      CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES:  ENFORCEMENT

 

7.1                                 Voting Rights after the Enforcement Date

 

The Security Trustee and its nominees at the discretion of the Security Trustee may at any time after the Enforcement Date exercise in the name of each Chargor or otherwise at any time whether before or after demand for payment and without any further consent or authority on the part of such Chargor any voting rights and all powers given to trustees by section 10(3) and (4) Trustee Act 1925 (as amended by section 9 Trustee Investments Act 1961) in respect of the Secured Property or property subject to a trust and any powers or rights which may be exercisable by the person in whose name the Shares or other Secured Property are registered.  Until the Enforcement Date, the Security Trustee will exercise all voting and other rights and powers attached to the Secured Property which are transferred to it pursuant to Clause 7.2 as the relevant Chargor may from time to time in writing direct provided that the Security Trustee shall be under no obligation to comply with any such direction where compliance would, in the Security Trustee’s reasonable opinion, be prejudicial to the security created by this Deed.

 

7.2                                 Transfer of Secured Property

 

Each Chargor will if so requested by the Security Trustee after an Event of Default has occurred and so long as the same is continuing transfer all or any of the Secured Property to the Security Trustee or such nominees or agents as the Security Trustee may select and will use its reasonable endeavours to procure that the relevant Charged Company duly registers any transfers of any Secured Property to the Security Trustee or its nominees or agents or any transfers of any of the Secured Property duly executed by the Security Trustee or its nominees or agents pursuant to any power conferred by this Deed forthwith upon presentation to such Charged Company

 

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provided that, for the avoidance of doubt, the Security Trustee may not request any such transfer of the Secured Property prior to the occurrence of an Event of Default.

 

7.3                                 Notices

 

The Security Trustee will, promptly after receipt, forward to each Chargor copies of all notices, documents or other communications received by it in respect of the Secured Property.

 

7.4                                 Power of Sale

 

At any time on or after the Enforcement Date, the Security Trustee may (without notice to the relevant Chargor) sell or otherwise dispose of the Secured Property or any part of it and shall be entitled to apply the proceeds of such sale or other disposal in paying the costs of such sale or other disposal and thereafter in or towards the discharge of the Secured Obligations or otherwise as provided for in the Group Intercreditor Deed, the Security Trust Agreement or this Deed.

 

7.5                                 Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Deed.

 

7.6                                 Law of Property Act

 

At any time on or after the Enforcement Date or if requested by any Chargor, the Security Trustee may, without further notice, without the restrictions contained in sections 93 and 103 of the Law of Property Act 1925 and whether or not a Receiver shall have been appointed, exercise all the powers conferred upon mortgagees by the Law of Property Act 1925 as varied or extended by this Deed and all the powers and discretions conferred by this Deed on a Receiver either expressly or by reference and also, in the case of the Secured Property, all rights or powers which may be exercisable by the registered holder or beneficial owner of the same.

 

7.7                                 Distributions

 

On or after the Enforcement Date all dividends, interest and other distributions relating to the Secured Property may be applied by the Security Trustee as though they were proceeds of sale under this Deed.

 

7.8                                 Subsequent Encumbrances

 

If the Security Trustee or any Beneficiary receives notice of any subsequent Encumbrance affecting the Secured Property or any part thereof, such Beneficiary may open a new account for the relevant Chargor.  If it does not do so then, unless such Security Trustee or such Beneficiary gives express written notice to the contrary to such Chargor, it shall nevertheless be treated as if it had opened a new account at the time when it received such notice and as from that time all payments made by or on behalf of such Chargor to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount due from such Chargor to the Security Trustee or such Beneficiary at the time when it received such notice.

 

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7.9                                 Realisation Accounts

 

If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the Security the Security Trustee (or such Receiver) may:

 

(a)                                  open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

(b)                                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

(c)                                  subject to the payment of any claims having priority to this Security, withdraw amounts standing to the credit of the Realisation Accounts to:

 

(i)                                     discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

(ii)                                  pay remuneration to the Receiver as and when the same becomes due and payable; and

 

(iii)                               discharge the Secured Obligations as and when the same become due and payable.

 

7.10                           Right of Appropriation

 

To the extent that the Secured Property constitutes “financial collateral” and this Deed constitutes a “security financial collateral arrangement” (as defined in the Financial Collateral Arrangements (No.2) Regulations 2003 (SI 2003 No.3226)), the Security Trustee may appropriate all or any part of the Secured Property in or towards satisfaction of the Secured Obligations, the value of the property so appropriated being such amount as the Security Trustee shall determine in a commercially reasonable manner.

 

8.                                      APPOINTMENT AND POWERS OF RECEIVER

 

8.1                                 Appointment

 

The Security Trustee may at any time on or after the Enforcement Date or if requested to do so by any Chargor, by instrument in writing and without notice to such Chargor appoint any one or more persons as Receivers of such part of the Secured Property as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of such Chargor and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925.  The Security Trustee may from time to time by writing under its hand remove any Receiver so appointed by it and may, whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

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8.2                                 Receiver as Agent

 

A Receiver shall be the agent of the Chargor in respect of which he is appointed and (subject to the provisions of this Deed) such Chargor shall be solely responsible for his acts or defaults and for his remuneration.

 

8.3                                 Powers of Receiver

 

A Receiver shall have all the powers conferred from time to time on receivers and administrative receivers by statute (in the case of powers conferred by the Law of Property Act 1925, without the restrictions contained in section 103 of that Act) and power on behalf and at the expense of the relevant Chargor (notwithstanding liquidation of such Chargor) to do or omit to do anything which such Chargor could do or omit to do in relation to the Secured Property or any part thereof.  In particular (but without limitation) a Receiver shall have power to do all or any of the following acts and things:

 

(a)                                  Take Possession

 

take possession of, collect and get in all or any of the Secured Property and exercise in respect of the Shares all voting or other powers or rights available to a registered holder thereof in such manner as he may think fit and bring, defend or discontinue any proceedings or submit to arbitration in the name of the such Chargor or otherwise as may seem expedient to him;

 

(b)                                 Borrow Money

 

raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Secured Property ranking in priority to this security or otherwise;

 

(c)                                  Dispose of Assets

 

without the restrictions imposed by section 103 Law of Property Act 1925 or the need to observe any of the provisions of sections 99 and 100 of such Act, sell by public auction or private contract, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Secured Property or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, surrender, accept surrenders or otherwise transfer or deal with such Secured Property in the name and on behalf of such Chargor or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind such Chargor (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, or disposition may be for cash, debentures or other obligations, shares, stock, or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations;

 

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(d)                                 Make Calls and Legal Proceedings

 

make calls conditionally or unconditionally on the members of such Chargor in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Secured Property or any part thereof or submit to arbitration as he may think fit;

 

(e)                                  Execute Documents

 

sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security of the Security Trustee and the Beneficiaries and to use the name of such Chargor for all the purposes aforesaid; and

 

(f)                                    Insolvency Act Powers

 

do all the acts and things described in schedules 1 to the Insolvency Act 1986 as if the words “he” and “him” referred to the Receiver and “company” referred to such Chargor.

 

8.4                                 Remuneration

 

The Security Trustee may from time to time determine the remuneration of any Receiver and section 109(6) Law of Property Act 1925 shall be varied accordingly.  A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

9.                                      ENFORCEMENT

 

9.1                                 When Enforceable

 

If (and only if) the Enforcement Date has occurred then the charges created pursuant to this Deed shall become enforceable.  Section 103 Law of Property Act 1925 shall not apply in respect of any Secured Property.

 

9.2                                 Authority

 

No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Deed has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

10.                               INDEMNITIES, EXCLUSION OF LIABILITY, COSTS AND EXPENSES

 

10.1                           Enforcement Costs

 

Each Chargor hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee or any Receiver shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Deed or

 

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any of the Secured Property on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the relevant Chargor (both before and after judgment).

 

10.2                           No Liability as Mortgagee in Possession

 

None of the Beneficiaries, the Security Trustee or any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Secured Property or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such except in the case of fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as the case may be).

 

10.3                           Indemnity

 

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

 

(a)                                  anything done or omitted in the exercise or purported exercise of the powers contained in this Deed; or

 

(b)                                 any breach by any Chargor of any of its obligations under this Deed,

 

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

 

10.4                           Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Secured Property may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Secured Property whether or not a Receiver is or has been appointed.

 

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11.                               POWER OF ATTORNEY

 

11.1                           Power of Attorney

 

Each Chargor by way of security for the performance of its obligations under this Deed, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the Secured Property and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)                                  to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver may require for perfecting the title of the Security Trustee to the Secured Property or for vesting the same in the Security Trustee, its nominee or any purchaser;

 

(b)                                 to sign, execute, seal and deliver and otherwise perfect any further security document referred to in Clause 5; and

 

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

 

11.2                           Ratification

 

Each Chargor ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 11.1 shall do or purport to do in the exercise of his powers under such clause.

 

11.3                           General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and each Chargor hereby covenants with the Security Trustee and separately with any such Receiver to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

12.                               CONTINUING SECURITY AND OTHER MATTERS

 

12.1                           Continuing Security

 

This Deed and the obligations of each Chargor under this Deed shall:

 

(a)                                  secure the ultimate balance of the Secured Obligations notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of any person liable in respect thereof or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

21



 

(b)                                 be in addition to, and shall not merge with or otherwise prejudice or affect, any present or future Security Documents, Encumbrance, right or remedy held by or available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)                                  not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

12.2                           Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Document or other means of payment now or hereafter held by or available to it before enforcing this Deed and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of any Chargor nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

12.3                           New Accounts

 

Notwithstanding that the charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of any Chargor or other Security Provider or open one or more new accounts and the liability of each Chargor hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of any such account.

 

12.4                           Settlements Conditional

 

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

 

12.5                           No Release

 

The liability of each Chargor shall not be affected nor shall the charge hereby created be discharged or diminished by reason of:

 

(a)                                  the Incapacity or any change in the name, style or constitution of any other Obligor or any other person liable; or

 

22



 

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

 

(c)                                  any act or omission which would not have discharged or affected the liability of such Chargor had it been principal debtor in respect of the Secured Obligations or by anything done or omitted which but for this provision might operate to exonerate such Chargor.

 

12.6                           Restriction of the Chargors’ rights

 

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

 

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

 

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

 

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

 

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

 

23



 

Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and the Security Trust Agreement.

 

12.7                           Recoveries by the Chargors

 

If contrary to Clause 12.6 or 5.2(d) any Chargor takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

13.                               CURRENCIES

 

13.1                           Conversion of Currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Deed at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the relevant Chargor shall indemnify the Security Trustee against the full cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to such Chargor in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

13.2                           Currency Indemnity

 

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

 

14.                               THE SECURITY TRUST AGREEMENT

 

14.1                           Trust

 

Each Chargor and the Security Trustee hereby acknowledge that the covenants of such Chargor contained in this Deed and the security and other rights, titles and interests constituted by this Deed and the Secured Property and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee pursuant to or in connection with this Deed are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

24



 

15.                               MISCELLANEOUS

 

15.1                           Exchange of Information

 

Each Chargor hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Secured Property unless such information is the subject of a duty of confidentiality on the part of any Beneficiary not to disclose such information.

 

15.2                           Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

15.3                           Successors

 

Any appointment or removal of a Receiver (under Clause 8) and any consents under this Deed may be made or given in writing signed or sealed by any successor of the Security Trustee appointed pursuant to the terms of the Security Trust Agreement and their respective successors in title and accordingly each Chargor hereby irrevocably appoints each successor of the Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors to be its attorney in the terms and for the purposes set out therein.

 

15.4                           Consolidation

 

Section 93 of the Law of Property Act 1925 shall not apply to the security created by this Deed or to any security given to the Security Trustee or any of the Beneficiaries pursuant to this Deed.

 

15.5                           Reorganisation

 

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

 

15.6                           Unfettered Discretion

 

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

 

15.7                           Provisions Severable

 

Each of the provisions of this Deed is severable and distinct from the others and if at any time one or more of such provisions is or becomes invalid, illegal or

 

25



 

unenforceable the validity, legality and enforceability of the remaining provisions of this Deed shall not in any way be affected or impaired thereby.

 

15.8                           No Assignment by Chargors

 

No Chargor may assign or transfer any of its rights or obligations under this Deed and each Chargor undertakes not to seek to assign or transfer all or any of its rights and obligations under this Deed.

 

15.9                           Security Trustee’s Rights

 

The Security Trustee may assign or transfer all or any of its rights under this Deed without the consent of any Chargor.

 

15.10                     Counterparts

 

This Deed may be executed in any number of counterparts and by the different parties hereto in separate counterparts each of which, when executed and delivered, shall constitute an original, but all counterparts together shall constitute one and the same instrument.

 

15.11                     Release

 

Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, the Security Trustee shall, at the request and cost of the relevant Chargor, execute and do all such deeds, acts and things as may be necessary to release the Secured Property from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

15.12                     Protection of Third Parties

 

No purchaser, mortgagee or other person or company dealing with the Security Trustee or any Receiver or the agents of any of them shall be concerned to enquire whether the Secured Obligations have become due and payable or whether any power which the Security Trustee or any Receiver is purporting to exercise has become exercisable or whether any of the Secured Obligations remains outstanding or to see to the application of any money paid to the Security Trustee or to such Receiver.

 

15.13                     Delegation by Security Trustee

 

The Security Trustee may at any time and from time to time delegate by power of attorney or in any other manner to any person or persons all of any of the powers, authorities and discretions which are for the time being exercisable by the Security Trustee under this Deed in relation to all or any part of the Secured Property.  Any such delegation may be made upon such terms (including power to sub-delegate) and subject to such regulations as the Security may think fit.  The Security Trustee shall not be in any way liable or responsible to any Chargor for any loss or damage arising from any act, default, omission or misconduct on the part of any such delegate or sub-delegate save in the case of fraud or wilful misconduct.

 

26


 

15.14                   Redemption of Prior Mortgages

 

The Security Trustee may, at any time after the Security has become enforceable, redeem any prior encumbrance over all or any part of the Secured Property or procure the transfer thereof to itself and may settle and pass the accounts of the prior mortgagee, chargee or encumbrancer.  Any accounts so settled and passed shall be conclusive and binding on each Chargor.  All principal interest, costs, charges and expenses of and incidental to such redemption and transfer shall be paid by the Chargors to the Security Trustee on demand.

 

16.                               NOTICES

 

16.1                         Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Deed shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on the relevant Chargor in the manner and at the address set out in Clause 20 (Notices) of the Group Intercreditor Deed.

 

16.2                         Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Deed shall, save for manifest error, be conclusive and binding upon each Chargor if signed by an officer of the Security Trustee.

 

17.                               GOVERNING LAW

 

17.1                         Law

 

This Deed shall be governed by English Law.

 

18.                               JURISDICTION

 

18.1                         Courts of England

 

The Company irrevocably agrees for the benefit of the Security Trustee that the courts of England shall have jurisdiction to hear and determine any suit, action or proceedings, and to settle any disputes which may arise out of or in connection with this Deed, (respectively, “Proceedings” and “Disputes”) and for such purposes, irrevocably submits to the jurisdiction of such courts.

 

18.2                         Appropriate forum

 

The Company irrevocably waives any objection which it might now or hereafter have to Proceedings being brought or Disputes settled in the courts of England and agrees not to claim that any such court is not a convenient or appropriate forum.

 

18.3                         Proceedings in other jurisdiction

 

Nothing in Clause 18.1 (Courts of England) shall (and nor shall it be construed so as to) limit the right of the Senior Finance Parties to take Proceedings against the Company in any other court of competent jurisdiction nor shall the taking of

 

27



 

Proceedings in any one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not) if and to the extent permitted by applicable law.

 

IN WITNESS whereof this Deed has been executed and delivered as a deed by or on behalf of the parties on the date stated at the beginning of this Deed.

 

28



 

SCHEDULE 1

 

THE CHARGORS

 

NORTH CABLECOMMS LLC

 

NTL BROMLEY COMPANY

 

NTL (TRIANGLE) LLC

 

NTL NORTH CABLECOMMS HOLDINGS, INC.

 

NTL NORTH CABLECOMMS MANAGEMENT, INC.

 

NTL SOLENT COMPANY

 

NTL SOUTH CABLECOMMS HOLDINGS, INC.

 

NTL SOUTH CABLECOMMS MANAGEMENT, INC.

 

NTL SURREY COMPANY

 

NTL SUSSEX COMPANY

 

NTL UK CABLECOMMS HOLDINGS, INC.

 

NTL WESSEX COMPANY

 

NTL WIRRAL COMPANY

 

SOUTH CABLECOMMS LLC

 

29



 

SCHEDULE 2

 

DETAILS OF SHARES

 

Name of Chargor

 

Name of Charged
Company

 

Description and
number of Shares held

 

Share certificate
numbers

 

 

 

 

 

 

 

NTL (Triangle) LLC

 

Cambridge Holding Company Limited

 

132 ordinary shares of £1.00 each

 

7

 

 

 

 

 

 

 

 

 

NTL Teesside Limited

 

367,988 ordinary shares of £1.00 each

 

9

 

 

 

 

 

 

 

 

 

NTL Darlington Limited

 

93,623 ordinary shares of £1.00 each

 

8

 

 

 

 

 

 

 

 

 

ntl Irish Holdings Limited

 

2 ordinary shares of  £1.00 each

 

2

 

 

 

 

 

 

 

North CableComms L.L.C.

 

ntl CableComms Holdings No. 1 Limited

 

1 ordinary share of £1.00

 

1

 

 

 

 

 

 

 

ntl Bromley Company

 

ntl CableComms Bromley

 

248,254 “B” ordinary shares of £0.10 each

 

19, 23

 

 

 

 

 

 

 

ntl North CableComms Holdings, Inc.

 

ntl CableComms Holdings No. 1 Limited

 

19,386,000 ordinary shares of £1.00 each

 

3, 6

 

 

 

 

 

 

 

 

 

ntl Bolton Cablevision Holding Company

 

1,073,358 “A” ordinary shares of £1.00 each

 

9

 

 

 

 

 

 

 

 

 

ntl Derby Cablevision Holding Company

 

819,953 “A” ordinary shares of £1.00 each

 

8

 

 

 

 

 

 

 

 

 

ntl Manchester Cablevision Holding Company

 

3,041,034 “A” ordinary shares of £1.00 each

 

8

 

 

 

 

 

 

 

 

 

ntl Wirral Telephone and Cable TV Company

 

501,599 ordinary shares of £1.00 each

 

9, 11

 

 

 

 

 

 

 

 

 

ntl CableComms Bolton

 

869,253 ordinary shares of £1.00 each

 

9, 11, 14, 15

 

 

 

 

 

 

 

 

 

ntl CableComms Bury and Rochdale

 

1,136,965 “A” ordinary shares of £1.00 each

 

7

 

 

 

 

 

 

 

 

 

ntl CableComms Cheshire

 

1,466,063 “A” ordinary shares of £1.00 each

 

16

 

30



 

Name of Chargor

 

Name of Charged
Company

 

Description and
number of Shares held

 

Share certificate
numbers

 

 

 

 

 

 

 

 

 

ntl CableComms Derby

 

18,131,254 ordinary shares of £0.01 each

 

6, 7, 10, 12

 

 

 

 

 

 

 

 

 

ntl CableComms East Lancashire

 

1,335,735 “A” ordinary shares of £1.00 each

 

61

 

 

 

 

 

 

 

 

 

ntl CableComms Greater Manchester

 

22,519,566 ordinary shares of £0.01 each

 

6, 7, 9, 11

 

 

 

 

 

 

 

 

 

ntl CableComms Holdings No. 1 Limited

 

949,541,999 ordinary shares of £1.00 each

 

2, 5

 

 

 

 

 

 

 

 

 

ntl CableComms Macclesfield

 

402,120 “A” ordinary shares of £1.00 each

 

6

 

 

 

 

 

 

 

 

 

ntl CableComms Oldham and Tameside

 

1,351,636 “A” ordinary shares of £1.00 each

 

8

 

 

 

 

 

 

 

 

 

ntl CableComms Staffordshire

 

1,600,941 “A” ordinary shares of £1.00 each

 

19

 

 

 

 

 

 

 

 

 

ntl CableComms Stockport

 

946,658 “A” ordinary shares of £1.00 each

 

7

 

 

 

 

 

 

 

ntl Solent Company

 

ntl CableComms Solent

 

170,678 “B” ordinary shares of £0.10 each

 

12, 15

 

 

 

 

 

 

 

ntl South CableComms Holdings, Inc.

 

ntl CableComms Holdings No. 2 Limited

 

7 ordinary shares of £1.00 each

 

7

 

 

 

 

 

 

 

ntl South CableComms Management, Inc.

 

ntl CableComms Bromley

 

496,507 “B” ordinary shares of £0.10 each

 

24, 18

 

 

 

 

 

 

 

 

 

ntl CableComms Holdings No. 2 Limited

 

879 ordinary shares of £1.00 each

 

6

 

 

 

 

 

 

 

 

 

ntl CableComms Solent

 

1,024,067 “B” ordinary shares of £0.10 each

 

10, 14

 

 

 

 

 

 

 

 

 

ntl CableComms Surrey

 

518,433 “B” ordinary shares of £0.10 each

 

10, 13

 

 

 

 

 

 

 

 

 

ntl CableComms Sussex

 

714,039 “B” ordinary shares of £0.10 each

 

20, 24

 

 

 

 

 

 

 

 

 

ntl CableComms Wessex

 

264,151 “B” ordinary shares of £0.10 each

 

22, 26

 

31



 

Name of Chargor

 

Name of Charged
Company

 

Description and
number of Shares held

 

Share certificate
numbers

 

 

 

 

 

 

 

ntl Surrey Company

 

ntl CableComms Surrey

 

86,406 “B” ordinary shares of £0.10 each

 

9, 14

 

 

 

 

 

 

 

ntl Sussex Company

 

ntl CableComms Sussex

 

119,007 “B” ordinary shares of £0.10 each

 

23, 27

 

 

 

 

 

 

 

ntl UK CableComms Holdings, Inc.

 

ntl Sideoffer Limited

 

11 deferred shares of £1.00 each

 

6

 

 

 

 

 

 

 

 

 

ntl Sideoffer Limited

 

11 warrant bearer ordinary shares of US$0.01 each

 

Warrant Number 00/01

 

 

 

 

 

 

 

 

 

ntl Streetwarm Services Limited

 

9 deferred shares of £1.00 each

9 warrant bearer ordinary shares of US$0.01 each

 

6

Warrant Number 00/02

 

 

 

 

 

 

 

 

 

ntl UK Telephone and Cable TV Holding Company Limited

 

2 deferred shares of £1.00 each

 

7

 

 

 

 

 

 

 

 

 

ntl UK Telephone and Cable TV Holding Company Limited

 

2 warrant bearer ordinary shares of US$1.00 each

 

Warrant Number 00/03

 

 

 

 

 

 

 

ntl Wessex Company

 

ntl CableComms Wessex

 

132,075 “B” ordinary shares of £0.10 each

 

28, 23

 

 

 

 

 

 

 

ntl Wirral Company

 

ntl CableComms Holdings No. 1 Limited

 

31,072,000 ordinary shares of £1.00 each

 

7

 

 

 

 

 

 

 

 

 

ntl CableComms Wirral

 

3,815,452 “B” ordinary shares of £0.10 each

 

10, 12, 14

 

 

 

 

 

 

 

South CableComms L.L.C.

 

ntl CableComms Holdings No. 2 Limited

 

114 ordinary shares of £1.00 each

 

1, 4, 5

 

32


 

SIGNATORIES

 



 

NORTH CABLECOMMS LLC

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL BROMLEY COMPANY

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL (TRIANGLE) LLC

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL NORTH CABLECOMMS HOLDINGS, INC.

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL NORTH CABLECOMMS MANAGEMENT, INC.

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL SOLENT COMPANY

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 



 

NTL SOUTH CABLECOMMS HOLDINGS, INC.

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL SOUTH CABLECOMMS MANAGEMENT, INC.

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL SURREY COMPANY

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL SUSSEX COMPANY

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL UK CABLECOMMS HOLDINGS, INC.

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

NTL WESSEX COMPANY

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 



 

NTL WIRRAL COMPANY

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 

 

SOUTH CABLECOMMS LLC

 

 

By:

/s/ ROBERT MACKENZIE

 

Name: Robert Mackenzie

 

Title: President

 

 



 

The Security Trustee

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

By:

/s/ N. DAWES

 

 

Name: N. Dawes

 

 

Title: V.P.

 

 

 

By:

/s/ V. MAYELL

 

 

Name: V. Mayell

 

 

Title: A.V.P.

 

 




Exhibit 4.13

 

EXECECUTION VERSION

 

 

 

Dated 9 February 2010

 

 

BLOCKED ACCOUNT CHARGE

 

 

between

 

 

VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED
as Chargor

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee

 

 

 

 

White & Case LLP

5 Old Broad Street

London  EC2N 1DW

 



 

TABLE OF CONTENTS

 

 

Page

 

 

 

1.

DEFINITIONS

1

2.

COVENANT AND CHARGE

6

3.

ASSIGNMENT

6

4.

NOTICES AND ACKNOWLEDGEMENTS OF CHARGE

6

5.

SET-OFF

6

6.

DEPOSITS

7

7.

REPRESENTATIONS AND WARRANTIES

7

8.

FURTHER ASSURANCE

8

9.

POWERS OF THE SECURITY TRUSTEE

8

10.

POWER OF ATTORNEY

9

11.

PROTECTIONS FOR THE SECURITY TRUSTEE

10

12.

APPOINTMENT AND POWERS OF RECEIVER

10

13.

INDEMNITIES; COSTS AND EXPENSES

11

14.

CONTINUING SECURITY AND OTHER MATTERS

12

15.

THE SECURITY TRUST AGREEMENT

15

16.

MISCELLANEOUS

15

17.

NOTICES

16

18.

LAW

16

19.

JURISDICTION

17

SCHEDULE 1 DETAILS OF BLOCKED ACCOUNTS

18

SCHEDULE 2 NOTICES AND ACKNOWLEDGEMENTS

19

 

Part A Form of Notice of Charge

19

 

Part B Form of Acknowledgement

21

 

i



 

THIS CHARGE is dated 9 February 2010 and made

 

BETWEEN:

 

(1)                                 VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED, a company incorporated in England & Wales under registered number 3173552 (the “Chargor”); and

 

(2)                                 DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

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

 

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

 

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

 

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

 

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

 

WITNESSES as follows:

 

1.                                      DEFINITIONS

 

1.1                               Definitions

 

In this Charge:

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Blocked Accounts” means each of the accounts specified in Schedule 1;

 

Blocked Account Bank” means National Westminster Bank plc;

 

Collateral Rights” means all rights, powers and remedies of the Security Trustee provided by this Charge or by law;

 



 

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

 

Deposit” means, in respect of each Blocked Account, each credit balance from time to time on such Blocked Account and all rights, benefits and proceeds in respect thereof;

 

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

 

Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

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

 

Incapacity” means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of that person whatsoever;

 

Receiver” means a receiver and manager, or any other receiver (whether appointed pursuant to this Charge or to any statute, by a court or otherwise) of the relevant Blocked Account and shall, where permitted by law, include an administrative receiver;

 

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

 

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

 

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

 

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

 

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

 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

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

 

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

 

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

 

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

 

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

 

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1.2                               Defined Expressions

 

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

 

1.3                               Headings

 

Clause headings are inserted for convenience of reference only and shall be ignored in the interpretation of this Charge.

 

1.4                               Construction of Certain Terms

 

In this Charge, unless the context otherwise requires:

 

(a)                                  references to clauses are to be construed as references to the clauses of this Charge;

 

(b)                                 references to (or to any specified provision of) this Charge or any other agreement or document shall be construed as references to this Charge, that provision or that agreement or document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

(e)                                  references to a “person” shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof;

 

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

 

(g)                                 references to statutory provisions shall be construed as references to those provisions as replaced, amended or re-enacted from time to time.

 

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1.5                               Implied Covenants

 

The following provisions of the Law of Property (Miscellaneous Provisions) Act 1994 will not apply to Clause 2.2:

 

(a)                                  the words “other than any charges, encumbrances or rights which that person does not and could not reasonably be expected to know about” in section 3(1); and

 

(b)                                 the words “except to the extent that” and all the words thereafter in section 3(2); and

 

(c)                                  section 6(2).

 

1.6                                 Third Party Rights

 

A person which is not a party to this Charge (a “third party”) shall have no rights to enforce the provisions of this Charge save for:

 

(a)                                  those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and

 

(b)                                 a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Security Trust Agreement whether or not it is a party to the Security Trust Agreement,

 

provided also that this Charge may be rescinded or altered without the consent of any third party referred to in Clause 1.6(b).

 

1.7                               Effect as a Deed

 

This Charge is intended to take effect as a deed notwithstanding that the Security Trustee may have executed it under hand only.

 

1.8                               Successors and Assigns

 

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

 

1.9                               Group Intercreditor Deed

 

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

 

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1.10                         Secured Obligations

 

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

 

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

 

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

 

2.                                      COVENANT AND CHARGE

 

2.1                               Covenant to Pay

 

The Chargor shall on demand of the Security Trustee discharge and pay to the Security Trustee (when due and payable) each of the Secured Obligations to the extent of and up to the maximum amount of the Deposit from time to time.

 

2.2                                 Charge

 

As continuing security for the payment, discharge and performance of the Secured Obligations, the Chargor charges the Deposit in favour of the Security Trustee as trustee for the Beneficiaries.

 

3.                                      ASSIGNMENT

 

As security for the payment and discharge of all of the Secured Obligations the Chargor assigns absolutely and with full title guarantee all of its rights, title and interest in the Deposit to the Security Trustee to hold the same on trust for the Beneficiaries on the terms set out in the Security Trust Agreement and the Group Intercreditor Deed.

 

4.                                      NOTICES AND ACKNOWLEDGEMENTS OF CHARGE

 

4.1                                 As soon as possible after the execution of this Charge, the Security Trustee shall deliver to the Blocked Account Bank a notice of assignment and charge in the form of Part A of the Schedule 2 and if the Security Trustee so requests, the Chargor shall countersign such notice of assignment and charge.

 

4.2                                 The Chargor shall use its best efforts to ensure that, as soon as practicable after it receives a notice of assignment and charge, the Blocked Account Bank shall execute and deliver to the Security Trustee an acknowledgement thereof in the form of Part B of the Schedule 2.

 

5.                                      SET-OFF

 

Without prejudice to, or limiting the rights of, the Beneficiaries under the applicable provisions of the Senior Finance Documents, the Chargor hereby agrees that the Security Trustee may (in addition to and notwithstanding the security and other rights conferred on the Security Trustee under this Charge) after the Enforcement Date and notwithstanding any settlement of account or other matter whatsoever, combine or

 

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consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee or of the Chargor jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency and set off or transfer all or part of the relevant Deposit and any such other sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.  For this purpose the Security Trustee is authorised to purchase with such Deposit or with other moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications.

 

6.                                      DEPOSITS

 

6.1                                 The Chargor shall not, without the Security Trustee’s prior written consent, permit or agree to any variation of the rights attaching to any Deposit.

 

6.2                                 At any time when there are Secured Obligations outstanding, the Chargor shall not be entitled to receive, withdraw or otherwise transfer any Deposit, other than as contemplated by the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Relevant Facilities Agreement) and provided that the prior written consent of the Relevant Agent to such receipt, withdrawal or transfer has been obtained.

 

6.3                                 The Security Trustee shall at any time after the Enforcement Date be entitled without notice or further demand, immediately to exercise all the rights, powers and remedies possessed by it according to law as assignee of the Deposits and to:

 

(a)                                  demand and receive all and any monies due under or arising out of each Deposit;

 

(b)                                 exercise in relation to each Deposit all such rights as the Chargor was then entitled to exercise in relation to such Deposit or might, but for the terms of this Charge, exercise; and

 

(c)                                  after the Acceleration Date, apply, set-off or transfer any or all of the Deposits in or towards the payment or other satisfaction of the Secured Obligations or any part thereof.

 

7.                                      REPRESENTATIONS AND WARRANTIES

 

7.1                                 The Chargor hereby represents and warrants to the Security Trustee and undertakes during the subsistence of this Charge that:

 

(a)                                  it has not sold or disposed of, and will not sell or dispose of, the benefit of all or any of its rights, title and interest in any Deposit save as contemplated by this Charge;

 

(b)                                 it has and will have the necessary power to enable it to enter into and perform its obligations under this Charge;

 

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(c)                                  this Charge constitutes its legal, valid and (subject to the Reservations) binding obligations and (subject to the Reservations) creates effective security over each Deposit;

 

(d)                                 all necessary authorisations to enable it to enter into this Charge have been obtained (subject to the Reservations) and are, and will remain, in full force and effect, except where any failure to maintain such necessary authorisations in full force and effect could not reasonably be expected to have a Material Adverse Effect; and

 

(e)                                  the aggregate amount of the Deposits at any time does not exceed the aggregate amount of the Secured Obligations of the members of the Group at such time.

 

8.                                      FURTHER ASSURANCE

 

8.1                                 The Chargor shall promptly upon demand by the Security Trustee do all such acts or execute such documents (including assignments, transfers, mortgages, charges, notices and instructions) as the Security Trustee in its reasonable discretion may require for:

 

(a)                                  exercising the Collateral Rights;

 

(b)                                 perfecting or protecting the security created (or intended to be created) by this Charge;

 

(c)                                  preserving or protecting the Collateral Rights;

 

(d)                                 facilitating the realisation or enforcement of the security constituted by this Charge on or at any time after (and for so long as) the same shall have become enforceable; and

 

(e)                                  the exercise of any power, authority or discretion vested in the Security Trustee under this Charge,

 

provided that the Security Trustee will not require the Chargor to do any act or execute any document which would cause it to contravene any of the Senior Finance Documents.

 

9.                                      POWERS OF THE SECURITY TRUSTEE

 

9.1                               Enforcement Powers

 

If the Enforcement Date has occurred then the charges created by this Charge shall become immediately enforceable and the Security Trustee shall be entitled, without prior notice to the Chargor or prior authorisation from any court, to sell or otherwise dispose of all or any part of the relevant Deposit at the times in the manner and on the terms it thinks fit.  No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee to exercise any of the powers conferred by this Charge has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

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9.2           Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Charge.

 

9.3           Law of Property Act

 

The restrictions contained in sections 93 and 103 of the Law of Property Act 1925 shall not apply to this Charge or to any exercise by the Security Trustee of its right to consolidate mortgages or its power of sale.

 

9.4           Subsequent Encumbrances

 

(a)           If the Security Trustee at any time receives notice of any subsequent mortgage, assignment, charge or other interest affecting all or any part of the Deposits, all payments thereafter made by the Chargor to the Security Trustee or any of the Beneficiaries shall be treated as having been credited to a new account of the Chargor and not as having been applied in reduction of the Secured Obligations as at the time when the Security Trustee received notice.

 

(b)           All monies received, recovered or realised by the Security Trustee under this Charge (including the proceeds of any conversion of currency) may in its discretion be credited to and held in any interest-bearing suspense account pending their application from time to time in or towards the discharge of any of the Secured Obligations.

 

10.          POWER OF ATTORNEY

 

10.1         Power of Attorney

 

The Chargor, by way of security for the performance of its obligations under this Charge, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the relevant Deposit and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)           to sign, execute, seal and deliver and otherwise perfect any document referred to in Clause 8 hereof in accordance with the terms thereof; and

 

(b)           otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee under this Charge or which may be deemed expedient by the Security Trustee in connection with the relevant Deposit or any part thereof or in connection with any other exercise of any power under this Charge.

 

10.2         Ratification

 

The Chargor ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 10.1 shall do or purport to do in the exercise of his powers under such Clause.

 

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10.3         General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and the Chargor hereby covenants with the Security Trustee to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

11.          PROTECTIONS FOR THE SECURITY TRUSTEE

 

11.1         Security Trustee Not Responsible

 

The Security Trustee shall not be responsible for any loss occasioned by the timing of the exercise of its powers under this Charge in relation to the fixing of interest periods, purchase of currencies or otherwise.

 

12.          APPOINTMENT AND POWERS OF RECEIVER

 

12.1         Appointment of Receivers

 

The Security Trustee may at any time on or after the Enforcement Date or if the Chargor requests it to do so, by written instrument and without notice to the Chargor, appoint any one or more persons as Receiver of all or any part of the relevant Deposit as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of the Chargor and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925.  The Security Trustee may from time to time by writing under its hand remove any Receiver appointed by it and may, whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

12.2         Receiver as Agent

 

A Receiver shall be the agent of the Chargor in respect of which he is appointed and (subject to the provisions of this Charge) the Chargor shall be solely responsible for his acts or defaults and for his remuneration.

 

12.3         Powers of Receiver

 

A Receiver shall have, in relation to the part of the Deposit in respect of which he was appointed:

 

(a)           all the powers conferred by the Law of Property Act 1925 on a receiver appointed under that Act;

 

(b)           all the powers of an administrative receiver set out in Schedule 1 and 2 to the Insolvency Act 1986 (whether or not such person is an administrative receiver);

 

(c)           all the powers and rights of an absolute owner and power to do or omit to do anything which the Chargor itself could do or omit to do; and

 

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(d)           the power to do all things (including bringing or defending proceedings in the name or on behalf of the Chargor) which seem to such a person to be incidental or conducive to (i) any of the functions, powers, authorities or discretions conferred on or vested in him, or (ii) the exercise of the Collateral Rights (including realisation of all or any part of the Deposits), or (iii) bringing to his hands any assets of the Chargor forming part of, or which when got in would be a part of, the Deposits.

 

12.4         Remuneration of Receiver

 

The Security Trustee may from time to time determine the remuneration of any Receiver appointed by it without the limitations imposed by section 109 of the Law of Property Act 1925.  A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

13.          INDEMNITIES; COSTS AND EXPENSES

 

13.1         Enforcement Costs

 

The Chargor hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Charge or the Deposit on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Chargor (both before and after judgment).

 

13.2         No Liability as Mortgagee in Possession

 

None of the Beneficiaries or the Security Trustee shall be liable to account as mortgagee in possession in respect of the Deposit or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such except in the case of fraud, wilful misconduct or gross negligence on the part of the relevant Beneficiary or the Security Trustee (as the case may be).

 

13.3         Indemnity from Deposits

 

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

 

(a)           anything done or omitted in the exercise or purported exercise of the powers contained in this Charge; or

 

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(b)           any breach by the Chargor of any of its obligations under this Charge,

 

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

 

13.4         Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of any Deposit may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of such Deposit whether or not a Receiver is or has been appointed.

 

14.          CONTINUING SECURITY AND OTHER MATTERS

 

14.1         Continuing Security

 

This Charge and the obligations of the Chargor under this Charge shall:

 

(a)           secure the ultimate balance of the Secured Obligations from time to time owing notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of any person liable in respect thereof or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

(b)           be in addition to, and shall not merge with or otherwise prejudice or affect, any present or future Security Document, Encumbrance, right or remedy held by or available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)           not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

14.2         Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Documents or other means of payment now or hereafter held by or available to it before enforcing this Charge and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of the Chargor nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

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14.3         New Accounts

 

Notwithstanding that the charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of the Chargor or open one or more new accounts and the liability of the Chargor hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of any such account.

 

14.4         Settlements Conditional

 

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

 

14.5         No Release

 

The liability of the Chargor shall not be affected nor shall the charge hereby created be discharged or diminished by reason of:

 

(a)           the Incapacity or any change in the name, style or constitution of any other Obligor or any other person liable; or

 

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

 

(c)           anything done or omitted which but for this provision might operate to exonerate any such Obligor.

 

14.6         Restriction of the Chargor’s Rights

 

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

 

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

 

(b)           save as otherwise permitted or not restricted in the Senior Finance Documents, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Chargor from any other Chargor or any

 

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Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

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

 

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

 

14.7         No Security

 

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

 

14.8         Recoveries by a Chargor

 

If, contrary to Clause 14.6 and 14.7, the Chargor takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

14.9         Statements of Account

 

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

 

14.10       Payments by the Chargor

 

All payments to be made by the Chargor under this Charge shall be made in full, without any set-off or counterclaim whatsoever and free and clear of any deductions

 

14



 

or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

15.          THE SECURITY TRUST AGREEMENT

 

The Chargor and the Security Trustee hereby acknowledge that the covenants of the Chargor contained in this Charge and the security and other rights, titles and interests constituted by this Charge and the Deposits and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Charge are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.          MISCELLANEOUS

 

16.1         Exchange of Information

 

The Chargor hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Deposits.

 

16.2         Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

16.3         Successors

 

Any consents under this Charge may be made or given in writing signed or sealed by any successor Security Trustee appointed pursuant to the terms of the Security Trust Agreement and their respective successors in title and accordingly the Chargor hereby irrevocably appoints each successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title to be its attorney in the terms and for the purposes set out therein.

 

16.4         Reorganisation

 

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

 

16.5         Unfettered Discretion

 

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

 

15



 

16.6         Provisions Severable

 

Each of the provisions of this Charge is severable and distinct from the others and if any one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Charge shall not in any way be affected or impaired thereby.

 

16.7         No Assignment by the Chargor

 

The Chargor may not assign or transfer any of its rights or obligations under this Charge.

 

16.8         Release

 

Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, the Security Trustee shall, at the request and cost of the Chargor, execute and do all such deeds, acts and things as may be necessary to release the Deposits from the security constituted.

 

16.9         Counterparts

 

This Charge may be executed in any number of counterparts, each of which, when executed and delivered, shall constitute an original but all counterparts together shall constitute one and the same instrument.

 

17.          NOTICES

 

17.1         Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Charge shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on the Chargor in the manner and at the address set out in Clause 20 of the Group Intercreditor Deed.

 

17.2         Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Charge shall, save for manifest error, be conclusive and binding upon the Chargor if signed by an officer of the Security Trustee.

 

18.          LAW

 

18.1         Governing Law

 

This Charge shall be governed by English law.

 

16



 

19.          JURISDICTION

 

19.1         The courts of England have exclusive jurisdiction to settle any disputes (a “Dispute”) arising out of, or connected with, this Charge (including a dispute regarding the existence, validity or termination of this Charge or the consequences of its nullity).

 

19.2         The parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes between them and, accordingly, that they will not argue to the contrary.

 

19.3         This Clause 19 is for the benefit of the Security Trustee only.  As a result and notwithstanding Clause 19.1, it does not prevent the Security Trustee from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law the Security Trustee may take concurrent proceedings in any number of jurisdictions.

 

IN WITNESS whereof this Charge has been executed and delivered by or on behalf of the parties on the date stated at the beginning of this Charge.

 

17


 

SCHEDULE 1

 

DETAILS OF BLOCKED ACCOUNTS

 

Name of Account
Holder

 

Sort Code

 

Account Number

 

Account
Description

Virgin Media Investment Holdings Limited

 

[intentionally omitted]

 

[intentionally omitted]

 

Virgin Media Investment Holdings Limited - GBP Blocked Account

Virgin Media Investment Holdings Limited

 

[intentionally omitted]

 

[intentionally omitted]

 

Virgin Media Investment Holdings Limited - EUR Blocked Account

 

18



 

SCHEDULE 2

 

NOTICE AND ACKNOWLEDGEMENT

 

Part A
Form of Notice of Charge

 

To:                              [Blocked Account Bank details]
[address]

 

[Date]

 

[Virgin Media Investment Holdings Limited] (the Chargor”) HEREBY GIVES NOTICE that, by a charge (the “Charge”) dated [·] 2010 and entered into between the Chargor and Deutsche Bank AG, London Branch as Security Trustee, the Chargor charged to the Security Trustee (for and on behalf of the Beneficiaries) by way of first fixed charge all sums standing to the credit of account number [·], sort code [·] (account name [·]) maintained with you (the “Blocked Account”), as a continuing security for the payment of all moneys and the discharge of all obligations and liabilities referred to in the Charge.

 

We hereby irrevocably and unconditionally authorise and instruct you:

 

(a)                                  upon receipt by the Chargor of written consent from the Relevant Agent (the “Consent”), a copy of which will be provided to you upon request, and at any time prior to receipt of a notification from the Security Trustee as set out in paragraph (b) below, to release to us or to our order from the Blocked Account or otherwise make payment therefrom of such moneys as we from time to time may instruct you and as the relevant Consent permits;

 

(b)                                 to comply with the written instructions of the Security Trustee only upon receipt by you of written notification from the Security Trustee of the Enforcement Date, and after such time only to release to us or to our order from the Blocked Account or otherwise make payments therefrom of such moneys as are from time to time advised to you in writing by the Security Trustee (and then only in accordance with the written directions of the Security Trustee) until such time as the Security Trustee shall otherwise notify you;

 

(c)                                  if the Security Trustee so requires after receipt by you of written notification from the Security Trustee of the Enforcement Date to pay to the Security Trustee all such moneys as are then standing to the credit of the Account; and

 

(d)                                 at any time, to provide to the Security Trustee upon its request details of the balances in the Blocked Account and of the transfer of moneys to or from the Blocked Account (including, without limitation, copy bank statements relating to the Blocked Account).

 

This notice may only be amended with the prior written consent of the Security Trustee.

 

Words and expressions defined in, or incorporated by reference into, the Charge shall have the same meanings when used in this notice.

 

19



 

Please accept this notice by signing the enclosed acknowledgement and returning it to the Security Trustee at [address] marked for the attention of [·].

 

For and on behalf of

 

[Virgin Media Investment Holdings Limited]

 

 

 

Authorised Officer

 

20



 

Part B
Form of Acknowledgement

 

To:                              [·]

 

and to:           [Virgin Media Investment Holdings Limited]
[Virgin Media House
Bartley Wood Business Park,
Hook
Hampshire RG27 9UP]

 

[Date]

 

At the request of the Security Trustee and [Virgin Media Investment Holdings Limited] we acknowledge receipt of the notice of assignment and charge, on the terms attached, in respect of the Blocked Account (as described in those terms).  We confirm that:

 

(a)                                  the balance standing to the Blocked Account at today’s date is [·], no fees or periodic charges are payable in respect of the Blocked Account and there are no restrictions on (a) the payment of the credit balance on the Blocked Account (except, in the case of a time deposit, the expiry of the relevant period) or (b) the assignment of the Blocked Account to the Security Trustee or any third party;

 

(b)                                 we have not received notice of any previous assignments of, charges over or trusts in respect of, the Blocked Account and we will not, without the Security Trustee’s prior written consent (a) exercise any right of combination, consolidation or set-off which we may have in respect of the Blocked Account or (b) amend or vary any rights attaching to the Blocked Account; and

 

(c)                                  following receipt of further notification from the Security Trustee we will act only in accordance with the instructions given by persons authorised by the Security Trustee and we shall send all statements and other notices given by us relating to the Blocked Account to the Security Trustee.

 

For and on behalf of

 

[Blocked Account Bank]

 

 

 

 

Authorised Officer

 

21



 

The Chargor

 

Executed as a deed by VIRGIN MEDIA INVESTMENT HOLDINGS LIMITED acting by:

 

Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

Robert Gale, a director

 

 

/s/ ROBERT GALE

 

 

22



 

The Security Trustee

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

By:

/s/ VIKKI ANNE MAYELL

 

 

 

 

By:

/s/ NICOLA ANNE DAWES

 

 

23




Exhibit 4.14

 

EXECUTION COPY

 

Dated 15 April 2010

 

CHARGE OVER SHARES

 

between

 

VIRGIN MEDIA FINANCE PLC

as Chargor

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 



 

TABLE OF CONTENTS

 

1.

INTERPRETATION

1

 

 

 

2.

COVENANT TO PAY

7

 

 

 

3.

CHARGING CLAUSE

7

 

 

 

4.

REPRESENTATIONS AND WARRANTIES

8

 

 

 

5.

COVENANTS BY THE CHARGOR

10

 

 

 

6.

FURTHER ASSURANCE

13

 

 

 

7.

CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES, ENFORCEMENT

13

 

 

 

8.

APOINTMENT AND POWERS OF RECEIVER

16

 

 

 

9.

ENFORCEMENT

18

 

 

 

10.

INDEMNITIES, EXCLUSION OF LIABILITY, COSTS AND EXPENSES

18

 

 

 

11.

POWER OF ATTORNEY

19

 

 

 

12.

CONTINUING SECURITY AND OTHER MATTERS

20

 

 

 

13.

CURRENCIES

22

 

 

 

14.

THE SECURITY TRUST AGREEMENT

23

 

 

 

15.

MISCELLANEOUS

23

 

 

 

16.

NOTICES

25

 

 

 

17.

GOVERNING LAW

25

 

 

 

18.

JURISDICTION

25

 

1



 

THIS DEED is dated 15 April 2010 and is made

 

BETWEEN

 

(1)                                VIRGIN MEDIA FINANCE PLC a company incorporated in England and Wales with registered number 5061787 and having its registered office at 160 Great Portland Street, London W1W 5QA (the “Chargor”); and

 

(2)                                DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries, (the “Security Trustee”).

 

WHEREAS

 

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

 

(B)                              Virgin Media Secured Finance PLC has issued and sold the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

(D)                             This Deed is given by the Chargor in favour of the Security Trustee as a condition precedent to the making available of the facilities under the Senior Facilities Agreement.

 

(E)                               The board of directors of the Chargor is satisfied that the Chargor is entering into this Deed for the purposes of carrying on its business, and that its doing so benefits the Chargor.

 

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

 

NOW THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                               Definitions

 

In this Deed, unless the context otherwise requires:

 

2014 High Yield Notes” means the sterling denominated 9.75% senior notes due 2014, the U.S. dollar denominated 8.75% senior notes due 2014 and the euro denominated 8.75% senior notes due 2014, in each case, issued by the Parent;

 

1



 

2014 Redemption Date” means the date upon which all amounts outstanding in respect of or in connection with the 2014 High Yield Notes have been repaid in full;

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Charged Company” means any company the Shares and all other rights, moneys, benefits and other property referred to in Clause 3.1 (b) of which form part of the Secured Property;

 

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

 

disposal” includes any sale, assignment or transfer, the grant of an option or similar right, the grant of any right or privilege, the creation of a trust or other equitable interest in favour of a third party and “dispose” and “disposition” shall be construed accordingly;

 

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

 

Event of Default” means each of:

 

(a)           a Senior Default; and

 

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

 

Incapacity” means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration. receivership, amalgamation, reconstruction or other incapacity of that person whatsoever;

 

Indemnified Party” has the meaning set out in Clause 10.3 (Indemnity);

 

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

 

Receiver” means a receiver and manager, (whether appointed pursuant to this Deed or any statute, by a court or otherwise) in respect of all or any of the Secured Property and shall, where permitted by law, include an administrative receiver;

 

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

 

2



 

Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination;

 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that:

 

(a)                                 any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

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

 

(ii)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for; and

 

(b)                                prior to the 2014 Redemption Date, any liabilities incurred under the Senior Secured Notes, any Additional Senior Secured Notes or any Senior Secured Notes Refinancing,

 

shall not, in each case constitute “Secured Obligations” for the purpose of this Deed;

 

Secured Property” means the Shares and all other rights, moneys, benefits and other property referred to in Clause 3.1(b);

 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on 19 January 2010 between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited and the companies named therein as Original Obligors;

 

Senior Facilities Agreement” means the senior facilities agreement dated 16 March 2010 (as amended, restated, supplemented or novated from time to time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crèdit Agricole Corporate and Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International,

 

3



 

J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London Branch as Security Trustee and the financial and other institutions named in it as Lenders;

 

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

 

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

 

Senior Secured Notes lndenture” means the indenture dated 19 January 2010 governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time;

 

Shares” means any shares in the capital of VMIH in which the Chargor (and/or its respective nominee or trustee) may, at the date of this Deed or at any time thereafter, have any right, title, or interest; and,

 

“VMIH” means Virgin Media Investment Holdings Limited a company incorporated in England and Wales with registered number 3173552 and having its registered office at 160 Great Portland Street, London W1W 5QA.

 

1.2                             Successors and Assigns

 

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

 

1.3                             Headings

 

Clause headings and the table of contents are inserted for convenience of reference only and shall be ignored in the interpretation of this Deed.

 

1.4                             Construction of Certain Terms

 

In this Deed, unless the context otherwise requires:

 

(a)                                  references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Deed and references to this Deed include its schedules;

 

4



 

(b)                                 references to (or to any specified provision of) this Deed or any other agreement or document shall be construed as references to this Deed, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

(i)                                     references to “business” in relation to the Chargor means any business referred to in the definition of Group Business in the Relevant Facilities Agreement which the Chargor engages in, and references to “ordinary course of business” in relation to the Chargor shall be similarly construed.

 

1.5                               Effect as a Deed

 

This Deed is intended to take effect as a deed notwithstanding that the Security Trustee may have executed it under hand only.

 

1.6                               Agreement Definitions

 

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

 

5



 

1.7                               Implied Covenants

 

The following provisions of the Law of Property (Miscellaneous Provisions) Act 1994 will not apply to Clause 3.1 (Charges) or Clause 5.1 (Supporting Documents):

 

(a)                                  the words “other than any charges, encumbrances or rights which that person does not and could not reasonably be expected to know about” in section 3(1);

 

(b)                                 the words “except to the extent that” and all the words thereafter in section 3(2); and

 

(c)                                  section 6(2).

 

1.8                               Nominees

 

If the Security Trustee causes or requires the Secured Property to be registered in the name of a nominee for the Security Trustee, any reference in this Deed to the Security Trustee shall, if the context so permits or requires, be construed as a reference to each of the Security Trustee and such nominee.

 

1.9                               Third Party Rights

 

(a)                                  A person which is not a party to this Deed (a “third party”) shall have no rights to enforce any of its provisions except that:

 

(i)                                   a third party shall have those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect;

 

(ii)                                Clause 15.12 (Protection of Third Parties) shall be enforceable by any third party referred to in such clause as if such third party were a party to this Deed; and

 

(iii)                             a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Security Trust Agreement whether or not it is a party to the Security Trust Agreement.

 

(b)                                 The parties to this Deed may without the consent of any third party vary or rescind this Deed.

 

1.10                        Certificates

 

A certificate of any Beneficiary as to the amount of the Secured Obligation owed to it shall be prima facie evidence of the existence and amount of such Secured Obligation.

 

1.11                        Statutes

 

Any reference in this Deed to a statute or statutory provision shall, unless the contrary is indicated, be construed as a reference to such statute or statutory provision as the same shall have been amended or re-enacted.

 

6


 

1.12                        Group Intercreditor Deed

 

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

 

1.13                        Secured Obligations

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof):

 

(a)                                  as at the date hereof, the Secured Obligations shall include all Liabilities under the Senior Facilities Agreement; and

 

(b)                                 as from the 2014 Redemption Date, the Secured Obligations shall include all Liabilities under the Senior Facilities Agreement and all Liabilities under the Senior Secured Notes Documents.

 

2.                                      COVENANT TO PAY

 

2.1                               Covenant to Pay

 

The Chargor agrees as primary obligor and not only as surety that it will pay and discharge the Secured Obligations promptly on demand of the Security Trustee.

 

2.2                               Payments

 

Any payment made by the Chargor under this Deed shall be made free and clear of and without any deduction for or on account of any set-off or counterclaim and in such manner as the Security Trustee may require.

 

3.                                      CHARGING CLAUSE

 

3.1                               Charges

 

The Chargor, with full title guarantee and as a continuing security for the payment and discharge of the Secured Obligations hereby mortgages and charges and agrees to mortgage and charge to the Security Trustee to hold the same on trust for the Beneficiaries on the terms set out in the Group Intercreditor Deed and the Security Trust Agreement:

 

(a)                                  all its rights, title and interest in and to the Shares by way of a first equitable charge (until the Shares are transferred to the Security Trustee or its nominee or agent pursuant to Clause 7.2 (Transfer of Secured Property)) or legal mortgage (following such transfer); and

 

(b)                                 by way of first fixed charge all rights, moneys, benefits and other property which may at any time accrue or be offered or arise by way of conversion, redemption, bonus, preference, option, distribution, interest or otherwise in

 

7



 

respect of any of the Shares or in substitution or exchange for any of the Shares.

 

3.2                               Dividends and Voting Rights

 

Subject to Clause 7 (Certain powers of the Security Trustee and the Beneficiaries, Enforcement), and notwithstanding Clause 3.1 (b), the Chargor may, prior to the Enforcement Date, in its absolute discretion (a) exercise all voting and other rights and powers attached to the Secured Property and (b) receive, retain and deal with free from this Deed (but subject to the Group Intercreditor Deed) all dividends paid on and received by it in respect of the Secured Property.

 

3.3                               Suspense Accounts

 

Any money received by the Security Trustee pursuant to this Deed (whether before or after any Incapacity of the Chargor or any Charged Company) may be placed to the credit of an interest-bearing suspense account with a view to preserving the rights of the Beneficiaries to prove for the whole of their respective claims against the Chargor or any other person liable or may be applied in or towards satisfaction of such of the Secured Obligations as the Security Trustee may from time to time conclusively determine in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement notwithstanding any appropriation (or purported appropriation) by the Chargor.

 

4.                                      REPRESENTATIONS AND WARRANTIES

 

4.1                               Representations and Warranties

 

The Chargor hereby represents and warrants to the Security Trustee as trustee for the Beneficiaries that:

 

(a)                                  Shares Fully Paid

 

the Shares are fully paid or credited as fully paid and no calls have been, or can be, made in respect of the Shares and the terms of each Share and of the Memorandum and Articles of Association of the Charged Company do not restrict or otherwise limit the Chargor’s right to transfer or charge the Shares;

 

(b)                                 Due Incorporation

 

it is duly incorporated, validly existing as a limited liability company and has all requisite corporate power and authority to own its property and other assets and to carry on its business as it is now being conducted and is authorised to do business in each jurisdiction where such qualification or authorisation is required, except where the failure to so qualify, to be so authorised or to be in good standing would not have a material adverse effect on the Chargor’s ability to perform any of its obligations under this Deed;

 

(c)                                  Powers of the Chargor

 

it has all requisite power to execute, deliver and perform its obligations under this Deed and compliance has been made with all necessary requirements and

 

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all necessary action has been taken to authorise the execution, delivery and performance of the same;

 

(d)                                 Binding Obligations

 

this Deed constitutes its valid and legally binding obligations enforceable in accordance with its terms subject, to the extent applicable, to equivalent qualifications to those contained in the legal opinions referred to in part 1 of schedule 3 to the Senior Facilities Agreement (or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement) which relate to Security Documents governed by English law;

 

(e)                                 No Conflict with Other Obligations

 

the execution and delivery of, the performance of its obligations under, and compliance with the provisions of, this Deed by it, will not:

 

(i)                                   contravene any existing applicable law, statute, rule or regulation or any judgment. decree or permit to which it is subject except where such contravention would not or would not be likely to have a material adverse effect on the ability of the Chargor to perform any of its obligations under or otherwise to comply with the terms of this Deed;

 

(ii)                                contravene or conflict with any provision of its Memorandum and Articles of Association;

 

(iii)                             conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement constituting or evidencing Indebtedness of the Chargor to which the Chargor is a party or is subject or by which it or any of its property is bound except where such breach or default would not or would not be likely to have a material adverse effect on the ability of the Chargor to perform any of its obligations under or otherwise to comply with the terms of this Deed; or

 

(iv)                            result in the creation or imposition of or oblige the Chargor to create any Encumbrance (other than those created by the Security Documents) on any of the Chargor’s material undertakings, assets, rights or revenues;

 

(f)                                   Choice of Law

 

the choice by the Chargor of English Law to govern this Deed is valid and binding;

 

(g)                                No Filings Required

 

it is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of this Deed that it or any other instrument be notarised, filed, recorded, registered or enrolled in any court, public office in the United Kingdom (save for any registration pursuant to section 860 of the

 

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Companies Act 2006, to the extent required thereunder) or that any stamp, registration or similar tax or charge be paid in the United Kingdom on or in relation to this Deed;

 

(h)                                 No Disposals

 

save as contemplated in or not prohibited by this Deed or in each of the Senior Finance Documents, it has not transferred, mortgaged, charged or otherwise disposed of (or agreed to transfer, mortgage, charge or otherwise dispose of) whether by way of security or otherwise, the benefit of all or any of its right, title and interest in and to the Secured Property;

 

(i)                                     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 Chargor (i) to authorise the execution and delivery of this Deed or the performance by the Chargor of its obligations under this Deed or (ii) to ensure the validity, enforceability or admissibility in evidence of this Deed has been obtained or made and is in full force and effect and there has been no material default in the observance of the conditions or restrictions (if any) imposed in, or in connection with, any of the same which would, in any such case, adversely affect the execution, delivery, validity, enforceability or admissibility in evidence of this Deed or the performance by the Chargor of its obligations under this Deed; and

 

(j)                                     No Security from any Obligor

 

it has not requested, taken or received any Encumbrance from any Obligor for any obligations or Liabilities of any Obligor to it.

 

4.2                               Repetition Representations and Warranties

 

The representations and warranties in Clause 4.1 (Representations and Warranties) shall be deemed to be repeated by the Chargor on and as of the date of this Deed and on the date on which all or any of the representations and warranties contained in Clause 21 of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 

5.                                      COVENANTS BY THE CHARGOR

 

5.1                               Supporting Documents

 

The Chargor hereby covenants with the Security Trustee that during the continuance of the security created by this Deed it will at all times deposit with the Security Trustee or its nominees and permit the Security Trustee or its nominees during the continuance of this security to hold and retain:

 

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(a)                                 Certificates

 

all stock and share certificates and documents of title relating to the Shares together with any other documents of title relating to the Secured Property;

 

(b)                                Transfers

 

such stock transfer forms or other instruments of transfer in respect of the Shares and, if appropriate, the other Secured Property duly completed in favour of the Security Trustee or its nominees or otherwise as the Security Trustee may reasonably direct; and

 

(c)                                 Further Documents

 

all such other documents as are in its possession or which it can reasonably obtain as the Security Trustee may from time to time reasonably require for perfecting its title to the Shares and/or the Secured Property (duly executed by or signed on behalf of the registered holder) or for vesting or enabling it to vest the same in itself or its nominees or in any purchaser to the intent that the Security Trustee may at any time without notice present them for registration.

 

5.2                               Continuing Covenant

 

The Chargor hereby further covenants with the Security Trustee, its nominee or any Receiver, that during the continuance of the security created by this Deed the Chargor will at all times:

 

(a)                                  Prompt Payment

 

duly and promptly pay all calls, instalments or other payments which from time to time become due in respect of the Shares, and neither the Security Trustee nor any of the Beneficiaries shall in any circumstances incur any liability whatsoever in respect of any calls, instalments or otherwise in connection with the Shares;

 

(b)                                 New Certificates

 

after an Event of Default has occurred and is continuing, use reasonable endeavours to procure that the directors of the Charged Company (i) duly register all transfers of the Shares from time to time lodged with them by or on behalf of the Security Trustee, its nominee or any Receiver and (ii) issue, and deliver to the Security Trustee, its nominee or any Receiver, a new certificate or certificates for the Shares in the name of the Security Trustee, its nominee or any Receiver as soon as reasonably possible following receipt of such transfers from the Security Trustee”, its nominee or any Receiver;

 

(c)                                  Negative Undertakings

 

not (without the prior written consent of the Security Trustee, its nominee or any Receiver) or as otherwise permitted or not restricted under each of the Senior Finance Documents:

 

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(i)                                   create or permit to subsist any Encumbrance on or over the Secured Property or any part thereof or interest therein (other than any Encumbrance created hereby);

 

(ii)                                permit any person other than the Chargor, the Security Trustee, any nominee of the Security Trustee or any Receiver to be registered as holder of the Secured Property or of any part thereof;

 

(iii)                             sell, transfer, assign or otherwise dispose of the Secured Property (other than a sale, transfer, assignment or disposal of all of the Shares to the Security Trustee) or any part thereof or interest therein or attempt or agree so to do;

 

(iv)                            suffer or permit the Charged Company to cancel, increase, create or issue or agree to issue or put under option or agree to put under option any equity or other share capital or obligation now or hereafter convertible into equity or other share capital of or in the Charged Company of any class or call any uncalled capital provided, however, that the Charged Company may issue or agree to issue equity or other share capital to the Chargor provided that such equity or other share capital is the subject of an Encumbrance in favour of, and to the satisfaction of, the Security Trustee;

 

(v)                               suffer or permit the Charged Company to make any alteration to, grant any rights in relation to re-organise, redeem or purchase or otherwise reduce its equity or any other share capital or reserves or any uncalled or unpaid liability in respect thereof or reduce the amount (if any) for the time being standing to the credit of its share premium account or capital redemption or other undistributable reserve in any manner save for any alteration as aforesaid which arises directly in connection with an issue of equity or other share capital to the Chargor which is permitted under paragraph (iv) above but which does not involve any action or event otherwise prohibited by this Clause 5.2(c)(v);

 

(vi)                            convene any meeting with a view either to the alteration of any of the provisions of the Charged Company’s Memorandum and Articles of Association in any way which would restrict the ability of the Security Trustee to exercise its rights under this Deed or to passing a resolution that such Charged Company be wound up;

 

(vii)                         do or cause or permit to be done anything which may in any material way (i) depreciate, jeopardise or otherwise prejudice the value or marketability of the Secured Property or (ii) prejudice the validity, binding effect or enforceability of the Encumbrances created or evidenced by this Deed; and

 

(viii)                      save as permitted pursuant to Clause 3.2 (Dividends and Voting Rights), receive, retain or deal with any dividends, distributions, interest or other moneys in respect of the Secured Property; and

 

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(d)                                No Encumbrance

 

not take or receive any Encumbrance from the Charged Company or any other Obligor in respect of the liability of the Chargor under this Deed.

 

6.                                      FURTHER ASSURANCE

 

6.1                               Further Assurance

 

The Chargor shall if and when required by the Security Trustee execute such further Encumbrances and assurances in favour of the Security Trustee and/or any Beneficiary and do all such acts and things as the Security Trustee may from time to time reasonably require over or in relation to all or any of the Secured Property to secure the Secured Obligations or to perfect or protect the security intended to be created by this Deed over the Secured Property or any part thereof or to facilitate the realisation of the same.

 

6.2                               Certain Documentary Requirements

 

Such further Encumbrances or assurances shall be prepared by or on behalf of the Security Trustee at the expense of the Chargor (such expense to be reasonable and properly incurred) and shall contain (a) an immediate power of sale without notice; (b) a clause excluding section 93 of the Law of Property Act 1925 and the restrictions contained in section 103 of the Law of Property Act 1925; and (c) such other clauses for the benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

6.3                               l.aw of Property (Miscellaneous Provisions) Act 1994

 

The obligations of each Chargor under this Clause 6 are in addition to the covenants for further assurance implied by the Law of Property (Miscellaneous Provisions) Act 1994.

 

7.                                      CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES, ENFORCEMENT

 

7.1                               Voting Rights after the Enforcement Date

 

The Security Trustee and its nominees at the discretion of the Security Trustee may at any time after the Enforcement Date exercise in the name of the Chargor or otherwise at any time whether before or after demand for payment and without any further consent or authority on the part of the Chargor any voting rights and all powers given to trustees by section 10(3) and (4) Trustee Act 1925 (as amended by section 9 Trustee Investments Act 1961) in respect of the Secured Property or property subject to a trust and any powers or rights which may be exercisable by the person in whose name the Shares or other Secured Property are registered. Until the Enforcement Date, the Security Trustee will exercise all voting and other rights and powers attached to the Secured Property which are transferred to it pursuant to Clause 7.2 (Transfer of Secured Property) as the Chargor may from time to time in writing direct provided that the Security Trustee shall be under no obligation to comply with any such direction where compliance would in the Security Trustee’s reasonable opinion, be prejudicial to the security created by this Deed.

 

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7.2                               Transfer of Secured Property

 

The Chargor will if so requested by the Security Trustee after an Event of Default has occurred and so long as the same is continuing transfer all or any of the Secured Property to the Security Trustee or such nominees or agents as the Security Trustee may select and will use its reasonable endeavours to procure that the Charged Company duly registers any transfers of any Secured Property to the Security Trustee or its nominees or agents or any transfers of any of the Secured Property duly executed by the Security Trustee or its nominees or agents pursuant to any power conferred by this Deed forthwith upon presentation to the Charged Company provided that, for the avoidance of doubt, the Security Trustee may not request any such transfer of the Secured Property prior to the occurrence of an Event of Default.

 

7.3                               Notices

 

The Security Trustee will, promptly after receipt. forward to the Chargor copies of all notices, documents or other communications received by it in respect of the Secured Property.

 

7.4                               Power of Sale

 

At any time on or after the Enforcement Date, the Security Trustee may (without notice to the Chargor) sell or otherwise dispose of the Secured Property or any part of it and shall be entitled to apply the proceeds of such sale or other disposal in paying the costs of such sale or other disposal and thereafter in or towards the discharge of the Secured Obligations or otherwise as provided for in the Group lntercreditor Deed, the Security Trust Agreement or this Deed.

 

7.5                               Statutory Powers

 

For the purposes of all powers implied by statute. the Secured Obligations shall be deemed to have become due and payable on the dale of this Deed.

 

7.6                               Law of Property Act

 

At any time on or after the Enforcement Date or if requested by the Chargor, the Security Trustee may, without further notice, without the restrictions contained in sections 93 and 103 of the Law of Property Act 1925 and whether or not a Receiver shall have been appointed, exercise all the powers conferred upon mortgagees by the Law of Property Act 1925 as varied or extended by this Deed and all the powers and discretions conferred by this Deed on a Receiver either expressly or by reference and also, in the case of the Secured Property, all rights or powers which may be exercisable by the registered holder or beneficial owner of the same.

 

7.7                               Distributions

 

On or after the Enforcement Date all dividends, interest and other distributions relating to the Secured Property may be applied by the Security Trustee as though they were proceeds of sale under this Deed.

 

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7.8                               Subsequent Encumbrances

 

If the Security Trustee or any Beneficiary receives notice of any subsequent Encumbrance affecting the Secured Property or any part thereof, such Beneficiary may open a new account for the Chargor. If it does not do so then, unless such Security Trustee or such Beneficiary gives express written notice to the contrary to the Chargor, it shall nevertheless be treated as if it had opened a new account at the time when it received such notice and as from that time all payments made by or on behalf of the Chargor to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount due from the Chargor to the Security Trustee or such Beneficiary at the time when it received such notice.

 

7.9                               Realisation Accounts

 

If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the Security the Security Trustee (or such Receiver) may:

 

(a)                                  open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

(b)                                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

(c)                                  subject to the payment of any claims having priority to this Security, withdraw amounts standing to the credit of the Realisation Accounts to:

 

(i)                                   discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

(ii)                                pay remuneration to the Receiver as and when the same becomes due and payable; and

 

(iii)                             discharge the Secured Obligations as and when the same become due and payable.

 

7.10                        Right of Appropriation

 

To the extent that the Secured Property constitutes “financial collateral” and this Deed constitutes a “security financial collateral arrangement” (as defined in the Financial Collateral Arrangements (No.2) Regulations 2003 (SI 2003 No.3226)), the Security Trustee may appropriate all or any part of the Secured Property in or towards satisfaction of the Secured Obligations, the value of the property so appropriated being such amount as the Security Trustee shall determine in a commercially reasonable manner.

 

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8.                                      APOINTMENT AND POWERS OF RECEIVER

 

8.1                               Appointment

 

The Security Trustee may at any time on or after the Enforcement Date or if requested to do so by the Chargor, by instrument in writing and without notice to the Chargor appoint anyone or more persons as Receivers of such part of the Secured Property as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of the Chargor and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925. The Security Trustee may from time to time by writing under its hand remove any Receiver so appointed by it and may, whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

8.2                               Receiver as Agent

 

A Receiver shall be the agent of the Chargor and (subject to the provisions of this Deed) the Chargor shall be solely responsible for his acts or defaults and for his remuneration.

 

8.3                               Powers of Receiver

 

A Receiver shall have all the powers conferred from time to time on receivers and administrative receivers by statute (in the case of powers conferred by the Law of Property Act 1925, without the restrictions contained in section 103 of that Act) and power on behalf and at the expense of the Chargor (notwithstanding liquidation of the Chargor) to do or omit to do anything which the Chargor could do or omit to do in relation to the Secured Property or any part thereof.  In particular (but without limitation) a Receiver shall have power to do all or any of the following acts and things:

 

(a)                                  Take Possession

 

take possession of, collect and get in all or any of the Secured Property and exercise in respect of the Shares all voting or other powers or rights available to a registered holder thereof in such manner as he may think fit and bring, defend or discontinue any proceedings or submit to arbitration in the name of the the Chargor or otherwise as may seem expedient to him;

 

(b)                                 Borrow Money

 

raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Secured Property ranking in priority to this security or otherwise;

 

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(c)                                  Dispose of Assets

 

without the restrictions imposed by section 103 Law of Property Act 1925 or the need to observe any of the provisions of sections 99 and 100 of such Act, sell by public auction or private contract, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Secured Property or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, surrender, accept surrenders or otherwise transfer or deal with such Secured Property in the name and on behalf of the Chargor or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the Chargor (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, or disposition may be for cash, debentures or other obligations, shares, stock, or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations;

 

(d)                                 Make Calls and Legal Proceedings

 

make calls conditionally or unconditionally on the members of the Chargor in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Secured Property or any part thereof or submit to arbitration as he may think fit;

 

(e)                                  Execute Documents

 

sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security of the Security Trustee and the Beneficiaries and to use the name of the Chargor for all the purposes aforesaid; and

 

(f)                                    Insolvency Act Powers

 

do all the acts and things described in schedules J to the Insolvency Act 1986 as if the words “he” and “him” referred to the Receiver and “company” referred to the Chargor.

 

8.4                               Remuneration

 

The Security Trustee may from time to time determine the remuneration of any Receiver and section 109(6) Law of Property Act 1925 shall be varied accordingly. A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

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9.                                      ENFORCEMENT

 

9.1                               When Enforceable

 

If (and only if) the Enforcement Date has occurred then the charges created pursuant to this Deed shall become enforceable. Section 103 Law of Property Act 1925 shall not apply in respect of any Secured Property.

 

9.2                               Authority

 

No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Deed bas arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

10.                               INDEMNITIES, EXCLUSION OF LIABILITY, COSTS AND EXPENSES

 

10.1                        Enforcement Costs

 

The Chargor hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee or any Receiver shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Deed or any of the Secured Property on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Chargor (both before and after judgment).

 

10.2                        No Liability as Mortgagee in Possession

 

None of the Beneficiaries, the Security Trustee or any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Secured Property or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such except in the case of fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as the case may be).

 

10.3                        Indemnity

 

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

 

(a)                                  anything done or omitted in the exercise or purported exercise of the powers contained in this Deed; or

 

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(b)                                 any breach by the Chargor of any of its obligations under this Deed,

 

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

 

10.4                        Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Secured Property may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Secured Property whether or not a Receiver is or has been appointed.

 

11.                               POWER OF ATTORNEY

 

11.1                        Power of Attorney

 

The Chargor by way of security for the performance of its obligations under this Deed, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the Secured Property and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)                                  to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver may require for perfecting the title of the Security Trustee to the Secured Property or for vesting the same in the Security Trustee, its nominee or any purchaser;

 

(b)                                 to sign, execute, seal and deliver and otherwise perfect any further security document referred to in Clause 5 (Covenants by the Chargors); and

 

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

 

11.2                        Ratification

 

The Chargor ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 11.1 (Power of Attorney) shall do or purport to do in the exercise of his powers under such clause.

 

11.3                        General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and the Chargor hereby covenants with the Security Trustee and separately with any such Receiver to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

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12.          CONTINUING SECURITY AND OTHER MATTERS

 

12.1                        Continuing Security

 

This Deed and the obligations of the Chargor under this Deed shall:

 

(a)                                  secure the ultimate balance of the Secured Obligations notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of the Chargor or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

(b)                                 be in addition to, and shall not merge with or otherwise prejudice or affect, any present or future Security Documents, Encumbrance, right or remedy held by or available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)                                  not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

12.2                        Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Document or other means of payment now or hereafter held by or available to it before enforcing this Deed and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of the Chargor nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

12.3                        New Accounts

 

Notwithstanding that the charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of the Chargor or other Security Provider or open one or more new accounts and the liability of the Chargor hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of  any such account.

 

12.4                        Settlements Conditional

 

Any release, discharge or settlement between the Chargor and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by the Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy,

 

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liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Deed subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.

 

12.5                        No Release

 

The liability of the Chargor shall not be affected nor shall the charge hereby created be discharged or diminished by reason of:

 

(a)                                  the Incapacity or any change in the name, style or constitution of any other Obligor or any other person liable; or

 

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

 

(c)                                  any act or omission which would not have discharged or affected the liability of the Chargor had it been principal debtor in respect of the Secured Obligations or by anything done or omitted which but for this provision might operate to exonerate the Chargor.

 

12.6                        Restriction of the Chargor’s rights

 

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

 

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

 

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

 

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

 

21



 

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

 

12.7                        Recoveries by the Chargor

 

If contrary to Clause 12.6 (Restriction of the Chargor’s Rights) or 5.2(d} the Chargor takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

13.                               CURRENCIES

 

13.1                        Conversion of Currencies

 

All moneys received or held by the Security Trustee·or by a Receiver under this Deed at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Chargor shall indemnify the Security Trustee against the full cost (including all costs, charges and expenses) properly incurred in relation to such sale. Neither the Security Trustee nor any Receiver shall have any liability to the Chargor in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

13.2                        Currency Indemnity

 

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

 

22


 

14.                               THE SECURITY TRUST AGREEMENT

 

14.1                        Trust

 

The Chargor and the Security Trustee hereby acknowledge that the covenants of the Chargor contained in this Deed and the security and other rights, titles and interests constituted by this Deed and the Secured Property and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee pursuant to or in connection with this Deed are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

15.                               MISCELLANEOUS

 

15.1                        Exchange of Information

 

The Chargor hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Secured Property unless such information is the subject of a duty of confidentiality on the part of any Beneficiary not to disclose such information.

 

15.2                        Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

15.3                        Successors

 

Any appointment or removal of a Receiver (under Clause 8 (Appointment and Powers of Receiver)) and any consents under this Deed may be made or given in writing signed or sealed by any successor of the Security Trustee appointed pursuant to the terms of the Security Trust Agreement and their respective successors in title and accordingly the Chargor hereby irrevocably appoints each successor of the Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors to be its attorney in the terms and for the purposes set out therein.

 

15.4                        Consolidation

 

Section 93 of the Law of Property Act 1925 shall not apply to the security created by this Deed or to any security given to the Security Trustee or any of the Beneficiaries pursuant to this Deed.

 

15.5                        Reorganisation

 

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

 

23



 

15.6                        Unfettered Discretion

 

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

 

15.7                        Provisions Severable

 

Each of the provisions of this Deed is severable and distinct from the others and if at any time one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Deed shall not in any way be affected or impaired thereby.

 

15.8                        No Assignment by Chargor

 

The Chargor may not assign or transfer any of its rights or obligations under this Deed and the Chargor undertakes not to seek to assign or transfer all or any of its rights and obligations under this Deed.

 

15.9                        Security Trustee’s Rights

 

The Security Trustee may assign or transfer all or any of its rights under this Deed without the consent of the Chargor.

 

15.10                 Counterparts

 

This Deed may be executed in any number of counterparts and by the different parties hereto in separate counterparts each of which, when executed and delivered, shall constitute an original, but all counterparts together shall constitute one and the same instrument.

 

15.11                 Release

 

Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, the Security Trustee shall, at the request and cost of the Chargor, execute and do all such deeds, acts and things as may be necessary to release the Secured Property from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

15.12                 Protection of Third Parties

 

No purchaser, mortgagee or other person or company dealing with the Security Trustee or any Receiver or the agents of any of them shall be concerned to enquire whether the Secured Obligations have become due and payable or whether any power which the Security Trustee or any Receiver is purporting to exercise has become exercisable or whether any of the Secured Obligations remains outstanding or to see to the application of any money paid to the Security Trustee or to such Receiver.

 

24



 

15.13                 Delegation by Security Trustee

 

The Security Trustee may at any time and from time to time delegate by power of attorney or in any other manner to any person or persons all of any of the powers, authorities and discretions which are for the time being exercisable by the Security Trustee under this Deed in relation to all or any part of the Secured Property. Any such delegation may be made upon such term (including power to sub-delegate) and subject to such regulations as the Security may think fit. The Security Trustee shall not be in any way liable or responsible to the Chargor for any loss or damage arising from any act, default, omission or misconduct on the part of any such delegate or sub-delegate save in the case of fraud or wilful misconduct.

 

15.14                 Redemption of Prior Mortgages

 

The Security Trustee may at any time after the Security has become enforceable, redeem any prior encumbrance over all or any part of the Secured Property or procure the transfer thereof to itself and may settle and pass the accounts of the prior mortgagee, chargee or encumbrancer. Any accounts so settled and passed shall be conclusive and binding on the Chargor. All principal interest, costs, charges and expenses of and incidental to such redemption and transfer shall be paid by the Chargor to the Security Trustee on demand.

 

16.                               NOTICES

 

16.1                        Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Deed shall, without prejudice to any other effective mode of making the same. be deemed to have been properly served on the Chargor in the manner and at the address set out in Clause 20 (Notices) of the Group lntercreditor Deed.

 

16.2                        Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Deed shall. save for manifest error. be conclusive and binding upon the Chargor if signed by an officer of the Security Trustee.

 

17.                               GOVERNING LAW

 

17.1                        Law

 

This Deed, including all non-contractual obligations arising out of or in connection with it, shall be governed by English law.

 

18.                               JURISDICTION

 

18.1                        Courts of England

 

The Chargor irrevocably agrees for the benefit of the Security Trustee that the courts of England shall have jurisdiction to hear and determine any suit, action or proceedings and to settle any disputes which may arise out of or in connection with

 

25



 

this Deed (respectively. “Proceedings” and “Disputes”) and for such purposes, irrevocably submits to the jurisdiction of such courts.

 

18.2                        Appropriate forum

 

The Chargor irrevocably waives any objection which it might now or hereafter have to Proceedings being brought or Disputes settled in the courts of England and agrees not to claim that any such court is not a convenient or appropriate forum.

 

18.3                        Proceedings in other jurisdiction

 

Nothing in Clause 18.1 (Courts of England) shall (and nor shall it be construed so as to) limit the right of the Senior Finance Parties to take Proceedings against the Chargor in any other court of competent jurisdiction nor shall the taking of Proceedings in anyone or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not) if and to the extent permitted by applicable law.

 

IN WITNESS whereof this Deed has been executed and delivered as a deed by or on behalf of the parties on the date stated at the beginning of this Deed.

 

26



 

SIGNATORIES

 

Executed as a deed by

VIRGIN MEDIA FINANCE PLC

 

 

acting by Robert Gale, a director,

 

/s/ ROBERT GALE

 

 

Director

in the presence of:

 

 

 

 

/s/ JOY ONIKOYI

 

 

Name: Joy Onikoyi

 

 

Address: 99 City Road, London, EC1Y 1AX

 

 

Occupation: Solicitor

 

 

 

27



 

THE SECURITY TRUSTEE

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

By:

/s/ V.ADAMS

 

 

 

 

 

 

By:

V. Adams

 

 

 

 

 

Address:

 

 

 

 

 

Fax Number:

 

 

 

 

 

Attention:

 

 

 

28




Exhibit 4.15

 

EXECUTION COPY

 

Dated 15 April 2010

 

 

VIRGIN MEDIA FINANCE PLC

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

ASSIGNMENT OF LOANS

 



 

TABLE OF CONTENTS

 

1.

INTERPRETATION

3

 

 

 

2.

COVENANT TO PAY

9

 

 

 

3.

ASSIGNMENT

9

 

 

 

4.

UNDERTAKINGS

13

 

 

 

5.

FURTHER ASSURANCE

13

 

 

 

6.

CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

14

 

 

 

7.

APPOINTMENT AND POWERS OF A RECEIVER

14

 

 

 

8.

INDEMNITIES; COSTS AND EXPENSES

16

 

 

 

9.

ENFORCEMENT

17

 

 

 

10.

POWER OF ATTORNEY

17

 

 

 

11.

CONTINUING SECURITY AND OTHER MATTERS

18

 

 

 

12.

CURRENCIES

20

 

 

 

13.

THE SECURITY TRUST AGREEMENT

21

 

 

 

14.

REPRESENTATIONS AND WARRANTIES

21

 

 

 

15.

MISCELLANEOUS

23

 

 

 

16.

NOTICES AND OTHER MATTERS

25

 

 

 

17.

GOVERNING LAW

25

 

 

 

18.

JURISDICTION

25

 

 

 

SCHEDULE 1 FORM OF NOTICE OF ASSIGNMENT

27

 

 

SCHEDULE 2 FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT

29

 

2



 

THIS ASSIGNMENT dated 15 April 2010 and made BETWEEN:

 

(1)                                 VIRGIN MEDIA FINANCE PLC a company incorporated in England and Wales with registered number 5061787 and having its registered office at 160 Great Portland Street, London W1W 5QA (the “Company”); and

 

(2)                                 DEUTSCHE BANK AG, LONDON BRANCH of Winchester House, 1 Great Winchester Street, London EC2N 1DB, as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

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

 

(B)                               Virgin Media Secured Finance PLC has issued and sold the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

(D)                              This Assignment is given by the Company in favour of the Security Trustee as a condition precedent to the making available of the facilities under the Senior Facilities Agreement.

 

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

 

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

 

NOW THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                               Definitions

 

In this Assignment (including its recitals), unless the context otherwise requires:

 

2014 High Yield Notes” means the sterling denominated 9.75% senior notes due 2014, the U.S. dollar denominated 8.75% senior notes due 2014 and the euro denominated 8.75% senior notes due 2014, in each case, issued by the Company;

 

3



 

2014 Redemption Date” means the date upon which all amounts outstanding in respect of or in connection with the 2014 High Yield Notes have been repaid in full;

 

Acknowledgement of Assignment” means an acknowledgement of assignment in the form set out in Schedule 3 or in such other form as may be approved by the Security Trustee.

 

Assigned Rights” means all of the Company’s rights under and in respect of the Intercompany Indebtedness;

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Collateral Rights” means all rights, powers and remedies of the Security Trustee provided by this Assignment or by law;

 

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

 

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

 

disposal” includes any sale, assignment or transfer, the grant of an option or similar right, the grant of any right or privilege, the creation of a trust or other equitable interest in favour of a third party and “dispose” and “disposition” shall be construed accordingly;

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Facility Agent or the Security Trustee notifies the Company of the occurrence of that Event of Default, or takes, under anyone or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default;

 

Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

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

 

Excluded Charged Assets” has the meaning given to such term in Clause 3.8(b) (Rule 3-16 Limitation) of this Assignment;

 

4



 

Incapacity” means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of that person whatsoever;

 

“Indemnified Party” has the meaning set out in Clause 8.3 (Indemnity from Assigned Rights);

 

Intercompany Debtor” means any member of the Group which is a debtor in respect of any Intercompany Indebtedness.

 

Intercompany Indebtedness” means all indebtedness from time to time outstanding owed by any member of the Group to the Company;

 

Notice of Assignment” means a notice of assignment in the form set out in Schedule 1 or in such other form as may be approved by the Security Trustee.

 

Receiver” means anyone or more receivers and/or managers (whether appointed pursuant to this Assignment or pursuant to any statute, by a court or otherwise) of all or any of the Assigned Rights and shall, where permitted by law, include an administrative receiver;

 

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

 

Rule 3-16” has the meaning given to such term in “Designated Secured Obligations”.

 

SEC” means the United States Securities and Exchange Commission;

 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that:

 

(a)                                  any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(i)                                    in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any

 

5



 

Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(ii)                                that the Security Trustee, acting reasonably, has not agreed to act as security trustee for; and

 

(b)                                 prior to the 2014 Redemption Date, any liabilities incurred under the Senior Secured Notes, any Additional Senior Secured Notes or any Senior Secured Notes Refinancing,

 

shall not, in each case constitute “Secured Obligations” for the purpose of this Assignment;

 

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

 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on 19 January 2010 between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited and the companies named therein as Original Obligors;

 

Senior Facilities Agreement” means the senior facilities agreement dated 16 March 2010 (as amended, restated, supplemented or novated from time to time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crèdit Agricole Corporate and Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International, J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London Branch as Security Trustee and the financial and other institutions named in it as Lenders;

 

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

 

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

 

Senior Secured Notes lndenture” means the indenture dated 19 January 2010 governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York

 

6



 

Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time.

 

1.2                               Successors and Assigns

 

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

 

1.3                               Agreement Definitions

 

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

 

1.4                               Headings

 

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

 

1.5                               Construction of Certain Terms

 

In this Assignment, unless the context otherwise requires:

 

(a)                                  references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Assignment and references to this Assignment include its schedules;

 

(b)                                 references to (or to any specified provision of) this Assignment or any other agreement or document shall be construed as references to this Assignment, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

7



 

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

 

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

 

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

 

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

 

(i)                                     references to “business” in relation to the Company means any business referred to in the definition of Group Business in the Relevant Facilities Agreement which the Company engages in, and references to “ordinary course of business” in relation to the Company shall be similarly construed.

 

1.6                               Implied Covenants

 

The following provisions of the Law of Property (Miscellaneous Provisions) Act 1994 will not apply to Clause 3.1 (Assignment) or Clause 3.2 (Non-Assignable Rights):

 

(a)                                  the words “other than any charges, encumbrances or rights which that person does not and could not reasonably be expected to know about” in section 3(1);

 

(b)                                 the words “except to the extent that” and all the words thereafter in section 3(2); and

 

(c)                                  section 6(2).

 

1.7                               Third Party Rights

 

A person which is not a party to this Assignment (a “third party”) shall have no rights to enforce the provisions of this Assignment save for:

 

(a)                                  those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and

 

(b)                                 a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Security Trust Agreement whether or not it is a party to the Security Trust Agreement,

 

provided also that this Assignment may be rescinded or altered without the consent of any third party referred to in Clause 1.7(b).

 

1.8                               Effect as a Deed

 

This Assignment is intended to take effect as a deed notwithstanding that the Security Trustee may have executed it under hand only.

 

8


 

1.9                               Certificates

 

A certificate of any Beneficiary as to the amount of the Secured Obligation owed to it shall be prima facie evidence of the existence and amount of such Secured Obligation.

 

1.10                        Statutes

 

Any reference in this Deed to a statute or statutory provision shall, unless the contrary is indicated, be construed as a reference to such statute or statutory provision as the same shall have been amended or re-enacted.

 

1.11                        Group Intercreditor Deed

 

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

 

1.12                        Secured Obligations

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to lime included within the definition thereof):

 

(a)                                  as at the date hereof, the Secured Obligations shall include all Liabilities under the Senior Facilities Agreement; and

 

(b)                                 as from the 2014 Redemption Date, the Secured Obligations shall include all Liabilities under the Senior Facilities Agreement and all Liabilities under the Senior Secured Notes Documents.

 

2.                                      COVENANT TO PAY

 

2.1                               Covenant to Pay

 

The Company agrees as primary obligor and not only as surety that it will pay and discharge the Secured Obligations promptly on demand of the Security Trustee.

 

2.2                               Payments

 

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

 

3.                                      ASSIGNMENT

 

3.1                               Assignment

 

The Company (save as provided in Clause 11.4 (Settlements Conditional)), subject to reassignment upon payment and discharge of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured

 

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Obligations available and subject to the Group Intercreditor Deed, hereby assigns with full title guarantee the Assigned Rights to the Security Trustee as a continuing security for the payment and discharge of the Secured Obligations to hold same on trust for the Beneficiaries in each case on the terms set out in the Group Intercreditor Deed and the Security Trust Agreement.

 

3.2                               Non-Assignable Rights

 

The Company declares that to the extent that any right, title, interest or benefit described in Clause 3.1 (Assignment) is for any reason not effectively assigned pursuant to Clause 3.1 (Assignment) for whatever reason, the Company shall:

 

(a)                                  hold the benefit of the same on trust for the Security Trustee as security for the payment and discharge of the Secured Obligations; and

 

(b)                                 promptly notify the Security Trustee of the same and the reasons therefor and thereafter take such steps as the Security Trustee may reasonably require to remove any relevant prohibition or other reason for such failure.

 

3.3                               Notice of Assignment

 

As soon as practicable after the execution of this Assignment, the Company shall deliver a Notice of Assignment to each Intercompany Debtor.

 

3.4                               Acknowledgement of Assignment

 

The Company shall procure that as soon as practicable after it receives a Notice of Assignment, the relevant Intercompany Debtor shall deliver to the Security Trustee an Acknowledgement of Assignment.

 

3.5                               Restrictions on dealing with Assigned Rights

 

The Company hereby covenants that it will not without the prior consent in writing of the Security Trustee (save as permitted by the Senior Finance Documents):

 

(a)                                  create or attempt to create or permit to subsist in favour of any person other than the Security Trustee any Encumbrance on or affecting the Assigned Rights or any part thereof;

 

(b)                                 sell, transfer, assign or otherwise dispose of the Assigned Rights (other than to the Security Trustee or to any member of the Bank Group provided that (i) the relevant sale, transfer, assignment or disposal is made expressly subject to the Encumbrance granted by the Company under this Assignment; and (ii) the relevant purchaser, transferee or assignee, (A) is a company incorporated in England and Wales, (B) becomes a party to the Group Intercreditor Deed as an Intergroup Creditor (as defined therein) on or prior to the relevant sale, transfer, assignment or disposal, and (C) provides such evidence as the Security Trustee may require as to the legality, validity and enforceability of (x) the relevant sale, transfer, assignment or disposal, (y) the Encumbrance granted by the Company under this Assignment subject to which the relevant sale, transfer, assignment or disposal is made; and (z) the Group Intercreditor Deed entered into by the relevant purchaser, transferee or assignee;

 

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(c)                                  save as permitted pursuant to this Clause 3.5, receive, retain or deal with the principal of, or any interest on, the Assigned Rights.

 

3.6                               Suspense Accounts

 

Any money received by the Security Trustee pursuant to this Assignment (whether before or after any Incapacity of any Intercompany Debtor or the Company) may be placed to the credit of an interest bearing suspense account with a view to preserving the rights of the Beneficiaries to prove for the whole of their respective claims against any Intercompany Debtor, any Obligor or any other person liable or may be applied in or towards satisfaction of such of the Secured Obligations as the Security Trustee may from time to time conclusively determine in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement notwithstanding any appropriation (or purported appropriation) by the Company.

 

3.7                               Interest and Principal

 

Subject always to the terms of the Group Intercreditor Deed and the other Senior Finance Documents, notwithstanding Clause 3.1 (Assignment) of this Assignment, the Company may in its absolute discretion receive, retain and deal with free from this Assignment all interest paid and received by it in respect of the Assigned Rights.

 

3.8          Rule 3-16 Limitation

 

(a)                                  Clause 3.1 (Assignment) and Clause 3.2 (Non-Assignable Rights) of this Assignment notwithstanding, the Excluded Charged Assets are not charged, assigned or held on trust for the Security Trustee (as the case may be) under this Assignment to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)                                    all other Charged Assets remain charged or assigned (as the case may be) under this Assignment to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                such Excluded Charged Assets remain charged, assigned or held on trust for the Security Trustee (as the case may be) under Clause 3.1 (Assignment) and Clause 3.2 (Non-Assignable Rights) of this Assignment to secure any Secured Obligations that are not Designated Secured Obligations.

 

(b)                                 Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the shares or other securities issued by Virgin Media Investments Limited and Virgin Media Investment Holdings Limited or, in each case, any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that charging or pledging such shares or other securities under this Assignment to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no

 

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member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the charge on any shares or other securities pursuant to paragraph (a) above.

 

(c)                                  In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Assignment may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the assignment (but only to the extent securing such Designated Secured Obligations and without prejudice to the assignment securing Secured Obligations referred to in paragraph (a)(ii) of this Clause 3.8) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

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

 

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4.                                      UNDERTAKINGS

 

4.1                               Undertakings

 

The Company hereby undertakes with the Security Trustee that during the continuance of this security the Company will:

 

(1)           Information

 

supply to the Security Trustee such documents relating to the Assigned Rights as the Security Trustee may from time to time reasonably require;

 

(2)           Claims

 

forthwith inform the Security Trustee of any material claims or notices relating to any of the Assigned Rights received from any other party and of all other matters relevant or in any way material thereto;

 

(3)           Variation, amendment, etc

 

save with the consent of the Security Trustee or as otherwise permitted pursuant to the Senior Finance Documents, not vary, extend, release, determine or rescind any agreement, deed or other arrangement relating to any of the Assigned Rights or grant time for payment or indulgence or compound with, discharge, waive, release, set off or vary the liability of any other person thereunder or consent to any act or omission as would otherwise constitute a breach or concur in accepting or varying any compromise, arrangement or settlement relating thereto or do or suffer any act or thing or permit any set off whereby the recovery of any moneys payable may be delayed or impeded which, in the case of any of the actions or events referred to above, would have or would be reasonably likely, in the opinion of the Security Trustee, to have a Material Adverse Effect.

 

5.                                      FURTHER ASSURANCE

 

5.1                               Further Assurance

 

The Company shall if and when at any time required by the Security Trustee execute such further Encumbrances and assurances in favour of the Security Trustee and/or any Beneficiary and do all such acts and things as the Security Trustee shall from time to time reasonably require over or in relation to all or any of the Assigned Rights to secure the Secured Obligations or to perfect or protect the security intended to be created by this Assignment over the Assigned Rights or any part thereof or to facilitate the realisation of the same.

 

5.2                               Certain Documentary Requirements

 

Such further Encumbrances and assurances shall be prepared by or on behalf of the Security Trustee at the expense of the Company (such expense to be reasonably and properly incurred) and shall contain (a) an immediate power of sale without notice, (b) a clause excluding section 93 of the Law of Property Act 1925 and the restrictions

 

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contained in section 103 of the Law of Property Act 1925 and (c) such other clauses for the benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

6.                                      CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

6.1                               Enforcement Powers

 

If the Enforcement Date has occurred then the charges created by this Assignment shall become immediately enforceable and the Security Trustee shall be entitled, without prior notice to the Company or prior authorisation from any court, to sell or otherwise dispose of all or any part of the Assigned Rights at the times, in the manner and on the terms it thinks fit. No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee to exercise any of the powers conferred by this Assignment has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

6.2                               Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Assignment.

 

6.3                               Law of Property Act

 

The restrictions contained in sections 93 and 103 of the Law of Property Act 1925 shall not apply to this Assignment or to any exercise by the Security Trustee of its right to consolidate mortgages or its power of sale.

 

6.4                               Subsequent Encumbrances

 

(a)                                  If the Security Trustee at any time receives notice of any subsequent mortgage, assignment, charge or other interest affecting all or any part of the Assigned Rights, all payments thereafter made by the Company to the Security Trustee or any of the Beneficiaries shall be treated as having been credited to a new account of the Company and not as having been applied in reduction of the Secured Obligations as at the time when the Security Trustee received notice.

 

(b)                                 All monies received, recovered or realised by the Security Trustee under this Assignment (including the proceeds of any conversion of currency) may in its discretion be credited to and held in any interest-bearing suspense account pending their application from time to time in or towards the discharge of any of the Secured Obligations.

 

7.                                      APPOINTMENT AND POWERS OF A RECEIVER

 

7.1                               Appointment

 

The Security Trustee may at any time on or after the Enforcement Date or if the Company requests it to do so, by written instrument and without notice to the Company, appoint any one or more persons as Receiver of such part of the Assigned

 

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Rights as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of the Company and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925. The Security Trustee may from time to time by writing under its hand remove any Receiver appointed by it and may, whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

7.2                               Receiver as Agent

 

A Receiver shall be the agent of the Company and (subject to the provisions of this Assignment) the Company shall be solely responsible for his acts or defaults and for his remuneration.

 

7.3                               Powers of Receiver

 

A Receiver shall have, in relation to the part of the Assigned Rights in respect of which he was appointed:

 

(a)                                  all the powers conferred by the Law of Property Act 1925 on a receiver appointed under that Act;

 

(b)                                 all the powers of an administrative receiver set out in Schedules 1 and 2 to the Insolvency Act 1986 (whether or not such person is an administrative receiver);

 

(c)                                  all the powers and rights of an absolute owner and power to do or omit to do anything which the Company could do or omit to do; and

 

(d)                                 the power to do all things (including bringing or defending proceedings in the name or on behalf of the Company) which seem to such a person to be incidental or conducive to (i) any of the functions, powers, authorities or discretions conferred on or vested in him, or (ii) the exercise of the Collateral Rights (including realisation of all or any part of the Assigned Rights), or (iii) bringing to his hands any assets of the Company forming part of, or which when got in would be a part of, the Assigned Rights.

 

7.4                               Remuneration

 

The Security Trustee may from time to time determine the remuneration of any Receiver appointed by it without the limitations imposed by section 109 of the Law of Property Act 1925. A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

7.5                               Application of proceeds

 

All moneys received by the Security Trustee under this Assignment shall be applied by the Security Trustee in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement.

 

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8.                                      INDEMNITIES; COSTS AND EXPENSES

 

8.1                               Enforcement costs

 

The Company hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee or any Receiver shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Assignment or any of the Assigned Rights on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company (both before and after judgment).

 

8.2                               No liability as Mortgagee in Possession

 

None of the Beneficiaries, the Security Trustee or any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Assigned Rights or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such except in the case of fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as the case may be).

 

8.3                               Indemnity from Assigned Rights

 

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

 

(a)                                  anything done or omitted in the exercise or purported exercise of the powers contained in this Assignment; or

 

(b)                                 any breach by the Company of any of its obligations under this Assignment;

 

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

 

8.4                               Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Assigned Rights may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Assigned Rights whether or not a Receiver is or has been appointed.

 

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9.                                      ENFORCEMENT

 

9.1                               When Enforceable

 

If (and only if) the Enforcement Date has occurred then this Assignment shall become enforceable. Sections 93 and 103 of the Law of Property Act 1925 shall not apply in respect of any Assigned Rights.

 

9.2                               Authority

 

No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Assignment has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

10.                               POWER OF ATTORNEY

 

10.1                        Power of Attorney

 

The Company, by way of security for the performance of its obligations under this Assignment, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the Assigned Rights and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)                                  to execute and complete on or after the Enforcement Date, any documents or instruments which the Security Trustee or such Receiver may require for perfecting the title of the Security Trustee to the Assigned Rights or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

(b)                                 to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 5 (Further Assurance); and

 

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

 

10.2                        Ratification

 

The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 10.1 (Power of Attorney) shall do or purport to do in the exercise of his powers under such Clause.

 

10.3                        General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and the Company hereby covenants with the Security

 

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Trustee and separately with any such Receiver to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

11.                               CONTINUING SECURITY AND OTHER MATTERS

 

11.1                        Continuing Security

 

This Assignment and the obligations of the Company under this Assignment shall:

 

(a)                                  secure the ultimate balance of the Secured Obligations from time to time owing notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of any person liable in respect thereof or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

(b)                                 be in addition to, and not merge with or otherwise prejudice or affect, any present or future Security Document, Encumbrance, right or remedy held by or available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)                                  not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

11.2                        Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Document or other means of payment now or hereafter held by or available to it before enforcing this Assignment and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of the Company nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

11.3                        New Accounts

 

Notwithstanding that any charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of the Company or other Security Provider or open one or more new accounts and the liability of the Company hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of any such account.

 

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11.4                        Settlements Conditional

 

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

 

11.5                        No Release

 

The liability of the Company shall not be affected nor shall the assignment hereby created be discharged or diminished by reason of:

 

(a)                                  the Incapacity or any change in the name, style or constitution of any other Obligor or any other person liable; or

 

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

 

(c)                                  any act or omission which would not have discharged or affected the liability of the Company had it been principal debtor in respect of the Secured Obligations or by anything done or omitted which but for this provision might operate to exonerate the Company.

 

11.6                        Restriction of the Company’s Rights

 

Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee (such consent not to be unreasonably withheld) it will not (save as otherwise permitted by the Group Intercreditor Deed):

 

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

 

(b)                                 demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any Obligor or any Security Provider demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

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

 

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

 

11.7                        No Security

 

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

 

11.8                        Recoveries by the Company

 

If contrary to Clauses 11.6 (Restriction on the Company’s Rights) or 11.7 (No Security) the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

11.9                        Statements of Account

 

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

 

12.                               CURRENCIES

 

12.1                        Conversion of Currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Assignment at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale. 

 

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Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

12.2                        Currency Indemnity

 

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

 

13.                               THE SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Assignment and the security and other rights, titles and interests constituted by this Assignment and the Assigned Rights and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Assignment are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

14.                               REPRESENTATIONS AND WARRANTIES

 

14.1                        Representations

 

The Company hereby represents and warrants to the Security Trustee as trustee for the Beneficiaries that:

 

(a)                                  Due incorporation

 

It is duly incorporated, validly existing as a limited liability company and has all requisite corporate power and authority to own its property and other assets and to carryon its business as it is now being conducted and is authorised to do business in each jurisdiction where such qualification or authorisation is required, except where the failure to so qualify, to be so authorised or to be in good standing would not have a material adverse effect on the ability of the Company to perform any of its obligations under this Assignment;

 

(b)                                 Power of the Company

 

The Company has all requisite power to execute, deliver and perform its obligations under this Assignment and compliance has been made with all necessary requirements and all necessary action has been taken to authorise the execution, delivery and performance of the same;

 

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(c)                                  Binding obligations

 

This Assignment constitutes valid and legally binding obligations of the Company enforceable in accordance with its terms subject, to the extent applicable, to the Reservations which relate to Security Documents governed by English law;

 

(d)                                 No conflict with other obligations

 

The execution and delivery of, the performance of its obligations under, and compliance with the provisions of, this Assignment by the Company, will not:

 

(i)                                     contravene any existing applicable law, statute, rule or regulation or any judgement, decree or permit to which the Company is subject except where such contravention would not or would not be likely to have a material adverse effect on the ability of the Company to perform any of its obligations under or otherwise to comply with the terms of this Assignment;

 

(ii)                                  contravene or conflict with any provision of the Memorandum and Articles of Association of the Company;

 

(iii)                               conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement constituting or evidencing Financial Indebtedness of the Company to which the Company is a party or is subject or by which it or any of its property is bound except where such breach or default would not or would not be likely to have a material adverse effect on the ability of the Company to perform any of its obligations under or otherwise to comply with the terms of this Assignment; or

 

(iv)                              result in the creation or imposition of or oblige the Company to create any Encumbrance (other than those created by the Security Documents) on any of the Company’s material undertakings, assets, rights or revenues;

 

(e)                                  No litigation

 

No litigation, arbitration or administrative proceeding is taking place, or, to the knowledge of the officers of the Company, pending or threatened against the Company, which is reasonably likely to be adversely determined and, if so determined, would have or would be reasonably likely to have a material adverse- effect on the ability of the Company to fulfil its obligations under this Assignment;

 

(f)                                    No filing required

 

It is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of this Assignment that this Assignment or any other instrument be notarised, filed, recorded, registered or enrolled in any court or public office in the United Kingdom (save for registration pursuant to section

 

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860 of the Companies Act 2006) or that any stamp, registration or similar tax or charge be paid in the United Kingdom on or in relation to this Assignment;

 

(g)                                 Choice of law

 

The choice by the Company of English law to govern this Assignment is valid and binding;

 

(h)                                 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 Company (i) to authorise the execution and delivery of this Assignment or the performance by the Company of its obligations under this Assignment or (ii) to ensure the validity, enforceability or admissibility in evidence of this Assignment has been obtained or made and is in full force and effect and there has been no material default in the observance of the conditions or restrictions (if any) imposed in, or in connection with, any of the same which would, in any such case, adversely affect the execution, delivery, validity, enforceability or admissibility in evidence of this Assignment or the performance by the Company of its obligations under this Assignment; and

 

(i)                                     Title to Assigned Assets

 

It is the beneficial owner of and has good and marketable title to the Assigned Assets (except in the event of a sale, transfer or assignment permitted by Clause 3.5(b)).

 

14.2                        Repetition

 

The representations and warranties contained in Clause 14.1 (Representations) (excluding that representation contained in Clause 14.1(h) shall be deemed to be repeated by the Company on the first day of each Interest Period.

 

15.                               MISCELLANEOUS

 

15.1                        Exchange of Information

 

The Company hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Assigned Rights unless such information is the subject of a duty of confidentiality on the part of any Beneficiary not to disclose such information.

 

15.2                        Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

23



 

15.3                        Successors and Assigns

 

Any appointment or removal of a Receiver under Clause 7 (Appointment and Powers of a Receiver) and any consents under this Assignment may be made or given in writing signed or sealed by any successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title and accordingly the Company hereby irrevocably appoints each successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title to be its attorney in the terms and for the purposes set out therein.

 

15.4                        Consolidation

 

Section 93 of the Law of Property Act 1925 shall not apply to the security created by this Assignment or to any security given to the Security Trustee or any of the Beneficiaries pursuant to this Assignment.

 

15.5                        Reorganisation

 

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

 

15.6                        Unfettered Discretion

 

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

 

15.7                        Provisions Severable

 

Each of the provisions of this Assignment is severable and distinct from the others and if any time one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Assignment shall not in any way be affected or impaired thereby.

 

15.8                        No Assignment by the Company

 

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

 

15.9                        Counterparts

 

This Assignment may be executed in any number of counterparts and by the different parties hereto in separate counterparts each of which, when executed and delivered, shall constitute an original, but all counterparts together shall constitute one and the same instrument.

 

24



 

15.10                 Release

 

Upon the satisfaction in full of all of the Secured Obligations owed to the Beneficiaries and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, the Security Trustee shall, at the request and cost of the Company, execute and do all such deeds, acts and things as may be necessary to release the Assigned Rights from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

16.                               NOTICES AND OTHER MATTERS

 

16.1                        Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Assignment shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on the Company in the manner and at the address set out in clause 20 of the Group Intercreditor Agreement.

 

16.2                        Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Assignment shall, save for manifest error, be conclusive and binding upon the Company if signed by an officer of the Security Trustee.

 

17.                               GOVERNING LAW

 

This Assignment, including all non-contractual obligations arising out of or in connection with it, shall be governed by and shall be construed in accordance with English law.

 

18.                               JURISDICTION

 

18.1                        Courts of England

 

The Company irrevocably agrees for the benefit of the Security Trustee that the courts of England shall have jurisdiction to hear and determine any suit, action or proceedings, and to settle any disputes, which may arise out of or in connection with this Deed (respectively “Proceedings” and “Disputes”) and, for such purposes, irrevocably submits to the jurisdiction of such courts.

 

18.2                        Appropriate Forum

 

The Company irrevocably waives any objection which it might now or hereafter have to Proceedings being brought or Disputes settled in the courts of England and agrees not to claim that any such court is not a convenient or appropriate forum.

 

18.3                        Proceedings in Other Jurisdictions

 

Nothing in Clause 18.1 (Courts of England) shall (and nor shall it be construed so as to) limit the right of the Finance Parties to take Proceedings against the Company in any other court of competent jurisdiction nor shall the taking of Proceedings in anyone or more jurisdictions preclude the taking of Proceedings in any other

 

25



 

jurisdiction (whether concurrently or not) if and to the extent permitted by applicable law.

 

18.4                        General Consent

 

The Company consents generally in respect of any Proceedings to the giving of any relief or the issue of any process in connection with such Proceedings including the making, enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment which may be made or given in such Proceedings.

 

18.5                        Waiver of Immunity

 

To the extent that the Company may in any jurisdiction claim for itself or its assets or revenues immunity from suit, execution, attachment (whether in aid of execution, before judgment or otherwise) or other legal process and to the extent that in any such jurisdiction there may be attributed to itself, its assets or revenues such immunity (whether or not claimed), the Company irrevocably agrees not to claim, and irrevocably waives, such immunity to the full extent permitted by the laws of such jurisdiction.

 

IN WITNESS WHEREOF this Assignment has been executed and delivered by or on behalf of the parties on the date stated at the beginning of this Assignment.

 

26


 

SCHEDULE 1

 

FORM OF NOTICE OF ASSIGNMENT

 

To: [specify relevant Intercompany Debtor]

 

Dear Sirs,

 

We hereby give you notice that pursuant to an Assignment dated [                       ] (the “Assignment”) and made between [name of Company] (the “Company”) and [name of Security Trustee] as security trustee (the “Security Trustee”), the Company has assigned to the Security Trustee all of its rights, title, interests and benefits under or in respect of the Intercompany Indebtedness (the “Assigned Rights”) including all monies which may be payable under or in respect thereof.

 

With effect from your receipt of this notice we hereby give you notice that:

 

(a)                                  all payments to be made to it under or arising from the Assigned Rights should be made to the Security Trustee or to its order as it may specify in writing from time to time/to [specify bank account];

 

(b)                                 all remedies provided for in the Assigned Rights or available at law or in equity shall be exercisable by the Security Trustee;

 

(c)                                  all rights to compel performance in respect of the Assigned Rights shall be exercisable by the Security Trustee (although the Company shall remain liable to perform all the obligations assumed by it in connection with the Assigned Rights);and

 

(d)                                 all rights, title, interests and benefits whatsoever accruing to or for the benefit of the Company arising in respect of the Assigned Rights belong to the Security Trustee and no changes may be made to their terms nor may any of them be terminated, varied or waived without the prior written consent of the Security Trustee.

 

You are hereby authorised and instructed, without requiring further approval from the Company, to provide the Security Trustee with such information relating to the Assigned Rights as it may from time to time request and to send copies of all notices issued by you in connection with the Assigned Rights to the Security Trustee as well as to the Company.

 

These instructions may not be revoked without the prior written consent of the Security Trustee.

 

Please acknowledge receipt of this notice by signing and dating the acknowledgement set out on the enclosed copy and returning it to the Security Trustee.

 

27



 

Yours faithfully,

 

 

 

 

 

 

 

For and on behalf of

 

[COMPANY]

 

 

 

 

 

 

 

for and on behalf of

 

[SECURITY TRUSTEE]

 

as security trustee]

 

 

28



 

SCHEDULE 2

 

FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT

 

[To be printed only on copy of the Notice of Assignment given]

 

To:                              [                                     ]

 

as Security Trustee

[Address]

Attention:

 

We acknowledge receipt of a notice in the terms set out above (the “Notice”). We confirm that we have not received notice of any previous assignments or charges of or over any of the rights, title, interests and benefits under or in respect of respect of the Intercompany Indebtedness (“Assigned Rights”) and that we will comply with the terms of the Notice.

 

We further agree and confirm that:

 

(a)                                  we shall not agree to, or otherwise permit, any amendment, waiver or release of any provision relating to the Assigned Rights without the prior written consent of the Security Trustee; and

 

(b)                                 we will not terminate any document or arrangement relating to the Assigned Rights or otherwise allow the such document or arrangement to be terminated and will not take any action in relation to any breach thereof by the Company unless we have given the Security Trustee 30 days’ prior written notice of our intention to do so specifying the action necessary by the Company or the Security Trustee to avoid such termination or action.

 

Yours faithfully,

 

For and on behalf of

[Intercompany Debtor]

 

By:

 

Date:

 

29



 

SIGNATORIES

 

Executed as a deed by

 

 

VIRGIN MEDIA FINANCE PLC

 

 

 

 

 

 

 

 

acting by Robert Gale, a director,

 

/s/ ROBERT GALE

 

 

Director

in the presence of:

 

 

 

 

 

 

 

 

/s/ JOY ONIKOYI

 

 

Name: Joy Onikoyi

 

 

Address: 99 City Road, London, EC1Y 1AX

 

 

Occupation: Solicitor

 

 

 

30



 

THE SECURITY TRUSTEE

 

 

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

 

 

 

 

By:

/s/ V ADAMS

 

 

 

 

By:

V Adams

 

 

 

Address:

 

 

 

Fax Number:

 

 

 

Attention:

 

 

31




Exhibit 4.16

 

EXECUTION VERSION

 

Dated 15 April 2010

 

COMPOSITE DEBENTURE

 

Between

 

VIRGIN MEDIA SFA FINANCE LIMITED
as Chargor

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee

 



 

TABLE OF CONTENTS

 

 

 

 

Page

 

 

 

 

1.

INTERPRETATION

 

2

 

 

 

 

2.

SECURED OBLIGATIONS

 

9

 

 

 

 

3.

CHARGES

 

10

 

 

 

 

4.

SET-OFF

 

15

 

 

 

 

5.

UNDERTAKINGS

 

16

 

 

 

 

6.

REAL PROPERTY: PERFECTION

 

18

 

 

 

 

7.

FURTHER ASSURANCE

 

19

 

 

 

 

8.

CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

20

 

 

 

 

9.

APPOINTMENT AND POWERS OF RECEIVER OR ADMINISTRATOR

 

22

 

 

 

 

10.

APPLICATION OF PROCEEDS; PURCHASERS

 

25

 

 

 

 

11.

INDEMNITIES; COSTS AND EXPENSES

 

26

 

 

 

 

12.

ENFORCEMENT

 

27

 

 

 

 

13.

POWER OF ATTORNEY

 

28

 

 

 

 

14.

CONTINUING SECURITY AND OTHER MATTERS

 

29

 

 

 

 

15.

CURRENCIES

 

31

 

 

 

 

16.

THE SECURITY TRUST AGREEMENT

 

32

 

 

 

 

17.

MISCELLANEOUS

 

32

 

 

 

 

18.

NOTICES

 

35

 

 

 

 

19.

LAW AND JURISDICTION

 

35

 

 

 

 

SCHEDULE 1 SHAREHOLDERS

 

36

 

 

 

 

SCHEDULE 2 NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

 

37

 

 

 

 

 

Part 1 Intercompany Indebtedness

 

37

 

Part 1A Form of Notice of Assignment

 

37

 

Part 1B Form of Acknowledgement of Assignment

 

39

 

Part 2 Insurances

 

41

 

Part 2A Form of Notice of Assignment

 

41

 

Part 2B Form of Acknowledgement of Assignment

 

44

 

 

 

 

SCHEDULE 3 DETAILS OF CHARGED LAND

 

45

 

 

 

 

 

Part 1 PART 1A Registered Land

 

45

 

PART 1B Unregistered Land

 

45

 

 

 

 

SCHEDULE 4 REGISTERED, INTELLECTUAL PROPERTY RIGHTS

 

46

 

 

 

 

SCHEDULE 5 INTERCOMPANY LOANS

 

48

 

i



 

THIS COMPOSITE DEBENTURE is dated 15 April 2010 and made

 

BETWEEN:

 

(1)                                 VIRGIN MEDIA SFA FINANCE LIMITED a company incorporated and registered under the laws of England and Wales with registered number 07176280 (the “Chargor”); and

 

(2)                                 DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

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

 

(B)                                Virgin Media Secured Finance PLC has issued and sold the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

(D)                              This Deed is given by the Chargors in favour of the Security Trustee as a condition precedent to the making available of the facilities under the Senior Facilities Agreement.

 

(E)                                The board of directors or the partners (as the case may be) of the Chargor are satisfied that the Chargor is entering into this Deed for the purposes of carrying on its business and that its doing so benefits the Chargor.

 

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

 



 

NOW THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                                 Definitions

 

In this Deed, unless the context otherwise requires:

 

Acknowledgement” means a duly completed acknowledgement of assignment in the form set out in the relevant Part of Schedule 2 (Notices of Assignment/Acknowledgements) being:

 

(a)                                  Schedule 2Part 1B, in the case of Intercompany Indebtedness; and

 

(b)                                 Schedule 2Part 2B, in the case of Insurances.

 

Assigned Assets” means, in relation to the Chargor, all the assets of the Chargor described in Clause 3.2 (Assignments);

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Charged Assets” means all the undertaking, goodwill, property, assets and rights of each Chargor described in Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge);

 

Charged Land” means in respect of the Chargor the English Real Property specified in Schedule 3 (Details of Charged Land);

 

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

 

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

 

disposal” includes any sale, lease, sub-lease, assignment or transfer, the grant of an option or similar right, the grant of any easement, right or privilege, the creation of a trust or other equitable interest in favour of a third party, a sharing or parting with possession or occupation whether by way of licence or otherwise and the granting of access to any other person over any intellectual property, and “dispose” and “disposition” shall be construed accordingly;

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the Chargors of the occurrence of that Event of Default, or takes, under any

 

2



 

one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default;

 

English Real Property” means, at any time and in respect of the Chargor, freehold or leasehold property in England and Wales in which the Chargor has an interest, including all rights, easements and privileges from time to time attached or appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon;

 

Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

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

 

Excluded Charged Assets” has the meaning given to such term in Clause 3.12(b) (Rule 3-16 Limitation) of this Deed;

 

Fixtures” means, in relation to any Real Property, all fixtures and fittings (including trade fixtures and fittings) and fixed plant, machinery and equipment and other items attached to the relevant Real Property whether or not constituting a fixture at law;

 

Floating Charge Assets” means the assets of the Chargor from time to time expressed to be charged by this Deed by way of floating charge pursuant to Clause 3.4 (Floating Charge);

 

Incapacity” means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of that person whatsoever;

 

Indemnified Party” has the meaning set out in Clause 11.3 (Indemnity from Charged Assets);

 

Insurances” means, in relation to a Chargor, all present and future contracts or policies of insurance (including life policies) in which that Chargor from time to time has an interest;

 

Intellectual Property Rights” means all patents, trade marks, service marks, designs, design rights, utility models, business names, topographical or similar rights, copyrights, moral rights, database rights, rights in inventions, computer software, know-how, trade secrets and confidential information and other intellectual property rights and any interests (including by way of licence) subsisting anywhere in the world in any of the foregoing (in each case whether registered or not and including all applications for the same) owned by the Chargor;

 

Intercompany Indebtedness” means indebtedness owing by any member of the Group to the Chargor under each of the loan agreements or other debt instruments listed in Schedule 5 (Intercompany Loans) and any other such indebtedness from time to time outstanding;

 

3



 

Investments” means the Shares and any other stocks, debentures, bonds, warrants and other securities of any kind whatsoever and any units in Unit Trust Schemes;

 

Lease” means any present or future lease, sublease, licence, tenancy or other agreement or right to occupy whether on a fixed term or periodic basis governing the use or occupation of any freehold, heritable or leasehold property;

 

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

 

Notice of Assignment” means a duly completed notice of assignment in the form set out in the relevant Part of Schedule 2 (Notices of Assignment/Acknowledgements) being:

 

(a)                                  Part 1, in the case of Intercompany Indebtedness; and

 

(b)                                 Part 2, in the case of Insurances;

 

Permitted Borrowing” means any Financial Indebtedness permitted under Clause 25.4 (Financial Indebtedness) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Permitted Disposal” means any disposal permitted under Clause 25.6 (Disposals) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Permitted Encumbrance” means any Encumbrance permitted under Clause 25.2 (Negative Pledge) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Real Property” means the English Real Property and any other land, buildings or erections anywhere in the world and any estate or interest therein and any reference to Real Property includes all rights, easements and privileges from time to time attached or appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon;

 

Realisation Account” means each account maintained from time to time by the Security Trustee for the purposes of Clause 8.7 (Realisation Accounts).

 

Receiver” means a receiver and manager, or any other receiver (whether appointed pursuant to this Deed or any statute, by a court or otherwise) of all or any of the Charged Assets and shall, where permitted by law, include an administrative receiver;

 

Related Rights” means, in relation to any Investment of the Chargor:

 

(a)                                  any proceeds of and any right or option to receive any dividend, distribution, interest or other income paid or payable in relation to any such Investment; and

 

4



 

(b)                                any right or option to receive, call for delivery of or otherwise acquire any stocks, shares, debentures, bonds, loan stocks, warrants, securities, monies or other property of any kind, accruing or offered at any time or deriving therefrom, whether in addition to or in substitution for such Investment.

 

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

 

Restricted Lease” means any lease to which the Chargor is a party which would be breached, if the consent of the relevant landlord and any other relevant party was not obtained prior to such lease becoming subject to any security interest created pursuant to this Deed;

 

Rule 3-16” has the meaning given to such term in “Designated Secured Obligations”.

 

SEC” means the United States Securities and Exchange Commission;

 

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

 

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

 

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

 

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

 

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

 

5



 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on 19 January 2010 between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited and the companies named therein as Original Obligors;

 

Senior Facilities Agreement” means the senior facilities agreement dated 16 March 2010 (as amended, restated, supplemented or novated from time to time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crédit Agricole Corporate and Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International, J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London Branch as Security Trustee and the financial and other institutions named in it as Lenders;

 

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

 

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

 

Senior Secured Notes Indenture” means the indenture dated 19 January 2010 governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time;

 

Shares” means all shares in the capital of any member of the Group, any Joint Venture or any other person now or in the future legally or beneficially owned by the Chargor and/or any nominee on behalf of the Chargor;

 

Unit Trust Scheme” has the meaning set out in Section 237(2) of the Financial Services and Markets Act 2000; and

 

1.2                                 Successors and Assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case

 

6



 

of the Beneficiaries, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 

1.3                                 Agreement Definitions

 

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

 

1.4                                 Headings

 

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

 

1.5                                 Construction of Certain Terms

 

In this Deed, unless the context otherwise requires:

 

(a)                                  references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Deed and references to this Deed include its schedules;

 

(b)                                 references to (or to any specified provision of) this Deed or any other agreement or document shall be construed as references to this Deed, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

(i)                                     references to “business” in relation to the Chargor means any business referred to in the definition of Group Business in the Relevant Facilities Agreement which the Chargor engages in, and references to “ordinary course of business” in relation to the Chargor shall be similarly construed.

 

1.6                                 Implied Covenants

 

In accordance with Rule 68 of the Land Registration Rules 2003:

 

(a)                                  the covenants set out in section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994 shall extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge) save for the words “other than any charges, encumbrances or rights which that person does not and could not reasonably be expected to know about”; and

 

(b)                                 the covenants set out in section 3(2) of the Law of Property (Miscellaneous Provisions) Act 1994 shall extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge) save for the words “except to the extent that such liabilities and rights are, by reason of (a) being, at the time of the disposition, only potential liabilities and rights in relation to the property or (b) being liabilities and rights imposed or conferred in relation to property generally, not such as to constitute defects in title”; and

 

(c)                                  the covenants set out in section 6(2) of the Law of Property (Miscellaneous Provisions) Act 1994,

 

shall not extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge).

 

1.7                                 Nominees

 

If the Security Trustee requires shares or any other asset to be registered in the name of a nominee for the Security Trustee, any reference in this Deed to the Security Trustee shall, if the context so permits or requires, be construed as a reference to each of the Security Trustee and such nominee.

 

1.8                                 Third Party Rights

 

A person which is not a party to this Deed (a “third party”) shall have no rights to enforce the provisions of this Deed save for:

 

(a)                                  those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and

 

(b)                                 a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Security Trust Agreement whether or not it is a party to the Security Trust Agreement.

 

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provided also that this Deed may be rescinded or altered without the consent of any third party referred to in paragraph (b) of this Clause 1.8.

 

1.9                                 Effect as a Deed

 

This Deed is intended to take effect as a deed notwithstanding that the Security Trustee or any other party hereto may have executed it under hand only.

 

1.10                           Group Intercreditor Deed

 

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

 

1.11                           Secured Obligations

 

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

 

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

 

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

 

2.                                      SECURED OBLIGATIONS

 

2.1                                 Covenant to Pay

 

The Chargor hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid provided that before any such demand is made on a Restricted Guarantor, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.

 

2.2                                 Statements of Account

 

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

 

2.3                                 No Security

 

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

 

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2.4                                 Payments by the Chargors

 

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

 

3.                                      CHARGES

 

3.1                                 Fixed Charge

 

Each Chargor, with full title guarantee and as continuing security for the payment, discharge and performance of the Secured Obligations, hereby charges in favour of the Security Trustee to hold the same on trust for the Beneficiaries on the terms set out in the Group Intercreditor Deed and the Security Trust Agreement:

 

(a)                                  by way of first legal mortgage, all of the Charged Land and all other Real Property now vested in the Chargor and the proceeds of sale of all or any part thereof;

 

(b)                                 by way of first fixed charge (but in the case of paragraphs (iii) and (iv) only if and to the extent the rights in question have not been effectively assigned pursuant to Clause 3.2 (Assignments) or such rights have been effectively assigned but such assignment has not been perfected by the service of the appropriate Notice of Assignment):

 

(i)                                     to the extent not effectively charged pursuant to Clause 3.1(a) (Fixed Charge), all estates or interests in any Real Property (whether such interests are freehold, leasehold or licenses) vested in, or acquired by, it now or after the date of this Deed and the proceeds of sale of all or any part thereof;

 

(ii)                                 to the extent not effectively charged pursuant to Clauses 3.1(a) (Fixed Charge) or 3.1(b)(i) (Fixed Charge), all plant and machinery, equipment, computers, vehicles and other chattels (excluding any for the time being forming part of the Chargor’s stock-in-trade or work in progress) now or in the future owned by the Chargor or (to the extent of such interest) in which the Chargor has an interest and the benefit of all contracts and warranties relating to the same;

 

(iii)                              all Investments and all Related Rights now or in the future beneficially and/or legally owned by the Chargor;

 

(iv)                             all of its rights, title, interests and benefits in, to or in respect of the Insurances and all claims (and proceeds) and returns of premiums to which the Chargor is now or may at any future time become entitled;

 

(v)                                 any interest, claim or entitlement of the Chargor in, to or in respect of any pension fund;

 

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(vi)                             all the present and future goodwill of the Chargor (including all brand names not otherwise subject to a fixed charge or assignment under this Deed);

 

(vii)                          all of its rights, title, interests and benefits in, to or in respect of all present and future licences, consents and authorisations (statutory or otherwise) held in connection with the business of the Chargor or the use of any asset of the Chargor and the right to recover and receive all compensation which may at any time become payable to it in respect of any such licence;

 

(viii)                       all its present and future uncalled capital; and

 

(ix)                               all its present and future patents, registered trade marks and registered designs (if any) including applications for any of the same in any part of the world and including, without limitation, the patents, registered designs and trade marks specified in Schedule 4 (Registered, Intellectual Property Rights).

 

3.2                                 Assignments

 

Subject to Clause 3.3 (Non-Assignable Rights), the Chargor with full title guarantee hereby assigns absolutely by way of continuing security for the payment and discharge of the Secured Obligations to the Security Trustee:

 

(a)                                  all its present and future rights, title, benefit and interests under and in respect of the Intercompany Indebtedness and any other amounts payable in respect thereof, including under any other loan agreements from time to time entered into by the Chargor;

 

(b)                                 all of its rights, title, interests and benefits in, to or in respect of the Insurances (including all proceeds) and all claims and returns of premiums in respect thereof to which the Chargor is now or may at any future time become entitled; and

 

(c)                                  to the extent not charged under the provisions of Clause 3.1(b) (Fixed Charge) all of its present and future Intellectual Property Rights.

 

3.3                                 Non-Assignable Rights

 

The Chargor declares that to the extent that any right, title, interest or benefit described in Clause 3.2 (Assignments) is for any reason not effectively assigned pursuant to Clause 3.2 (Assignments) for whatever reason, the Chargor shall:

 

(a)                                  hold the benefit of the same on trust for the Security Trustee as security for the payment and discharge of the Secured Obligations; and

 

(b)                                 promptly notify the Security Trustee of the same and the reasons therefor and thereafter take such steps as the Security Trustee may reasonably require to attempt to remove any relevant prohibition or other reason for such failure.

 

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3.4                                 Floating Charge

 

The Chargor with full title guarantee hereby charges to the Security Trustee by way of first floating charge and as a continuing security for the payment and discharge of the Secured Obligations its undertaking and all its property, assets and rights whatsoever and wheresoever both present and future, other than any property or assets from time to time effectively charged by way of fixed charge or assignment pursuant to Clauses 3.1 (Fixed Charge) and 3.2 (Assignments) and including (without limitation and whether or not so effectively charged) any of its property and assets situated in Scotland, provided that, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not the Chargor.  The parties to this Deed agree that the floating charge created by this Clause 3.4 is a qualifying floating charge for the purposes of paragraph 14 of schedule B1 to the Insolvency Act 1986.

 

3.5                                 Automatic Conversion of Floating Charge

 

Notwithstanding anything expressed or implied in this Deed, if:

 

(a)                                  the Chargor creates or attempts to create any other Encumbrance over all or any of the Floating Charge Assets without the prior consent in writing of the Security Trustee or otherwise as permitted by the Senior Finance Documents;

 

(b)                                 any person levies or attempts to levy any distress, execution, sequestration or other process against any of the Charged Assets or takes any steps to enforce any rights against any of the Floating Charge Assets; or

 

(c)                                  any meeting of the members of the Chargor is convened to consider a resolution to wind up the Chargor or a petition is presented or application made to wind up the Chargor,

 

the floating charge created by Clause 3.4 (Floating Charge) over the property or asset concerned shall thereupon automatically without notice be converted into a fixed charge.  Nothing in this Clause 3.5 shall cause the floating charge created by Clause 3.4 (Floating Charge) to crystallise solely because a moratorium has been obtained by any person in relation to the Chargor or any person has taken any steps with a view to obtaining a moratorium in relation to the Chargor under Section 1A and Schedule A1 of the Insolvency Act 1986.

 

3.6                                 Conversion of Floating Charge by Notice

 

Notwithstanding anything expressed or implied in this Deed, the Security Trustee shall be entitled at any time by giving notice in writing to that effect to the Chargor to convert the floating charge over all or any part of the Floating Charge Assets into a fixed charge if and to the extent that the Security Trustee reasonably considers the assets specified in such notice may be in danger of being seized or sold under or pursuant to any form of distress or execution, or may otherwise be in jeopardy or the Security Trustee otherwise considers (acting reasonably) such conversion to be necessary or desirable to protect the priority of the Security.

 

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3.7                                 Subsequent Encumbrances

 

If any Beneficiary receives notice of any subsequent Encumbrance affecting the Charged Assets or any part thereof, such Beneficiary may open a new account for the Chargor concerned but if it does not do so then unless such Beneficiary gives express written notice to the contrary to the Chargor it shall nevertheless be treated as if it had opened a new account at the time when it received such notice and as from that time all payments made by or on behalf of the Chargor to such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount due from that Chargor to such Beneficiary at the time when it received such notice.

 

3.8                                 Section 94(1)(c) Law of Property Act 1925

 

The obligation on the part of the Senior Lenders to make further advances to the Borrowers under the Senior Facilities Agreement or on the part of any creditors under any other Senior Finance Document, as the case may be, shall be deemed to be incorporated in this Deed for the purposes of section 94(1)(c) Law of Property Act 1925.

 

3.9                                 Blocking of Accounts

 

The Chargor irrevocably and unconditionally agrees that at any time after the Enforcement Date if there shall from time to time be any credit balance on any of its accounts with any of the Beneficiaries, such Beneficiary shall have the absolute right to refuse to permit such credit balance to be utilised or withdrawn by the Chargor whether in whole or in part if and to the extent that at that time there are outstanding any of the Secured Obligations.

 

3.10                           Dividends and Voting Rights

 

Subject to Clause 8.1 (The Investments), the Chargor may, prior to the occurrence of an Event of Default which is continuing (a) exercise all voting and other rights and powers attached to the Investments and (b) receive, retain and deal with free from this Deed all dividends, distributions, interest and other moneys paid on and received by it in respect of the Investments.

 

3.11                           Consents of Third Parties

 

Notwithstanding Clause 3.1 (Fixed Charge) or 3.4 (Floating Charge):

 

(a)                                  unless and until the Chargor has obtained the consent of the relevant landlord and any other relevant party (each being a “Consent”) the fixed and floating charges granted pursuant to Clause 3.1 (Fixed Charge) and 3.4 (Floating Charge) respectively shall not extend to the Chargor’s rights over any Restricted Lease; and

 

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(b)                                 unless the Chargor has received written confirmation from the Security Trustee that a particular Consent is not required, the Chargor hereby undertakes to use their reasonable endeavours to obtain the Consents.  On obtaining each Consent:

 

(i)                                    the relevant Restricted Lease shall thereupon automatically become subject to the fixed charge created pursuant to Clause 3.1 (Fixed Charge) and the floating charge created pursuant to Clause 3.4 (Floating Charge); and

 

(ii)                                  the Chargor shall immediately produce the Certificate or evidence of such Consent to the Security Trustee.

 

3.12                           Rule 3-16 Limitation

 

(a)                                  Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating Charge) of this Deed notwithstanding, the Excluded Charged Assets are not charged under this Deed to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)                                    all other Charged Assets remain charged or assigned (as the case may be) under this Deed to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                 such Excluded Charged Assets remain charged under Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating Charge) of this Deed to secure any Secured Obligations that are not Designated Secured Obligations.

 

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

 

(c)                                  In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any

 

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other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Deed may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in paragraph (a)(ii) of this Clause 3.12) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

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

 

4.                                      SET-OFF

 

4.1                                 Set-off

 

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

 

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4.2                                 Purchase of Currencies

 

For the purpose of Clause 4.1 (Set-Off), the Chargor authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

5.                                      UNDERTAKINGS

 

5.1                                 Undertakings

 

The Chargor hereby undertakes with the Security Trustee that during the continuance of this security the Chargor will:

 

(a)                                  Deposit of deeds

 

deposit with the Security Trustee (to be held at the risk of the Chargor save where the Chargor suffers any loss, costs or expenses as a result of the Security Trustee’s gross negligence or wilful default):

 

(i)                                     all certificates and documents of title relating to its Investments and such deeds of transfer in blank and other documents as the Security Trustee may from time to time reasonably require for perfecting the title of the Security Trustee to such Investments (duly executed by or signed on behalf of the registered holder) or for vesting or enabling it to vest the same in itself or its nominees or in any purchaser; and

 

(ii)                                  all such other documents relating to its Charged Assets as are in its possession or which it can reasonably obtain as the Security Trustee may from time to time reasonably require,

 

(b)                                 Calls, etc

 

duly and promptly pay all calls, instalments or other moneys which may from time to time become due in respect of any of its Investments it being acknowledged by the Chargor that neither the Security Trustee nor any of the Beneficiaries shall in any circumstances incur any liability whatsoever in respect of any such calls, instalments or other moneys;

 

(c)                                  Provision of information

 

forthwith inform the Security Trustee of any claim or notice relating to the Investments received from any other party and likely to materially prejudice the value of the Investments and of all matters relevant thereto;

 

(d)                                 Purchase of shares

 

not, save as otherwise permitted or not restricted under each of the Senior Finance Documents, (without the prior consent in writing of the Security

 

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Trustee) redeem or purchase any of its own shares or pay any dividend, other than a dividend permitted or not restricted to be paid under each of the Senior Finance Documents;

 

(e)                                  Options

 

save to the extent expressly permitted or not restricted under each of the Senior Finance Documents not, without the prior consent of the Security Trustee, grant any option with respect to any of the Investments;

 

(f)                                    Notification

 

forthwith inform the Security Trustee of any material claims or notice relating to any Assigned Assets received from any other party and all other matters relevant or in any way material thereto;

 

(g)                                 Reports

 

ensure that the Chargor reports to the Security Trustee on a monthly basis as to whether the Consents referred to in Clause 3.11 (Consents of Third Parties) have been obtained, such reports to be provided until the earlier of (i) all of the Consents having been obtained, or (ii) the Chargor confirming that the same will not be provided;

 

(h)                                 Notice of assignment

 

deliver to the Security Trustee, or procure the delivery to the Security Trustee of, a duly executed Notice of Assignment to each relevant party in relation to the Assigned Assets, and will use reasonable endeavours to procure delivery to the Security Trustee of duly executed Acknowledgments thereof until (in each case) requested to do so by the Security Trustee upon or following the occurrence of an Event of Default which is continuing whereupon it shall do so forthwith;

 

(i)                                     Insurances

 

(i)                                     procure that a note of the interest of the Security Trustee is endorsed, and the Security Trustee is endorsed as loss payee, upon all Insurances (other than those referred to in Clause 10.2(c) (Insurance Proceeds)) which shall at any time during the subsistence of this Security be effected, maintained or held by the Chargor or any person; and

 

(ii)                                  not do or omit to do, or permit or suffer to be done or omitted to be done, anything which might render any of the Insurances void, voidable or unenforceable;

 

(j)                                     Intellectual Property

 

if requested by the Security Trustee, execute all such documents and do all acts that the Security Trustee may reasonably require to record the interest of the Security Trustee in any registers relating to any registered Intellectual Property owned by the Chargor.

 

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5.2                                 Power to Remedy

 

If the Chargor at any time defaults in complying with any of its obligations contained in this Deed, the Security Trustee shall, without prejudice to any other rights of the Security Trustee arising as a consequence of such default, be entitled (but not bound) to make good such default and the Chargor hereby irrevocably authorises the Security Trustee and its employees and agents by way of security to do all such things (including, without limitation, entering the Chargor’s property having given such notice as is reasonable in the circumstances) necessary or reasonably desirable in connection therewith.  Any moneys so expended by the Security Trustee shall be repayable by the Chargor to the Security Trustee within 30 days of demand together with interest at the Default Rate from the date being 30 days after the date of demand until such repayment, both before and after judgment.  No exercise by the Security Trustee of its powers under this Clause 5.2 shall make it or any of the Beneficiaries liable to account as a mortgagee in possession.

 

6.                                      REAL PROPERTY: PERFECTION

 

6.1                                 Modification of Law of Property (Miscellaneous Provisions) Act 1994

 

Section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994 will be amended as follows (in so far as it applies to Clause 3 (Charges)):

 

(a)                                  after “from all charges and encumbrances (whether monetary or not)” add “other than Permitted Encumbrances” and after the words “other than any charges, encumbrances or rights which that person does not and would not reasonably be expected to know about” add “but not so as to include any such charges, encumbrances or rights affecting the Charged Land disclosed by the following searches:

 

(i)                                    in the case of registered Charged Land listed in Part 1A of Schedule 3 (Details of Charged Land), OS1/2 Land Registry searches; and

 

(ii)                                 in relation to the unregistered Charged Land listed in Part 1B of Schedule 3 (Details of Charged Land), land charges searches made against all relevant estate owners since the date of the grant of the relevant lease or as the case may be the date of the root conveyance.”

 

6.2                                 Notices of Charge in respect of Charged Land

 

The Chargor which owns or leases Charged Land shall (unless an alternative course of action is agreed between the Chargor and the Security Trustee) deliver to the Security Trustee (or procure delivery of) notices of charge duly executed by, or on behalf of, the Chargor, together with all relevant fees and addresses, in relation to all landlords from which the Chargor leases any Charged Land owned or leased by the Chargor in respect of each Lease under which the Chargor leases such Charged Land in existence on the date hereof, as soon as reasonably practicable following execution of this Deed and in each case shall use all reasonable endeavours to procure that each notice is acknowledged by the relevant landlord.  The Chargor shall have no liability in the event that, having used such reasonable endeavours, the relevant landlord refuses to give such acknowledgement.

 

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6.3                                 Real Property: Delivery of Documents of Title

 

(a)                                 The Chargor shall (unless an alternative course of action is agreed between the Chargor and the Security Trustee) in respect of all Charged Land set out in 1B of Schedule 3 (Details of Charged Land) (if any), as soon as reasonably practicable after the execution of this Deed, deliver (or procure delivery) to the Security Trustee of, and the Security Trustee shall be entitled to hold and retain, all deeds, certificates and other documents of title relating to such property.

 

(b)                                The Chargor shall not be in breach of this Clause 6.3 if it does not deliver any such documents on account of its not having possession of the same provided that it uses all reasonable endeavours to obtain any such document and delivers such document promptly to the Security Trustee upon receipt.

 

6.4                                 Land Registration

 

In respect of the Charged Land the title to which is registered at the Land Registry and Real Property which is acquired by or on behalf of the Chargor, the title to which is required to be registered at the Land Registry under the Land Registration Act 2002 the parties hereto agree to make or procure that there is made a due and proper application to the Land Registry (with the Security Trustee’s consent as proprietor of the relevant registered charge):

 

(a)                                  for a restriction in the following terms to be entered on the Proprietorship Register relating thereto:

 

“No disposition of the registered estate by the proprietor of the registered estate or by the proprietor of any registered charge is to be registered without a written consent signed by the proprietor for the time being of the charge dated [insert date] in favour of [insert name of Security Trustee] referred to in the Charges Register or signed on such proprietor’s behalf by its secretary or conveyancer”;

 

(b)                                 to enter a note of the obligation to make further advances by the Beneficiaries on the Charges Register of any registered land forming part of the Charged Assets; and

 

(c)                                  to note this Deed on the Charges Register.

 

7.                                      FURTHER ASSURANCE

 

7.1                                 Further Assurance

 

The Chargor shall at any time if and when required by the Security Trustee execute such further Encumbrances and assurances in favour of the Security Trustee and/or the Beneficiaries and do all such acts and things as the Security Trustee shall from time to time reasonably require over or in relation to all or any of the Charged Assets to secure the Secured Obligations or to perfect or protect the security intended to be created by this Deed over the Charged Assets or any part thereof or, on or after the Enforcement Date, to facilitate the realisation of the same.

 

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7.2                                 Certain Documentary Requirements

 

Such further Encumbrances and assurances shall be prepared by or on behalf of the Security Trustee at the expense of the Chargor (such expense to be reasonable and properly incurred) and shall contain (a) an immediate power of sale without notice, (b) a clause excluding section 93 Law of Property Act 1925 and the restrictions contained in section 103 Law of Property Act 1925 and (c) such other clauses for the benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

7.3                                 Specific Security Documents Required

 

The Chargor covenants with the Security Trustee that after the Enforcement Date if and when required by the Security Trustee (acting reasonably) it will to give notice in a form acceptable to the Security Trustee to such persons as the Security Trustee may require of the security over all or any part of the Charged Assets constituted by this Deed or granted pursuant to it.

 

8.                                      CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

8.1                                 The Investments

 

The Chargor further covenants and agrees with the Security Trustee that:

 

(a)                                  the Security Trustee and its nominees at the discretion of the Security Trustee may after an Event of Default has occurred and so long as the same is continuing, exercise in the name of the Chargor or otherwise at any time whether before or after demand for payment and without any further consent or authority on the part of the Chargor (but subject to Clause 8.1(d) in respect of the Investments), any voting rights and/or powers given to trustees by section 10(3) and (4) Trustee Act 1925 (as amended by section 9 Trustee Investments Act 1961) in respect of securities or property subject to a trust and any powers or rights which may be exercisable by the person in whose name any of the Investments are registered or by the bearer thereof;

 

(b)                                 the Chargor will if so requested by the Security Trustee after an Event of Default has occurred and so long as the same is continuing transfer all or any of the Investments to the Security Trustee or such nominees or agents as the Security Trustee may select, provided that, for the avoidance of doubt, the Security Trustee may not request any such transfer prior to the occurrence of an Event of Default;

 

(c)                                  until the Enforcement Date, the Security Trustee will hold all dividends, distributions, interest and other moneys paid on and received by it in respect of any Investments which are transferred to it pursuant to Clause 8.1(b) for the account of the Chargor; and

 

(d)                                 until the Enforcement Date the Security Trustee will exercise all voting and other rights and powers attached to the Investments which are given to it pursuant to the Trustee Act 1925 (as referred to in Clause 8.1(a) of this Deed) or which relate to the Investments which are transferred to it pursuant to

 

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Clause 8.1(b) as the Chargor may from time to time in writing direct provided that the Security Trustee shall be under no obligation to comply with any such direction where compliance would, in the Security Trustee’s reasonable opinion, be prejudicial to the security created by this Deed or to the interests of the Beneficiaries in relation to the relevant assets.

 

8.2                                 Power of Sale

 

At any time on or after the Enforcement Date, the Security Trustee may (without notice to the Chargor) sell or otherwise dispose of the Charged Assets or any of them and shall be entitled to apply the proceeds of such sale or other disposal in paying the costs of such sale or disposal and thereafter in or towards the discharge of the Secured Obligations or otherwise as provided for in this Deed.

 

8.3                                 Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Deed.

 

8.4                                 Law of Property Act

 

At any time on or after the Enforcement Date or if requested by the Chargor, the Security Trustee may, without further notice, without the restrictions contained in sections 93 and 103 of the Law of Property Act 1925 and whether or not a Receiver shall have been appointed, exercise all the powers conferred upon mortgagees by the Law of Property Act 1925 as varied or extended by this Deed and all the powers and discretions conferred by this Deed on a Receiver either expressly or by reference and also, in the case of the Investments, all rights or powers which may be exercisable by the registered holder or beneficial owner of the same.

 

8.5                                 Statutory Power of Leasing

 

The statutory powers of leasing conferred on the Security Trustee shall be extended so as to authorise the Security Trustee to lease and make agreements for leases at a premium or otherwise, to accept surrenders of leases and to grant options on such terms as the Security Trustee shall consider expedient and without the need to observe any of the provisions of sections 99 and 100 Law of Property Act 1925, and Clause 8.2 (Power of Sale) shall operate as a variation and extension of section 101 of such Act.

 

8.6                                 Distributions

 

On or after the Enforcement Date all dividends, interest and other distributions relating to the Investments may be applied by the Security Trustee as though they were proceeds of sale under this Deed.

 

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8.7                                 Realisation Accounts

 

If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the Security the Security Trustee (or such Receiver) may:

 

(a)                                  open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

(b)                                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

(c)                                  subject to the payment of any claims having priority to this Security, withdraw amounts standing to the credit of the Realisation Accounts to:

 

(i)                                     discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

(ii)                                  pay remuneration to the Receiver as and when the same becomes due and payable; and

 

(iii)                               discharge the Secured Obligations as and when the same become due and payable.

 

8.8                                 Right of Appropriation

 

To the extent the Charged Assets constitute “financial collateral” and this Deed constitutes a “security financial collateral arrangement” (as defined in the Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226) the Security Trustee may appropriate all or any part of the Charged Assets in or towards satisfaction of the Secured Obligations, the value of the assets so appropriated being such amount as the Security Trustee shall determine in a commercially reasonable manner.

 

9.                                      APPOINTMENT AND POWERS OF RECEIVER OR ADMINISTRATOR

 

9.1                                 Appointment of Administrator

 

At any time on or after the Enforcement Date the Security Trustee may appoint an administrator pursuant to the power contained in paragraph 14 of Schedule B1 to the Insolvency Act 1986.

 

9.2                                 Appointment of Receivers

 

The Security Trustee may at any time on or after the Enforcement Date or if the Chargor requests it to do so, by written instrument and without notice to the Chargor, appoint any one or more persons as Receiver of such part of the Charged Assets as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of the Chargor and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925.  The Security Trustee may from time to time by writing under its hand remove any Receiver appointed by it and may,

 

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whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

9.3                                 Receiver as Agent

 

A Receiver shall be the agent of the Chargor and (subject to the provisions of this Deed) the Chargor shall be solely responsible for his acts or defaults and for his remuneration.

 

9.4                                 Powers of Receiver

 

A Receiver shall have all the powers conferred from time to time on receivers and administrative receivers by statute (in the case of powers conferred by the Law of Property Act 1925, without the restrictions contained in section 103 of that Act) and power on behalf and at the expense of the Chargor (notwithstanding liquidation of the Chargor) to do or omit to do anything which the Chargor could do or omit to do in relation to the Charged Assets or any part thereof.  In particular (but without limitation) a Receiver shall have power to do all or any of the following acts and things:

 

(a)                                  Take possession

 

take possession of, collect and get in all or any of the Charged Assets and exercise in respect of the Investments, all voting or other powers or rights available to a registered holder thereof in such manner as he may think fit;

 

(b)                                 Carry on business

 

carry on, manage, develop, reconstruct, amalgamate or diversify the business of the Chargor or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Deed;

 

(c)                                  Borrow money

 

raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to this security or otherwise;

 

(d)                                 Dispose of assets

 

without the restrictions imposed by section 103 Law of Property Act 1925 or the need to observe any of the provisions of sections 99 and 100 of such Act, sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Chargor or otherwise and so that covenants and contractual obligations may be granted and assumed

 

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in the name of and so as to bind the Chargor (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of the Chargor;

 

(e)                                  Form Subsidiaries

 

promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 

(f)                                    Compromise contracts

 

make any arrangement or compromise or enter into or cancel any contracts which he shall think expedient;

 

(g)                                 Repair and maintain assets

 

make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

(h)                                 Appoint employees

 

appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 9 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

(i)                                     Exercise statutory leasehold powers

 

without any further consent by or notice to the Chargor exercise for and on behalf of the such Chargor all the powers and provisions conferred on a landlord or a tenant by the Landlord and Tenant Acts, the Rent Acts, the Housing Acts or the Agricultural Holdings Act or any other legislation from time to time in force in any relevant jurisdiction relating to rents or agriculture in respect of any part of the Charged Assets but without any obligation to exercise any of such powers and without any liability in respect of powers so exercised or omitted to be exercised;

 

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(j)                                     Make calls and legal proceedings

 

make calls conditionally or unconditionally on the members of the Chargor in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

(k)                                  Execute documents

 

sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security of the Security Trustee and the Beneficiaries and to use the name of the Chargor for all the purposes aforesaid;

 

(l)                                     Insolvency Act powers

 

do all the acts and things described in schedules 1 or 2 to the Insolvency Act 1986 as if the words “he” and “him” referred to the Receiver and “company” referred to the Chargor; and

 

(m)                               General Powers

 

do all such other acts and things as it may consider desirable or necessary for realising all or any part of the Charged Assets over which he is appointed or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of this Deed; to exercise in relation to all or any part of the Charged Assets over which he is appointed all such powers, authorities and things as he would be capable of exercising if he were the absolute beneficial owner of the same; and to use the name of the Chargor for all or any of such purposes.

 

9.5                                 Remuneration of Receiver

 

The Security Trustee may from time to time determine the remuneration of any Receiver appointed by it without the limitations imposed by section 109 of the Law of Property Act 1925.  A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

10.                               APPLICATION OF PROCEEDS; PURCHASERS

 

10.1                           Application of Proceeds

 

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

 

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10.2                           Insurance Proceeds

 

With the exception of those moneys:

 

(a)                                  which relate to a particular claim and do not exceed £2,500,000;

 

(b)                                 are paid under third party liability insurance to the relevant third party; or

 

(c)                                  which relate to (a) Insurances of leasehold property or leasehold equipment in cases where the relevant lessor is named as loss payee, and (b) Insurances in favour of lenders to any member of the Group where the relevant borrowing is (A) a Permitted Borrowing and (B) either a Finance Lease or secured by a Permitted Encumbrance and (C) either the relevant lender is named as loss payee or naming the Security Trustee would be contrary to the terms of the relevant borrowing;

 

all moneys receivable by virtue of any of the Insurances on or after the Enforcement Date shall be paid to the Security Trustee (or if not paid by the insurers directly to the Security Trustee shall be held on trust for the Security Trustee) and shall, at the option of the Security Trustee, be (i) applied in replacing, restoring or reinstating the property or assets destroyed, damaged or lost (any deficiency being made good by the Chargor) or (ii) (except where the Chargor is obligated (as landlord or tenant) to lay out such moneys under any lease of any of the Charged Assets) credited (for a period not exceeding 30 days at the end of which period such moneys shall, at the option of the Security Trustee, be applied in accordance with either (i) above or (iii) below) to an account charged to the Security Trustee (on behalf of the Beneficiaries) in a manner acceptable to the Security Trustee and at the cost of the Chargor as a continuing security for the payment and discharge of the Secured Obligations or (iii) (except where the Chargor is obliged (as landlord, tenant, lessor or lessee) to lay out such insurance moneys under the provisions of any lease of any of the Charged Assets) applied in reduction of the Secured Obligations.  Without prejudice to the foregoing provisions of this Clause 10 the Security Trustee agrees to negotiate with the Chargor in good faith as to the application of any insurance proceeds paid to or held on trust for the Security Trustee.

 

11.                               INDEMNITIES; COSTS AND EXPENSES

 

11.1                           Enforcement Costs

 

The Chargor hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee or any Receiver shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Deed or any of the Charged Assets on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the relevant Chargor (both before and after judgment) provided that before any such demand is made on a Restricted Guarantor, demand for payment of such expenses shall first have been made on the Chargor which is not a Restricted Guarantor.

 

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11.2                           No liability as Mortgagee in Possession

 

None of the Beneficiaries, the Security Trustee or any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Charged Assets or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such except in the case of fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as the case may be).

 

11.3                           Indemnity from Charged Assets

 

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

 

(a)                                  anything done or omitted in the exercise or purported exercise of the powers contained in this Deed; or

 

(b)                                 any breach by the Chargor of any of its obligations under this Deed; or

 

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

 

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

 

11.4                           Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Charged Assets may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Charged Assets whether or not a Receiver is or has been appointed.

 

12.                               ENFORCEMENT

 

12.1                           When Enforceable

 

If (and only if) the Enforcement Date has occurred then the charges created pursuant to this Deed shall become enforceable.  Section 103 Law of Property Act 1925 shall not apply in respect of any Charged Assets.

 

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12.2                           Authority

 

No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Deed has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

13.                               POWER OF ATTORNEY

 

13.1                           Power of Attorney

 

The Chargor, by way of security for the performance of its obligations under this Deed, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the Charged Assets and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)                                  to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

(b)                                 to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 6 (Real Property: Perfection) in accordance with the terms thereof; and

 

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

 

13.2                           Ratification

 

The Chargor ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 (Power of Attorney) shall do or purport to do in the exercise of his powers under such clause.

 

13.3                           General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and the Chargor hereby covenants with the Security Trustee and separately with any such Receiver to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

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14.                               CONTINUING SECURITY AND OTHER MATTERS

 

14.1                           Continuing Security

 

This Deed and the obligations of the Chargor under this Deed shall:

 

(a)                                  secure the ultimate balance of the Secured Obligations from time to time owing notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of the Chargor or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

(b)                                 be in addition to, and shall not merge with or otherwise prejudice or affect, any present or future Security Document, Encumbrance, right or remedy held by or available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)                                  not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

14.2                           Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Documents or other means of payment now or hereafter held by or available to it before enforcing this Deed and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of the Chargor nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

14.3                           New Accounts

 

Notwithstanding that any charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of any Chargor or other Security Provider or open one or more new accounts and the liability of each Chargor hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of any such account.

 

14.4                           Settlements Conditional

 

Any release, discharge or settlement between the Chargor and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by the Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy,

 

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liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Deed subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.

 

14.5                           No Release

 

The liability of the Chargor shall not be affected nor shall the charge hereby created be discharged or diminished by reason of:

 

(a)                                  the Incapacity or any change in the name, style or constitution of the Chargor or any other person liable; or

 

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

 

(c)                                  any act or omission which would not have discharged or affected the liability of the Chargor had it been principal debtor instead of guarantor or by anything done or omitted which but for this provision might operate to exonerate the Chargor.

 

14.6                           Restriction of the Chargor’s Rights

 

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

 

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

 

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

 

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

 

(d)                                 claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy,

 

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

 

14.7                           Recoveries by the Chargor

 

If contrary to Clause 2.3 (No Security) or 14.6 (Restriction of the Chargor’s Rights) the Chargor takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

14.8                           Treatment of “claims”

 

The Chargor hereby agrees not to assert or enforce (whether by or in a legal or equitable proceeding or otherwise) any, “claims” (as defined in section 101(4) of the United States Bankruptcy Code) against the Chargor, whether arising under any applicable law or otherwise, to which the Chargor is or would be entitled.  It is hereby acknowledged by the Security Trustee that this Clause 14.8 does not restrict the right of the Chargor to assert or enforce any “claims” against any other Security Provider to the extent that such “claims” arise after all the Security Providers have been released from all their respective obligations and liabilities hereunder.

 

15.                               CURRENCIES

 

15.1                           Conversion of Currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Deed at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable the Chargor shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to the Chargor in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

15.2                           Currency Indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Chargor in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the

 

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Security Trustee shall have a further separate cause of action against the Chargor and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

16.                               THE SECURITY TRUST AGREEMENT

 

The Chargor and the Security Trustee hereby acknowledges that the covenants of the Chargor contained in this Deed and the security and other rights, titles and interests constituted by this Deed and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Deed are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

17.                               MISCELLANEOUS

 

17.1                           Exchange of Information

 

The Chargor hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Charged Assets unless such information is the subject of a duty of confidentiality on the part of the Security Trustee or any Beneficiary not to disclose such information.

 

17.2                           Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

17.3                           Representations and Warranties

 

The Chargor represents and warrants to the Security Trustee that:

 

(a)                                  Shareholders

 

that it has as its shareholders those persons set out in Schedule 1 (Shareholders) (with the percentage interest set out therein) and no others;

 

(b)                                 Assets charged

 

it has charged all or substantially all of the assets it owns pursuant to the provisions of this Deed; and

 

(c)                                  Repetition

 

the representation and warranty contained in this Clause 17.3(b) shall be deemed to be repeated by the Chargor on the date on which all or any of the representations and warranties contained in Clause 21 (Representations and Warranties) of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent

 

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provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 

17.4                           No Breach of Memorandum and Articles of Association

 

It is hereby certified by the Chargor that neither the execution of this Deed nor the creation of the charges contained in this Deed contravenes any of the provisions of the Memorandum and Articles of Association of the Chargor.

 

17.5                           Statutory Power of Leasing

 

During the continuance of this security the statutory and any other powers of leasing, letting, entering into agreements for leases or lettings and accepting or agreeing to accept surrenders of leases or tenancies shall not be exercised by the Chargor in relation to the Charged Assets or any part thereof.

 

17.6                           Successors

 

Any appointment or removal of a Receiver under Clause 9 (Appointment and Powers of Receiver or Administrator) and any consents under this Deed may be made or given in writing signed or sealed by any successor Security Trustee appointed pursuant to the terms of the Security Trust Agreement and their respective successors in title and accordingly the Chargor hereby irrevocably appoints each successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title to be its attorney in the terms and for the purposes set out therein.

 

17.7                           Consolidation

 

Section 93 Law of Property Act 1925 shall not apply to the security created by this Deed or to any security given to the Security Trustee or any of the Beneficiaries pursuant to this Deed.

 

17.8                           Reorganisation

 

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

 

17.9                           Unfettered Discretion

 

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

 

33



 

17.10                     Provisions Severable

 

Each of the provisions of this Deed is severable and distinct from the others and if any one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Deed shall not in any way be affected or impaired thereby.

 

17.11                     Law of Property (Miscellaneous Provisions) Act 1989

 

For the purposes of the Law of Property (Miscellaneous Provisions) Act 1989 any provisions of any Senior Finance Document relating to any disposition of an interest in land shall be deemed to be incorporated in this Deed.

 

17.12                     No Assignment by the Chargors

 

The Chargor may not assign or transfer any of its rights or obligations under this Deed.

 

17.13                     Joint and Several Liabilities

 

The covenants, agreements, obligations and liabilities of the Chargor contained in this Deed or implied on their part are joint and several and shall be construed accordingly.

 

17.14                     Liabilities Survive Deficiencies and Releases

 

The Chargor agrees to be bound by this Deed notwithstanding that any person intended to execute or to be bound by this Deed may not do so or may not be effectually bound and notwithstanding that any charges contained in this Deed may be terminated or released or may be or become invalid or unenforceable against any other person whether or not the deficiency is known to the Security Trustee or any of the Beneficiaries.

 

17.15                     Letters of Non-crystallisation

 

The Security Trustee shall, at the request and cost of the Chargor, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Floating Charge Assets.

 

17.16                     Release

 

Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 14.4 (Settlements Conditional), the Security Trustee shall, at the request and cost of the Chargor, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

34



 

18.                               NOTICES

 

18.1                           Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Deed shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on the Chargor in the manner and at the address set out in Clause 20 (Notices) of the Group Intercreditor Deed.

 

18.2                           Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Deed shall, save for manifest error, be conclusive and binding upon the Chargor if signed by an officer of the Security Trustee.

 

19.                               LAW AND JURISDICTION

 

19.1                           Governing Law

 

This Deed, including all non-contractual obligations arising out of or in connection with it, shall be governed by English law.

 

19.2                           Submission to Jurisdiction

 

The Chargor agrees for the benefit of the Security Trustee that any legal action or proceedings in connection with this Deed against the Chargor or any of their respective assets may be brought in the English courts.  The Chargor irrevocably and unconditionally submits to the jurisdiction of such courts.  The submission to such jurisdiction shall not (and shall not be construed so as to) limit the right of the Security Trustee or any of the Beneficiaries to enforce any judgment obtained in any court referred to in this Clause 19.2 in any jurisdiction in which any of the assets of the Chargor are situated, nor shall the taking of proceedings in any one or more jurisdiction referred to in this Clause 19.2 preclude the taking of proceedings in any other such jurisdiction, whether concurrently or not.

 

19.3                           Inconvenient Forum

 

The Chargor irrevocably waives any objection it may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in Clause 19.2 (Submission to Jurisdiction) and any claim it may have now or hereafter that any action or proceeding brought in such courts or jurisdiction has been brought in an inconvenient forum.

 

IN WITNESS whereof this Deed has been executed and delivered by or on behalf of the parties on the date stated at the beginning of this Deed.

 

35


 

SCHEDULE 1

 

SHAREHOLDERS

 

NAME OF
SHAREHOLDER(S)

 

NO. OF SHARES

 

PERCENTAGE

 

Virgin Media Investment Holdings Limited

 

2 ordinary

 

100

%

 

36



 

SCHEDULE 2

 

NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

 

Part 1

 

Intercompany Indebtedness

 

Part 1A

 

Form of Notice of Assignment

 

To:          [specify relevant intercompany debtor]

 

[Date]

 

Dear Sirs,

 

We, [specify Chargor], hereby give you notice that:

 

1.                                       pursuant to a debenture dated [•] (the “Debenture”) (a copy of which is appended hereto) entered into by (inter alios) us in favour of [•] as security trustee for the Beneficiaries as therein defined (the “Security Trustee”) we have assigned the following assets to the Security Trustee:

 

(a)                                  all our present and future rights, title, benefits and interests in and under the loan agreements dated [specify] (the “Intercompany Loan Agreement(s)”);

 

(b)                                 all our present and future rights, title benefit and interest in and to all principal and interest payable under the Intercompany Loan Agreement(s) and any other amounts payable in respect thereof;

 

2.                                       the Security Trustee has agreed that, until such time as the Security Trustee notifies you to the contrary, we may continue to exercise all of our rights under the Intercompany Loan Agreement(s);

 

3.                                       upon the security granted by the Debenture becoming enforceable, we may not vary extend release determine or rescind any of the Intercompany Loan Agreement(s) or grant time for payment or indulgence or compound with discharge waive release set off or vary the liability of any other person thereunder or consent to any act or omission as would otherwise constitute a breach or concur in accepting or varying any compromise arrangement or settlement relating thereto or do or suffer any act or thing or permit any set off whereby the recovery of any moneys payable may be delayed or impeded;

 

4.                                       the authority and instructions herein contained cannot be revoked or varied by us without the prior written consent of the Security Trustee.

 

37



 

Please acknowledge receipt of this notice by signing the acknowledgement attached to the enclosed copy letter and returning the same to the Security Trustee.

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

 

 

Authorised Officer

 

 

38



 

Part 1B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [•]

 

[Date]

 

Dear Sirs,

 

1.                                       We refer to the notice of assignment issued to us by [specify Chargor].

 

2.                                       Unless the context otherwise requires, terms defined in, or incorporated by reference into, the Debenture (as defined below) shall bear the same meaning herein.

 

3.                                       We hereby:

 

(a)                                  acknowledge receipt of notice from [specify Chargor] that, by a debenture dated [•] (the “Debenture”) and made between (inter alios) [specify Chargor] and the Security Trustee, [specify Chargor] has assigned to the Security Trustee all of its present and future rights, title, benefits and interests in and under the Intercompany Loan Agreement(s), as therein defined;

 

(b)                                 agree to, and accept, the making of such assignment;

 

(c)                                  undertake to the Security Trustee to accept as valid, and act upon and observe where required, any notices or demands given or made by the Security Trustee in respect of the Intercompany Loan Agreement(s) in place of [specify Chargor];

 

(d)                                 agree to deliver to the Security Trustee copies of all notices delivered by us to [specify Chargor];

 

(e)                                  acknowledge that the making of the assignment referred to above shall not affect the liability of [specify Chargor] to perform all the obligations assumed by it under the Intercompany Loan Agreement(s) and that the Security Trustee shall have no obligations (whether in place of [specify Chargor] or otherwise) in respect of the Intercompany Loan Agreement(s) except insofar as such obligations may arise as a result of the Security Trustee exercising any of those rights conferred upon it under any agreement between (inter alios) us and the Security Trustee relating to the Assigned Assets; and

 

(f)                                    confirm that we have not received any prior notice of assignment, transfer or charge in respect of [specify Chargor], rights, title, benefits and interests in and under the Intercompany Loan Agreement(s).

 

39



 

4.                                       This Acknowledgement shall be governed by, and construed in accordance with, English law.

 

Yours faithfully,

 

 

For and on behalf of

[•]

 

 

 

 

Authorised Officer

 

 

40



 

Part 2

 

Insurances

 

Part 2A

 

Form of Notice of Assignment

 

To:          [insert name of insurer]

 

[Date]

 

Dear Sirs,

 

We, [specify Chargor], hereby give you notice that:

 

(i)                                     pursuant to a debenture dated [•] (the “Debenture”) we have charged and assigned to [  ] (as security trustee for the Beneficiaries referred to in the Debenture, the “Security Trustee”) all our rights, title, interests and benefits in, to or in respect of the insurance policies with you detailed in Part 1 of the Schedule attached hereto (the “Insurances”) including all claims and returns of premiums in respect thereof to which we are, or may at any future time become, entitled.

 

With effect from your receipt of this notice we hereby request and instruct that:

 

1.                                       you immediately name the Beneficiaries (details of whom are set out in Part 2 of the Schedule attached hereto) and the Security Trustee (in its capacity as security trustee) as loss payee in respect of each of the Insurances);

 

2.                                       upon the security granted by the Debenture in respect of the Insurances becoming enforceable (as notified to you by the Security Trustee):

 

(a)                                  all payments under or arising from the Insurances are to be made to the Security Trustee or to its order;

 

(b)                                 all remedies provided for in the Insurances or available at law or in equity are to be exercisable by the Security Trustee;

 

(c)                                  all rights to compel the performance of the Insurances are to be exercisable by the Security Trustee; and

 

(d)                                 all rights, title, interests and benefits whatsoever accruing to or the benefit of ourselves arising from the Insurances shall belong to the Security Trustee; and

 

3.                                       you give notice to the Security Trustee promptly in writing:

 

(a)                                  if we propose to cancel or give notice of cancellation of any Insurance, at least 30 days before such cancellation is to take effect;

 

(b)                                 of any material alteration or the termination or expiry of any such Insurance, at least 30 days before such alteration, termination or expiry is to take effect; and

 

41



 

(c)                                  of any default in the payment of any premium or failure to renew any such Insurance and shall give the Security Trustee not less than 30 days in which to pay the defaulted premium without cancelling the policy during such 30 days period.

 

Please confirm your receipt of this notice and your acknowledgement of the matters and instructions set out above by signing and dating the Acknowledgement of Assignment set out on the enclosed copy of this notice, and returning the same to the Security Trustee with a copy to ourselves.

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

 

 

Authorised Officer

 

 

42



 

SCHEDULE

 

Part 1

 

Relevant Insurance Policies

 

None

 

 

Part 2

 

Beneficiaries

 

None

 

43



 

Part 2B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:                              [•]

as Security Trustee

 

[Date]

 

Dear Sirs,

 

We hereby acknowledge receipt of a notice in the terms set out above (the “Notice”).

 

We confirm that we shall hereafter act in accordance with the Notice and that we have not received any other notice of any other third party interests whether by way of assignment or charge in respect of any of the Insurances.

 

We further confirm that no amendment or termination of any of the Insurances shall be effective unless we have given you [30] days’ prior written notice of our intention to so amend or terminate the same.

 

Yours faithfully,

 

 

 

 

(Authorised Signatory)

 

 

[INSURER]

 

Date:

 

44


 

SCHEDULE 3

 

DETAILS OF CHARGED LAND

 

Part 1

 

PART 1A
Registered Land

 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

PART 1B

 

Unregistered Land

 

The freehold/leasehold property known as and comprised in the following title deed(s) or other document(s) of title:

 

CHARGOR

 

ADDRESS

 

FREEHOLD/LEASEHOLD

 

DATE OF LEASE
(IF
LEASEHOLD)

N/A

 

N/A

 

N/A

 

N/A

 

45



 

SCHEDULE 4

 

REGISTERED, INTELLECTUAL PROPERTY RIGHTS

 

A.            UNITED KINGDOM TRADE MARKS

 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

B.            COMMUNITY TRADE MARKS

 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

EP PATENTS

 

PATENT NUMBER

 

TITLE

 

DATE OF FILING

 

STATUS

N/A

 

N/A

 

N/A

 

N/A

 

46



 

GB PATENTS

 

PATENT NUMBER

 

TITLE

 

DATE OF FILING

 

STATUS

N/A

 

N/A

 

N/A

 

N/A

 

47


 

SCHEDULE 5

 

INTERCOMPANY LOANS

 

 

None

 

48



 

SIGNATORIES

 

 

Executed as a deed by VIRGIN MEDIA SFA FINANCE LIMITED

acting by Robert Gale, a director

 

/s/ ROBERT GALE

 

 

in the presence of:

 

/s/ M HANDFORTH

 

Name: M.Handforth

Address: Communications House, Units 1-12, Mayfair Business Park,

Broad Lane, Bradford BO4 8PW

Occupation: Head of Accounts Services

 



 

THE SECURITY TRUSTEE

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

By:

/s/ V. ADAMS

 

 

 

 

By:

V. Adams

 

 

Address:

 

Fax Number:

 

Attention:

 




Exhibit 4.17

 

EXECUTION VERSION

 

 

Dated 17 May 2010

 

 

COMPOSITE DEBENTURE

 

 

Between

 

 

THE COMPANIES LISTED IN SCHEDULE 1
as Chargors

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee

 



 

TABLE OF CONTENTS

 

 

Page

 

 

 

1.

INTERPRETATION

1

2.

SECURED OBLIGATIONS

9

3.

CHARGES

10

4.

SET-OFF

15

5.

UNDERTAKINGS

16

6.

REAL PROPERTY: PERFECTION

18

7.

FURTHER ASSURANCE

19

8.

CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

20

9.

APPOINTMENT AND POWERS OF RECEIVER OR ADMINISTRATOR

22

10.

APPLICATION OF PROCEEDS; PURCHASERS

25

11.

INDEMNITIES; COSTS AND EXPENSES

26

12.

ENFORCEMENT

27

13.

POWER OF ATTORNEY

28

14.

CONTINUING SECURITY AND OTHER MATTERS

28

15.

CURRENCIES

31

16.

THE SECURITY TRUST AGREEMENT

32

17.

MISCELLANEOUS

32

18.

NOTICES

34

19.

LAW AND JURISDICTION

35

SCHEDULE 1 CHARGING COMPANIES

36

SCHEDULE 2 NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

37

 

Part 1 Intercompany Indebtedness

37

 

Part 1A Form of Notice of Assignment

37

 

Part 1B Form of Acknowledgement of Assignment

39

 

Part 2 Insurances

41

 

Part 2A Form of Notice of Assignment

41

 

Part 2B Form of Acknowledgement of Assignment

44

SCHEDULE 3 DETAILS OF CHARGED LAND

45

 

Part 1 PART 1A Registered Land

45

 

PART 1B Unregistered Land

45

SCHEDULE 4 REGISTERED, INTELLECTUAL PROPERTY RIGHTS

46

SCHEDULE 5 INTERCOMPANY LOANS

48

 

i



 

THIS COMPOSITE DEBENTURE is dated 17 May 2010 and made

 

BETWEEN:

 

(1)                                 THE COMPANIES whose respective registered names, registered numbers and shareholders are set out in Schedule 1 (the “Chargors”); and

 

(2)                                 DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

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

 

(B)                                Virgin Media Secured Finance PLC has issued and sold the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

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

 

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

 

NOW THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                                 Definitions

 

In this Deed, unless the context otherwise requires:

 

Acknowledgement” means a duly completed acknowledgement of assignment in the form set out in the relevant Part of Schedule 2 (Notices of Assignment/Acknowledgements) being:

 

(a)                                  Schedule 2 Part 1B, in the case of Intercompany Indebtedness; and

 

(b)                                 Schedule 2 Part 2B, in the case of Insurances.

 



 

Assigned Assets” means, in relation to each Chargor, all the assets of such Chargor described in Clause 3.2 (Assignments);

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Charged Assets” means all the undertaking, goodwill, property, assets and rights of each Chargor described in Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge);

 

Charged Land” means in respect of each Chargor the English Real Property specified in Schedule 3 (Details of Charged Land);

 

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

 

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

 

disposal” includes any sale, lease, sub-lease, assignment or transfer, the grant of an option or similar right, the grant of any easement, right or privilege, the creation of a trust or other equitable interest in favour of a third party, a sharing or parting with possession or occupation whether by way of licence or otherwise and the granting of access to any other person over any intellectual property, and “dispose” and “disposition” shall be construed accordingly;

 

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

 

English Real Property” means, at any time and in respect of each Chargor, freehold or leasehold property in England and Wales in which such Chargor has an interest, including all rights, easements and privileges from time to time attached or appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon;

 

Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

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

 

2



 

Excluded Charged Assets” has the meaning given to such term in Clause 3.12(b) (Rule 3-16 Limitation) of this Deed;

 

Fixtures” means, in relation to any Real Property, all fixtures and fittings (including trade fixtures and fittings) and fixed plant, machinery and equipment and other items attached to the relevant Real Property whether or not constituting a fixture at law;

 

Floating Charge Assets” means the assets of each Chargor from time to time expressed to be charged by this Deed by way of floating charge pursuant to Clause 3.4 (Floating Charge);

 

Incapacity” means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of that person whatsoever;

 

Indemnified Party” has the meaning set out in Clause 11.3 (Indemnity from Charged Assets);

 

Insurances” means, in relation to each Chargor, all present and future contracts or policies of insurance (including life policies) in which each Chargor from time to time has an interest;

 

Intellectual Property Rights” means all patents, trade marks, service marks, designs, design rights, utility models, business names, topographical or similar rights, copyrights, moral rights, database rights, rights in inventions, computer software, know-how, trade secrets and confidential information and other intellectual property rights and any interests (including by way of licence) subsisting anywhere in the world in any of the foregoing (in each case whether registered or not and including all applications for the same) owned by each Chargor;

 

Intercompany Indebtedness” means indebtedness owing by any member of the Group to any Chargor under each of the loan agreements or other debt instruments listed in Schedule 5 (Intercompany Loans) and any other such indebtedness from time to time outstanding;

 

Investments” means the Shares and any other stocks, debentures, bonds, warrants and other securities of any kind whatsoever and any units in Unit Trust Schemes;

 

Lease” means any present or future lease, sublease, licence, tenancy or other agreement or right to occupy whether on a fixed term or periodic basis governing the use or occupation of any freehold, heritable or leasehold property;

 

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

 

Notice of Assignment” means a duly completed notice of assignment in the form set out in the relevant Part of Schedule 2 (Notices of Assignment/Acknowledgements) being:

 

(a)                                  Part 1, in the case of Intercompany Indebtedness; and

 

3



 

(b)                                 Part 2, in the case of Insurances;

 

Permitted Borrowing” means any Financial Indebtedness permitted under Clause 25.4 (Financial Indebtedness) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Permitted Disposal” means any disposal permitted under Clause 25.6 (Disposals) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Permitted Encumbrance” means any Encumbrance permitted under Clause 25.2 (Negative Pledge) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Real Property” means the English Real Property and any other land, buildings or erections anywhere in the world and any estate or interest therein and any reference to Real Property includes all rights, easements and privileges from time to time attached or appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon;

 

Realisation Account” means each account maintained from time to time by the Security Trustee for the purposes of Clause 8.7 (Realisation Accounts).

 

Receiver” means a receiver and manager, or any other receiver (whether appointed pursuant to this Deed or any statute, by a court or otherwise) of all or any of the Charged Assets and shall, where permitted by law, include an administrative receiver;

 

Related Rights” means, in relation to any Investment of each Chargor:

 

(a)                                  any proceeds of and any right or option to receive any dividend, distribution, interest or other income paid or payable in relation to any such Investment; and

 

(b)                                 any right or option to receive, call for delivery of or otherwise acquire any stocks, shares, debentures, bonds, loan stocks, warrants, securities, monies or other property of any kind, accruing or offered at any time or deriving therefrom, whether in addition to or in substitution for such Investment.

 

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

 

4



 

Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Restricted Lease” means any lease to which a Chargor is a party which would be breached, if the consent of the relevant landlord and any other relevant party was not obtained prior to such lease becoming subject to any security interest created pursuant to this Deed;

 

Rule 3-16” has the meaning given to such term in “Designated Secured Obligations”.

 

SEC” means the United States Securities and Exchange Commission;

 

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

 

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

 

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

 

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

 

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

 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on 19 January 2010 between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited and the companies named therein as Original Obligors;

 

Senior Facilities Agreement” means the senior facilities agreement dated 16 March 2010 (as amended, restated, supplemented or novated from time to time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crédit Agricole Corporate and

 

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Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International, J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London Branch as Security Trustee and the financial and other institutions named in it as Lenders;

 

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

 

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

 

Senior Secured Notes Indenture” means the indenture dated 19 January 2010 governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time;

 

Shares” means all shares in the capital of any member of the Group, any Joint Venture or any other person now or in the future legally or beneficially owned by any Chargor and/or any nominee on behalf of any such Chargor;

 

Unit Trust Scheme” has the meaning set out in Section 237(2) of the Financial Services and Markets Act 2000; and

 

1.2                                 Successors and Assigns

 

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

 

1.3                                 Agreement Definitions

 

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

 

1.4                                 Headings

 

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

 

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1.5                                 Construction of Certain Terms

 

In this Deed, unless the context otherwise requires:

 

(a)                                  references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Deed and references to this Deed include its schedules;

 

(b)                                 references to (or to any specified provision of) this Deed or any other agreement or document shall be construed as references to this Deed, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

(i)                                     references to “business” in relation to any Chargor means any business referred to in the definition of Group Business in the Relevant Facilities Agreement which such Chargor engages in, and references to “ordinary course of business” in relation to any Chargor shall be similarly construed.

 

1.6                                 Implied Covenants

 

In accordance with Rule 68 of the Land Registration Rules 2003:

 

(a)                                  the covenants set out in section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994 shall extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge) save for the words “other than any

 

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charges, encumbrances or rights which that person does not and could not reasonably be expected to know about”; and

 

(b)                                 the covenants set out in section 3(2) of the Law of Property (Miscellaneous Provisions) Act 1994 shall extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge) save for the words “except to the extent that such liabilities and rights are, by reason of (a) being, at the time of the disposition, only potential liabilities and rights in relation to the property or (b) being liabilities and rights imposed or conferred in relation to property generally, not such as to constitute defects in title”; and

 

(c)                                  the covenants set out in section 6(2) of the Law of Property (Miscellaneous Provisions) Act 1994,

 

shall not extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge).

 

1.7                                 Nominees

 

If the Security Trustee requires shares or any other asset to be registered in the name of a nominee for the Security Trustee, any reference in this Deed to the Security Trustee shall, if the context so permits or requires, be construed as a reference to each of the Security Trustee and such nominee.

 

1.8                                 Third Party Rights

 

A person which is not a party to this Deed (a “third party”) shall have no rights to enforce the provisions of this Deed save for:

 

(a)                                  those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and

 

(b)                                 a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Security Trust Agreement whether or not it is a party to the Security Trust Agreement.

 

provided also that this Deed may be rescinded or altered without the consent of any third party referred to in paragraph (b) of this Clause 1.8.

 

1.9                                 Effect as a Deed

 

This Deed is intended to take effect as a deed notwithstanding that the Security Trustee or any other party hereto may have executed it under hand only.

 

1.10                           Group Intercreditor Deed

 

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

 

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1.11         Secured Obligations

 

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

 

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

 

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

 

2.             SECURED OBLIGATIONS

 

2.1           Covenant to Pay

 

Each Chargor hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid provided that before any such demand is made on a Restricted Guarantor, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.

 

2.2           Statements of Account

 

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

 

2.3           No Security

 

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

 

2.4           Payments by the Chargors

 

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

 

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3.             CHARGES

 

3.1           Fixed Charge

 

Each Chargor, with full title guarantee and as continuing security for the payment, discharge and performance of the Secured Obligations, hereby charges in favour of the Security Trustee to hold the same on trust for the Beneficiaries on the terms set out in the Group Intercreditor Deed and the Security Trust Agreement:

 

(a)           by way of first legal mortgage, all of the Charged Land and all other Real Property now vested in any Chargor and the proceeds of sale of all or any part thereof;

 

(b)           by way of first fixed charge (but in the case of paragraphs (iii) and (iv) only if and to the extent the rights in question have not been effectively assigned pursuant to Clause 3.2 (Assignments) or such rights have been effectively assigned but such assignment has not been perfected by the service of the appropriate Notice of Assignment):

 

(i)            to the extent not effectively charged pursuant to Clause 3.1(a) (Fixed Charge), all estates or interests in any Real Property (whether such interests are freehold, leasehold or licenses) vested in, or acquired by, it now or after the date of this Deed and the proceeds of sale of all or any part thereof;

 

(ii)           to the extent not effectively charged pursuant to Clauses 3.1(a) (Fixed Charge) or 3.1(b)(i) (Fixed Charge), all plant and machinery, equipment, computers, vehicles and other chattels (excluding any for the time being forming part of such Chargor’s stock-in-trade or work in progress) now or in the future owned by such Chargor or (to the extent of such interest) in which the relevant Chargor has an interest and the benefit of all contracts and warranties relating to the same;

 

(iii)          all Investments and all Related Rights now or in the future beneficially and/or legally owned by such Chargor;

 

(iv)          all of its rights, title, interests and benefits in, to or in respect of the Insurances and all claims (and proceeds) and returns of premiums to which such Chargor is now or may at any future time become entitled;

 

(v)           any interest, claim or entitlement of such Chargor in, to or in respect of any pension fund;

 

(vi)          all the present and future goodwill of such Chargor (including all brand names not otherwise subject to a fixed charge or assignment under this Deed);

 

(vii)         all of its rights, title, interests and benefits in, to or in respect of all present and future licences, consents and authorisations (statutory or otherwise) held in connection with the business of such Chargor or the use of any asset of such Chargor and the right to recover and receive

 

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all compensation which may at any time become payable to it in respect of any such licence;

 

(viii)        all its present and future uncalled capital; and

 

(ix)           all its present and future patents, registered trade marks and registered designs (if any) including applications for any of the same in any part of the world and including, without limitation, the patents, registered designs and trade marks specified in Schedule 4 (Registered, Intellectual Property Rights).

 

3.2           Assignments

 

Subject to Clause 3.3 (Non-Assignable Rights), each relevant Chargor with full title guarantee hereby assigns absolutely by way of continuing security for the payment and discharge of the Secured Obligations to the Security Trustee:

 

(a)           all its present and future rights, title, benefit and interests under and in respect of the Intercompany Indebtedness and any other amounts payable in respect thereof, including under any other loan agreements from time to time entered into by the relevant Chargor;

 

(b)           all of its rights, title, interests and benefits in, to or in respect of the Insurances (including all proceeds) and all claims and returns of premiums in respect thereof to which the relevant Chargor is now or may at any future time become entitled; and

 

(c)           to the extent not charged under the provisions of Clause 3.1(b) (Fixed Charge) all of its present and future Intellectual Property Rights.

 

3.3           Non-Assignable Rights

 

Each Chargor declares that to the extent that any right, title, interest or benefit described in Clause 3.2 (Assignments) is for any reason not effectively assigned pursuant to Clause 3.2 (Assignments) for whatever reason, the relevant Chargor shall:

 

(a)           hold the benefit of the same on trust for the Security Trustee as security for the payment and discharge of the Secured Obligations; and

 

(b)           promptly notify the Security Trustee of the same and the reasons therefor and thereafter take such steps as the Security Trustee may reasonably require to attempt to remove any relevant prohibition or other reason for such failure.

 

3.4           Floating Charge

 

Each Chargor with full title guarantee hereby charges to the Security Trustee by way of first floating charge and as a continuing security for the payment and discharge of the Secured Obligations its undertaking and all its property, assets and rights whatsoever and wheresoever both present and future, other than any property or assets from time to time effectively charged by way of fixed charge or assignment pursuant to Clauses 3.1 (Fixed Charge) and 3.2 (Assignments) and including (without limitation and whether or not so effectively charged) any of its property and assets

 

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situated in Scotland, provided that, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not such Chargor.  The parties to this Deed agree that the floating charge created by this Clause 3.4 is a qualifying floating charge for the purposes of paragraph 14 of schedule B1 to the Insolvency Act 1986.

 

3.5           Automatic Conversion of Floating Charge

 

Notwithstanding anything expressed or implied in this Deed, if:

 

(a)           any Chargor creates or attempts to create any other Encumbrance over all or any of the Floating Charge Assets without the prior consent in writing of the Security Trustee or otherwise as permitted by the Senior Finance Documents;

 

(b)           any person levies or attempts to levy any distress, execution, sequestration or other process against any of the Charged Assets or takes any steps to enforce any rights against any of the Floating Charge Assets; or

 

(c)           any meeting of the members of any Chargor is convened to consider a resolution to wind up such Chargor or a petition is presented or application made to wind up any Chargor,

 

the floating charge created by Clause 3.4 (Floating Charge) over the property or asset concerned shall thereupon automatically without notice be converted into a fixed charge.  Nothing in this Clause 3.5 shall cause the floating charge created by Clause 3.4 (Floating Charge) to crystallise solely because a moratorium has been obtained by any person in relation to any Chargor or any person has taken any steps with a view to obtaining a moratorium in relation to any Chargor under Section 1A and Schedule A1 of the Insolvency Act 1986.

 

3.6           Conversion of Floating Charge by Notice

 

Notwithstanding anything expressed or implied in this Deed, the Security Trustee shall be entitled at any time by giving notice in writing to that effect to the relevant Chargor to convert the floating charge over all or any part of the Floating Charge Assets into a fixed charge if and to the extent that the Security Trustee reasonably considers the assets specified in such notice may be in danger of being seized or sold under or pursuant to any form of distress or execution, or may otherwise be in jeopardy or the Security Trustee otherwise considers (acting reasonably) such conversion to be necessary or desirable to protect the priority of the Security.

 

3.7           Subsequent Encumbrances

 

If any Beneficiary receives notice of any subsequent Encumbrance affecting the Charged Assets or any part thereof, such Beneficiary may open a new account for the Chargor concerned but if it does not do so then unless such Beneficiary gives express written notice to the contrary to the Chargor concerned it shall nevertheless be treated as if it had opened a new account at the time when it received such notice and as from that time all payments made by or on behalf of the Chargor concerned to such Beneficiary shall be credited or be treated as having been credited to the new account

 

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and shall not operate to reduce the amount due from that Chargor to such Beneficiary at the time when it received such notice.

 

3.8           Section 94(1)(c) Law of Property Act 1925

 

The obligation on the part of the Senior Lenders to make further advances to the Borrowers under the Senior Facilities Agreement or on the part of any creditors under any other Senior Finance Document, as the case may be, shall be deemed to be incorporated in this Deed for the purposes of section 94(1)(c) Law of Property Act 1925.

 

3.9           Blocking of Accounts

 

Each Chargor irrevocably and unconditionally agrees that at any time after the Enforcement Date if there shall from time to time be any credit balance on any of its accounts with any of the Beneficiaries, such Beneficiary shall have the absolute right to refuse to permit such credit balance to be utilised or withdrawn by such Chargor whether in whole or in part if and to the extent that at that time there are outstanding any of the Secured Obligations.

 

3.10         Dividends and Voting Rights

 

Subject to Clause 8.1 (The Investments), each Chargor may, prior to the occurrence of an Event of Default which is continuing (a) exercise all voting and other rights and powers attached to the Investments and (b) receive, retain and deal with free from this Deed all dividends, distributions, interest and other moneys paid on and received by it in respect of the Investments.

 

3.11         Consents of Third Parties

 

Notwithstanding Clause 3.1 (Fixed Charge) or 3.4 (Floating Charge):

 

(a)           unless and until the relevant Chargor has obtained the consent of the relevant landlord and any other relevant party (each being a “Consent”) the fixed and floating charges granted pursuant to Clause 3.1 (Fixed Charge) and 3.4 (Floating Charge) respectively shall not extend to such Chargor’s rights over any Restricted Lease; and

 

(b)           unless the relevant Chargor has received written confirmation from the Security Trustee that a particular Consent is not required, the relevant Chargors hereby undertake to use their reasonable endeavours to obtain the Consents.  On obtaining each Consent:

 

(i)            the relevant Restricted Lease shall thereupon automatically become subject to the fixed charge created pursuant to Clause 3.1 (Fixed Charge) and the floating charge created pursuant to Clause 3.4 (Floating Charge); and

 

(ii)           the relevant Chargor shall immediately produce the Certificate or evidence of such Consent to the Security Trustee.

 

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3.12         Rule 3-16 Limitation

 

(a)           Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating Charge) of this Deed notwithstanding, the Excluded Charged Assets are not charged under this Deed to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)            all other Charged Assets remain charged or assigned (as the case may be) under this Deed to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)           such Excluded Charged Assets remain charged under Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating Charge) of this Deed to secure any Secured Obligations that are not Designated Secured Obligations.

 

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

 

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

 

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extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in paragraph (a)(ii) of this Clause 3.12) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

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

 

4.             SET-OFF

 

4.1           Set-off

 

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

 

4.2           Purchase of Currencies

 

For the purpose of Clause 4.1 (Set-Off), each Chargor authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

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5.             UNDERTAKINGS

 

5.1           Undertakings

 

Each Chargor hereby undertakes with the Security Trustee that during the continuance of this security such Chargor will:

 

(a)           Deposit of deeds

 

deposit with the Security Trustee (to be held at the risk of such Chargor save where such Chargor suffers any loss, costs or expenses as a result of the Security Trustee’s gross negligence or wilful default):

 

(i)            all certificates and documents of title relating to its Investments and such deeds of transfer in blank and other documents as the Security Trustee may from time to time reasonably require for perfecting the title of the Security Trustee to such Investments (duly executed by or signed on behalf of the registered holder) or for vesting or enabling it to vest the same in itself or its nominees or in any purchaser; and

 

(ii)           all such other documents relating to its Charged Assets as are in its possession or which it can reasonably obtain as the Security Trustee may from time to time reasonably require,

 

(b)           Calls, etc

 

duly and promptly pay all calls, instalments or other moneys which may from time to time become due in respect of any of its Investments it being acknowledged by such Chargor that neither the Security Trustee nor any of the Beneficiaries shall in any circumstances incur any liability whatsoever in respect of any such calls, instalments or other moneys;

 

(c)           Provision of information

 

forthwith inform the Security Trustee of any claim or notice relating to the Investments received from any other party and likely to materially prejudice the value of the Investments and of all matters relevant thereto;

 

(d)           Purchase of shares

 

not, save as otherwise permitted or not restricted under each of the Senior Finance Documents, (without the prior consent in writing of the Security Trustee) redeem or purchase any of its own shares or pay any dividend, other than a dividend permitted or not restricted to be paid under each of the Senior Finance Documents;

 

(e)           Options

 

save to the extent expressly permitted or not restricted under each of the Senior Finance Documents not, without the prior consent of the Security Trustee, grant any option with respect to any of the Investments;

 

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(f)            Notification

 

forthwith inform the Security Trustee of any material claims or notice relating to any Assigned Assets received from any other party and all other matters relevant or in any way material thereto;

 

(g)           Reports

 

ensure that the relevant Chargor reports to the Security Trustee on a monthly basis as to whether the Consents referred to in Clause 3.11 (Consents of Third Parties) have been obtained, such reports to be provided until the earlier of (i) all of the Consents having been obtained, or (ii) the relevant Chargor confirming that the same will not be provided;

 

(h)           Notice of assignment

 

deliver to the Security Trustee, or procure the delivery to the Security Trustee of, a duly executed Notice of Assignment to each relevant party in relation to the Assigned Assets, and will use reasonable endeavours to procure delivery to the Security Trustee of duly executed Acknowledgments thereof until (in each case) requested to do so by the Security Trustee upon or following the occurrence of an Event of Default which is continuing whereupon it shall do so forthwith;

 

(i)            Insurances

 

(i)            procure that a note of the interest of the Security Trustee is endorsed, and the Security Trustee is endorsed as loss payee, upon all Insurances (other than those referred to in Clause 10.2(c) (Insurance Proceeds)) which shall at any time during the subsistence of this Security be effected, maintained or held by the relevant Chargor or any person; and

 

(ii)           not do or omit to do, or permit or suffer to be done or omitted to be done, anything which might render any of the Insurances void, voidable or unenforceable;

 

(j)            Intellectual Property

 

if requested by the Security Trustee, execute all such documents and do all acts that the Security Trustee may reasonably require to record the interest of the Security Trustee in any registers relating to any registered Intellectual Property owned by such Chargor.

 

5.2           Power to Remedy

 

If any Chargor at any time defaults in complying with any of its obligations contained in this Deed, the Security Trustee shall, without prejudice to any other rights of the Security Trustee arising as a consequence of such default, be entitled (but not bound) to make good such default and such Chargor hereby irrevocably authorises the Security Trustee and its employees and agents by way of security to do all such things (including, without limitation, entering such Chargor’s property having given such notice as is reasonable in the circumstances) necessary or reasonably desirable in

 

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connection therewith.  Any moneys so expended by the Security Trustee shall be repayable by such Chargor to the Security Trustee within 30 days of demand together with interest at the Default Rate from the date being 30 days after the date of demand until such repayment, both before and after judgment.  No exercise by the Security Trustee of its powers under this Clause 5.2 shall make it or any of the Beneficiaries liable to account as a mortgagee in possession.

 

6.             REAL PROPERTY: PERFECTION

 

6.1           Modification of Law of Property (Miscellaneous Provisions) Act 1994

 

Section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994 will be amended as follows (in so far as it applies to Clause 3 (Charges)):

 

(a)           after “from all charges and encumbrances (whether monetary or not)” add “other than Permitted Encumbrances” and after the words “other than any charges, encumbrances or rights which that person does not and would not reasonably be expected to know about” add “but not so as to include any such charges, encumbrances or rights affecting the Charged Land disclosed by the following searches:

 

(i)            in the case of registered Charged Land listed in Part 1A of Schedule 3 (Details of Charged Land), OS1/2 Land Registry searches; and

 

(ii)           in relation to the unregistered Charged Land listed in Part 1B of Schedule 3 (Details of Charged Land), land charges searches made against all relevant estate owners since the date of the grant of the relevant lease or as the case may be the date of the root conveyance.”

 

6.2           Notices of Charge in respect of Charged Land

 

Each Chargor which owns or leases Charged Land shall (unless an alternative course of action is agreed between such Chargor and the Security Trustee) deliver to the Security Trustee (or procure delivery of) notices of charge duly executed by, or on behalf of, such Chargor, together with all relevant fees and addresses, in relation to all landlords from which such Chargor leases any Charged Land owned or leased by such Chargor in respect of each Lease under which such Chargor leases such Charged Land in existence on the date hereof, as soon as reasonably practicable following execution of this Deed and in each case shall use all reasonable endeavours to procure that each notice is acknowledged by the relevant landlord.  Such Chargor shall have no liability in the event that, having used such reasonable endeavours, the relevant landlord refuses to give such acknowledgement.

 

6.3           Real Property: Delivery of Documents of Title

 

(a)           Each Chargor shall (unless an alternative course of action is agreed between such Chargor and the Security Trustee) in respect of all Charged Land set out in 1B of Schedule 3 (Details of Charged Land) (if any), as soon as reasonably practicable after the execution of this Deed, deliver (or procure delivery) to the Security Trustee of, and the Security Trustee shall be entitled to hold and

 

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retain, all deeds, certificates and other documents of title relating to such property.

 

(b)           No Chargor shall be in breach of this Clause 6.3 if it does not deliver any such documents on account of its not having possession of the same provided that it uses all reasonable endeavours to obtain any such document and delivers such document promptly to the Security Trustee upon receipt.

 

6.4           Land Registration

 

In respect of the Charged Land the title to which is registered at the Land Registry and Real Property which is acquired by or on behalf of any Chargor, the title to which is required to be registered at the Land Registry under the Land Registration Act 2002 the parties hereto agree to make or procure that there is made a due and proper application to the Land Registry (with the Security Trustee’s consent as proprietor of the relevant registered charge):

 

(a)           for a restriction in the following terms to be entered on the Proprietorship Register relating thereto:

 

“No disposition of the registered estate by the proprietor of the registered estate or by the proprietor of any registered charge is to be registered without a written consent signed by the proprietor for the time being of the charge dated [insert date] in favour of [insert name of Security Trustee] referred to in the Charges Register or signed on such proprietor’s behalf by its secretary or conveyancer”;

 

(b)           to enter a note of the obligation to make further advances by the Beneficiaries on the Charges Register of any registered land forming part of the Charged Assets; and

 

(c)           to note this Deed on the Charges Register.

 

7.             FURTHER ASSURANCE

 

7.1           Further Assurance

 

Each Chargor shall at any time if and when required by the Security Trustee execute such further Encumbrances and assurances in favour of the Security Trustee and/or the Beneficiaries and do all such acts and things as the Security Trustee shall from time to time reasonably require over or in relation to all or any of the Charged Assets to secure the Secured Obligations or to perfect or protect the security intended to be created by this Deed over the Charged Assets or any part thereof or, on or after the Enforcement Date, to facilitate the realisation of the same.

 

7.2           Certain Documentary Requirements

 

Such further Encumbrances and assurances shall be prepared by or on behalf of the Security Trustee at the expense of the relevant Chargor (such expense to be reasonable and properly incurred) and shall contain (a) an immediate power of sale without notice, (b) a clause excluding section 93 Law of Property Act 1925 and the restrictions contained in section 103 Law of Property Act 1925 and (c) such other

 

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clauses for the benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

7.3           Specific Security Documents Required

 

Each Chargor covenants with the Security Trustee that after the Enforcement Date if and when required by the Security Trustee (acting reasonably) it will to give notice in a form acceptable to the Security Trustee to such persons as the Security Trustee may require of the security over all or any part of the Charged Assets constituted by this Deed or granted pursuant to it.

 

8.             CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

8.1           The Investments

 

Each Chargor further covenants and agrees with the Security Trustee that:

 

(a)           the Security Trustee and its nominees at the discretion of the Security Trustee may after an Event of Default has occurred and so long as the same is continuing, exercise in the name of such Chargor or otherwise at any time whether before or after demand for payment and without any further consent or authority on the part of such Chargor (but subject to Clause 8.1(d) in respect of the Investments), any voting rights and/or powers given to trustees by section 10(3) and (4) Trustee Act 1925 (as amended by section 9 Trustee Investments Act 1961) in respect of securities or property subject to a trust and any powers or rights which may be exercisable by the person in whose name any of the Investments are registered or by the bearer thereof;

 

(b)           each Chargor will if so requested by the Security Trustee after an Event of Default has occurred and so long as the same is continuing transfer all or any of the Investments to the Security Trustee or such nominees or agents as the Security Trustee may select, provided that, for the avoidance of doubt, the Security Trustee may not request any such transfer prior to the occurrence of an Event of Default;

 

(c)           until the Enforcement Date, the Security Trustee will hold all dividends, distributions, interest and other moneys paid on and received by it in respect of any Investments which are transferred to it pursuant to Clause 8.1(b) for the account of the relevant Chargor; and

 

(d)           until the Enforcement Date the Security Trustee will exercise all voting and other rights and powers attached to the Investments which are given to it pursuant to the Trustee Act 1925 (as referred to in Clause 8.1(a) of this Deed) or which relate to the Investments which are transferred to it pursuant to Clause 8.1(b) as the relevant Chargor may from time to time in writing direct provided that the Security Trustee shall be under no obligation to comply with any such direction where compliance would, in the Security Trustee’s reasonable opinion, be prejudicial to the security created by this Deed or to the interests of the Beneficiaries in relation to the relevant assets.

 

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8.2           Power of Sale

 

At any time on or after the Enforcement Date, the Security Trustee may (without notice to the Chargors) sell or otherwise dispose of the Charged Assets or any of them and shall be entitled to apply the proceeds of such sale or other disposal in paying the costs of such sale or disposal and thereafter in or towards the discharge of the Secured Obligations or otherwise as provided for in this Deed.

 

8.3           Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Deed.

 

8.4           Law of Property Act

 

At any time on or after the Enforcement Date or if requested by the Chargor concerned, the Security Trustee may, without further notice, without the restrictions contained in sections 93 and 103 of the Law of Property Act 1925 and whether or not a Receiver shall have been appointed, exercise all the powers conferred upon mortgagees by the Law of Property Act 1925 as varied or extended by this Deed and all the powers and discretions conferred by this Deed on a Receiver either expressly or by reference and also, in the case of the Investments, all rights or powers which may be exercisable by the registered holder or beneficial owner of the same.

 

8.5           Statutory Power of Leasing

 

The statutory powers of leasing conferred on the Security Trustee shall be extended so as to authorise the Security Trustee to lease and make agreements for leases at a premium or otherwise, to accept surrenders of leases and to grant options on such terms as the Security Trustee shall consider expedient and without the need to observe any of the provisions of sections 99 and 100 Law of Property Act 1925, and Clause 8.2 (Power of Sale) shall operate as a variation and extension of section 101 of such Act.

 

8.6           Distributions

 

On or after the Enforcement Date all dividends, interest and other distributions relating to the Investments may be applied by the Security Trustee as though they were proceeds of sale under this Deed.

 

8.7           Realisation Accounts

 

If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the Security the Security Trustee (or such Receiver) may:

 

(a)           open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

(b)           pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

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(c)           subject to the payment of any claims having priority to this Security, withdraw amounts standing to the credit of the Realisation Accounts to:

 

(i)            discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

(ii)           pay remuneration to the Receiver as and when the same becomes due and payable; and

 

(iii)          discharge the Secured Obligations as and when the same become due and payable.

 

8.8           Right of Appropriation

 

To the extent the Charged Assets constitute “financial collateral” and this Deed constitutes a “security financial collateral arrangement” (as defined in the Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226) the Security Trustee may appropriate all or any part of the Charged Assets in or towards satisfaction of the Secured Obligations, the value of the assets so appropriated being such amount as the Security Trustee shall determine in a commercially reasonable manner.

 

9.             APPOINTMENT AND POWERS OF RECEIVER OR ADMINISTRATOR

 

9.1           Appointment of Administrator

 

At any time on or after the Enforcement Date the Security Trustee may appoint an administrator pursuant to the power contained in paragraph 14 of Schedule B1 to the Insolvency Act 1986.

 

9.2           Appointment of Receivers

 

The Security Trustee may at any time on or after the Enforcement Date or if any Chargor requests it to do so, by written instrument and without notice to such Chargor, appoint any one or more persons as Receiver of such part of the Charged Assets as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of the relevant Chargor and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925.  The Security Trustee may from time to time by writing under its hand remove any Receiver appointed by it and may, whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

9.3           Receiver as Agent

 

A Receiver shall be the agent of the Chargor in respect of which he is appointed and (subject to the provisions of this Deed) such Chargor shall be solely responsible for his acts or defaults and for his remuneration.

 

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9.4           Powers of Receiver

 

A Receiver shall have all the powers conferred from time to time on receivers and administrative receivers by statute (in the case of powers conferred by the Law of Property Act 1925, without the restrictions contained in section 103 of that Act) and power on behalf and at the expense of the Chargor concerned (notwithstanding liquidation of the such Chargor) to do or omit to do anything which the such Chargor could do or omit to do in relation to the Charged Assets or any part thereof.  In particular (but without limitation) a Receiver shall have power to do all or any of the following acts and things:

 

(a)           Take possession

 

take possession of, collect and get in all or any of the Charged Assets and exercise in respect of the Investments, all voting or other powers or rights available to a registered holder thereof in such manner as he may think fit;

 

(b)           Carry on business

 

carry on, manage, develop, reconstruct, amalgamate or diversify the business of the such Chargor or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Deed;

 

(c)           Borrow money

 

raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to this security or otherwise;

 

(d)           Dispose of assets

 

without the restrictions imposed by section 103 Law of Property Act 1925 or the need to observe any of the provisions of sections 99 and 100 of such Act, sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Chargor concerned or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the such Chargor (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises

 

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containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of such Chargor;

 

(e)           Form Subsidiaries

 

promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 

(f)            Compromise contracts

 

make any arrangement or compromise or enter into or cancel any contracts which he shall think expedient;

 

(g)           Repair and maintain assets

 

make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

(h)           Appoint employees

 

appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 9 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

(i)            Exercise statutory leasehold powers

 

without any further consent by or notice to the Chargor concerned exercise for and on behalf of the such Chargor all the powers and provisions conferred on a landlord or a tenant by the Landlord and Tenant Acts, the Rent Acts, the Housing Acts or the Agricultural Holdings Act or any other legislation from time to time in force in any relevant jurisdiction relating to rents or agriculture in respect of any part of the Charged Assets but without any obligation to exercise any of such powers and without any liability in respect of powers so exercised or omitted to be exercised;

 

(j)            Make calls and legal proceedings

 

make calls conditionally or unconditionally on the members of the Chargor concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

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(k)           Execute documents

 

sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security of the Security Trustee and the Beneficiaries and to use the name of the Chargor concerned for all the purposes aforesaid;

 

(l)            Insolvency Act powers

 

do all the acts and things described in schedules 1 or 2 to the Insolvency Act 1986 as if the words “he” and “him” referred to the Receiver and “company” referred to the Chargor concerned; and

 

(m)          General Powers

 

do all such other acts and things as it may consider desirable or necessary for realising all or any part of the Charged Assets over which he is appointed or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of this Deed; to exercise in relation to all or any part of the Charged Assets over which he is appointed all such powers, authorities and things as he would be capable of exercising if he were the absolute beneficial owner of the same; and to use the name of any Chargor for all or any of such purposes.

 

9.5           Remuneration of Receiver

 

The Security Trustee may from time to time determine the remuneration of any Receiver appointed by it without the limitations imposed by section 109 of the Law of Property Act 1925.  A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

10.           APPLICATION OF PROCEEDS; PURCHASERS

 

10.1         Application of Proceeds

 

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

 

10.2         Insurance Proceeds

 

With the exception of those moneys:

 

(a)           which relate to a particular claim and do not exceed £2,500,000;

 

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(b)           are paid under third party liability insurance to the relevant third party; or

 

(c)           which relate to (a) Insurances of leasehold property or leasehold equipment in cases where the relevant lessor is named as loss payee, and (b) Insurances in favour of lenders to any member of the Group where the relevant borrowing is (A) a Permitted Borrowing and (B) either a Finance Lease or secured by a Permitted Encumbrance and (C) either the relevant lender is named as loss payee or naming the Security Trustee would be contrary to the terms of the relevant borrowing;

 

all moneys receivable by virtue of any of the Insurances on or after the Enforcement Date shall be paid to the Security Trustee (or if not paid by the insurers directly to the Security Trustee shall be held on trust for the Security Trustee) and shall, at the option of the Security Trustee, be (i) applied in replacing, restoring or reinstating the property or assets destroyed, damaged or lost (any deficiency being made good by the Chargor which owned the same) or (ii) (except where the Chargor concerned is obligated (as landlord or tenant) to lay out such moneys under any lease of any of the Charged Assets) credited (for a period not exceeding 30 days at the end of which period such moneys shall, at the option of the Security Trustee, be applied in accordance with either (i) above or (iii) below) to an account charged to the Security Trustee (on behalf of the Beneficiaries) in a manner acceptable to the Security Trustee and at the cost of the Chargor concerned as a continuing security for the payment and discharge of the Secured Obligations or (iii) (except where the Chargor concerned is obliged (as landlord, tenant, lessor or lessee) to lay out such insurance moneys under the provisions of any lease of any of the Charged Assets) applied in reduction of the Secured Obligations.  Without prejudice to the foregoing provisions of this Clause 10 the Security Trustee agrees to negotiate with the Chargor concerned in good faith as to the application of any insurance proceeds paid to or held on trust for the Security Trustee.

 

11.           INDEMNITIES; COSTS AND EXPENSES

 

11.1         Enforcement Costs

 

Each Chargor hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee or any Receiver shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Deed or any of the Charged Assets on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the relevant Chargor (both before and after judgment) provided that before any such demand is made on a Restricted Guarantor, demand for payment of such expenses shall first have been made on any Chargor which is not a Restricted Guarantor.

 

11.2         No liability as Mortgagee in Possession

 

None of the Beneficiaries, the Security Trustee or any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Charged Assets or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such

 

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except in the case of fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as the case may be).

 

11.3         Indemnity from Charged Assets

 

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

 

(a)           anything done or omitted in the exercise or purported exercise of the powers contained in this Deed; or

 

(b)           any breach by a Chargor of any of its obligations under this Deed; or

 

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

 

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

 

11.4         Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Charged Assets may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Charged Assets whether or not a Receiver is or has been appointed.

 

12.           ENFORCEMENT

 

12.1         When Enforceable

 

If (and only if) the Enforcement Date has occurred then the charges created pursuant to this Deed shall become enforceable.  Section 103 Law of Property Act 1925 shall not apply in respect of any Charged Assets.

 

12.2         Authority

 

No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Deed has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

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13.           POWER OF ATTORNEY

 

13.1         Power of Attorney

 

Each Chargor, by way of security for the performance of its obligations under this Deed, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the Charged Assets and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)           to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

(b)           to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 6 (Real Property: Perfection) in accordance with the terms thereof; and

 

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

 

13.2         Ratification

 

Each Chargor ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 (Power of Attorney) shall do or purport to do in the exercise of his powers under such clause.

 

13.3         General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and each Chargor hereby covenants with the Security Trustee and separately with any such Receiver to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

14.           CONTINUING SECURITY AND OTHER MATTERS

 

14.1         Continuing Security

 

This Deed and the obligations of each Chargor under this Deed shall:

 

(a)           secure the ultimate balance of the Secured Obligations from time to time owing notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of such Chargor or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

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(b)           be in addition to, and shall not merge with or otherwise prejudice or affect, any present or future Security Document, Encumbrance, right or remedy held by or available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)           not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

14.2         Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Documents or other means of payment now or hereafter held by or available to it before enforcing this Deed and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of any Chargor nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

14.3         New Accounts

 

Notwithstanding that any charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of any Chargor or other Security Provider or open one or more new accounts and the liability of each Chargor hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of any such account.

 

14.4         Settlements Conditional

 

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

 

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14.5         No Release

 

The liability of each Chargor shall not be affected nor shall the charge hereby created be discharged or diminished by reason of:

 

(a)           the Incapacity or any change in the name, style or constitution of any Chargor or any other person liable; or

 

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

 

(c)           any act or omission which would not have discharged or affected the liability of such Chargor had it been principal debtor instead of guarantor or by anything done or omitted which but for this provision might operate to exonerate such Chargor.

 

14.6         Restriction of the Chargors’ Rights

 

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

 

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

 

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

 

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

 

(d)           claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Security Provider or have the benefit of, or share in, any payment from or composition with any Security Provider or other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any Security

 

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Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and the Security Trust Agreement.

 

14.7         Recoveries by the Chargor

 

If contrary to Clause 2.3 (No Security) or 14.6 (Restriction of the Chargors’ Rights) any Chargor takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

14.8         Treatment of “claims”

 

Each Chargor hereby agrees not to assert or enforce (whether by or in a legal or equitable proceeding or otherwise) any, “claims” (as defined in section 101(4) of the United States Bankruptcy Code) against any other Chargor, whether arising under any applicable law or otherwise, to which the Chargor is or would be entitled.  It is hereby acknowledged by the Security Trustee that this Clause 14.8 does not restrict the right of any Chargor to assert or enforce any “claims” against any other Security Provider to the extent that such “claims” arise after all the Security Providers have been released from all their respective obligations and liabilities hereunder.

 

15.           CURRENCIES

 

15.1         Conversion of Currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Deed at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the relevant Chargor shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to any Chargor in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

15.2         Currency Indemnity

 

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

 

31



 

16.           THE SECURITY TRUST AGREEMENT

 

Each Chargor and the Security Trustee hereby acknowledges that the covenants of such Chargor contained in this Deed and the security and other rights, titles and interests constituted by this Deed and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Deed are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

17.           MISCELLANEOUS

 

17.1         Exchange of Information

 

Each Chargor hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Charged Assets unless such information is the subject of a duty of confidentiality on the part of the Security Trustee or any Beneficiary not to disclose such information.

 

17.2         Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

17.3         Representations and Warranties

 

Each Chargor represents and warrants to the Security Trustee that:

 

(a)           Shareholders

 

that it has as its shareholders those persons set out in Schedule 1 (Charging Companies) and no others;

 

(b)           Assets charged

 

it has charged all or substantially all of the assets it owns pursuant to the provisions of this Deed; and

 

(c)           Repetition

 

the representation and warranty contained in this Clause 17.3(b) shall be deemed to be repeated by each Chargor on the date on which all or any of the representations and warranties contained in Clause 21 (Representations and Warranties) of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 

32



 

17.4         No Breach of Memorandum and Articles of Association

 

It is hereby certified by each Chargor that neither the execution of this Deed nor the creation of the charges contained in this Deed contravenes any of the provisions of the Memorandum and Articles of Association of such Chargor (as the case may be).

 

17.5         Statutory Power of Leasing

 

During the continuance of this security the statutory and any other powers of leasing, letting, entering into agreements for leases or lettings and accepting or agreeing to accept surrenders of leases or tenancies shall not be exercised by any Chargor in relation to the Charged Assets or any part thereof.

 

17.6         Successors

 

Any appointment or removal of a Receiver under Clause 9 (Appointment and Powers of Receiver or Administrator) and any consents under this Deed may be made or given in writing signed or sealed by any successor Security Trustee appointed pursuant to the terms of the Security Trust Agreement and their respective successors in title and accordingly each Chargor hereby irrevocably appoints each successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title to be its attorney in the terms and for the purposes set out therein.

 

17.7         Consolidation

 

Section 93 Law of Property Act 1925 shall not apply to the security created by this Deed or to any security given to the Security Trustee or any of the Beneficiaries pursuant to this Deed.

 

17.8         Reorganisation

 

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

 

17.9         Unfettered Discretion

 

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

 

17.10       Provisions Severable

 

Each of the provisions of this Deed is severable and distinct from the others and if any one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Deed shall not in any way be affected or impaired thereby.

 

33



 

17.11       Law of Property (Miscellaneous Provisions) Act 1989

 

For the purposes of the Law of Property (Miscellaneous Provisions) Act 1989 any provisions of any Senior Finance Document relating to any disposition of an interest in land shall be deemed to be incorporated in this Deed.

 

17.12       No Assignment by the Chargors

 

None of the Chargors may assign or transfer any of its rights or obligations under this Deed.

 

17.13       Joint and Several Liabilities

 

The covenants, agreements, obligations and liabilities of the Chargors contained in this Deed or implied on their part are joint and several and shall be construed accordingly.

 

17.14       Liabilities Survive Deficiencies and Releases

 

Each Chargor agrees to be bound by this Deed notwithstanding that any person intended to execute or to be bound by this Deed may not do so or may not be effectually bound and notwithstanding that any charges contained in this Deed may be terminated or released or may be or become invalid or unenforceable against any other person whether or not the deficiency is known to the Security Trustee or any of the Beneficiaries.

 

17.15       Letters of Non-crystallisation

 

The Security Trustee shall, at the request and cost of any Chargor, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Floating Charge Assets.

 

17.16       Release

 

Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 14.4 (Settlements Conditional), the Security Trustee shall, at the request and cost of the relevant Chargor, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

18.           NOTICES

 

18.1         Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Deed shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on a Chargor in the manner and at the address set out in Clause 20 (Notices) of the Group Intercreditor Deed.

 

34



 

18.2         Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Deed shall, save for manifest error, be conclusive and binding upon a Chargor if signed by an officer of the Security Trustee.

 

19.           LAW AND JURISDICTION

 

19.1         Governing Law

 

This Deed, including all non-contractual obligations arising out of or in connection with it, shall be governed by English law.

 

19.2         Submission to Jurisdiction

 

Each Chargor agrees for the benefit of the Security Trustee that any legal action or proceedings in connection with this Deed against any Chargor or any of their respective assets may be brought in the English courts.  Each Chargor irrevocably and unconditionally submits to the jurisdiction of such courts.  The submission to such jurisdiction shall not (and shall not be construed so as to) limit the right of the Security Trustee or any of the Beneficiaries to enforce any judgment obtained in any court referred to in this Clause 19.2 in any jurisdiction in which any of the assets of such Chargor are situated, nor shall the taking of proceedings in any one or more jurisdiction referred to in this Clause 19.2 preclude the taking of proceedings in any other such jurisdiction, whether concurrently or not.

 

19.3         Inconvenient Forum

 

Each Chargor irrevocably waives any objection it may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in Clause 19.2 (Submission to Jurisdiction) and any claim it may have now or hereafter that any action or proceeding brought in such courts or jurisdiction has been brought in an inconvenient forum.

 

IN WITNESS whereof this Deed has been executed and delivered by or on behalf of the parties on the date stated at the beginning of this Deed.

 

35


 

SCHEDULE 1

 

CHARGING COMPANIES

 

COMPANY NAME

 

COMPANY
NUMBER

 

NAME OF
SHAREHOLDER(S)

 

NO. OF SHARES

 

 

 

 

 

 

 

General Cable Investments Limited

 

02885920

 

General Cable Limited

 

100,000,002 Ordinary Shares

 

 

 

 

 

 

 

NTL Funding Limited

 

05333722

 

Virgin Media Wholesale Limited

 

2 Ordinary Shares

 

 

 

 

 

 

 

Telewest Communications Holdco Limited

 

03761983

 

Telewest UK Limited

 

374,776,689 Ordinary Shares

 

 

36

 



 

SCHEDULE 2

 

NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

 

Part 1

 

Intercompany Indebtedness

 

Part 1A

 

Form of Notice of Assignment

 

To:          [specify relevant intercompany debtor]

 

[Date]

 

Dear Sirs,

 

We, [specify Chargor], hereby give you notice that:

 

1.             pursuant to a debenture dated [·] (the “Debenture”) (a copy of which is appended hereto) entered into by (inter alios) us in favour of [·] as security trustee for the Beneficiaries as therein defined (the “Security Trustee”) we have assigned the following assets to the Security Trustee:

 

(a)           all our present and future rights, title, benefits and interests in and under the loan agreements dated [specify] (the “Intercompany Loan Agreement(s)”);

 

(b)           all our present and future rights, title benefit and interest in and to all principal and interest payable under the Intercompany Loan Agreement(s) and any other amounts payable in respect thereof;

 

2.             the Security Trustee has agreed that, until such time as the Security Trustee notifies you to the contrary, we may continue to exercise all of our rights under the Intercompany Loan Agreement(s);

 

3.             upon the security granted by the Debenture becoming enforceable, we may not vary extend release determine or rescind any of the Intercompany Loan Agreement(s) or grant time for payment or indulgence or compound with discharge waive release set off or vary the liability of any other person thereunder or consent to any act or omission as would otherwise constitute a breach or concur in accepting or varying any compromise arrangement or settlement relating thereto or do or suffer any act or thing or permit any set off whereby the recovery of any moneys payable may be delayed or impeded;

 

4.             the authority and instructions herein contained cannot be revoked or varied by us without the prior written consent of the Security Trustee.

 

37



 

Please acknowledge receipt of this notice by signing the acknowledgement attached to the enclosed copy letter and returning the same to the Security Trustee.

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

 

 

Authorised Officer

 

 

38



 

Part 1B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [·]

 

[Date]

 

Dear Sirs,

 

1.             We refer to the notice of assignment issued to us by [specify Chargor].

 

2.             Unless the context otherwise requires, terms defined in, or incorporated by reference into, the Debenture (as defined below) shall bear the same meaning herein.

 

3.             We hereby:

 

(a)           acknowledge receipt of notice from [specify Chargor] that, by a debenture dated [•] (the “Debenture”) and made between (inter alios) [specify Chargor] and the Security Trustee, [specify Chargor] has assigned to the Security Trustee all of its present and future rights, title, benefits and interests in and under the Intercompany Loan Agreement(s), as therein defined;

 

(b)           agree to, and accept, the making of such assignment;

 

(c)           undertake to the Security Trustee to accept as valid, and act upon and observe where required, any notices or demands given or made by the Security Trustee in respect of the Intercompany Loan Agreement(s) in place of [specify Chargor];

 

(d)           agree to deliver to the Security Trustee copies of all notices delivered by us to [specify Chargor];

 

(e)           acknowledge that the making of the assignment referred to above shall not affect the liability of [specify Chargor] to perform all the obligations assumed by it under the Intercompany Loan Agreement(s) and that the Security Trustee shall have no obligations (whether in place of [specify Chargor] or otherwise) in respect of the Intercompany Loan Agreement(s) except insofar as such obligations may arise as a result of the Security Trustee exercising any of those rights conferred upon it under any agreement between (inter alios) us and the Security Trustee relating to the Assigned Assets; and

 

(f)            confirm that we have not received any prior notice of assignment, transfer or charge in respect of [specify Chargor], rights, title, benefits and interests in and under the Intercompany Loan Agreement(s).

 

39



 

4.             This Acknowledgement shall be governed by, and construed in accordance with, English law.

 

Yours faithfully,

 

 

For and on behalf of

[·]

 

 

 

 

Authorised Officer

 

 

40



 

Part 2

 

Insurances

 

Part 2A

 

Form of Notice of Assignment

 

To:          [insert name of insurer]

 

[Date]

 

Dear Sirs,

 

We, [specify Chargor], hereby give you notice that:

 

(i)            pursuant to a debenture dated [·] (the “Debenture”) we have charged and assigned to [  ] (as security trustee for the Beneficiaries referred to in the Debenture, the “Security Trustee”) all our rights, title, interests and benefits in, to or in respect of the insurance policies with you detailed in Part 1 of the Schedule attached hereto (the “Insurances”) including all claims and returns of premiums in respect thereof to which we are, or may at any future time become, entitled.

 

With effect from your receipt of this notice we hereby request and instruct that:

 

1.             you immediately name the Beneficiaries (details of whom are set out in Part 2 of the Schedule attached hereto) and the Security Trustee (in its capacity as security trustee) as loss payee in respect of each of the Insurances);

 

2.             upon the security granted by the Debenture in respect of the Insurances becoming enforceable (as notified to you by the Security Trustee):

 

(a)           all payments under or arising from the Insurances are to be made to the Security Trustee or to its order;

 

(b)           all remedies provided for in the Insurances or available at law or in equity are to be exercisable by the Security Trustee;

 

(c)           all rights to compel the performance of the Insurances are to be exercisable by the Security Trustee; and

 

(d)           all rights, title, interests and benefits whatsoever accruing to or the benefit of ourselves arising from the Insurances shall belong to the Security Trustee; and

 

3.             you give notice to the Security Trustee promptly in writing:

 

(a)           if we propose to cancel or give notice of cancellation of any Insurance, at least 30 days before such cancellation is to take effect;

 

(b)           of any material alteration or the termination or expiry of any such Insurance, at least 30 days before such alteration, termination or expiry is to take effect; and

 

41



 

(c)           of any default in the payment of any premium or failure to renew any such Insurance and shall give the Security Trustee not less than 30 days in which to pay the defaulted premium without cancelling the policy during such 30 days period.

 

Please confirm your receipt of this notice and your acknowledgement of the matters and instructions set out above by signing and dating the Acknowledgement of Assignment set out on the enclosed copy of this notice, and returning the same to the Security Trustee with a copy to ourselves.

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

 

 

Authorised Officer

 

 

42



 

SCHEDULE

 

Part 1

 

Relevant Insurance Policies

 

None

 

Part 2

 

Beneficiaries

 

None

 

43



 

Part 2B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [·]

as Security Trustee

 

[Date]

 

Dear Sirs,

 

We hereby acknowledge receipt of a notice in the terms set out above (the “Notice”).

 

We confirm that we shall hereafter act in accordance with the Notice and that we have not received any other notice of any other third party interests whether by way of assignment or charge in respect of any of the Insurances.

 

We further confirm that no amendment or termination of any of the Insurances shall be effective unless we have given you [30] days’ prior written notice of our intention to so amend or terminate the same.

 

Yours faithfully,

 

 

 

 

(Authorised Signatory)

 

 

[INSURER]

 

Date:

 

44


 

SCHEDULE 3

 

DETAILS OF CHARGED LAND

 

Part 1

 

PART 1A

Registered Land

 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

 

PART 1B

 

Unregistered Land

 

The freehold/leasehold property known as and comprised in the following title deed(s) or other document(s) of title:

 

CHARGOR

 

ADDRESS

 

FREEHOLD/LEASEHOLD

 

DATE OF LEASE
(IF
LEASEHOLD)

 

N/A

 

N/A

 

N/A

 

N/A

 

 

45



 

SCHEDULE 4

 

REGISTERED, INTELLECTUAL PROPERTY RIGHTS

 

A.            UNITED KINGDOM TRADE MARKS

 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

 

B.            COMMUNITY TRADE MARKS

 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

 

EP PATENTS

 

PATENT NUMBER

 

TITLE

 

DATE OF FILING

 

STATUS

 

N/A

 

N/A

 

N/A

 

N/A

 

 

46



 

GB PATENTS

 

PATENT NUMBER

 

TITLE

 

DATE OF FILING

 

STATUS

 

N/A

 

N/A

 

N/A

 

N/A

 

 

47



 

SCHEDULE 5

 

INTERCOMPANY LOANS

 

Company name (Creditor)

 

Company name (Debtor)

 

Balances in GBP
as at 31 March
2010
(US GAAP)

 

Telewest Communications Holdco Limited

 

Telewest Workwise Limited

 

2,694,000.00

 

Telewest Communications Holdco Limited

 

Rapid Travel Solutions Limited

 

995,000.00

 

TOTAL

 

 

 

3,689,000.00

 

 

48


 

SIGNATORIES

 

 

Executed as a deed by GENERAL CABLE INVESTMENTS LIMITED
acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

in the presence of:

 

 

/s/ LISA GARFIELD

 

Name: Lisa Garfield

 

Address: [intentionally omitted]

 

Occupation: Paralegal

 

 

 

Executed as a deed by NTL FUNDING LIMITED
acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

in the presence of:

 

 

 

/s/ LISA GARFIELD

 

Name: Lisa Garfield

 

Address: [intentionally omitted]

 

Occupation: Paralegal

 

 

 

Executed as a deed by TELEWEST COMMUNICATIONS HOLDCO LIMITED
acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

in the presence of:

 

 

 

/s/ LISA GARFIELD

 

Name: Lisa Garfield

 

Address: [intentionally omitted]

 

Occupation: Paralegal

 

 



 

THE SECURITY TRUSTEE

 

DEUTSCHE BANK AG, LONDON BRANCH

 

/s/ NICOLA DAWES

 

/s/ CRAIG HOEPAL

 

 

 

By: Nicola Dawes

 

 

 

 

 

By: Craig Hoepal

 

 

 

 

 

Address:

 

 

 

 

 

Fax Number:

 

 

 

 

 

Attention: Nicola Dawes

 

 

 




Exhibit 4.18

 

Execution Version

 

Dated 17 May 2010

 

VM SUNDIAL LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

ASSIGNMENT OF LOANS

 



 

TABLE OF CONTENTS

 

1.

INTERPRETATION

3

 

 

 

2.

COVENANT TO PAY

9

 

 

 

3.

ASSIGNMENT

9

 

 

 

4.

UNDERTAKINGS

12

 

 

 

5.

FURTHER ASSURANCE

13

 

 

 

6.

CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

13

 

 

 

7.

APPOINTMENT AND POWERS OF A RECEIVER

14

 

 

 

8.

INDEMNITIES; COSTS AND EXPENSES

15

 

 

 

9.

ENFORCEMENT

16

 

 

 

10.

POWER OF ATTORNEY

17

 

 

 

11.

CONTINUING SECURITY AND OTHER MATTERS

17

 

 

 

12.

CURRENCIES

20

 

 

 

13.

THE SECURITY TRUST AGREEMENT

21

 

 

 

14.

REPRESENTATIONS AND WARRANTIES

21

 

 

 

15.

MISCELLANEOUS

23

 

 

 

16.

NOTICES AND OTHER MATTERS

24

 

 

 

17.

GOVERNING LAW

25

 

 

 

18.

JURISDICTION

25

 

 

SCHEDULE 1 FORM OF NOTICE OF ASSIGNMENT

27

 

 

SCHEDULE 2 FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT

29

 

2



 

THIS ASSIGNMENT dated17 May 2010 and made BETWEEN:

 

(1)                                  VM SUNDIAL LIMITED registered at Companies House with registered number 7251197 whose registered office is at 160 Great Portland Street, London W1W 5QA (the “Company”); and

 

(2)                                  DEUTSCHE BANK AG, LONDON BRANCH of Winchester House, 1 Great Winchester Street, London EC2N 1DB, as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

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

 

(B)                                Virgin Media Secured Finance PLC has issued and sold the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

(D)                               The Company is a guarantor of the liabilities and obligations of certain Group companies under both the Senior Facilities Agreement and the Senior Secured Notes and this Assignment is given by the Company in favour of the Security Trustee pursuant to such guarantees.

 

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

 

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

 

NOW THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                               Definitions

 

In this Assignment (including its recitals), unless the context otherwise requires:

 

Acknowledgement of Assignment” means an acknowledgement of assignment in the form set out in Schedule 3 or in such other form as may be approved by the Security Trustee.

 

3



 

Assigned Rights” means all of the rights of the Company under and in respect of the Intercompany Indebtedness;

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Collateral Rights” means all rights, powers and remedies of the Security Trustee provided by this Assignment or by law;

 

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

 

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

 

disposal” includes any sale, assignment or transfer, the grant of an option or similar right, the grant of any right or privilege, the creation of a trust or other equitable interest in favour of a third party and “dispose” and “disposition” shall be construed accordingly;

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Facility Agent or the Security Trustee notifies the Company of the occurrence of that Event of Default, or takes, under anyone or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default;

 

Event of Default” means each of:

 

(a)           a Senior Default; and

 

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

 

Excluded Charged Assets” has the meaning given to such term in Clause 3.8(b) of this Assignment;

 

Guarantee” means the guarantee agreement between the Company and the Security Trustee dated on or about the date of this Assignment.

 

Incapacity” means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of that person whatsoever;

 

“Indemnified Party” has the meaning set out in Clause 8.3 (Indemnity from Assigned Rights);

 

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Intercompany Debtor” means any member of the Group which is a debtor in respect of any Intercompany Indebtedness.

 

Intercompany Indebtedness” means all indebtedness from time to time outstanding owed by any member of the Group to the Company;

 

Notice of Assignment” means a notice of assignment in the form set out in Schedule 1 or in such other form as may be approved by the Security Trustee.

 

Receiver” means anyone or more receivers and/or managers (whether appointed pursuant to this Assignment or pursuant to any statute, by a court or otherwise) of all or any of the Assigned Rights and shall, where permitted by law, include an administrative receiver;

 

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

 

Rule 3-16” has the meaning given to such term in “Designated Secured Obligations”;

 

SEC” means the United States Securities and Exchange Commission;

 

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

 

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

 

(ii)                                  that the Security Trustee, acting reasonably, has not agreed to act as security trustee for; and

 

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

 

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

 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on 19 January 2010 between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited and the companies named therein as Original Obligors;

 

Senior Facilities Agreement” means the senior facilities agreement dated 16 March 2010 (as amended, restated, supplemented or novated from time to time and made, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crèdit Agricole Corporate and Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International, J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London Branch as Security Trustee and the financial and other institutions named in it as Lenders;

 

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

 

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

 

Senior Secured Notes lndenturemeans the indenture dated 19 January 2010 governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time.

 

1.2                               Successors and Assigns

 

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

 

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1.3                               Agreement Definitions

 

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

 

1.4                               Headings

 

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

 

1.5                               Construction of Certain Terms

 

In this Assignment, unless the context otherwise requires:

 

(a)                                  references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Assignment and references to this Assignment include its schedules;

 

(b)                                 references to (or to any specified provision of) this Assignment or any other agreement or document shall be construed as references to this Assignment, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

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(i)                                     references to “business” in relation to the Company means any business referred to in the definition of Group Business in the Relevant Facilities Agreement which the Company engages in, and references to “ordinary course of business” in relation to the Company shall be similarly construed.

 

1.6                               Implied Covenants

 

The following provisions of the Law of Property (Miscellaneous Provisions) Act 1994 will not apply to Clause 3.1 (Assignment) or Clause 3.2 (Non-Assignable Rights):

 

(a)                                  the words “other than any charges, encumbrances or rights which that person does not and could not reasonably be expected to know about” in section 3(1);

 

(b)                                 the words “except to the extent that” and all the words thereafter in section 3(2); and

 

(c)                                  section 6(2).

 

1.7                               Third Party Rights

 

A person which is not a party to this Assignment (a “third party”) shall have no rights to enforce the provisions of this Assignment save for:

 

(a)                                  those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and

 

(b)                                 a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Security Trust Agreement whether or not it is a party to the Security Trust Agreement,

 

provided also that this Assignment may be rescinded or altered without the consent of any third party referred to in Clause 1.7(b).

 

1.8                               Effect as a Deed

 

This Assignment is intended to take effect as a deed notwithstanding that the Security Trustee may have executed it under hand only.

 

1.9                               Certificates

 

A certificate of any Beneficiary as to the amount of the Secured Obligation owed to it shall be prima facie evidence of the existence and amount of such Secured Obligation.

 

1.10                        Statutes

 

Any reference in this Assignment to a statute or statutory provision shall, unless the contrary is indicated, be construed as a reference to such statute or statutory provision as the same shall have been amended or re-enacted.

 

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1.11                           Group Intercreditor Deed

 

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

 

1.12                           Secured Obligations

 

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

 

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

 

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

 

2.                                      COVENANT TO PAY

 

2.1                               Covenant to Pay

 

The Company agrees as primary obligor and not only as surety that it will pay and discharge the Secured Obligations promptly on demand of the Security Trustee.

 

2.2                                 Payments

 

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

 

3.                                      ASSIGNMENT

 

3.1                               Assignment

 

The Company (save as provided in Clause 11.4 (Settlements Conditional)), subject to reassignment upon payment and discharge of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available and subject to the Group Intercreditor Deed, hereby assigns with full title guarantee the Assigned Rights to the Security Trustee as a continuing security for the payment and discharge of the Secured Obligations to hold the same on trust for the Beneficiaries in each case on the terms set out in the Group Intercreditor Deed and the Security Trust Agreement.

 

3.2                               Non-Assignable Rights

 

The Company declares that to the extent that any right, title, interest or benefit described in Clause 3.1 (Assignment) is for any reason not effectively assigned pursuant to Clause 3.1 (Assignment) for whatever reason, the Company shall:

 

(a)                                  hold the benefit of the same on trust for the Security Trustee as security for the payment and discharge of the Secured Obligations; and

 

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(b)                                 promptly notify the Security Trustee of the same and the reasons therefor and thereafter take such steps as the Security Trustee may reasonably require to remove any relevant prohibition or other reason for such failure.

 

3.3                               Notice of Assignment

 

As soon as practicable after the execution of this Assignment, the Company shall deliver a Notice of Assignment to each Intercompany Debtor which is a debtor in respect of Intercompany Indebtedness of the Company.

 

3.4                               Acknowledgement of Assignment

 

The Company shall procure that as soon as practicable after it gives a Notice of Assignment, the relevant Intercompany Debtor shall deliver to the Security Trustee an Acknowledgement of Assignment.

 

3.5                               Restrictions on dealing with Assigned Rights

 

The Company hereby covenants that it will not without the prior consent in writing of the Security Trustee (save as permitted by the Senior Finance Documents):

 

(a)                                  create or attempt to create or permit to subsist in favour of any person other than the Security Trustee any Encumbrance on or affecting the Assigned Rights or any part thereof;

 

(b)                                 sell, transfer, assign or otherwise dispose of the Assigned Rights (other than to the Security Trustee or to any member of the Bank Group provided that (i) the relevant sale, transfer, assignment or disposal is made expressly subject to the Encumbrance granted by the Company under this Assignment; and (ii) the relevant purchaser, transferee or assignee, (A) is a company incorporated in England and Wales, (B) becomes a party to the Group Intercreditor Deed as an Intergroup Creditor (as defined therein) on or prior to the relevant sale, transfer, assignment or disposal, and (C) provides such evidence as the Security Trustee may require as to the legality, validity and enforceability of (x) the relevant sale, transfer, assignment or disposal, (y) the Encumbrance granted by the Company under this Assignment subject to which the relevant sale, transfer, assignment or disposal is made; and (z) the Group Intercreditor Deed entered into by the relevant purchaser, transferee or assignee;

 

(c)                                  save as permitted pursuant to this Clause 3.5, receive, retain or deal with the principal of, or any interest on, the Assigned Rights.

 

3.6                               Suspense Accounts

 

Any money received by the Security Trustee pursuant to this Assignment (whether before or after any Incapacity of any Intercompany Debtor or the Company) may be placed to the credit of an interest bearing suspense account with a view to preserving the rights of the Beneficiaries to prove for the whole of their respective claims against any Intercompany Debtor, any Obligor or any other person liable or may be applied in or towards satisfaction of such of the Secured Obligations as the Security Trustee may from time to time conclusively determine in accordance with the terms of the Group

 

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Intercreditor Deed and the Security Trust Agreement notwithstanding any appropriation (or purported appropriation) by the Company.

 

3.7                               Interest and Principal

 

Subject always to the terms of the Group Intercreditor Deed and the other Senior Finance Documents, notwithstanding Clause 3.1 (Assignment) of this Assignment, the Company may in its absolute discretion receive, retain and deal with free from this Assignment all interest paid and received by it in respect of the Assigned Rights.

 

3.8                               Rule 3-16 Limitation

 

(a)                                  Clause 3.1 (Assignment) and Clause 3.2 (Non-Assignable Rights) of this Assignment notwithstanding, the Excluded Charged Assets are not assigned under this Assignment to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)                                     all other Assigned Rights remain assigned or held on trust for the Security Trustee (as the case may be) under this Assignment to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain assigned under Clause 3.1 (Assignment) or held on trust for the Security Trustee under Clause 3.2 (Non-Assignable Rights) of this Assignment to secure any Secured Obligations that are not Designated Secured Obligations.

 

(b)                                 “Excluded Charged Assets” in relation to any Designated Secured Obligations means any securities of a Subsidiary of Virgin Media Inc. (excluding the securities issued by Virgin Media Investments Limited and Virgin Media Investment Holdings Limited or, in each case, any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that providing security over such securities under this Assignment to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the security on any securities pursuant to Clause 3.8(a).

 

(c)                                  In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s securities secure any Designated Secured Obligations, then such securities (as

 

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applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Assignment may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the assignment (but only to the extent securing such Designated Secured Obligations and without prejudice to the assignment securing Secured Obligations referred to in paragraph (a)(ii) of this Clause 3.8) in favour of the Security Trustee on the relevant securities that are so deemed to constitute Excluded Charged Assets.

 

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

 

4.                                      UNDERTAKINGS

 

4.1                               Undertakings

 

The Company hereby undertakes with the Security Trustee that during the continuance of this security it will:

 

(1) Information

 

supply to the Security Trustee such documents relating to the Assigned Rights as the Security Trustee may from time to time reasonably require;

 

(2) Claims

 

forthwith inform the Security Trustee of any material claims or notices relating to any of the Assigned Rights received from any other party and of all other matters relevant or in any way material thereto;

 

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(3) Variation, amendment, etc

 

save with the consent of the Security Trustee or as otherwise permitted pursuant to the Senior Finance Documents, not vary, extend, release, determine or rescind any agreement, deed or other arrangement relating to any of the Assigned Rights or grant time for payment or indulgence or compound with, discharge, waive, release, set off or vary the liability of any other person thereunder or consent to any act or omission as would otherwise constitute a breach or concur in accepting or varying any compromise, arrangement or settlement relating thereto or do or suffer any act or thing or permit any set off whereby the recovery of any moneys payable may be delayed or impeded which, in the case of any of the actions or events referred to above, would have or would be reasonably likely, in the opinion of the Security Trustee, to have a Material Adverse Effect.

 

5.                                      FURTHER ASSURANCE

 

5.1                               Further Assurance

 

The Company shall if and when at any time required by the Security Trustee execute such further Encumbrances and assurances in favour of the Security Trustee and/or any Beneficiary and do all such acts and things as the Security Trustee shall from time to time reasonably require over or in relation to all or any of the Assigned Rights to secure the Secured Obligations or to perfect or protect the security intended to be created by this Assignment over the Assigned Rights or any part thereof or to facilitate the realisation of the same.

 

5.2                               Certain Documentary Requirements

 

Such further Encumbrances and assurances shall be prepared by or on behalf of the Security Trustee at the expense of the Company (such expense to be reasonably and properly incurred) and shall contain (a) an immediate power of sale without notice, (b) a clause excluding section 93 of the Law of Property Act 1925 and the restrictions contained in section 103 of the Law of Property Act 1925 and (c) such other clauses for the benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

6.                                      CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

6.1                               Enforcement Powers

 

If the Enforcement Date has occurred then the charges created by this Assignment shall become immediately enforceable and the Security Trustee shall be entitled, without prior notice to the Company or prior authorisation from any court, to sell or otherwise dispose of all or any part of the Assigned Rights at the times, in the manner and on the terms it thinks fit. No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee to exercise any of the powers conferred by this Assignment has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

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6.2                               Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Assignment.

 

6.3                               Law of Property Act

 

The restrictions contained in sections 93 and 103 of the Law of Property Act 1925 shall not apply to this Assignment or to any exercise by the Security Trustee of its right to consolidate mortgages or its power of sale.

 

6.4                               Subsequent Encumbrances

 

(a)                                  If the Security Trustee at any time receives notice of any subsequent mortgage, assignment, charge or other interest affecting all or any part of the Assigned Rights, all payments thereafter made by the Company to the Security Trustee or any of the Beneficiaries shall be treated as having been credited to a new account of the Company and not as having been applied in reduction of the Secured Obligations as at the time when the Security Trustee received notice.

 

(b)                                 All monies received, recovered or realised by the Security Trustee under this Assignment (including the proceeds of any conversion of currency) may in its discretion be credited to and held in any interest-bearing suspense account pending their application from time to time in or towards the discharge of any of the Secured Obligations.

 

7.                                      APPOINTMENT AND POWERS OF A RECEIVER

 

7.1                               Appointment

 

The Security Trustee may at any time on or after the Enforcement Date or if the  Company requests it to do so, by written instrument and without notice to the Company, appoint any one or more persons as Receiver of such part of the Assigned Rights as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of the Company and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925. The Security Trustee may from time to time by writing under its hand remove any Receiver appointed by it and may, whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

7.2                               Receiver as Agent

 

A Receiver shall be the agent of the Company and (subject to the provisions of this Assignment) the Company shall be solely responsible for his acts or defaults and for his remuneration.

 

7.3                               Powers of Receiver

 

A Receiver shall have, in relation to the part of the Assigned Rights in respect of which he was appointed:

 

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(a)                                  all the powers conferred by the Law of Property Act 1925 on a receiver appointed under that Act;

 

(b)                                 all the powers of an administrative receiver set out in Schedules 1 and 2 to the Insolvency Act 1986 (whether or not such person is an administrative receiver);

 

(c)                                  all the powers and rights of an absolute owner and power to do or omit to do anything which the Company could do or omit to do; and

 

(d)                                 the power to do all things (including bringing or defending proceedings in the name or on behalf of the Company) which seem to such a person to be incidental or conducive to (i) any of the functions, powers, authorities or discretions conferred on or vested in him, or (ii) the exercise of the Collateral Rights (including realisation of all or any part of the Assigned Rights), or (iii) bringing to his hands any assets of the Company forming part of, or which when got in would be a part of, the Assigned Rights.

 

7.4                                 Remuneration

 

The Security Trustee may from time to time determine the remuneration of any Receiver appointed by it without the limitations imposed by section 109 of the Law of Property Act 1925. A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

7.5                                 Application of proceeds

 

All moneys received by the Security Trustee under this Assignment shall be applied by the Security Trustee in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement.

 

8.                                      INDEMNITIES; COSTS AND EXPENSES

 

8.1                               Enforcement costs

 

The Company hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee or any Receiver shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Assignment or any of the Assigned Rights on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company (both before and after judgment).

 

8.2                               No liability as Mortgagee in Possession

 

None of the Beneficiaries, the Security Trustee or any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Assigned Rights or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such

 

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except in the case of fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as the case may be).

 

8.3                               Indemnity from Assigned Rights

 

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

 

(a)                                  anything done or omitted in the exercise or purported exercise of the powers contained in this Assignment; or

 

(b)                                 any breach by the Company of any of its obligations under this Assignment;

 

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

 

8.4                               Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Assigned Rights may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Assigned Rights whether or not a Receiver is or has been appointed.

 

9.                                      ENFORCEMENT

 

9.1                               When Enforceable

 

If (and only if) the Enforcement Date has occurred then this Assignment shall become enforceable. Sections 93 and 103 of the Law of Property Act 1925 shall not apply in respect of any Assigned Rights.

 

9.2                               Authority

 

No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Assignment has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

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10.                               POWER OF ATTORNEY

 

10.1                        Power of Attorney

 

The Company, by way of security for the performance of its obligations under this Assignment, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the Assigned Rights and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)                                  to execute and complete on or after the Enforcement Date, any documents or instruments which the Security Trustee or such Receiver may require for perfecting the title of the Security Trustee to the Assigned Rights or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

(b)                                 to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 5 (Further Assurance); and

 

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

 

10.2                        Ratification

 

The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 10.1 (Power of Attorney) shall do or purport to do in the exercise of his powers under such Clause.

 

10.3                        General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and the Company hereby covenants with the Security Trustee and separately with any such Receiver to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

11.                               CONTINUING SECURITY AND OTHER MATTERS

 

11.1                        Continuing Security

 

This Assignment and the obligations of the Company under this Assignment shall:

 

(a)                                  secure the ultimate balance of the Secured Obligations from time to time owing notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of any person liable in respect thereof or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

(b)                                 be in addition to, and not merge with or otherwise prejudice or affect, any present or future Security Document, Encumbrance, right or remedy held by or

 

17



 

available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)                                  not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

11.2                        Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Document or other means of payment now or hereafter held by or available to it before enforcing this Assignment and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of the Company nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

11.3                        New Accounts

 

Notwithstanding that any charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of the Company or other Security Provider or open one or more new accounts and the liability of the Company hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of any such account.

 

11.4                        Settlements Conditional

 

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

 

11.5                        No Release

 

The liability of the Company shall not be affected nor shall the assignment hereby created be discharged or diminished by reason of:

 

(a)                                  the Incapacity or any change in the name, style or constitution of any Obligor or any other person liable; or

 

18



 

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

 

(c)                                  any act or omission which would not have discharged or affected the liability of the Company had it been principal debtor in respect of the Secured Obligations or by anything done or omitted which but for this provision might operate to exonerate the Company.

 

11.6                        Restriction of the Company’s Rights

 

Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee (such consent not to be unreasonably withheld) it will not (save as otherwise permitted by the Group Intercreditor Deed):

 

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

 

(b)                                 demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any Obligor or any Security Provider demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

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

 

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

 

19



 

11.7                        No Security

 

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

 

11.8                        Recoveries by the Company

 

If contrary to Clauses 11.6 (Restriction on the Company’s Rights) or 11.7 (No Security) the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

11.9                        Statements of Account

 

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

 

12.                               CURRENCIES

 

12.1                        Conversion of Currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Assignment at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

12.2                        Currency Indemnity

 

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

 

20



 

13.                               THE SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Assignment and the security and other rights, titles and interests constituted by this Assignment and the Assigned Rights and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Assignment are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

14.                               REPRESENTATIONS AND WARRANTIES

 

14.1                        Representations

 

The Company hereby represents and warrants to the Security Trustee as trustee for the Beneficiaries that:

 

(a)                                  Due incorporation

 

It is duly incorporated, validly existing as a limited liability company and has all requisite corporate power and authority to own its property and other assets and to carryon its business as it is now being conducted and is authorised to do business in each jurisdiction where such qualification or authorisation is required, except where the failure to so qualify, to be so authorised or to be in good standing would not have a material adverse effect on the ability of the Company to perform any of its obligations under this Assignment;

 

(b)                                 Power of the Company

 

It has all requisite power to execute, deliver and perform its obligations under this Assignment and compliance has been made with all necessary requirements and all necessary action has been taken to authorise the execution, delivery and performance of the same;

 

(c)                                  Binding obligations

 

This Assignment constitutes valid and legally binding obligations of the Company enforceable in accordance with its terms subject, to the extent applicable, to the Reservations which relate to Security Documents governed by English law;

 

(d)                                 No conflict with other obligations

 

The execution and delivery of, the performance of its obligations under, and compliance with the provisions of, this Assignment by the Company, will not:

 

(i)                                     contravene any existing applicable law, statute, rule or regulation or any judgement, decree or permit to which the Company is subject except where such contravention would not or would not be likely to have a material adverse effect on the ability of the Company to perform any of its obligations under or otherwise to comply with the terms of this Assignment;

 

21



 

(ii)                                  contravene or conflict with any provision of the Memorandum and Articles of Association of the Company;

 

(iii)                               conflict with, or result in any breach of any of the terms of, or constitute a default under, any agreement constituting or evidencing Financial Indebtedness of the Company to which the Company is a party or is subject or by which it or any of its property is bound except where such breach or default would not or would not be likely to have a material adverse effect on the ability of the Company to perform any of its obligations under or otherwise to comply with the terms of this Assignment; or

 

(iv)                              result in the creation or imposition of or oblige the Company to create any Encumbrance (other than those created by the Security Documents) on any of the Company’s material undertakings, assets, rights or revenues;

 

(e)                                  No litigation

 

No litigation, arbitration or administrative proceeding is taking place, or, to the knowledge of the officers of the Company, pending or threatened against the Company, which is reasonably likely to be adversely determined and, if so determined, would have or would be reasonably likely to have a material adverse effect on the ability of the Company to fulfil its obligations under this Assignment;

 

(f)                                    No filing required

 

It is not necessary to ensure the legality, validity, enforceability or admissibility in evidence of this Assignment that this Assignment or any other instrument be notarised, filed, recorded, registered or enrolled in any court or public office in the United Kingdom (save for registration pursuant to section 860 of the Companies Act 2006) or that any stamp, registration or similar tax or charge be paid in the United Kingdom on or in relation to this Assignment;

 

(g)                                 Choice of law

 

The choice by the Company of English law to govern this Assignment is valid and binding;

 

(h)                                 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 Company (i) to authorise the execution and delivery of this Assignment or the performance by the Company of its obligations under this Assignment or (ii) to ensure the validity, enforceability or admissibility in evidence of this Assignment has been obtained or made and is in full force and effect and there has been no material default in the observance of the conditions or restrictions (if any) imposed in, or in connection with, any of the same which would, in any such case, adversely affect the execution, delivery, validity, enforceability

 

22



 

or admissibility in evidence of this Assignment or the performance by such Company of its obligations under this Assignment; and

 

(i)                                     Title to Assigned Assets

 

It is the beneficial owner of and has good and marketable title to the Assigned Assets (except in the event of a sale, transfer or assignment permitted by Clause 3.6(b)).

 

14.2                        Repetition

 

The representations and warranties contained in Clause 14.1 (Representations) (excluding that representation contained in Clause 14.1(h) shall be deemed to be repeated by the Company on the first day of each Interest Period.

 

15.                               MISCELLANEOUS

 

15.1                        Exchange of Information

 

The Company hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Assigned Rights unless such information is the subject of a duty of confidentiality on the part of any Beneficiary not to disclose such information.

 

15.2                        Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

15.3                        Successors and Assigns

 

Any appointment or removal of a Receiver under Clause 7 (Appointment and Powers of a Receiver) and any consents under this Assignment may be made or given in writing signed or sealed by any successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title and accordingly the Company hereby irrevocably appoints each successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title to be its attorney in the terms and for the purposes set out therein.

 

15.4                        Consolidation

 

Section 93 of the Law of Property Act 1925 shall not apply to the security created by this Assignment or to any security given to the Security Trustee or any of the Beneficiaries pursuant to this Assignment.

 

15.5                        Reorganisation

 

This Assignment shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or its absorption in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other

 

23



 

person, or any reconstruction or reorganisation of any kind. The security granted by this Assignment shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

15.6                        Unfettered Discretion

 

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

 

15.7                        Provisions Severable

 

Each of the provisions of this Assignment is severable and distinct from the others and if any time one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Assignment shall not in any way be affected or impaired thereby.

 

15.8                        No Assignment by the Company

 

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

 

15.9                        Counterparts

 

This Assignment may be executed in any number of counterparts and by the different parties hereto in separate counterparts each of which, when executed and delivered, shall constitute an original, but all counterparts together shall constitute one and the same instrument.

 

15.10                 Release

 

Upon the earlier of (i) the satisfaction in full of all of the Secured Obligations owed to the Beneficiaries and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available; and (ii) the discharge of the Guarantee in accordance with its terms and provided that the Security Trustee is satisfied that the security constituted hereby is no longer required under clause 24.12(f)(iii) of the Senior Facilities Agreement, the Security Trustee shall, at the request and cost of the Company and in accordance with the relevant terms of the Senior Finance Documents (including section 11.08 of the Senior Secured Notes Indenture), execute and do all such deeds, acts and things as may be necessary to release the Assigned Rights from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

16.                               NOTICES AND OTHER MATTERS

 

16.1                        Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Assignment shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on the Company in the manner and at the address set out in clause 20 of the Group Intercreditor Agreement.

 

24



 

16.2                        Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Assignment shall, save for manifest error, be conclusive and binding upon the Company if signed by an officer of the Security Trustee.

 

17.                               GOVERNING LAW

 

This Assignment, including all non-contractual obligations arising out of or in connection with it, shall be governed by and shall be construed in accordance with English law.

 

18.                               JURISDICTION

 

18.1                        Courts of England

 

The Company irrevocably agrees for the benefit of the Security Trustee that the courts of England shall have jurisdiction to hear and determine any suit, action or proceedings, and to settle any disputes, which may arise out of or in connection with this Assignment (respectively “Proceedings” and “Disputes”) and, for such purposes, irrevocably submits to the jurisdiction of such courts.

 

18.2                        Appropriate Forum

 

The Company irrevocably waives any objection which it might now or hereafter have to Proceedings being brought or Disputes settled in the courts of England and agrees not to claim that any such court is not a convenient or appropriate forum.

 

18.3                        Proceedings in Other Jurisdictions

 

Nothing in Clause 18.1 (Courts of England) shall (and nor shall it be construed so as to) limit the right of the Finance Parties to take Proceedings against the Company in any other court of competent jurisdiction nor shall the taking of Proceedings in anyone or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not) if and to the extent permitted by applicable law.

 

18.4                        General Consent

 

The Company consents generally in respect of any Proceedings to the giving of any relief or the issue of any process in connection with such Proceedings including the making, enforcement or execution against any property whatsoever (irrespective of its use or intended use) of any order or judgment which may be made or given in such Proceedings.

 

18.5                        Waiver of Immunity

 

To the extent that the Company may in any jurisdiction claim for itself or its assets or revenues immunity from suit, execution, attachment (whether in aid of execution, before judgment or otherwise) or other legal process and to the extent that in any such jurisdiction there may be attributed to itself, its assets or revenues such immunity (whether or not claimed), the Company irrevocably agrees not to claim, and

 

25



 

irrevocably waives, such immunity to the full extent permitted by the laws of such jurisdiction.

 

IN WITNESS WHEREOF this Assignment has been executed and delivered by or on behalf of the parties on the date stated at the beginning of this Assignment.

 

26


 

SCHEDULE 1

FORM OF NOTICE OF ASSIGNMENT

 

To: [specify relevant Intercompany Debtor]

 

Dear Sirs,

 

We hereby give you notice that pursuant to an Assignment dated [                          ] (the “Assignment”) and made between [name of Company] (the “Company”) and [name of Security Trustee] as security trustee (the “Security Trustee”), the Company has assigned to the Security Trustee all of its rights, title, interests and benefits under or in respect of the Intercompany Indebtedness (the “Assigned Rights”) including all monies which may be payable under or in respect thereof.

 

With effect from your receipt of this notice we hereby give you notice that:

 

(a)                                  all payments to be made to it under or arising from the Assigned Rights should be made to the Security Trustee or to its order as it may specify in writing from time to time/to [specify bank account];

 

(b)                                 all remedies provided for in the Assigned Rights or available at law or in equity shall be exercisable by the Security Trustee;

 

(c)                                  all rights to compel performance in respect of the Assigned Rights shall be exercisable by the Security Trustee (although the Company shall remain liable to perform all the obligations assumed by it in connection with the Assigned Rights);and

 

(d)                                 all rights, title, interests and benefits whatsoever accruing to or for the benefit of the Company arising in respect of the Assigned Rights belong to the Security Trustee and no changes may be made to their terms nor may any of them be terminated, varied or waived without the prior written consent of the Security Trustee.

 

You are hereby authorised and instructed, without requiring further approval from the Company, to provide the Security Trustee with such information relating to the Assigned Rights as it may from time to time request and to send copies of all notices issued by you in connection with the Assigned Rights to the Security Trustee as well as to the Company.

 

These instructions may not be revoked without the prior written consent of the Security Trustee.

 

Please acknowledge receipt of this notice by signing and dating the acknowledgement set out on the enclosed copy and returning it to the Security Trustee.

 

27



 

Yours faithfully,

 

 

 

 

For and on behalf of

 

[COMPANY]

 

 

 

 

 

 

 

for and on behalf of

 

[SECURITY TRUSTEE]

 

as security trustee]

 

 

28



 

SCHEDULE 2

FORM OF ACKNOWLEDGEMENT OF ASSIGNMENT

 

[To be printed only on copy of the Notice of Assignment given]

 

To:                              [                                        ]

 

as Security Trustee

[Address]

Attention:

 

We acknowledge receipt of a notice in the terms set out above (the “Notice”). We confirm that we have not received notice of any previous assignments or charges of or over any of the rights, title, interests and benefits under or in respect of respect of the Intercompany Indebtedness (“Assigned Rights”) and that we will comply with the terms of the Notice.

 

We further agree and confirm that:

 

(a)                                  we shall not agree to, or otherwise permit, any amendment, waiver or release of any provision relating to the Assigned Rights without the prior written consent of the Security Trustee; and

 

(b)                                 we will not terminate any document or arrangement relating to the Assigned Rights or otherwise allow the such document or arrangement to be terminated and will not take any action in relation to any breach thereof by the Company unless we have given the Security Trustee 30 days’ prior written notice of our intention to do so specifying the action necessary by the Company or the Security Trustee to avoid such termination or action.

 

Yours faithfully,

 

For and on behalf of

[Intercompany Debtor]

 

By:

 

Date:

 

29



 

SIGNATORIES

 

 

Executed as a deed by VM SUNDIAL LIMITED

 

 

 

 

 

acting by Robert Mackenzie, a director

 

 

 

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ LISA GARFIELD

 

 

Name: Lisa Garfield

Address: [intentionally omitted]

 

 

Occupation: Paralegal

 

 

30



 

THE SECURITY TRUSTEE

 

DEUTSCHE BANK AG, LONDON BRANCH

 

/s/ NICOLA DAWES

 

/s/ CRAIG HOEPAL

 

 

 

By: Nicola Dawes

 

Craig Hoepal

 

 

 

By:

 

 

 

 

 

Address:

 

 

 

 

 

Fax Number:

 

 

 

 

 

Attention: Nicola Dawes

 

 

 

31




Exhibit 4.19

 

Dated 10 June 2010

 

COMPOSITE DEBENTURE

 

Between

 

THE COMPANIES LISTED IN SCHEDULE 1
as Chargors

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

INTERPRETATION

1

2.

SECURED OBLIGATIONS

9

3.

CHARGES

10

4.

SET-OFF

15

5.

UNDERTAKINGS

16

6.

REAL PROPERTY: PERFECTION

18

7.

FURTHER ASSURANCE

19

8.

CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

20

9.

APPOINTMENT AND POWERS OF RECEIVER OR ADMINISTRATOR

22

10.

APPLICATION OF PROCEEDS; PURCHASERS

25

11.

INDEMNITIES; COSTS AND EXPENSES

26

12.

ENFORCEMENT

27

13.

POWER OF ATTORNEY

28

14.

CONTINUING SECURITY AND OTHER MATTERS

28

15.

CURRENCIES

31

16.

THE SECURITY TRUST AGREEMENT

32

17.

MISCELLANEOUS

32

18.

NOTICES

34

19.

LAW AND JURISDICTION

35

SCHEDULE 1 CHARGING COMPANIES

36

SCHEDULE 2 NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

37

 

Part 1 Intercompany Indebtedness

37

 

Part 1A Form of Notice of Assignment

37

 

Part 1B Form of Acknowledgement of Assignment

39

 

Part 2 Insurances

41

 

Part 2A Form of Notice of Assignment

41

 

Part 2B Form of Acknowledgement of Assignment

44

SCHEDULE 3 DETAILS OF CHARGED LAND

45

 

Part 1 PART 1A Registered Land

45

 

PART 1B Unregistered Land

45

SCHEDULE 4 REGISTERED, INTELLECTUAL PROPERTY RIGHTS

46

SCHEDULE 5 INTERCOMPANY LOANS

48

 

i



 

THIS COMPOSITE DEBENTURE is dated 10 June 2010 and made

 

BETWEEN:

 

(1)                                 THE COMPANIES whose respective registered names, registered numbers and shareholders are set out in Schedule 1 (the “Chargors”); and

 

(2)                                 DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

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

 

(B)                                Virgin Media Secured Finance PLC has issued and sold the Senior Secured Notes under the Senior Secured Notes Indenture.

 

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

 

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

 

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

 

NOW THIS DEED WITNESSES as follows:

 

1.                                      INTERPRETATION

 

1.1                                 Definitions

 

In this Deed, unless the context otherwise requires:

 

Acknowledgement” means a duly completed acknowledgement of assignment in the form set out in the relevant Part of Schedule 2 (Notices of Assignment/Acknowledgements) being:

 

(a)                                  Schedule 2Part 1B, in the case of Intercompany Indebtedness; and

 

(b)                                 Schedule 2Part 2B, in the case of Insurances.

 



 

Assigned Assets” means, in relation to each Chargor, all the assets of such Chargor described in Clause 3.2 (Assignments);

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries;

 

Charged Assets” means all the undertaking, goodwill, property, assets and rights of each Chargor described in Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge);

 

Charged Land” means in respect of each Chargor the English Real Property specified in Schedule 3 (Details of Charged Land);

 

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

 

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

 

disposal” includes any sale, lease, sub-lease, assignment or transfer, the grant of an option or similar right, the grant of any easement, right or privilege, the creation of a trust or other equitable interest in favour of a third party, a sharing or parting with possession or occupation whether by way of licence or otherwise and the granting of access to any other person over any intellectual property, and “dispose” and “disposition” shall be construed accordingly;

 

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

 

English Real Property” means, at any time and in respect of each Chargor, freehold or leasehold property in England and Wales in which such Chargor has an interest, including all rights, easements and privileges from time to time attached or appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon;

 

Event of Default” means each of:

 

(a)                                  a Senior Default; and

 

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

 

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Excluded Charged Assets” has the meaning given to such term in Clause 3.12(b) (Rule 3-16 Limitation) of this Deed;

 

Fixtures” means, in relation to any Real Property, all fixtures and fittings (including trade fixtures and fittings) and fixed plant, machinery and equipment and other items attached to the relevant Real Property whether or not constituting a fixture at law;

 

Floating Charge Assets” means the assets of each Chargor from time to time expressed to be charged by this Deed by way of floating charge pursuant to Clause 3.4 (Floating Charge);

 

Incapacity” means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of that person whatsoever;

 

Indemnified Party” has the meaning set out in Clause 11.3 (Indemnity from Charged Assets);

 

Insurances” means, in relation to each Chargor, all present and future contracts or policies of insurance (including life policies) in which each Chargor from time to time has an interest;

 

Intellectual Property Rights” means all patents, trade marks, service marks, designs, design rights, utility models, business names, topographical or similar rights, copyrights, moral rights, database rights, rights in inventions, computer software, know-how, trade secrets and confidential information and other intellectual property rights and any interests (including by way of licence) subsisting anywhere in the world in any of the foregoing (in each case whether registered or not and including all applications for the same) owned by each Chargor;

 

Intercompany Indebtedness” means indebtedness owing by any member of the Group to any Chargor under each of the loan agreements or other debt instruments listed in Schedule 5 (Intercompany Loans) and any other such indebtedness from time to time outstanding;

 

Investments” means the Shares and any other stocks, debentures, bonds, warrants and other securities of any kind whatsoever and any units in Unit Trust Schemes;

 

Lease” means any present or future lease, sublease, licence, tenancy or other agreement or right to occupy whether on a fixed term or periodic basis governing the use or occupation of any freehold, heritable or leasehold property;

 

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

 

Notice of Assignment” means a duly completed notice of assignment in the form set out in the relevant Part of Schedule 2 (Notices of Assignment/Acknowledgements) being:

 

(a)                                  Part 1, in the case of Intercompany Indebtedness; and

 

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(b)                                 Part 2, in the case of Insurances;

 

Permitted Borrowing” means any Financial Indebtedness permitted under Clause 25.4 (Financial Indebtedness) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Permitted Disposal” means any disposal permitted under Clause 25.6 (Disposals) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Permitted Encumbrance” means any Encumbrance permitted under Clause 25.2 (Negative Pledge) of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

Real Property” means the English Real Property and any other land, buildings or erections anywhere in the world and any estate or interest therein and any reference to Real Property includes all rights, easements and privileges from time to time attached or appurtenant thereto and all buildings, erections and Fixtures from time to time therein or thereon;

 

Realisation Account” means each account maintained from time to time by the Security Trustee for the purposes of Clause 8.7 (Realisation Accounts).

 

Receiver” means a receiver and manager, or any other receiver (whether appointed pursuant to this Deed or any statute, by a court or otherwise) of all or any of the Charged Assets and shall, where permitted by law, include an administrative receiver;

 

Related Rights” means, in relation to any Investment of each Chargor:

 

(a)                                  any proceeds of and any right or option to receive any dividend, distribution, interest or other income paid or payable in relation to any such Investment; and

 

(b)                                 any right or option to receive, call for delivery of or otherwise acquire any stocks, shares, debentures, bonds, loan stocks, warrants, securities, monies or other property of any kind, accruing or offered at any time or deriving therefrom, whether in addition to or in substitution for such Investment.

 

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

 

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Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Restricted Lease” means any lease to which a Chargor is a party which would be breached, if the consent of the relevant landlord and any other relevant party was not obtained prior to such lease becoming subject to any security interest created pursuant to this Deed;

 

Rule 3-16” has the meaning given to such term in “Designated Secured Obligations”.

 

SEC” means the United States Securities and Exchange Commission;

 

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

 

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

 

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

 

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

 

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

 

Security Provider” means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations;

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on 19 January 2010 between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited and the companies named therein as Original Obligors;

 

Senior Facilities Agreement” means the senior facilities agreement dated 16 March 2010 (as amended, restated, supplemented or novated from time to time) and made between, inter alia, Virgin Media Inc. as Ultimate Parent, Virgin Media Finance PLC as Parent, Virgin Media Investment Holdings Limited, Virgin Media Limited, Virgin Media Wholesale Limited, VMIH Sub Limited and Virgin Media SFA Finance Limited as Original Borrowers, BNP Paribas London Branch and Deutsche Bank AG, London Branch as Global Coordinators and Physical Bookrunners, BNP Paribas London Branch, Deutsche Bank AG, London Branch, Crédit Agricole Corporate and

 

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Investment Bank, GE Corporate Finance Bank SAS, Goldman Sachs International, J.P. Morgan PLC, Lloyds TSB Corporate Markets, Merrill Lynch International, The Royal Bank of Scotland plc and UBS Limited as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent, Deutsche Bank AG, London Branch as Security Trustee and the financial and other institutions named in it as Lenders;

 

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

 

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

 

Senior Secured Notes Indenture” means the indenture dated 19 January 2010 governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time;

 

Shares” means all shares in the capital of any member of the Group, any Joint Venture or any other person now or in the future legally or beneficially owned by any Chargor and/or any nominee on behalf of any such Chargor;

 

Unit Trust Scheme” has the meaning set out in Section 237(2) of the Financial Services and Markets Act 2000; and

 

1.2                               Successors and Assigns

 

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

 

1.3                               Agreement Definitions

 

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

 

1.4                               Headings

 

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

 

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1.5                               Construction of Certain Terms

 

In this Deed, unless the context otherwise requires:

 

(a)                                  references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Deed and references to this Deed include its schedules;

 

(b)                                 references to (or to any specified provision of) this Deed or any other agreement or document shall be construed as references to this Deed, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party;

 

(c)                                  references to a “regulation” include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

(i)                                     references to “business” in relation to any Chargor means any business referred to in the definition of Group Business in the Relevant Facilities Agreement which such Chargor engages in, and references to “ordinary course of business” in relation to any Chargor shall be similarly construed.

 

1.6                               Implied Covenants

 

In accordance with Rule 68 of the Land Registration Rules 2003:

 

(a)                                  the covenants set out in section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994 shall extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge) save for the words “other than any

 

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charges, encumbrances or rights which that person does not and could not reasonably be expected to know about”; and

 

(b)                                 the covenants set out in section 3(2) of the Law of Property (Miscellaneous Provisions) Act 1994 shall extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge) save for the words “except to the extent that such liabilities and rights are, by reason of (a) being, at the time of the disposition, only potential liabilities and rights in relation to the property or (b) being liabilities and rights imposed or conferred in relation to property generally, not such as to constitute defects in title”; and

 

(c)                                  the covenants set out in section 6(2) of the Law of Property (Miscellaneous Provisions) Act 1994,

 

shall not extend to Clauses 3.1 (Fixed Charge), 3.2 (Assignments) and 3.4 (Floating Charge).

 

1.7                               Nominees

 

If the Security Trustee requires shares or any other asset to be registered in the name of a nominee for the Security Trustee, any reference in this Deed to the Security Trustee shall, if the context so permits or requires, be construed as a reference to each of the Security Trustee and such nominee.

 

1.8                               Third Party Rights

 

A person which is not a party to this Deed (a “third party”) shall have no rights to enforce the provisions of this Deed save for:

 

(a)                                  those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and

 

(b)                                 a person who is a co-trustee (with the Security Trustee) for the Beneficiaries under the Security Trust Agreement whether or not it is a party to the Security Trust Agreement.

 

provided also that this Deed may be rescinded or altered without the consent of any third party referred to in paragraph (b) of this Clause 1.8.

 

1.9                               Effect as a Deed

 

This Deed is intended to take effect as a deed notwithstanding that the Security Trustee or any other party hereto may have executed it under hand only.

 

1.10                         Group Intercreditor Deed

 

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

 

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1.11                         Secured Obligations

 

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

 

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

 

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

 

2.                                    SECURED OBLIGATIONS

 

2.1                               Covenant to Pay

 

Each Chargor hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid provided that before any such demand is made on a Restricted Guarantor, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.

 

2.2                               Statements of Account

 

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

 

2.3                               No Security

 

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

 

2.4                               Payments by the Chargors

 

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

 

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3.                                    CHARGES

 

3.1                               Fixed Charge

 

Each Chargor, with full title guarantee and as continuing security for the payment, discharge and performance of the Secured Obligations, hereby charges in favour of the Security Trustee to hold the same on trust for the Beneficiaries on the terms set out in the Group Intercreditor Deed and the Security Trust Agreement:

 

(a)                                  by way of first legal mortgage, all of the Charged Land and all other Real Property now vested in any Chargor and the proceeds of sale of all or any part thereof;

 

(b)                                 by way of first fixed charge (but in the case of paragraphs (iii) and (iv) only if and to the extent the rights in question have not been effectively assigned pursuant to Clause 3.2 (Assignments) or such rights have been effectively assigned but such assignment has not been perfected by the service of the appropriate Notice of Assignment):

 

(i)                                     to the extent not effectively charged pursuant to Clause 3.1(a) (Fixed Charge), all estates or interests in any Real Property (whether such interests are freehold, leasehold or licenses) vested in, or acquired by, it now or after the date of this Deed and the proceeds of sale of all or any part thereof;

 

(ii)                                  to the extent not effectively charged pursuant to Clauses 3.1(a) (Fixed Charge) or 3.1(b)(i) (Fixed Charge), all plant and machinery, equipment, computers, vehicles and other chattels (excluding any for the time being forming part of such Chargor’s stock-in-trade or work in progress) now or in the future owned by such Chargor or (to the extent of such interest) in which the relevant Chargor has an interest and the benefit of all contracts and warranties relating to the same;

 

(iii)                               all Investments and all Related Rights now or in the future beneficially and/or legally owned by such Chargor;

 

(iv)                              all of its rights, title, interests and benefits in, to or in respect of the Insurances and all claims (and proceeds) and returns of premiums to which such Chargor is now or may at any future time become entitled;

 

(v)                                 any interest, claim or entitlement of such Chargor in, to or in respect of any pension fund;

 

(vi)                              all the present and future goodwill of such Chargor (including all brand names not otherwise subject to a fixed charge or assignment under this Deed);

 

(vii)                           all of its rights, title, interests and benefits in, to or in respect of all present and future licences, consents and authorisations (statutory or otherwise) held in connection with the business of such Chargor or the use of any asset of such Chargor and the right to recover and receive

 

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all compensation which may at any time become payable to it in respect of any such licence;

 

(viii)                        all its present and future uncalled capital; and

 

(ix)                                all its present and future patents, registered trade marks and registered designs (if any) including applications for any of the same in any part of the world and including, without limitation, the patents, registered designs and trade marks specified in Schedule 4 (Registered, Intellectual Property Rights).

 

3.2                               Assignments

 

Subject to Clause 3.3 (Non-Assignable Rights), each relevant Chargor with full title guarantee hereby assigns absolutely by way of continuing security for the payment and discharge of the Secured Obligations to the Security Trustee:

 

(a)                                  all its present and future rights, title, benefit and interests under and in respect of the Intercompany Indebtedness and any other amounts payable in respect thereof, including under any other loan agreements from time to time entered into by the relevant Chargor;

 

(b)                                 all of its rights, title, interests and benefits in, to or in respect of the Insurances (including all proceeds) and all claims and returns of premiums in respect thereof to which the relevant Chargor is now or may at any future time become entitled; and

 

(c)                                  to the extent not charged under the provisions of Clause 3.1(b) (Fixed Charge) all of its present and future Intellectual Property Rights.

 

3.3                               Non-Assignable Rights

 

Each Chargor declares that to the extent that any right, title, interest or benefit described in Clause 3.2 (Assignments) is for any reason not effectively assigned pursuant to Clause 3.2 (Assignments) for whatever reason, the relevant Chargor shall:

 

(a)                                  hold the benefit of the same on trust for the Security Trustee as security for the payment and discharge of the Secured Obligations; and

 

(b)                                 promptly notify the Security Trustee of the same and the reasons therefor and thereafter take such steps as the Security Trustee may reasonably require to attempt to remove any relevant prohibition or other reason for such failure.

 

3.4                               Floating Charge

 

Each Chargor with full title guarantee hereby charges to the Security Trustee by way of first floating charge and as a continuing security for the payment and discharge of the Secured Obligations its undertaking and all its property, assets and rights whatsoever and wheresoever both present and future, other than any property or assets from time to time effectively charged by way of fixed charge or assignment pursuant to Clauses 3.1 (Fixed Charge) and 3.2 (Assignments) and including (without limitation and whether or not so effectively charged) any of its property and assets

 

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situated in Scotland, provided that, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not such Chargor.  The parties to this Deed agree that the floating charge created by this Clause 3.4 is a qualifying floating charge for the purposes of paragraph 14 of schedule B1 to the Insolvency Act 1986.

 

3.5                               Automatic Conversion of Floating Charge

 

Notwithstanding anything expressed or implied in this Deed, if:

 

(a)                                  any Chargor creates or attempts to create any other Encumbrance over all or any of the Floating Charge Assets without the prior consent in writing of the Security Trustee or otherwise as permitted by the Senior Finance Documents;

 

(b)                                 any person levies or attempts to levy any distress, execution, sequestration or other process against any of the Charged Assets or takes any steps to enforce any rights against any of the Floating Charge Assets; or

 

(c)                                  any meeting of the members of any Chargor is convened to consider a resolution to wind up such Chargor or a petition is presented or application made to wind up any Chargor,

 

the floating charge created by Clause 3.4 (Floating Charge) over the property or asset concerned shall thereupon automatically without notice be converted into a fixed charge.  Nothing in this Clause 3.5 shall cause the floating charge created by Clause 3.4 (Floating Charge) to crystallise solely because a moratorium has been obtained by any person in relation to any Chargor or any person has taken any steps with a view to obtaining a moratorium in relation to any Chargor under Section 1A and Schedule A1 of the Insolvency Act 1986.

 

3.6                               Conversion of Floating Charge by Notice

 

Notwithstanding anything expressed or implied in this Deed, the Security Trustee shall be entitled at any time by giving notice in writing to that effect to the relevant Chargor to convert the floating charge over all or any part of the Floating Charge Assets into a fixed charge if and to the extent that the Security Trustee reasonably considers the assets specified in such notice may be in danger of being seized or sold under or pursuant to any form of distress or execution, or may otherwise be in jeopardy or the Security Trustee otherwise considers (acting reasonably) such conversion to be necessary or desirable to protect the priority of the Security.

 

3.7                               Subsequent Encumbrances

 

If any Beneficiary receives notice of any subsequent Encumbrance affecting the Charged Assets or any part thereof, such Beneficiary may open a new account for the Chargor concerned but if it does not do so then unless such Beneficiary gives express written notice to the contrary to the Chargor concerned it shall nevertheless be treated as if it had opened a new account at the time when it received such notice and as from that time all payments made by or on behalf of the Chargor concerned to such Beneficiary shall be credited or be treated as having been credited to the new account

 

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and shall not operate to reduce the amount due from that Chargor to such Beneficiary at the time when it received such notice.

 

3.8                               Section 94(1)(c) Law of Property Act 1925

 

The obligation on the part of the Senior Lenders to make further advances to the Borrowers under the Senior Facilities Agreement or on the part of any creditors under any other Senior Finance Document, as the case may be, shall be deemed to be incorporated in this Deed for the purposes of section 94(1)(c) Law of Property Act 1925.

 

3.9                               Blocking of Accounts

 

Each Chargor irrevocably and unconditionally agrees that at any time after the Enforcement Date if there shall from time to time be any credit balance on any of its accounts with any of the Beneficiaries, such Beneficiary shall have the absolute right to refuse to permit such credit balance to be utilised or withdrawn by such Chargor whether in whole or in part if and to the extent that at that time there are outstanding any of the Secured Obligations.

 

3.10                         Dividends and Voting Rights

 

Subject to Clause 8.1 (The Investments), each Chargor may, prior to the occurrence of an Event of Default which is continuing (a) exercise all voting and other rights and powers attached to the Investments and (b) receive, retain and deal with free from this Deed all dividends, distributions, interest and other moneys paid on and received by it in respect of the Investments.

 

3.11                         Consents of Third Parties

 

Notwithstanding Clause 3.1 (Fixed Charge) or 3.4 (Floating Charge):

 

(a)                                  unless and until the relevant Chargor has obtained the consent of the relevant landlord and any other relevant party (each being a “Consent”) the fixed and floating charges granted pursuant to Clause 3.1 (Fixed Charge) and 3.4 (Floating Charge) respectively shall not extend to such Chargor’s rights over any Restricted Lease; and

 

(b)                                 unless the relevant Chargor has received written confirmation from the Security Trustee that a particular Consent is not required, the relevant Chargors hereby undertake to use their reasonable endeavours to obtain the Consents.  On obtaining each Consent:

 

(i)                                     the relevant Restricted Lease shall thereupon automatically become subject to the fixed charge created pursuant to Clause 3.1 (Fixed Charge) and the floating charge created pursuant to Clause 3.4 (Floating Charge); and

 

(ii)                                  the relevant Chargor shall immediately produce the Certificate or evidence of such Consent to the Security Trustee.

 

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3.12                         Rule 3-16 Limitation

 

(a)                                  Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating Charge) of this Deed notwithstanding, the Excluded Charged Assets are not charged under this Deed to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)                                     all other Charged Assets remain charged or assigned (as the case may be) under this Deed to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain charged under Clause 3.1 (Fixed Charge) and Clause 3.4 (Floating Charge) of this Deed to secure any Secured Obligations that are not Designated Secured Obligations.

 

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

 

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

 

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extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in paragraph (a)(ii) of this Clause 3.12) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

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

 

4.                                    SET-OFF

 

4.1                               Set-off

 

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

 

4.2                               Purchase of Currencies

 

For the purpose of Clause 4.1 (Set-Off), each Chargor authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

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5.                                    UNDERTAKINGS

 

5.1                               Undertakings

 

Each Chargor hereby undertakes with the Security Trustee that during the continuance of this security such Chargor will:

 

(a)                                  Deposit of deeds

 

deposit with the Security Trustee (to be held at the risk of such Chargor save where such Chargor suffers any loss, costs or expenses as a result of the Security Trustee’s gross negligence or wilful default):

 

(i)                                     all certificates and documents of title relating to its Investments and such deeds of transfer in blank and other documents as the Security Trustee may from time to time reasonably require for perfecting the title of the Security Trustee to such Investments (duly executed by or signed on behalf of the registered holder) or for vesting or enabling it to vest the same in itself or its nominees or in any purchaser; and

 

(ii)                                  all such other documents relating to its Charged Assets as are in its possession or which it can reasonably obtain as the Security Trustee may from time to time reasonably require,

 

(b)                                 Calls, etc

 

duly and promptly pay all calls, instalments or other moneys which may from time to time become due in respect of any of its Investments it being acknowledged by such Chargor that neither the Security Trustee nor any of the Beneficiaries shall in any circumstances incur any liability whatsoever in respect of any such calls, instalments or other moneys;

 

(c)                                  Provision of information

 

forthwith inform the Security Trustee of any claim or notice relating to the Investments received from any other party and likely to materially prejudice the value of the Investments and of all matters relevant thereto;

 

(d)                                 Purchase of shares

 

not, save as otherwise permitted or not restricted under each of the Senior Finance Documents, (without the prior consent in writing of the Security Trustee) redeem or purchase any of its own shares or pay any dividend, other than a dividend permitted or not restricted to be paid under each of the Senior Finance Documents;

 

(e)                                  Options

 

save to the extent expressly permitted or not restricted under each of the Senior Finance Documents not, without the prior consent of the Security Trustee, grant any option with respect to any of the Investments;

 

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(f)                                    Notification

 

forthwith inform the Security Trustee of any material claims or notice relating to any Assigned Assets received from any other party and all other matters relevant or in any way material thereto;

 

(g)                                 Reports

 

ensure that the relevant Chargor reports to the Security Trustee on a monthly basis as to whether the Consents referred to in Clause 3.11 (Consents of Third Parties) have been obtained, such reports to be provided until the earlier of (i) all of the Consents having been obtained, or (ii) the relevant Chargor confirming that the same will not be provided;

 

(h)                                 Notice of assignment

 

deliver to the Security Trustee, or procure the delivery to the Security Trustee of, a duly executed Notice of Assignment to each relevant party in relation to the Assigned Assets, and will use reasonable endeavours to procure delivery to the Security Trustee of duly executed Acknowledgments thereof until (in each case) requested to do so by the Security Trustee upon or following the occurrence of an Event of Default which is continuing whereupon it shall do so forthwith;

 

(i)                                     Insurances

 

(i)                                     procure that a note of the interest of the Security Trustee is endorsed, and the Security Trustee is endorsed as loss payee, upon all Insurances (other than those referred to in Clause 10.2(c) (Insurance Proceeds)) which shall at any time during the subsistence of this Security be effected, maintained or held by the relevant Chargor or any person; and

 

(ii)                                  not do or omit to do, or permit or suffer to be done or omitted to be done, anything which might render any of the Insurances void, voidable or unenforceable;

 

(j)                                     Intellectual Property

 

if requested by the Security Trustee, execute all such documents and do all acts that the Security Trustee may reasonably require to record the interest of the Security Trustee in any registers relating to any registered Intellectual Property owned by such Chargor.

 

5.2                                 Power to Remedy

 

If any Chargor at any time defaults in complying with any of its obligations contained in this Deed, the Security Trustee shall, without prejudice to any other rights of the Security Trustee arising as a consequence of such default, be entitled (but not bound) to make good such default and such Chargor hereby irrevocably authorises the Security Trustee and its employees and agents by way of security to do all such things (including, without limitation, entering such Chargor’s property having given such notice as is reasonable in the circumstances) necessary or reasonably desirable in

 

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connection therewith.  Any moneys so expended by the Security Trustee shall be repayable by such Chargor to the Security Trustee within 30 days of demand together with interest at the Default Rate from the date being 30 days after the date of demand until such repayment, both before and after judgment.  No exercise by the Security Trustee of its powers under this Clause 5.2 shall make it or any of the Beneficiaries liable to account as a mortgagee in possession.

 

6.                                      REAL PROPERTY: PERFECTION

 

6.1                                 Modification of Law of Property (Miscellaneous Provisions) Act 1994

 

Section 3(1) of the Law of Property (Miscellaneous Provisions) Act 1994 will be amended as follows (in so far as it applies to Clause 3 (Charges)):

 

(a)                                  after “from all charges and encumbrances (whether monetary or not)” add “other than Permitted Encumbrances” and after the words “other than any charges, encumbrances or rights which that person does not and would not reasonably be expected to know about” add “but not so as to include any such charges, encumbrances or rights affecting the Charged Land disclosed by the following searches:

 

(i)                                     in the case of registered Charged Land listed in Part 1A of Schedule 3 (Details of Charged Land), OS1/2 Land Registry searches; and

 

(ii)                                  in relation to the unregistered Charged Land listed in Part 1B of Schedule 3 (Details of Charged Land), land charges searches made against all relevant estate owners since the date of the grant of the relevant lease or as the case may be the date of the root conveyance.”

 

6.2                                 Notices of Charge in respect of Charged Land

 

Each Chargor which owns or leases Charged Land shall (unless an alternative course of action is agreed between such Chargor and the Security Trustee) deliver to the Security Trustee (or procure delivery of) notices of charge duly executed by, or on behalf of, such Chargor, together with all relevant fees and addresses, in relation to all landlords from which such Chargor leases any Charged Land owned or leased by such Chargor in respect of each Lease under which such Chargor leases such Charged Land in existence on the date hereof, as soon as reasonably practicable following execution of this Deed and in each case shall use all reasonable endeavours to procure that each notice is acknowledged by the relevant landlord.  Such Chargor shall have no liability in the event that, having used such reasonable endeavours, the relevant landlord refuses to give such acknowledgement.

 

6.3                                 Real Property: Delivery of Documents of Title

 

(a)                                  Each Chargor shall (unless an alternative course of action is agreed between such Chargor and the Security Trustee) in respect of all Charged Land set out in 1B of Schedule 3 (Details of Charged Land) (if any), as soon as reasonably practicable after the execution of this Deed, deliver (or procure delivery) to the Security Trustee of, and the Security Trustee shall be entitled to hold and

 

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retain, all deeds, certificates and other documents of title relating to such property.

 

(b)                                 No Chargor shall be in breach of this Clause 6.3 if it does not deliver any such documents on account of its not having possession of the same provided that it uses all reasonable endeavours to obtain any such document and delivers such document promptly to the Security Trustee upon receipt.

 

6.4                               Land Registration

 

In respect of the Charged Land the title to which is registered at the Land Registry and Real Property which is acquired by or on behalf of any Chargor, the title to which is required to be registered at the Land Registry under the Land Registration Act 2002 the parties hereto agree to make or procure that there is made a due and proper application to the Land Registry (with the Security Trustee’s consent as proprietor of the relevant registered charge):

 

(a)                                  for a restriction in the following terms to be entered on the Proprietorship Register relating thereto:

 

“No disposition of the registered estate by the proprietor of the registered estate or by the proprietor of any registered charge is to be registered without a written consent signed by the proprietor for the time being of the charge dated [insert date] in favour of [insert name of Security Trustee] referred to in the Charges Register or signed on such proprietor’s behalf by its secretary or conveyancer”;

 

(b)                                 to enter a note of the obligation to make further advances by the Beneficiaries on the Charges Register of any registered land forming part of the Charged Assets; and

 

(c)                                  to note this Deed on the Charges Register.

 

7.                                    FURTHER ASSURANCE

 

7.1                               Further Assurance

 

Each Chargor shall at any time if and when required by the Security Trustee execute such further Encumbrances and assurances in favour of the Security Trustee and/or the Beneficiaries and do all such acts and things as the Security Trustee shall from time to time reasonably require over or in relation to all or any of the Charged Assets to secure the Secured Obligations or to perfect or protect the security intended to be created by this Deed over the Charged Assets or any part thereof or, on or after the Enforcement Date, to facilitate the realisation of the same.

 

7.2                               Certain Documentary Requirements

 

Such further Encumbrances and assurances shall be prepared by or on behalf of the Security Trustee at the expense of the relevant Chargor (such expense to be reasonable and properly incurred) and shall contain (a) an immediate power of sale without notice, (b) a clause excluding section 93 Law of Property Act 1925 and the restrictions contained in section 103 Law of Property Act 1925 and (c) such other

 

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clauses for the benefit of the Beneficiaries as the Security Trustee may reasonably require.

 

7.3                               Specific Security Documents Required

 

Each Chargor covenants with the Security Trustee that after the Enforcement Date if and when required by the Security Trustee (acting reasonably) it will to give notice in a form acceptable to the Security Trustee to such persons as the Security Trustee may require of the security over all or any part of the Charged Assets constituted by this Deed or granted pursuant to it.

 

8.                                    CERTAIN POWERS OF THE SECURITY TRUSTEE AND THE BENEFICIARIES: ENFORCEMENT

 

8.1                               The Investments

 

Each Chargor further covenants and agrees with the Security Trustee that:

 

(a)                                  the Security Trustee and its nominees at the discretion of the Security Trustee may after an Event of Default has occurred and so long as the same is continuing, exercise in the name of such Chargor or otherwise at any time whether before or after demand for payment and without any further consent or authority on the part of such Chargor (but subject to Clause 8.1(d) in respect of the Investments), any voting rights and/or powers given to trustees by section 10(3) and (4) Trustee Act 1925 (as amended by section 9 Trustee Investments Act 1961) in respect of securities or property subject to a trust and any powers or rights which may be exercisable by the person in whose name any of the Investments are registered or by the bearer thereof;

 

(b)                                 each Chargor will if so requested by the Security Trustee after an Event of Default has occurred and so long as the same is continuing transfer all or any of the Investments to the Security Trustee or such nominees or agents as the Security Trustee may select, provided that, for the avoidance of doubt, the Security Trustee may not request any such transfer prior to the occurrence of an Event of Default;

 

(c)                                  until the Enforcement Date, the Security Trustee will hold all dividends, distributions, interest and other moneys paid on and received by it in respect of any Investments which are transferred to it pursuant to Clause 8.1(b) for the account of the relevant Chargor; and

 

(d)                                 until the Enforcement Date the Security Trustee will exercise all voting and other rights and powers attached to the Investments which are given to it pursuant to the Trustee Act 1925 (as referred to in Clause 8.1(a) of this Deed) or which relate to the Investments which are transferred to it pursuant to Clause 8.1(b) as the relevant Chargor may from time to time in writing direct provided that the Security Trustee shall be under no obligation to comply with any such direction where compliance would, in the Security Trustee’s reasonable opinion, be prejudicial to the security created by this Deed or to the interests of the Beneficiaries in relation to the relevant assets.

 

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8.2                               Power of Sale

 

At any time on or after the Enforcement Date, the Security Trustee may (without notice to the Chargors) sell or otherwise dispose of the Charged Assets or any of them and shall be entitled to apply the proceeds of such sale or other disposal in paying the costs of such sale or disposal and thereafter in or towards the discharge of the Secured Obligations or otherwise as provided for in this Deed.

 

8.3                               Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Deed.

 

8.4                               Law of Property Act

 

At any time on or after the Enforcement Date or if requested by the Chargor concerned, the Security Trustee may, without further notice, without the restrictions contained in sections 93 and 103 of the Law of Property Act 1925 and whether or not a Receiver shall have been appointed, exercise all the powers conferred upon mortgagees by the Law of Property Act 1925 as varied or extended by this Deed and all the powers and discretions conferred by this Deed on a Receiver either expressly or by reference and also, in the case of the Investments, all rights or powers which may be exercisable by the registered holder or beneficial owner of the same.

 

8.5                               Statutory Power of Leasing

 

The statutory powers of leasing conferred on the Security Trustee shall be extended so as to authorise the Security Trustee to lease and make agreements for leases at a premium or otherwise, to accept surrenders of leases and to grant options on such terms as the Security Trustee shall consider expedient and without the need to observe any of the provisions of sections 99 and 100 Law of Property Act 1925, and Clause 8.2 (Power of Sale) shall operate as a variation and extension of section 101 of such Act.

 

8.6                               Distributions

 

On or after the Enforcement Date all dividends, interest and other distributions relating to the Investments may be applied by the Security Trustee as though they were proceeds of sale under this Deed.

 

8.7                               Realisation Accounts

 

If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the Security the Security Trustee (or such Receiver) may:

 

(a)                                  open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

(b)                                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

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(c)                                  subject to the payment of any claims having priority to this Security, withdraw amounts standing to the credit of the Realisation Accounts to:

 

(i)                                     discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

(ii)                                  pay remuneration to the Receiver as and when the same becomes due and payable; and

 

(iii)                               discharge the Secured Obligations as and when the same become due and payable.

 

8.8                               Right of Appropriation

 

To the extent the Charged Assets constitute “financial collateral” and this Deed constitutes a “security financial collateral arrangement” (as defined in the Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226) the Security Trustee may appropriate all or any part of the Charged Assets in or towards satisfaction of the Secured Obligations, the value of the assets so appropriated being such amount as the Security Trustee shall determine in a commercially reasonable manner.

 

9.                                    APPOINTMENT AND POWERS OF RECEIVER OR ADMINISTRATOR

 

9.1                               Appointment of Administrator

 

At any time on or after the Enforcement Date the Security Trustee may appoint an administrator pursuant to the power contained in paragraph 14 of Schedule B1 to the Insolvency Act 1986.

 

9.2                               Appointment of Receivers

 

The Security Trustee may at any time on or after the Enforcement Date or if any Chargor requests it to do so, by written instrument and without notice to such Chargor, appoint any one or more persons as Receiver of such part of the Charged Assets as may be permitted by law, each such person being entitled to act individually as well as jointly and being for all purposes deemed to be the agent of the relevant Chargor and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925.  The Security Trustee may from time to time by writing under its hand remove any Receiver appointed by it and may, whenever it may deem expedient, appoint a new Receiver in the place of any Receiver whose appointment may for any reason have terminated.

 

9.3                               Receiver as Agent

 

A Receiver shall be the agent of the Chargor in respect of which he is appointed and (subject to the provisions of this Deed) such Chargor shall be solely responsible for his acts or defaults and for his remuneration.

 

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9.4                               Powers of Receiver

 

A Receiver shall have all the powers conferred from time to time on receivers and administrative receivers by statute (in the case of powers conferred by the Law of Property Act 1925, without the restrictions contained in section 103 of that Act) and power on behalf and at the expense of the Chargor concerned (notwithstanding liquidation of the such Chargor) to do or omit to do anything which the such Chargor could do or omit to do in relation to the Charged Assets or any part thereof.  In particular (but without limitation) a Receiver shall have power to do all or any of the following acts and things:

 

(a)                                  Take possession

 

take possession of, collect and get in all or any of the Charged Assets and exercise in respect of the Investments, all voting or other powers or rights available to a registered holder thereof in such manner as he may think fit;

 

(b)                                 Carry on business

 

carry on, manage, develop, reconstruct, amalgamate or diversify the business of the such Chargor or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Deed;

 

(c)                                  Borrow money

 

raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to this security or otherwise;

 

(d)                                 Dispose of assets

 

without the restrictions imposed by section 103 Law of Property Act 1925 or the need to observe any of the provisions of sections 99 and 100 of such Act, sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Chargor concerned or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the such Chargor (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises

 

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containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of such Chargor;

 

(e)                                  Form Subsidiaries

 

promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 

(f)                                    Compromise contracts

 

make any arrangement or compromise or enter into or cancel any contracts which he shall think expedient;

 

(g)                                 Repair and maintain assets

 

make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

(h)                                 Appoint employees

 

appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 9 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

(i)                                     Exercise statutory leasehold powers

 

without any further consent by or notice to the Chargor concerned exercise for and on behalf of the such Chargor all the powers and provisions conferred on a landlord or a tenant by the Landlord and Tenant Acts, the Rent Acts, the Housing Acts or the Agricultural Holdings Act or any other legislation from time to time in force in any relevant jurisdiction relating to rents or agriculture in respect of any part of the Charged Assets but without any obligation to exercise any of such powers and without any liability in respect of powers so exercised or omitted to be exercised;

 

(j)                                     Make calls and legal proceedings

 

make calls conditionally or unconditionally on the members of the Chargor concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

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(k)                                  Execute documents

 

sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security of the Security Trustee and the Beneficiaries and to use the name of the Chargor concerned for all the purposes aforesaid;

 

(l)                                     Insolvency Act powers

 

do all the acts and things described in schedules 1 or 2 to the Insolvency Act 1986 as if the words “he” and “him” referred to the Receiver and “company” referred to the Chargor concerned; and

 

(m)                               General Powers

 

do all such other acts and things as it may consider desirable or necessary for realising all or any part of the Charged Assets over which he is appointed or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of this Deed; to exercise in relation to all or any part of the Charged Assets over which he is appointed all such powers, authorities and things as he would be capable of exercising if he were the absolute beneficial owner of the same; and to use the name of any Chargor for all or any of such purposes.

 

9.5                               Remuneration of Receiver

 

The Security Trustee may from time to time determine the remuneration of any Receiver appointed by it without the limitations imposed by section 109 of the Law of Property Act 1925.  A Receiver shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of his firm.

 

10.                               APPLICATION OF PROCEEDS; PURCHASERS

 

10.1                           Application of Proceeds

 

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

 

10.2                           Insurance Proceeds

 

With the exception of those moneys:

 

(a)                                  which relate to a particular claim and do not exceed £2,500,000;

 

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(b)                                 are paid under third party liability insurance to the relevant third party; or

 

(c)                                  which relate to (a) Insurances of leasehold property or leasehold equipment in cases where the relevant lessor is named as loss payee, and (b) Insurances in favour of lenders to any member of the Group where the relevant borrowing is (A) a Permitted Borrowing and (B) either a Finance Lease or secured by a Permitted Encumbrance and (C) either the relevant lender is named as loss payee or naming the Security Trustee would be contrary to the terms of the relevant borrowing;

 

all moneys receivable by virtue of any of the Insurances on or after the Enforcement Date shall be paid to the Security Trustee (or if not paid by the insurers directly to the Security Trustee shall be held on trust for the Security Trustee) and shall, at the option of the Security Trustee, be (i) applied in replacing, restoring or reinstating the property or assets destroyed, damaged or lost (any deficiency being made good by the Chargor which owned the same) or (ii) (except where the Chargor concerned is obligated (as landlord or tenant) to lay out such moneys under any lease of any of the Charged Assets) credited (for a period not exceeding 30 days at the end of which period such moneys shall, at the option of the Security Trustee, be applied in accordance with either (i) above or (iii) below) to an account charged to the Security Trustee (on behalf of the Beneficiaries) in a manner acceptable to the Security Trustee and at the cost of the Chargor concerned as a continuing security for the payment and discharge of the Secured Obligations or (iii) (except where the Chargor concerned  is obliged (as landlord, tenant, lessor or lessee) to lay out such insurance moneys under the provisions of any lease of any of the Charged Assets) applied in reduction of the Secured Obligations.  Without prejudice to the foregoing provisions of this Clause 10 the Security Trustee agrees to negotiate with the Chargor concerned in good faith as to the application of any insurance proceeds paid to or held on trust for the Security Trustee.

 

11.                               INDEMNITIES; COSTS AND EXPENSES

 

11.1                           Enforcement Costs

 

Each Chargor hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which the Security Trustee or any Receiver shall certify as sustained or incurred by it as a consequence of the enforcement, preservation or attempted preservation of any of the security created by or pursuant to this Deed or any of the Charged Assets on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the relevant Chargor (both before and after judgment) provided that before any such demand is made on a Restricted Guarantor, demand for payment of such expenses shall first have been made on any Chargor which is not a Restricted Guarantor.

 

11.2                           No liability as Mortgagee in Possession

 

None of the Beneficiaries, the Security Trustee or any Receiver shall be liable to account as mortgagee or heritable creditor in possession in respect of all or any of the Charged Assets or be liable for any loss upon realisation or for any neglect or default of any nature whatsoever for which a mortgagee in possession may be liable as such

 

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except in the case of fraud, wilful misconduct or gross negligence on the part of a Beneficiary, the Security Trustee or a Receiver (as the case may be).

 

11.3                           Indemnity from Charged Assets

 

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

 

(a)                                  anything done or omitted in the exercise or purported exercise of the powers contained in this Deed; or

 

(b)                                 any breach by a Chargor of any of its obligations under this Deed; or

 

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

 

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

 

11.4                         Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Charged Assets may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Charged Assets whether or not a Receiver is or has been appointed.

 

12.                             ENFORCEMENT

 

12.1                         When Enforceable

 

If (and only if) the Enforcement Date has occurred then the charges created pursuant to this Deed shall become enforceable.  Section 103 Law of Property Act 1925 shall not apply in respect of any Charged Assets.

 

12.2                         Authority

 

No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Deed has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

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13.          POWER OF ATTORNEY

 

13.1        Power of Attorney

 

Each Chargor, by way of security for the performance of its obligations under this Deed, hereby irrevocably appoints each of the Security Trustee and any Receiver of all or any part of the Charged Assets and their respective delegates and sub-delegates each to be its attorney acting severally (or jointly with any other such attorney or attorneys) in its name and on its behalf:

 

(a)           to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

(b)           to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 6 (Real Property: Perfection) in accordance with the terms thereof; and

 

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

 

13.2         Ratification

 

Each Chargor ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 (Power of Attorney) shall do or purport to do in the exercise of his powers under such clause.

 

13.3         General Power

 

This appointment shall operate as a general power of attorney under section 10 of the Powers of Attorney Act 1971 and each Chargor hereby covenants with the Security Trustee and separately with any such Receiver to ratify and confirm any document, act or thing and all transactions which any such attorney may lawfully execute or do.

 

14.          CONTINUING SECURITY AND OTHER MATTERS

 

14.1        Continuing Security

 

This Deed and the obligations of each Chargor under this Deed shall:

 

(a)           secure the ultimate balance of the Secured Obligations from time to time owing notwithstanding the dissolution, bankruptcy, liquidation or other Incapacity or any change in the constitution of such Chargor or in the name or style thereof and shall be a continuing security notwithstanding any settlement of account or other matter whatsoever;

 

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(b)           be in addition to, and shall not merge with or otherwise prejudice or affect, any present or future Security Document, Encumbrance, right or remedy held by or available to the Beneficiaries or any of them and/or the Security Trustee and may be enforced notwithstanding the same; and

 

(c)           not merge with or be in any way prejudiced or affected by the existence of any such Security Documents, Encumbrance, rights or remedies or by the same being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Beneficiaries or any of them and/or the Security Trustee dealing with, exchanging, releasing, varying or failing to perfect or enforce any of the same, or giving time for payment or indulgence or compounding with any other person liable.

 

14.2         Security Documents

 

Neither the Security Trustee nor any of the Beneficiaries shall be obliged to resort to any other Security Documents or other means of payment now or hereafter held by or available to it before enforcing this Deed and no action taken or omitted by the Security Trustee or any of the Beneficiaries in connection with any such Security Document or other means of payment shall discharge, reduce, prejudice or affect the liability of any Chargor nor shall the Security Trustee or any of the Beneficiaries be obliged to account for any money or other property received or recovered in consequence of any enforcement or realisation of any such Security Document or other means of payment.

 

14.3         New Accounts

 

Notwithstanding that any charge hereby created ceases to be continuing for any reason whatsoever the Security Trustee or any of the Beneficiaries may continue any account of any Chargor or other Security Provider or open one or more new accounts and the liability of each Chargor hereunder shall not in any manner be reduced or affected by any subsequent transaction or receipts or payments into or out of any such account.

 

14.4         Settlements Conditional

 

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

 

29



 

14.5         No Release

 

The liability of each Chargor shall not be affected nor shall the charge hereby created be discharged or diminished by reason of:

 

(a)           the Incapacity or any change in the name, style or constitution of any Chargor or any other person liable; or

 

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

 

(c)           any act or omission which would not have discharged or affected the liability of such Chargor had it been principal debtor instead of guarantor or by anything done or omitted which but for this provision might operate to exonerate such Chargor.

 

14.6         Restriction of the Chargors’ Rights

 

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

 

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

 

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

 

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

 

(d)           claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Security Provider or have the benefit of, or share in, any payment from or composition with any Security Provider or other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any Security

 

30



 

Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and the Security Trust Agreement.

 

14.7         Recoveries by the Chargor

 

If contrary to Clause 2.3 (No Security) or 14.6 (Restriction of the Chargors’ Rights) any Chargor takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

14.8         Treatment of “claims”

 

Each Chargor hereby agrees not to assert or enforce (whether by or in a legal or equitable proceeding or otherwise) any, “claims” (as defined in section 101(4) of the United States Bankruptcy Code) against any other Chargor, whether arising under any applicable law or otherwise, to which the Chargor is or would be entitled.  It is hereby acknowledged by the Security Trustee that this Clause 14.8 does not restrict the right of any Chargor to assert or enforce any “claims” against any other Security Provider to the extent that such “claims” arise after all the Security Providers have been released from all their respective obligations and liabilities hereunder.

 

15.          CURRENCIES

 

15.1        Conversion of Currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Deed at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the relevant Chargor shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to any Chargor in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

15.2         Currency Indemnity

 

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

 

31



 

16.          THE SECURITY TRUST AGREEMENT

 

Each Chargor and the Security Trustee hereby acknowledges that the covenants of such Chargor contained in this Deed and the security and other rights, titles and interests constituted by this Deed and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Deed are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

17.          MISCELLANEOUS

 

17.1        Exchange of Information

 

Each Chargor hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Charged Assets unless such information is the subject of a duty of confidentiality on the part of the Security Trustee or any Beneficiary not to disclose such information.

 

17.2         Remedies Cumulative

 

No failure or delay on the part of the Security Trustee or any of the Beneficiaries to exercise any power, right or remedy shall operate as a waiver thereof nor shall any single or any partial exercise or waiver of any power, right or remedy preclude its further exercise or the exercise of any other power, right or remedy.

 

17.3         Representations and Warranties

 

Each Chargor represents and warrants to the Security Trustee that:

 

(a)           Shareholders

 

that it has as its shareholders those persons set out in Schedule 1 (Charging Companies) (with the percentage interest set out therein) and no others;

 

(b)           Assets charged

 

it has charged all or substantially all of the assets it owns pursuant to the provisions of this Deed; and

 

(c)           Repetition

 

the representation and warranty contained in this Clause 17.3(b) shall be deemed to be repeated by each Chargor on the date on which all or any of the representations and warranties contained in Clause 21 (Representations and Warranties) of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 

32



 

17.4         No Breach of Memorandum and Articles of Association

 

It is hereby certified by each Chargor that neither the execution of this Deed nor the creation of the charges contained in this Deed contravenes any of the provisions of the Memorandum and Articles of Association of such Chargor (as the case may be).

 

17.5         Statutory Power of Leasing

 

During the continuance of this security the statutory and any other powers of leasing, letting, entering into agreements for leases or lettings and accepting or agreeing to accept surrenders of leases or tenancies shall not be exercised by any Chargor in relation to the Charged Assets or any part thereof.

 

17.6         Successors

 

Any appointment or removal of a Receiver under Clause 9 (Appointment and Powers of Receiver or Administrator) and any consents under this Deed may be made or given in writing signed or sealed by any successor Security Trustee appointed pursuant to the terms of the Security Trust Agreement and their respective successors in title and accordingly each Chargor hereby irrevocably appoints each successor Security Trustee appointed pursuant to the Security Trust Agreement and their respective successors in title to be its attorney in the terms and for the purposes set out therein.

 

17.7         Consolidation

 

Section 93 Law of Property Act 1925 shall not apply to the security created by this Deed or to any security given to the Security Trustee or any of the Beneficiaries pursuant to this Deed.

 

17.8         Reorganisation

 

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

 

17.9         Unfettered Discretion

 

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

 

17.10       Provisions Severable

 

Each of the provisions of this Deed is severable and distinct from the others and if any one or more of such provisions is or becomes invalid, illegal or unenforceable the validity, legality and enforceability of the remaining provisions of this Deed shall not in any way be affected or impaired thereby.

 

33



 

17.11       Law of Property (Miscellaneous Provisions) Act 1989

 

For the purposes of the Law of Property (Miscellaneous Provisions) Act 1989 any provisions of any Senior Finance Document relating to any disposition of an interest in land shall be deemed to be incorporated in this Deed.

 

17.12       No Assignment by the Chargors

 

None of the Chargors may assign or transfer any of its rights or obligations under this Deed.

 

17.13       Joint and Several Liabilities

 

The covenants, agreements, obligations and liabilities of the Chargors contained in this Deed or implied on their part are joint and several and shall be construed accordingly.

 

17.14       Liabilities Survive Deficiencies and Releases

 

Each Chargor agrees to be bound by this Deed notwithstanding that any person intended to execute or to be bound by this Deed may not do so or may not be effectually bound and notwithstanding that any charges contained in this Deed may be terminated or released or may be or become invalid or unenforceable against any other person whether or not the deficiency is known to the Security Trustee or any of the Beneficiaries.

 

17.15       Letters of Non-crystallisation

 

The Security Trustee shall, at the request and cost of any Chargor, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Floating Charge Assets.

 

17.16       Release

 

Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 14.4 (Settlements Conditional), the Security Trustee shall, at the request and cost of the relevant Chargor, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

18.          NOTICES

 

18.1        Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Deed shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on a Chargor in the manner and at the address set out in Clause 20 (Notices) of the Group Intercreditor Deed.

 

34



 

18.2         Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Deed shall, save for manifest error, be conclusive and binding upon a Chargor if signed by an officer of the Security Trustee.

 

19.          LAW AND JURISDICTION

 

19.1        Governing Law

 

This Deed, including all non-contractual obligations arising out of or in connection with it, shall be governed by English law.

 

19.2        Submission to Jurisdiction

 

Each Chargor agrees for the benefit of the Security Trustee that any legal action or proceedings in connection with this Deed against any Chargor or any of their respective assets may be brought in the English courts.  Each Chargor irrevocably and unconditionally submits to the jurisdiction of such courts.  The submission to such jurisdiction shall not (and shall not be construed so as to) limit the right of the Security Trustee or any of the Beneficiaries to enforce any judgment obtained in any court referred to in this Clause 19.2 in any jurisdiction in which any of the assets of such Chargor are situated, nor shall the taking of proceedings in any one or more jurisdiction referred to in this Clause 19.2 preclude the taking of proceedings in any other such jurisdiction, whether concurrently or not.

 

19.3        Inconvenient Forum

 

Each Chargor irrevocably waives any objection it may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in Clause 19.2 (Submission to Jurisdiction) and any claim it may have now or hereafter that any action or proceeding brought in such courts or jurisdiction has been brought in an inconvenient forum.

 

IN WITNESS whereof this Deed has been executed and delivered by or on behalf of the parties on the date stated at the beginning of this Deed.

 

35


 

SCHEDULE 1

 

CHARGING COMPANIES

 

COMPANY NAME

 

COMPANY
NUMBER

 

NAME OF
SHAREHOLDER(S)

 

NO. OF
SHARES

Barnsley Cable Communications Limited

 

02466594

 

The Yorkshire Cable Group Limited

 

2 Ordinary Shares

Doncaster Cable Communications Limited

 

02407940

 

The Yorkshire Cable Group Limited

 

2 Ordinary Shares

Halifax Cable Communications Limited

 

02459173

 

The Yorkshire Cable Group Limited

 

2 Ordinary Shares

Telewest Communications (Cumbernauld) Limited

 

SC121614

 

Telewest Communications (Scotland Holdings) Limited

 

70,324 Ordinary Shares

Telewest Communications (Dumbarton) Limited

 

SC121700

 

Telewest Communications (Scotland Holdings) Limited

 

29,990 Ordinary Shares

Telewest Communications (Falkirk) Limited

 

SC122481

 

Telewest Communications (Scotland Holdings) Limited

 

124,511 Ordinary Shares

Telewest Communications (Glenrothes) Limited

 

SC119523

 

Telewest Communications (Scotland Holdings) Limited

 

7,311,505 Ordinary Shares

Wakefield Cable Communications Limited

 

02400909

 

The Yorkshire Cable Group Limited

 

117,492 Ordinary Shares

 

36



 

SCHEDULE 2

 

NOTICES OF ASSIGNMENT/ACKNOWLEDGEMENTS

 

Part 1

 

Intercompany Indebtedness

 

Part 1A

 

Form of Notice of Assignment

 

To:          [specify relevant intercompany debtor]

 

[Date]

 

Dear Sirs,

 

We, [specify Chargor], hereby give you notice that:

 

1.                                       pursuant to a debenture dated [·] (the “Debenture”) (a copy of which is appended hereto) entered into by (inter alios) us in favour of [·] as security trustee for the Beneficiaries as therein defined (the “Security Trustee”) we have assigned the following assets to the Security Trustee:

 

(a)                                  all our present and future rights, title, benefits and interests in and under the loan agreements dated [specify] (the “Intercompany Loan Agreement(s)”);

 

(b)                                 all our present and future rights, title benefit and interest in and to all principal and interest payable under the Intercompany Loan Agreement(s) and any other amounts payable in respect thereof;

 

2.                                       the Security Trustee has agreed that, until such time as the Security Trustee notifies you to the contrary, we may continue to exercise all of our rights under the Intercompany Loan Agreement(s);

 

3.                                       upon the security granted by the Debenture becoming enforceable, we may not vary extend release determine or rescind any of the Intercompany Loan Agreement(s) or grant time for payment or indulgence or compound with discharge waive release set off or vary the liability of any other person thereunder or consent to any act or omission as would otherwise constitute a breach or concur in accepting or varying any compromise arrangement or settlement relating thereto or do or suffer any act or thing or permit any set off whereby the recovery of any moneys payable may be delayed or impeded;

 

4.                                       the authority and instructions herein contained cannot be revoked or varied by us without the prior written consent of the Security Trustee.

 

37



 

Please acknowledge receipt of this notice by signing the acknowledgement attached to the enclosed copy letter and returning the same to the Security Trustee.

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

 

 

Authorised Officer

 

 

38



 

Part 1B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [·]

 

[Date]

 

Dear Sirs,

 

1.                                       We refer to the notice of assignment issued to us by [specify Chargor].

 

2.                                       Unless the context otherwise requires, terms defined in, or incorporated by reference into, the Debenture (as defined below) shall bear the same meaning herein.

 

3.                                       We hereby:

 

(a)                                  acknowledge receipt of notice from [specify Chargor] that, by a debenture dated [•] (the “Debenture”) and made between (inter alios) [specify Chargor] and the Security Trustee, [specify Chargor] has assigned to the Security Trustee all of its present and future rights, title, benefits and interests in and under the Intercompany Loan Agreement(s), as therein defined;

 

(b)                                 agree to, and accept, the making of such assignment;

 

(c)                                  undertake to the Security Trustee to accept as valid, and act upon and observe where required, any notices or demands given or made by the Security Trustee in respect of the Intercompany Loan Agreement(s) in place of [specify Chargor];

 

(d)                                 agree to deliver to the Security Trustee copies of all notices delivered by us to [specify Chargor];

 

(e)                                  acknowledge that the making of the assignment referred to above shall not affect the liability of [specify Chargor] to perform all the obligations assumed by it under the Intercompany Loan Agreement(s) and that the Security Trustee shall have no obligations (whether in place of [specify Chargor] or otherwise) in respect of the Intercompany Loan Agreement(s) except insofar as such obligations may arise as a result of the Security Trustee exercising any of those rights conferred upon it under any agreement between (inter alios) us and the Security Trustee relating to the Assigned Assets; and

 

(f)                                    confirm that we have not received any prior notice of assignment, transfer or charge in respect of [specify Chargor], rights, title, benefits and interests in and under the Intercompany Loan Agreement(s).

 

39



 

4.                                       This Acknowledgement shall be governed by, and construed in accordance with, English law.

 

Yours faithfully,

 

For and on behalf of

[·]

 

 

 

 

Authorised Officer

 

 

40



 

Part 2

 

Insurances

 

Part 2A

 

Form of Notice of Assignment

 

To:          [insert name of insurer]

 

[Date]

 

Dear Sirs,

 

We, [specify Chargor], hereby give you notice that:

 

(i)                                     pursuant to a debenture dated [·] (the “Debenture”) we have charged and assigned to [  ] (as security trustee for the Beneficiaries referred to in the Debenture, the “Security Trustee”) all our rights, title, interests and benefits in, to or in respect of the insurance policies with you detailed in Part 1 of the Schedule attached hereto (the “Insurances”) including all claims and returns of premiums in respect thereof to which we are, or may at any future time become, entitled.

 

With effect from your receipt of this notice we hereby request and instruct that:

 

1.                                       you immediately name the Beneficiaries (details of whom are set out in Part 2 of the Schedule attached hereto) and the Security Trustee (in its capacity as security trustee) as loss payee in respect of each of the Insurances);

 

2.                                       upon the security granted by the Debenture in respect of the Insurances becoming enforceable (as notified to you by the Security Trustee):

 

(a)                                  all payments under or arising from the Insurances are to be made to the Security Trustee or to its order;

 

(b)                                 all remedies provided for in the Insurances or available at law or in equity are to be exercisable by the Security Trustee;

 

(c)                                  all rights to compel the performance of the Insurances are to be exercisable by the Security Trustee; and

 

(d)                                 all rights, title, interests and benefits whatsoever accruing to or the benefit of ourselves arising from the Insurances shall belong to the Security Trustee; and

 

3.                                       you give notice to the Security Trustee promptly in writing:

 

(a)                                  if we propose to cancel or give notice of cancellation of any Insurance, at least 30 days before such cancellation is to take effect;

 

(b)                                 of any material alteration or the termination or expiry of any such Insurance, at least 30 days before such alteration, termination or expiry is to take effect; and

 

41



 

(c)                                  of any default in the payment of any premium or failure to renew any such Insurance and shall give the Security Trustee not less than 30 days in which to pay the defaulted premium without cancelling the policy during such 30 days period.

 

Please confirm your receipt of this notice and your acknowledgement of the matters and instructions set out above by signing and dating the Acknowledgement of Assignment set out on the enclosed copy of this notice, and returning the same to the Security Trustee with a copy to ourselves.

 

Yours faithfully,

 

For and on behalf of

[Specify Chargor]

 

 

 

 

Authorised Officer

 

 

42


 

SCHEDULE

 

Part 1

 

Relevant Insurance Policies

 

None

 

Part 2

 

Beneficiaries

 

None

 

43



 

Part 2B

 

Form of Acknowledgement of Assignment

 

[To be attached to the Notice of Assignment]

 

To:          [·]

as Security Trustee

 

[Date]

 

Dear Sirs,

 

We hereby acknowledge receipt of a notice in the terms set out above (the “Notice”).

 

We confirm that we shall hereafter act in accordance with the Notice and that we have not received any other notice of any other third party interests whether by way of assignment or charge in respect of any of the Insurances.

 

We further confirm that no amendment or termination of any of the Insurances shall be effective unless we have given you [30] days’ prior written notice of our intention to so amend or terminate the same.

 

Yours faithfully,

 

 

 

 

 

(Authorised Signatory)

 

 

[INSURER]

 

Date:

 

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SCHEDULE 3

 

DETAILS OF CHARGED LAND

 

Part 1

 

PART 1A
Registered Land

 

NAME OF
CHARGOR

 

ADDRESS

 

FREEHOLD /
LEASEHOLD

 

TITLE
NUMBER

 

TERM (IF
LEASEHOLD)

 

DATE OF
LEASE (IF
LEASEHOLD)

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

PART 1B

 

Unregistered Land

 

The freehold/leasehold property known as and comprised in the following title deed(s) or other document(s) of title:

 

CHARGOR

 

ADDRESS

 

FREEHOLD/LEASEHOLD

 

DATE OF LEASE
(IF
LEASEHOLD)

N/A

 

N/A

 

N/A

 

N/A

 

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SCHEDULE 4

 

REGISTERED, INTELLECTUAL PROPERTY RIGHTS

 

A.            UNITED KINGDOM TRADE MARKS

 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

B.            COMMUNITY TRADE MARKS

 

Mark

 

App./Reg.
No.

 

App./Reg.
Date

 

Class(es)

 

Proprietor

 

Status

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

EP PATENTS

 

PATENT NUMBER

 

TITLE

 

DATE OF FILING

 

STATUS

 

N/A

 

N/A

 

N/A

 

N/A

 

 



 

GB PATENTS

 

PATENT NUMBER

 

TITLE

 

DATE OF FILING

 

STATUS

 

N/A

 

N/A

 

N/A

 

N/A

 

 

47



 

SCHEDULE 5

 

INTERCOMPANY LOANS

 

Company name (Creditor)

 

Company name (Debtor)

 

Balances in GBP
as at 31 March
2010

 

 

 

 

(US GAAP)

Yorkshire Cable Communications Limited

 

Barnsley Cable Communications Limited

 

44,031,802.57

Yorkshire Cable Communications Limited

 

Doncaster Cable Communications Limited

 

76,752,713.70

Yorkshire Cable Communications Limited

 

Halifax Cable Communications Limited

 

34,786,117.03

Yorkshire Cable Communications Limited

 

Wakefield Cable Communications Limited

 

51,371,124.05

Telewest Communications (Scotland) Venture

 

Telewest Communications (Cumbernauld) Limited

 

32,275,218.78

Telewest Communications (Scotland) Venture

 

Telewest Communications (Dumbarton) Limited

 

41,283,087.67

Telewest Communications (Scotland) Venture

 

Telewest Communications (Falkirk) Limited

 

60,059,534.80

Telewest Communications (Scotland) Venture

 

Telewest Communications (Glenrothes) Limited

 

38,726,689.91

 

 

 

 

 

TOTAL

 

 

 

379,286,288.51

 


 

SIGNATORIES

 

 

Executed as a deed by BARNSLEY CABLE COMMUNICATIONS LIMITED acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

/s/ LUCY MERRITT

 

Name: Lucy Merritt

 

Address:

Virgin Media Limited

 

Legal Affairs Department

 

Bartley Wood Business Park

 

Hook

 

Hampshire

 

RG27 9UP

Occupation: PA

 

Executed as a deed by DONCASTER CABLE COMMUNICATIONS LIMITED acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

/s/ LUCY MERRITT

 

Name: Lucy Merritt

 

Address:

Virgin Media Limited

 

Legal Affairs Department

 

Bartley Wood Business Park

 

Hook

 

Hampshire

 

RG27 9UP

Occupation: PA

 



 

Executed as a deed by HALIFAX CABLE COMMUNICATIONS LIMITED acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

/s/ LUCY MERRITT

 

Name: Lucy Merritt

 

Address:

Virgin Media Limited

 

Legal Affairs Department

 

Bartley Wood Business Park

 

Hook

 

Hampshire

 

RG27 9UP

Occupation: PA

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (CUMBERNAULD) LIMITED acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

/s/ LUCY MERRITT

 

Name: Lucy Merritt

 

Address:

Virgin Media Limited

 

Legal Affairs Department

 

Bartley Wood Business Park

 

Hook

 

Hampshire

 

RG27 9UP

Occupation: PA

 



 

Executed as a deed by TELEWEST COMMUNICATIONS (DUMBARTON) LIMITED acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

/s/ LUCY MERRITT

 

Name: Lucy Merritt

 

Address:

Virgin Media Limited

 

Legal Affairs Department

 

Bartley Wood Business Park

 

Hook

 

Hampshire

 

RG27 9UP

Occupation: PA

 

 

Executed as a deed by TELEWEST COMMUNICATIONS (FALKIRK) LIMITED acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

/s/ LUCY MERRITT

 

Name: Lucy Merritt

 

Address:

Virgin Media Limited

 

Legal Affairs Department

 

Bartley Wood Business Park

 

Hook

 

Hampshire

 

RG27 9UP

Occupation: PA

 



 

Executed as a deed by TELEWEST COMMUNICATIONS (GLENROTHES) LIMITED acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

in the presence of:

 

 

 

/s/ LUCY MERRITT

 

Name: Lucy Merritt

 

Address:

Virgin Media Limited

 

Legal Affairs Department

 

Bartley Wood Business Park

 

Hook

 

Hampshire

 

RG27 9UP

Occupation: PA

 

 

Executed as a deed by WAKEFIELD CABLE COMMUNICATIONS LIMITED acting by Robert Mackenzie, a director

 

/s/ ROBERT MACKENZIE

 

 

 

/s/ LUCY MERRITT

 

Name: Lucy Merritt

 

Address:

Virgin Media Limited

 

Legal Affairs Department

 

Bartley Wood Business Park

 

Hook

 

Hampshire

 

RG27 9UP

Occupation: PA

 



 

THE SECURITY TRUSTEE

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

By: Nicola Dawes

 

 

 

By:

/s/ NICOLA DAWES

 

 

Address:

Deutsche Bank AG London

 

Winchester House

 

1 Great Winchester Street

 

London

 

EC2N 2DB

Fax Number:

 

Attention: N Dawes / R Thareria

 




Exhibit 4.20

 

STANDARD SECURITY

 

by

 

CABLETEL (UK) LIMITED

 

and

 

DEUTSCHE BANK AG, London Branch, as Security Trustee

 

Subjects:  Land and Warehouse Premises at Glasgow Road, Renfrew

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

FAS: 1310

 

Ref: DAC/CLP/DEU002.0063

 



 

WE, CABLETEL (UK) LIMITED, incorporated under the Companies Acts (Company Number: 02835551) and having our Registered Office at 160 Great Portland Street, London, W1W 5QA (the “Chargor”) CONSIDERING THAT:

 

(1)                                  the Chargor (among others) has entered into the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (which senior facilities agreement as supplemented, amended, extended, renewed or replaced from time to time is hereinafter referred as the “Senior Facilities Agreement”) in terms of which inter alia certain loan facilities have been made available to the Chargor;

 

(2)                                  by an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (which intercreditor deed as amended, restated, modified, supplemented or novated from time to time is hereinafter referred as the “Group Intercreditor Deed”) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors (as each of those terms are defined therein) and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

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

 

(4)                                  pursuant to the Senior Facilities Agreement and Senior Secured Notes Indenture, the Chargor (among others) has granted a composite debenture in favour of Deutsche Bank AG, London Branch as security trustee for the Beneficiaries (as defined in the Debenture) (who and whose successors are hereinafter referred to as the “Security Trustee”) dated on or around the date hereof as such Debenture may be amended or restated from time to time (hereinafter referred to as the “Debenture”) in security of the Secured Obligations (as defined in the Debenture);

 

(5)                                  pursuant to the terms of the Senior Finance Documents the Chargor has agreed to grant this Standard Security; and

 

2



 

(6)                                  words and expressions defined in the Group Intercreditor Deed, the Debenture and (unless otherwise defined in the Group Intercreditor Deed and/or the Debenture) the Relevant Facilities Agreement (as defined in the Debenture) shall have the same meaning in this Standard Security:

 

NOW THEREFORE the Chargor in security of the payment, discharge and performance of the Secured Obligations HEREBY GRANTS a Standard Security in favour of the Security Trustee over ALL and WHOLE the Subjects comprising land and warehouse premises at Glasgow Road, Renfrew and registered in the Land Register of Scotland under Title Number REN93989; Together with (1) the whole parts, privileges and pertinents effeiring thereto; (2) the whole fixtures and fittings therein and thereon; and (3) the Chargor’s whole right, title and interest, present and future, in and to the said subjects (hereinafter referred to as the “Security Subjects”); The Standard Conditions specified in Schedule 3 to the Conveyancing and Feudal Reform (Scotland) Act 1970 as amended (the “1970 Act”) and any lawful variation thereof operative for the time being shall apply; And the Chargor agrees that (1) the Standard Conditions shall be varied in so far as lawful and applicable by the Senior Finance Documents (each of which shall be deemed to be incorporated herein) under declaration that in the event of there being any inconsistency between the Standard Conditions and the Senior Finance Documents, the terms of the Senior Fianance Documents shall prevail and (2) for the purposes of Standard Condition 9, the debtor shall be held to be in default in any of the events constituting an Event of Default as defined in the Debenture; Declaring that (a) words and expressions which are incorporated in the foregoing variation and which are defined in the 1970 Act or in the said Schedule thereto (as in each case so amended) shall be deemed to be so defined for the purpose of the foregoing also, and (b) each and every provision of this Standard Security shall be separately given the fullest effect permitted by law and if at any time one or more of the provisions of this Standard Security shall be or become unenforceable or in any respect under any law the validity, legality and enforceability of the remaining provisions of this Standard Security shall not in any way be affected or impaired thereby and the provision or provisions affected by such unenforceability shall be given effect in all other respects other than that in which it is/they are unenforceable;

 

3



 

And the Chargor grants warrandice, but excepting therefrom (i) the Lease of part of the Security Subjects between the Chargor and National Transcommunications Limited dated 27 January 2005, as varied by Deed of Variation between the Chargor and National Transcommunications Limited dated 31 January 2005 (which Lease, as so varied, is to be/may be registered in the Land Registry of Scotland) and (ii) the existing standard security dated 3 March and registered in the Land Register of Scotland under Title Number REN93989 on 10 March 2006; And the Chargor consents to registration of these presents for preservation and execution:

 

IN WITNESS WHEREOF these presents consisting of this and the two preceding pages are subscribed for and on behalf of CABELTEL (UK) LIMITED acting by its director VIRGIN MEDIA DIRECTORS LIMITED in the presence of a witness as follows:

 

ROBERT MACKENZIE duly authorised by

VIRGIN MEDIA DIRECTORS LIMITED

to sign on its behalf as director

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

In the presence of:

 

 

 

 

 

/s/ DAVID MILTON HICKS SR

 

Witness

David Milton Hicks Sr

 

Full Name

[Intentionally Omitted]

 

Address

 

 

 

 

 

 

In the presence of:

 

 

 

 

 

/s/ SARAH COTTELL

 

Witness

Sarah Cottell

 

Full Name

Fried Frank

 

Address

99 City Road, London EC1Y 1AX

 

 

 

 

 

all together at London

 

 

on 19/1/2010

 

 

 

4




Exhibit 4.21

 

RANKING AGREEMENT

 

among

 

CABLETEL (UK) LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH as First Security Trustee and Second Security Trustee

 

 

19 January 2010

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

FAS: 1310

 

 

 

Ref: DAC/CLP/DEU002.0063

 



 

 

RANKING AGREEMENT

 

 

 

amongst

 

 

 

CABLETEL (UK) LIMITED, incorporated under the Companies Acts (Company Number 02835551) and having its Registered Office at 160 Great Portland Street, London, W1W 5QA (the “Chargor”)

 

 

 

and

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH, in its capacity as security trustee for the First Beneficiary and the Second Beneficiaries under the First Standard Security (the “First Security Trustee”)

 

 

 

and

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH, in its capacity as security trustee for the First Beneficiary and the Second Beneficiaries under the Second Standard Security (the “Second Security Trustee”)

 

WHEREAS:-

 

A.                                   The Chargor has granted in favour of the First Security Trustee the First Standard Security;

 

B.                                     The Chargor has granted in favour of the Second Security Trustee the Second Standard Security;

 

C.                                     The First Security Trustee and the Second Security Trustee wish to regulate their respective priorities in the manner set out in this Agreement; and

 

D                                       The Chargor has agreed to the said ranking of the respective priorities of the Standard Securities as is evidenced by its execution of this Agreement.

 

NOW THEREFORE IT IS AGREED AS FOLLOWS:-

 

1.                                       INTERPRETATION

 

1.1                                 In this Agreement the following expressions shall have the meanings set out opposite them:

 

 

Beneficiaries

 

shall mean the First Beneficiary and the Second Beneficiaries as defined in the Group Intercreditor Deed

 

 

 

 

 

First Standard Security

 

shall mean the standard security granted by the

 

2



 

 

 

 

Chargor in favour of the First Security Trustee over the Security Subjects dated 3 and registered in the Land Register of Scotland on 10, both March 2006, as varied by Deed of Variation of Standard Security by the Chargor in favour of the First Security Trustee dated on or around the date hereof and registered or about to be registered in the Land of Register of Scotland

 

 

 

 

 

Group Intercreditor Deed

 

shall mean the group intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 and as amended, restated, modified, supplemented or novated from time to time entered into among the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors (as each of those terms are defined therein) and certain other members of the Group.

 

 

 

 

 

Second Standard Security

 

shall mean the standard security granted or to be granted by the Chargor in favour of the Second Security Trustee over the Security Subjects dated on or around the date hereof and registered or about to be registered in the Land Register of Scotland

 

 

 

 

 

Security Subjects

 

shall mean ALL and WHOLE the subjects comprising the land and warehouse premises at Glasgow Road, Renfrew and registered in the Land Register of Scotland under Title Number REN93989

 

 

 

 

 

Standard Securities

 

shall mean the First Standard Security and the Second Standard Security

 

1.2                                Unless otherwise stated, the terms defined in the Group Intercreditor Deed shall have the same meaning herein (including in the recitals hereto).

 

1.3                                References to the First Security Trustee, the Second Security Trustee and the Chargor include their respective successors and assignees permitted in terms of the Group Intercreditor Deed.

 

1.4                                In this Agreement, the singular includes the plural and vice versa.  Clause headings are for convenience only.

 

1.5                                Reference to any statutory provision shall be deemed to include reference to any statute or statutory provision which amends, extends, consolidates or replaces the same or which has been amended, extended, consolidated or replaced by the same, and to any order, regulation, instrument or other subordinate legislation made under the relevant statute.

 

3



 

2.                                       GROUP INTERCREDITOR DEED

 

This Agreement is supplemental to the Group Intercreditor Deed and the whole terms, undertakings, obligations, powers, rights, provisions and others of and contained in the Group Intercreditor Deed are held to be incorporated in and shall be deemed to form part of this Agreement.  In the event of any inconsistency between the terms of this Agreement and the terms of the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

3.                                       RANKING

 

The Standard Securities shall rank in the following order of priority, namely:-

 

The First Standard Security and the Second Standard Security shall rank pari passu as if they had been created simultaneously and as a continuing security for, and shall not be affected by any fluctuations in the amounts secured thereby.

 

4.                                       EXCLUSION OF LEGAL RULES

 

Notwithstanding the provisions of Section 13 of the Conveyancing and Feudal Reform (Scotland) Act 1970 or Sections 464 or 466 of the Companies Acts 1985, or any other rule of law which might operate to the contrary effect, the provisions of Clause 3 as to ranking of the Standard Securities shall be valid and effective irrespective of the dates or times at which the Standard Securities were executed or constituted or registered and irrespective of the date or dates on which sums have been or may be advanced by the Beneficiaries to any Chargor or any other person or have been or shall be drawn out by any Chargor or any other person or debited to any Chargor or any other person, the Chargor having no concern with the composition of or fluctuations in the sum or sums due by the Chargor to the Beneficiaries.

 

5.                                       DAMAGE/DESTRUCTION

 

In the event of damage to or destruction of the Security Subjects or any part thereof by any risk insured against by any Chargor from time to time and in the event that the insurance monies shall not be used to reinstate the Security Subjects or the relevant part thereof, the insurance monies shall be treated as heritable and secured by the Standard Securities and the respective rankings set out in Clause 3 hereof shall apply to such monies as if such monies were fully secured by the Standard Securities.

 

6.                                       VARIATION/ALTERATION

 

The Standard Securities are hereby varied to the extent specified in the Agreement and this Agreement shall be construed and receive effect as a variation within the meaning of Section 16 of the Conveyancing and Feudal Reform (Scotland) Act 1970.

 

7.                                       PROPER LAW

 

This Ranking Agreement shall be governed by and construed in accordance with the law of Scotland and each of the parties hereto hereby prorogates and accepts the jurisdiction of the Court of Session in Edinburgh.

 

4



 

8.                                       CONSENT TO REGISTRATION

 

The parties hereto consent to registration hereof for preservation:  IN WITNESS WHEREOF these presents comprising this and the preceding three pages are subscribed for and on behalf of CABLETEL (UK) LIMITED acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED as follows:-

 

ROBERT MACKENZIE duly authorised by

VIRGIN MEDIA DIRECTORS LIMITED

to sign on its behalf as director

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

 

 

 

In the presence of:

 

 

 

 

 

/s/ MANOJ BHUNDIA

Witness

 

 

 

 

Manoj Bhundia

Print full name of Witness

 

 

 

 

99 City Road

Address of Witness

 

London EC1Y 1AX

 

 

 

 

 

together at

 

 

 

 

 

on

 

 

 

 

 

ROBERT GALE duly authorised by

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

to sign on its behalf as director

 

 

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

In the presence of:

 

 

 

 

 

/s/ MANOJ BHUNDIA

Witness

 

 

 

 

Manoj Bhundia

Print full name of Witness

 

 

 

 

99 City Road

Address of Witness

 

London EC1Y 1AX

 

 

 

 

 

 

 

 

together at

 

 

 

 

 

on

 

 

5



 

SUBSCRIBED for and on behalf of DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the First Beneficiary and the Second Beneficiaries under the First Standard Security:

 

 

at

London

 

 

 

on

19th January 2010

 

 

 

by

 

 

 

 

 

 

 

 

/s/ NICOLA ANNE DAWES

 

Nicola Anne Dawes

 

Authorised Signatory

 

 

Full Name

 

 

 

 

 

/s/ VIKKI ANNE MAYELL

 

Vikki Anne Mayell

 

Authorised Signatory

 

 

Full Name

 

 

 

 

 

 

 

 

 

/s/ CHRISTOPHER MARK AMOTT

 

 

Christopher Mark Amott

 

Witness

 

Witness Full Name

 

 

 

 

 

 

 

 

Deutsche Bank AG London

 

 

 

 

Winchester House

 

 

 

 

1 Great Winchester Street

 

 

 

 

London EC2N 2DB

 

 

 

 

Address

 

 

SUBSCRIBED for and on behalf of DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the First Beneficiary and the Second Beneficiaries under the Second Standard Security:

 

 

at

London

 

 

 

 

 

 

 

 

on

19th January 2010

 

 

 

 

 

 

 

 

by

 

 

 

 

 

 

 

 

 

/s/ NICOLA ANNE DAWES

 

Nicola Anne Dawes

 

Authorised Signatory

 

 

Full Name

 

 

 

 

 

/s/ VIKKI ANNE MAYELL

 

Vikki Anne Mayell

 

Authorised Signatory

 

 

Full Name

 

 

 

 

 

 

 

 

 

/s/ CHRISTOPHER MARK AMOTT

 

 

Christopher Mark Amott

 

Witness

 

 

Witness

 

Full Name

 

 

 

 

 

 

 

 

 

 

Deutsche Bank AG London

 

 

 

 

Winchester House

 

 

 

 

1 Great Winchester Street

 

 

 

 

London EC2N 2DB

 

 

 

 

Address

 

6


 

 

 



Exhibit 4.22

 

SHARES PLEDGE

 

by

 

VIRGIN MEDIA LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

19 January 2010

 

DUNDAS & WILSON CS LLP

 

 

 

 

 

Saltire Court

 

 

20 Castle Terrace

 

 

Edinburgh EH1 2EN

 

 

 

 

 

Tel 0131 228 8000

 

 

Fax 0131 228 8888

 

 

Legal Post: LP2 Edinburgh 6

 

 

 

 

 

Ref: DO/CLP/DEU002.0038

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

OBLIGATION TO PAY

8

 

 

 

3.

SECURITY

9

 

 

 

4.

UNDERTAKINGS

9

 

 

 

5.

WARRANTIES

12

 

 

 

6.

VOTING RIGHTS, DIVIDENDS ETC.

12

 

 

 

7.

LIABILITY TO PERFORM

13

 

 

 

8.

ENFORCEMENT

13

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

14

 

 

 

10.

RECONVEYANCE

15

 

 

 

11.

PROTECTION OF SECURITY

15

 

 

 

12.

FURTHER ASSURANCE

17

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

SECURITY TRUST AGREEMENT

17

 

 

 

15.

INDEMNITIES; COSTS AND EXPENSES

18

 

 

 

17.

CURRENCIES

19

 

 

 

18.

MISCELLANEOUS

19

 

 

 

19.

NOTICES

19

 

 

 

20.

SET-OFF

20

 

 

 

21.

GOVERNING LAW

20

 

SCHEDULE

Pledged Securities

 



 

SHARES PLEDGE

 

between

 

(A)       VIRGIN MEDIA LIMITED (formerly known as NTL Group Limited) incorporated under the laws of England and Wales with registered number 02591237 and having its registered office at 160 Great Portland Street, London W1W 5QA (hereinafter referred to as the Company); and

 

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

 

CONSIDERING THAT:

 

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

 

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

 

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

 

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

 

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

 

NOW IT IS HEREBY PROVIDED AND DECLARED THAT:-

 

1.             INTERPRETATION

 

1.1           In this Instrument:

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Chargors

 

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

 



 

Debenture

 

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

 

 

 

Default Rate

 

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

 

 

 

Designated Secured Obligations

 

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

 

 

 

Enforcement Date

 

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

 

 

 

Event of Default

 

means each of:

 

 

 

 

 

(a)

a Senior Default; and

 

 

 

 

 

 

(b)

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

 

 

 

Excluded Charged Assets

 

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

 

 

 

Existing Security Trustee

 

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

 



 

Existing Share Pledge

 

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

 

 

 

Incapacity

 

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

 

 

 

Instructing Party

 

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

 

 

 

Indemnified Party

 

has the meaning set out in Clause 15.3;

 

 

 

Liability

 

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

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Encumbrance

 

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

 

 

 

Pledged Company

 

means Prospectre Limited (registered number SC145280);

 

 

 

Pledged Securities

 

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

 

 

 

Receiver

 

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

 



 

 

 

otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

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

 

 

 

Rule 3-16

 

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

 

 

 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

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

 

 

 

 

 

(a)

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

 

 

 

 

 

 

(b)

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

 



 

 

 

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

 

 

 

Securities Act

 

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

 

 

 

Security Period

 

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

 

 

 

Security Provider

 

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

 

 

 

Security Trust Agreement

 

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

 

 

 

Senior Facilities Agreement

 

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

 

 

 

Senior Secured Notes

 

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

 



 

Senior Secured Notes Documents

 

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

 

 

 

Senior Secured Notes Indenture

 

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

 

1.2       Successors and assigns

 

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

 

1.3       Agreement definitions

 

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

 

1.4       Headings

 

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

 

1.5       Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

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

 



 

agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.6       Group Intercreditor Deed

 

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

 

1.7       Construction of certain terms

 

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

 

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

 

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

 



 

2.             OBLIGATION TO PAY

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 



 

2.6       Recoveries by the Company

 

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

 

3.             SECURITY

 

3.1       In security of the Secured Obligations the Company hereby:

 

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

 

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

 

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

 

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

 

4.             RULE 3-16 LIMITATION

 

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

 

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

 

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

 

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

 



 

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

 

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

 

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

 

5.             UNDERTAKINGS

 

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

 



 

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

 

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

 

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

 

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

 

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

 



 

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

 

6.             WARRANTIES

 

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

 

7.             VOTING RIGHTS, DIVIDENDS ETC

 

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

 

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

 


 

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

 

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

 

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

 

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

 

8.             LIABILITY TO PERFORM

 

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

 

9.             ENFORCEMENT

 

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

 

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

 

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

 



 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10.           APPLICATION OF ENFORCEMENT MONEYS

 

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

 



 

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

 

11.        RECONVEYANCE

 

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

 

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

 

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

 

12.           PROTECTION OF SECURITY

 

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

 

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

 

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

 

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

 



 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 



 

13.           FURTHER ASSURANCE

 

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

 

14.           MANDATE AND ATTORNEY

 

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

 

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

 

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

 

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

 

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

 

15.           SECURITY TRUST AGREEMENT

 

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

 



 

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

 

16.           INDEMNITIES; COSTS AND EXPENSES

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17.           AVOIDANCE OF PAYMENTS

 

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

 



 

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

 

18.           CURRENCIES

 

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

 

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

 

19.           MISCELLANEOUS

 

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

 

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

 

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

 

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

 

20.           NOTICES

 

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

 



 

21.           SET-OFF

 

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

 

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

 

22.           GOVERNING LAW

 

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

 

23.           CONSENT TO REGISTRATION

 

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

 

 

Subscribed for and on behalf of

 

 

 

VIRGIN MEDIA LIMITED

 

 

 

acting by:

 

 

 

 

 

 

 

/s/ ROBERT GALE

 

/s/ ROBERT MACKENZIE

 

Director

 

Director

 

 

 

 

 

all together at

 

 

 

on

 

 

 



 

 

Subscribed for and on behalf of

 

PROSPECTRE LIMITED

 

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA

 

SECRETARIES LIMITED:

 

 

 

Robert Mackenzie duly authorised by

 

Virgin Media Directors Limited to sign on its behalf as director

 

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

 

 

99 City Road,

 

Address of Witness

 

London, EC1Y 1AX

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 

 

 

Robert Gale duly authorised by

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

 

 

99 City Road

 

Address of Witness

 

London, EC1Y 1AX

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 



 

 

Subscribed for and on behalf of

 

DEUTSCHE BANK AG, LONDON BRANCH as Security Trustee acting by

 

 

 

 

 

/s/ NICOLA DAWES

 

Authorised Signatory

 

 

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

 

 

/s/ VIKKI MAYELL

 

Authorised Signatory

 

 

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

 

 

all together at London

 

 

 

on 19th January 2010

 

 

 

 

 

 

 

Subscribed for and on behalf of

 

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

 

 

 

/s/ NICOLA DAWES

 

Authorised Signatory

 

 

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

 

 

/s/ VIKKI MAYELL

 

Authorised Signatory

 

 

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

 

 

all together at London

 

 

 

on 19th January 2010

 

 

 



 

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

 

Pledged Securities

 

(A)          401,000 fully paid ordinary shares of £1 each in the capital of Prospectre Limited (with registered number SC145280);

 

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

 

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

 




Exhibit 4.23

 

SHARES PLEDGE

 

 

by

 

NTL GLASGOW

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

19 January 2010

 

 

 

DUNDAS & WILSON CS LLP

 

 

 

 

 

Saltire Court

 

 

20 Castle Terrace

 

 

Edinburgh EH1 2EN

 

 

 

 

 

Tel 0131 228 8000

 

 

Fax 0131 228 8888

 

 

Legal Post: LP2 Edinburgh 6

 

 

 

 

 

Ref: DO/CLP/DEU002.0038

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

OBLIGATION TO PAY

8

 

 

 

3.

SECURITY

9

 

 

 

4.

RULE 3-16 LIMITATION

9

 

 

 

5.

UNDERTAKINGS

10

 

 

 

6.

WARRANTIES

12

 

 

 

7.

VOTING RIGHTS, DIVIDENDS ETC.

12

 

 

 

8.

LIABILITY TO PERFORM

13

 

 

 

9.

ENFORCEMENT

13

 

 

 

10.

APPLICATION OF ENFORCEMENT MONEYS

14

 

 

 

11.

RECONVEYANCE

15

 

 

 

12.

PROTECTION OF SECURITY

15

 

 

 

13.

FURTHER ASSURANCE

17

 

 

 

14.

MANDATE AND ATTORNEY

17

 

 

 

15.

SECURITY TRUST AGREEMENT

17

 

 

 

16.

INDEMNITIES; COSTS AND EXPENSES

18

 

 

 

17.

CURRENCIES

19

 

 

 

18.

MISCELLANEOUS

19

 

 

 

19.

NOTICES

19

 

 

 

20.

SET-OFF

20

 

 

 

21.

GOVERNING LAW

20

 

SCHEDULE

Pledged Securities

 



 

SHARES PLEDGE

 

between

 

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

 

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

 

CONSIDERING THAT:

 

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

 

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

 

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

 

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

 

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

 

NOW IT IS HEREBY PROVIDED AND DECLARED THAT:-

 

1.                            INTERPRETATION

 

1.1                                 In this Instrument:

 

Beneficiaries

means the First Beneficiary and the Second Beneficiaries;

 

 

Chargors

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

 



 

Debenture

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

 

 

Default Rate

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

 

 

Designated Secured Obligations

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

 

 

Enforcement Date

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

 

 

Event of Default

means each of:

 

 

 

(a)

a Senior Default; and

 

 

 

 

(b)

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

 

 

Excluded Charged Assets

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

 

 

Existing Security Trustee

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

 



 

Existing Share Pledge

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

 

 

Incapacity

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

 

 

Instructing Party

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

 

 

Indemnified Party

has the meaning set out in Clause 15.3;

 

 

Liability

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

 

 

Original Charging Companies

has the meaning given to it in the Debenture;

 

 

Original Charging Partnerships

has the meaning given to it in the Debenture;

 

 

Permitted Encumbrance

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

 

 

Pledged Company

means CableTel Scotland Limited (registered number SC119938);

 

 

Pledged Securities

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

 

 

Receiver

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

 



 

 

otherwise) and includes joint receivers;

 

 

Relevant Facilities Agreement

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

 

 

Rule 3-16

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

 

 

SEC

means the United States Securities and Exchange Commission;

 

 

Secured Obligations

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

 

 

 

(a)

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

 

 

 

 

(b)

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

 



 

 

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

 

 

Securities Act

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

 

 

Security Period

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

 

 

Security Provider

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

 

 

Security Trust Agreement

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

 

 

Senior Facilities Agreement

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

 

 

Senior Secured Notes

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

 



 

Senior Secured Notes Documents

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

 

 

Senior Secured Notes Indenture

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

 

1.2                       Successors and assigns

 

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

 

1.3                       Agreement definitions

 

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

 

1.4                       Headings

 

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

 

1.5                      Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)                        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

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

 



 

agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)                        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.6                      Group Intercreditor Deed

 

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

 

1.7                      Construction of certain terms

 

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

 

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

 

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

 



 

2.                            OBLIGATION TO PAY

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 



 

2.6                      Recoveries by the Company

 

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

 

3.                            SECURITY

 

3.1                       In security of the Secured Obligations the Company hereby:

 

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

 

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

 

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

 

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

 

4.                            RULE 3-16 LIMITATION

 

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

 

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

 

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

 

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

 



 

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

 

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

 

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

 

5.                            UNDERTAKINGS

 

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

 



 

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

 

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

 

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

 

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

 

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

 



 

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

 

6.                            WARRANTIES

 

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

 

7.                            VOTING RIGHTS, DIVIDENDS ETC

 

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

 

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

 


 

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

 

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

 

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

 

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

 

8.                            LIABILITY TO PERFORM

 

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

 

9.                            ENFORCEMENT

 

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

 

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

 

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

 



 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

10.                      APPLICATION OF ENFORCEMENT MONEYS

 

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

 



 

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

 

11.                      RECONVEYANCE

 

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

 

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

 

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

 

12.                      PROTECTION OF SECURITY

 

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

 

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

 

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

 

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

 



 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 



 

13.                      FURTHER ASSURANCE

 

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

 

14.                      MANDATE AND ATTORNEY

 

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

 

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

 

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

 

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

 

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

 

15.                      SECURITY TRUST AGREEMENT

 

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

 



 

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

 

16.                      INDEMNITIES; COSTS AND EXPENSES

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

17.                       AVOIDANCE OF PAYMENTS

 

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

 



 

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

 

18.                      CURRENCIES

 

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

 

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

 

19.                      MISCELLANEOUS

 

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

 

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

 

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

 

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

 

20.                      NOTICES

 

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

 



 

21.                      SET-OFF

 

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

 

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

 

22.                      GOVERNING LAW

 

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

 

23.                      CONSENT TO REGISTRATION

 

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

 

Subscribed for and on behalf of

NTL GLASGOW

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

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 

 

/s/ ROBERT MACKENZIE

 

 

in the presence of:

 

 

/s/ SARAH COTTELL

Witness

 



 

 

Sarah Cottell

Print full name of Witness

 

 

 

 

Fried Frank

Address of Witness

 

99 City Road, EC1Y 1AX

 

 

all together at

on

 

Robert Gale duly authorised by

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

/s/ ROBERT GALE

 

 

in the presence of:

 

 

/s/ SARAH COTTELL

Witness

 

 

 

 

Sarah Cottell

Print full name of Witness

 

 

 

 

Fried Frank

Address of Witness

 

99 City Road, EC1Y 1AX

 

 

all together at

on

 



 

Subscribed for and on behalf of

CABLETEL SCOTLAND LIMITED

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

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 

 

/s/ ROBERT MACKENZIE

 

 

in the presence of:

 

 

/s/ SARAH COTTELL

Witness

 

 

 

 

Sarah Cottell

Print full name of Witness

 

 

 

 

Fried Frank

Address of Witness

 

99 City Road, EC1Y 1AX

 

 

all together at

on

 

Robert Gale duly authorised by

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

/s/ ROBERT GALE

 

 

in the presence of:

 

 

/s/ SARAH COTTELL

Witness

 

 

 

 

Sarah Cottell

Print full name of Witness

 

 

 

 

Fried Frank

Address of Witness

 

99 City Road, EC1Y 1AX

 

 

all together at

on

 



 

Subscribed for and on behalf of

DEUTSCHE BANK AG, LONDON BRANCH as Security Trustee acting by

 

 

/s/ NICOLA ANNE DAWES

Authorised Signatory

 

 

 

 

Nicola Anne Dawes

Print full name of Authorised Signatory

 

 

 

 

/s/ VIKKI ANNE MAYELL

Authorised Signatory

 

 

 

 

Vikki Anne Mayell

Print full name of Authorised Signatory

 

all together at London

 

on 19th January 2010

 

Subscribed for and on behalf of

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

 

 

/s/ NICOLA ANNE DAWES

Authorised Signatory

 

 

 

 

Nicola Anne Dawes

Print full name of Authorised Signatory

 

 

 

 

/s/ VIKKI MAYELL

Authorised Signatory

 

 

 

 

Vikki Anne Mayell

Print full name of Authorised Signatory

 

all together at LONDON

 

on 19th January 2010

 



 

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

 

Pledged Securities

 

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

 

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

 

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

 




Exhibit 4.24

 

SHARES PLEDGE

 

by

 

TELEWEST LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

19 January 2010

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0038

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

OBLIGATION TO PAY

8

 

 

 

3.

SECURITY

9

 

 

 

4.

UNDERTAKINGS

11

 

 

 

5.

WARRANTIES

12

 

 

 

6.

VOTING RIGHTS, DIVIDENDS ETC.

12

 

 

 

7.

LIABILITY TO PERFORM

13

 

 

 

8.

ENFORCEMENT

13

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

15

 

 

 

10.

RECONVEYANCE

15

 

 

 

11.

PROTECTION OF SECURITY

15

 

 

 

12.

FURTHER ASSURANCE

17

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

SECURITY TRUST AGREEMENT

17

 

 

 

15.

INDEMNITIES; COSTS AND EXPENSES

18

 

 

 

17.

CURRENCIES

19

 

 

 

18.

MISCELLANEOUS

19

 

 

 

19.

NOTICES

20

 

 

 

20.

SET-OFF

20

 

 

 

21.

GOVERNING LAW

20

 

SCHEDULE

Pledged Securities

 



 

SHARES PLEDGE

 

between

 

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

 

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

 

CONSIDERING THAT:

 

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

 

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

 

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

 

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

 

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

 

NOW IT IS HEREBY PROVIDED AND DECLARED THAT:-

 

1.         INTERPRETATION

 

1.1       In this Instrument:

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Chargors

 

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

 



 

Debenture

 

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

 

 

 

Default Rate

 

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

 

 

 

Designated Secured Obligations

 

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

 

 

 

Enforcement Date

 

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

 

 

 

Event of Default

 

means each of:

 

 

 

 

 

(a)

a Senior Default; and

 

 

 

 

 

 

(b)

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

 

 

 

Excluded Charged Assets

 

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

 

 

 

Existing Security Trustee

 

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

 



 

Existing Share Pledge

 

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

 

 

 

Incapacity

 

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

 

 

 

Instructing Party

 

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

 

 

 

Indemnified Party

 

has the meaning set out in Clause 15.3;

 

 

 

Liability

 

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

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Encumbrance

 

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

 

 

 

Pledged Company

 

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

 

 

 

Pledged Securities

 

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

 

 

 

Receiver

 

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

 



 

 

 

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

 

 

 

Relevant Facilities Agreement

 

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

 

 

 

Rule 3-16

 

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

 

 

 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

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

 

 

 

 

 

(a)

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

 

 

 

 

 

 

(b)

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

 



 

 

 

 

security trustee for,

 

 

 

 

 

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

 

 

 

Securities Act

 

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

 

 

 

Security Period

 

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

 

 

 

Security Provider

 

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

 

 

 

Security Trust Agreement

 

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

 

 

 

Senior Facilities Agreement

 

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

 

 

 

Senior Secured Notes

 

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

 



 

Senior Secured Notes Documents

 

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

 

 

 

Senior Secured Notes Indenture

 

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

 

1.2       Successors and assigns

 

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

 

1.3       Agreement definitions

 

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

 

1.4       Headings

 

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

 

1.5       Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

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

 



 

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

 

(c)        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1.6       Group Intercreditor Deed

 

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

 

1.7       Construction of certain terms

 

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

 

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

 

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

 



 

2.         OBLIGATION TO PAY

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 



 

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

 

2.6       Recoveries by the Company

 

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

 

3.         SECURITY

 

3.1       In security of the Secured Obligations the Company hereby:

 

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

 

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

 

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

 

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

 

4.         RULE 3-16 LIMITATION

 

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

 

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

 

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

 



 

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

 

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

 

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

 



 

5.         UNDERTAKINGS

 

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

 

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

 

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

 

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

 

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

 



 

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

 

6.         WARRANTIES

 

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

 

7.         VOTING RIGHTS, DIVIDENDS ETC

 

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

 

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

 


 

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

 

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

 

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

 

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

 

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

 

8.         LIABILITY TO PERFORM

 

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

 

9.         ENFORCEMENT

 

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

 

9.2       At any time on or after the Enforcement Date or if requested by the Company, subject to the terms of the Existing Share Pledge, then if and for so long as the Security Trustee is, or is entitled to be, registered as the holder of the Pledged Securities in the register of members of the Pledged Company the security created pursuant to this Instrument may be enforced in the following manner:

 

9.2.1                 the Security Trustee shall become entitled to sell, call in, collect or convert into money its interest in any Pledged Securities with full power on giving notice to the Company to such effect to sell any of the same either together or in parcels and whether by private contract or otherwise and for such consideration (whether in cash, securities or other assets and whether deferred or not) as the Security Trustee may think fit and with full power to buy in or rescind or vary any contract of sale of its interest in the Pledged

 



 

Securities or any part thereof and to resell the same without being responsible for any loss which may be occasioned thereby and with full power to compromise and effect compositions and for the purposes aforesaid or any of them to execute and do all such assurances and things as it shall think fit;

 

9.2.2                 the Security Trustee shall become entitled to apply all or any moneys received or held by it in respect of the Pledged Securities in respect of the exercise of any of its rights in relation thereto in accordance with Clause 9; and

 

9.2.3                 the Company shall on demand execute all such transfers and assurances and do all such things which the Security Trustee may require for perfecting its title to any Pledged Securities or for vesting the same in the Security Trustee or its nominees or any purchaser.

 

9.3       After the occurrence of an Event of Default and so long as the same is continuing:

 

9.3.1                 all rights of the Company to exercise the voting rights which it would otherwise be entitled to exercise and to receive the dividends and other payments which it would otherwise be authorised to receive and retain pursuant to Clause 7.2 shall cease and if and so long as the Security Trustee is, or is entitled to be, registered as the holder of the Pledged Securities in the register of members of the Pledged Company all such rights shall (subject to the Existing Share Pledge) thereupon become vested in the Security Trustee which shall have the sole right to exercise such voting rights and to receive and hold as Pledged Securities such dividends and other payments; and

 

9.3.2                 all dividends and other payments which are received by the Company contrary to the provisions of Clause 9.3.1 shall, if and for so long as the Security Trustee is entitled to be registered as the holder of the Pledged Securities in the Register of Members of the Pledged Company be received in, and be declared by the Company to be subject to a trust for the benefit of the Security Trustee, and shall be segregated from other funds of the Company and forthwith be paid over to the Security Trustee,

 

to the intent that the Security Trustee shall be entitled to exercise such rights and receive such payments only for the purpose of protecting or enforcing the security constituted hereby.

 

9.4       The Security Trustee shall incur no liability to the Company in the event of an over realisation of Pledged Securities or any of them or from any error or omission in the administration thereof.

 

9.5       To the extent the Pledged Securities constitute financial collateral and this Instrument constitutes a security financial collateral arrangement (as defined in the Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226) at any time after the Enforcement Date the Security Trustee (subject to the terms of the Existing Share Pledge) may appropriate all or any part of the Pledged Securities in or towards satisfaction of the Secured Obligations, the value of the assets so appropriated being such amount as the Security Trustee shall determine in a commercially reasonable manner.

 



 

10.       APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee in the exercise of any powers conferred by this Instrument shall be applied, after the discharge of all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement except that the Security Trustee may credit the same to a suspense account for so long and in such a manner as the Security Trustee may from time to time determine.

 

11.       RECONVEYANCE

 

Upon the satisfaction in full of all of the Secured Obligations and there being no obligation on any Beneficiary to make any of the Secured Obligations available then:

 

11.1     If the Pledged Securities have been transferred to or remained registered in the name of the Security Trustee or its nominee pursuant to Clauses 5.1 and 5.2 then, subject only to Clause 16 the Security Trustee shall transfer or procure the transfer to the Company at the Company’s expense, and the Company shall accept the transfer of, all Pledged Securities then held by or to the order of the Security Trustee and the Security Trustee shall co-operate in procuring the registration of such Pledged Securities in the name of the Company or as it shall direct and the Security Trustee shall execute and do all such other deeds, acts and things as may be necessary to release the Pledged Securities from the security constituted hereby; and/or

 

11.2     If the Pledged Securities have not been transferred to or remained registered in the name of the Security Trustee or its nominee pursuant to Clauses 5.1 and 5.2 then, subject only to Clause 16, the Security Trustee shall reassign the property and assets assigned to the Security Trustee, and do all such other deeds, acts and things as may be necessary to release the Pledged Securities from the security constituted hereby.

 

12.       PROTECTION OF SECURITY

 

12.1     The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

12.2     The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

12.3     No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 



 

12.4     Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

12.5     If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Pledged Securities and/or the proceeds of sale thereof, the Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

12.6     Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

12.6.1               any present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to perfect or enforce any of the same; or

 

12.6.2               the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

12.6.3               any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company from the Secured Obligations; or

 

12.6.4               any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

12.7     The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

12.7.1               take any action or obtain judgment or decree in any Court against the Company;

 

12.7.2               make or file any claim to rank in a winding-up or liquidation of the Company; or

 



 

12.7.3               enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 

13.       FURTHER ASSURANCE

 

The Company shall (provided it is permitted to do so by the Existing Security Trustee under the Existing Share Pledge) execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Pledged Securities or, on or after the Enforcement Date, for facilitating the realisation of such rights and the exercise of all powers, authorities and discretions vested in the Security Trustee, and shall, in particular, on demand forthwith sign, execute, deliver and complete all transfers, assignments, assignations, renunciations, mandates, instructions, deeds and documents of every kind and do or cause to be done, all acts and things of every kind which the Security Trustee shall from time to time reasonably require by written notice to the Company to protect or perfect the interest of the Security Trustee under this Instrument or, subject to the terms of this Instrument (a) to enable the Security Trustee or the nominees of the Security Trustee to exercise any rights or powers attaching to the Pledged Securities or (b) to vest the Pledged Securities in the Security Trustee or the nominees of the Security Trustee or (c) to enable the Security Trustee to sell or dispose of the Pledged Securities or otherwise to enforce or exercise any rights or powers under or in connection with its security.

 

14.       MANDATE AND ATTORNEY

 

14.1     The Company by way of security hereby irrevocably appoints the Security Trustee to be its attorney in its name and on its behalf, subject to the terms of this Instrument;

 

14.1.1               to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee may require for perfecting the title of the Security Trustee to the Pledged Securities or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

14.1.2               to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 13 in accordance with the terms thereof; and

 

14.1.3               otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee under this Instrument or which may be deemed expedient by the Security Trustee in connection with any disposition, realisation or getting in by the Security Trustee of the Pledged Securities or any part thereof or in connection with any other exercise of any power under this Instrument.

 

14.2     The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 14.1 shall properly do or purport to do in the exercise of his powers under such Clause.

 

15.       SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and

 



 

interests constituted by this Instrument and the Pledged Securities and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.       INDEMNITIES; COSTS AND EXPENSES

 

16.1     The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

16.2     All costs, charges and expenses incurred and all payments made by the Security Trustee hereunder in or about the enforcement, preservation or attempted preservation of the security created by or pursuant to this Instrument or any of the Pledged Securities shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges, expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee and the Company on the basis of a full and unqualified indemnity.

 

16.3     The Beneficiaries, the Security Trustee and any attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Pledged Securities in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

16.3.1               anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

16.3.2               any breach by the Company of any of its obligations under this Instrument; or

 

16.3.3               an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

17.       AVOIDANCE OF PAYMENTS

 

Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by the Company or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this

 



 

Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the Beneficiaries from the Company for such period as the Security Trustee may reasonably determine being not longer than 13 months following the payment, discharge or satisfaction of the Secured Obligations in full.

 

18.       CURRENCIES

 

18.1     All moneys received or held by the Security Trustee under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  The Security Trustee shall not have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

18.2     No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the security created pursuant hereto to recover the amount of the shortfall.

 

19.       MISCELLANEOUS

 

19.1     Subject to the provisions of the Senior Finance Documents, the Company hereby authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Pledged Securities unless such information is the subject of a duty of confidentiality on the part of the Security Trustee or any Beneficiary not to disclose such information.

 

19.2     This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

19.3     Save as otherwise provided herein, any ability or power which may be exercised or any determination which may be made under this Instrument by the Security Trustee or a Beneficiary may be exercised or made in its absolute and unfettered discretion and it shall not be obliged to give reasons therefor.

 

19.4     The Company may not assign or transfer any of its rights or obligations under this Instrument.

 



 

20.       NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

21.       SET-OFF

 

21.1     The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set off.

 

21.2     For the purpose of Clause 21.1 the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

22.       GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be construed and governed in all respects in accordance with the law of Scotland. The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this instrument is valid and binding.

 

23.       CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF this Instrument consisting of this and the twenty two preceding pages together with the schedule annexed hereto is executed as follows:

 

Subscribed for and on behalf of

TELEWEST LIMITED

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 



 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

 

 

99 City Road,

 

Address of Witness

 

London, EC1Y 1AX

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 

 

 

 

 

Robert Gale duly authorised by

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

 

 

99 City Road

 

Address of Witness

 

London, EC1Y 1AX

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 



 

 

Subscribed for and on behalf of

 

TELEWEST COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED

 

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

 

 

 

Robert Mackenzie duly authorised by

 

Virgin Media Directors Limited to sign on its behalf as director

 

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

 

 

99 City Road,

 

Address of Witness

 

London, EC1Y 1AX

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 

 

 

 

 

Robert Gale duly authorised by

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

 

 

99 City Road,

 

Address of Witness

 

London, EC1Y 1AX

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 



 

 

Subscribed for and on behalf of

 

DEUTSCHE BANK AG, LONDON BRANCH as Security Trustee acting by

 

 

 

 

 

/s/ NICOLA DAWES

 

Authorised Signatory

 

 

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

 

 

/s/ VIKKI MAYELL

 

Authorised Signatory

 

 

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

 

 

all together at London

 

 

 

on 19th January 2010

 

 

 

 

 

 

 

Subscribed for and on behalf of

 

DEUTSCHE BANK AG, LONDON BRANCH as Existing Security Trustee acting by

 

 

 

 

 

/s/ NICOLA DAWES

 

Authorised Signatory

 

 

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

 

 

/s/ VIKKI MAYELL

 

Authorised Signatory

 

 

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

 

 

all together at London

 

 

 

on 19th January 2010

 

 

 



 

This is the Schedule referred to in the foregoing Shares Pledge by Telewest Limited in favour of Deutsche Bank AG, London Branch dated January 2010

 

Pledged Securities

 

(A)      48,236,221 fully paid ordinary shares of £1 each in the capital of Telewest Communications (Scotland Holdings) Limited (with registered number SC150058);

 

(B)       all other securities of every kind which may at any time, whether directly or indirectly, be derived from any kind of the said shares, whether by way of bonus, rights, exchange, option, preference, capital re-organisation or otherwise howsoever; and

 

(C)       where the context so admits, all moneys (except cash dividends paid in accordance with the terms of the Senior Finance Documents when no Event of Default has occurred and is continuing) and assets whatsoever at any time accruing on, or payable or receivable in respect of, any of the said shares or securities and all voting and other rights and powers of any kind at any time attaching to, or exercisable in respect of, any of the said shares or securities.

 




Exhibit 4.25

 

SHARES PLEDGE

 

by

 

TELEWEST COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

19 January 2010

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0038

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

OBLIGATION TO PAY

8

 

 

 

3.

SECURITY

9

 

 

 

4.

UNDERTAKINGS

11

 

 

 

5.

WARRANTIES

12

 

 

 

6.

VOTING RIGHTS, DIVIDENDS ETC.

12

 

 

 

7.

LIABILITY TO PERFORM

13

 

 

 

8.

ENFORCEMENT

14

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

15

 

 

 

10.

RECONVEYANCE

15

 

 

 

11.

PROTECTION OF SECURITY

16

 

 

 

12.

FURTHER ASSURANCE

17

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

SECURITY TRUST AGREEMENT

18

 

 

 

15.

INDEMNITIES; COSTS AND EXPENSES

18

 

 

 

17.

CURRENCIES

19

 

 

 

18.

MISCELLANEOUS

19

 

 

 

19.

NOTICES

20

 

 

 

20.

SET-OFF

20

 

 

 

21.

GOVERNING LAW

20

 

SCHEDULE

Pledged Securities

 



 

SHARES PLEDGE

 

between

 

(A)       TELEWEST COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED incorporated under the law of Scotland with registered number SC150058 and having its registered office at 1 South Gyle Crescent Lane, Edinburgh EH12 9EG (hereinafter referred to as the Company); and

 

(B)       DEUTSCHE BANK AG, LONDON BRANCH in its capacity as Security Trustee for the Beneficiaries (hereinafter referred to as the Security Trustee).

 

CONSIDERING THAT:

 

(A)          The Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)          Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)          By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the Group Intercreditor Deed) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)          The board of directors of the Company is satisfied that the Company is entering into this Instrument for the purposes of carrying on its business and that doing so benefits the Company.

 

(E)           The Security Trustee holds the benefit of this Instrument on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

NOW IT IS HEREBY PROVIDED AND DECLARED THAT:-

 

1.         INTERPRETATION

 

1.1                                 In this Instrument:

 

 

 

 

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Chargors

 

means each of the Original Charging Companies and each of the Original Charging Partnerships;

 



 

Debenture

 

means the composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original Charging Companies (including the Company), the partnerships listed therein as the Original Charging Partnerships and Deutsche Bank AG, London Branch as Security Trustee for the Beneficiaries;

 

 

 

Default Rate

 

means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Designated Secured Obligations

 

means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement;

 

 

 

Enforcement Date

 

means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Chargor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

 

 

Event of Default

 

means each of:

 

 

 

 

 

(a)

a Senior Default; and

 

 

 

 

 

 

(b)

an event of default or termination event (however described) under any Hedging Agreement;

 

 

 

Excluded Charged Assets

 

has the meaning given to such term in Clause 4.2 of this Instrument.

 

 

 

Existing Security Trustee

 

means Deutsche Bank AG, London Branch in its capacity as security trustee under the

 



 

 

 

Existing Share Pledge.

 

 

 

Existing Share Pledge

 

means the share pledge granted by the Company in favour of Deutsche Bank AG, London Branch in respect of the Pledged Securities and dated 3 March 2006.

 

 

 

Incapacity

 

means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of that person whatsoever (and, in the case of a partnership, includes the termination or change in the composition of the partnership);

 

 

 

Instructing Party

 

has the meaning given to it in the Group Intercreditor Deed;

 

 

 

Indemnified Party

 

has the meaning set out in Clause 15.3;

 

 

 

Liability

 

means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, owed jointly or severally and whether owed as principal or surety or in any other capacity;

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Encumbrance

 

means any Encumbrance permitted under clause 25.2 of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Pledged Company

 

means each of Telewest Communications (Motherwell) Limited, Telewest Communications (Dundee & Perth) Limited and Telewest Communications (Scotland) Limited;

 

 

 

Pledged Securities

 

means the securities described in paragraph (A) of the Schedule hereto to be transferred, or which have been transferred pursuant to the Existing Share Pledge to the Security Trustee or its nominee and the securities, moneys, assets, rights and powers described in paragraphs (B) and (C) of the Schedule hereto and all other securities (if

 



 

 

 

any) which are hereafter transferred or delivered to the Security Trustee to be held subject to the terms and conditions of this Instrument;

 

 

 

Receiver

 

means any receiver or administrative receiver appointed in respect of all or any of the Pledged Securities (whether pursuant to this Instrument, pursuant to any statute, by a Court or otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

 

 

Rule 3-16

 

has the meaning given to such term in “Designated Secured Obligations”;

 

 

 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

 

 

 

 

(a)

in breach of the provisions of the Senior Facilities Agreement, or upon

 



 

 

 

 

its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

 

 

 

 

 

(b)

that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

 

 

 

 

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Instrument;

 

 

 

Securities Act

 

means the United States Securities Act of 1933, as amended;

 

 

 

Security Period

 

means the period beginning on the date of this Instrument and ending on the date on which all the Secured Obligations have been unconditionally and irrevocably paid and discharged in full;

 

 

 

Security Provider

 

means any person who has granted or may at any time hereafter grant any security interest on security for the Secured Obligations;

 

 

 

Security Trust Agreement

 

means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Instrument between Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

 

 

Senior Facilities Agreement

 

means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH

 



 

 

 

 

 

 

Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

 

 

Senior Secured Notes

 

has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

 

 

Senior Secured Notes Documents

 

means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes;

 

 

 

Senior Secured Notes Indenture

 

means the indenture dated on or about the date of this Instrument governing the US$1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein. The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time.

 

1.2       Successors and assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Company”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Lenders, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 

1.3       Agreement definitions

 

Unless the context otherwise requires or unless otherwise defined in this Instrument, words and expressions defined in the Group Intercreditor Deed and (unless otherwise

 



 

defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Instrument (including its recitals).

 

1.4        Headings

 

Clause and schedule headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Instrument.

 

1.5       Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

(b)        references to (or to any specified provision of) this Instrument or any other agreement or document shall be construed as references to this Instrument, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

(d)        words importing the plural shall include the singular and vice versa;

 

(e)        references to a time of day are to London time;

 

(f)         references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and that person’s successors in title;

 

(g)        references to a guarantee include references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and guaranteed shall be construed accordingly;

 

(h)        references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended;

 

(i)         references to business in relation to the Company means any business referred to in the definition of Group Business in the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder, the equivalent provision in the Relevant Facilities Agreement, which the Company engages in, and references to ordinary course of business shall be similarly construed; and

 



 

(j)         references in this Instrument to a fixed security shall be construed a reference to a fixed security as defined by Section 486 of the Act as in force at the date hereof.

 

1.6       Group Intercreditor Deed

 

This Instrument should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Instrument and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.7       Construction of certain terms

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)        all Liabilities under the Senior Facilities Agreement; and

 

(b)        all Liabilities under the Senior Secured Notes Documents.

 

2.         OBLIGATION TO PAY

 

2.1        The Company hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid.

 

2.2        Any statement of account of the Company, signed as correct by an officer of the Security Trustee, showing the amount of any Secured Obligations of the Company shall be prima facie evidence as to the amount of the Secured Obligations of the Company from time to time.

 

2.3        The Company warrants that it has not taken or received, and undertakes that until all the Secured Obligations have been paid or discharged in full it will not, without the consent in writing of the Security Trustee, take or receive any security from any other Chargor or any other person in respect of its obligations under this Instrument.

 

2.4        All payments to be made by the Company under this Instrument shall be made in full, without any set-off or counterclaim or plea of compensation whatsoever and free and clear of any deductions or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

2.5        Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee it will not:

 

(a)        exercise its rights of subrogation, reimbursement and indemnity against any other Chargor or any other person;

 

(b)        save as otherwise permitted and not restricted in each of the Senior Finance Documents demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any other Chargor or any Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument

 


 

 

 

creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)        take any step to enforce any right against any other Chargor or any Security Provider in respect of any such obligations or liabilities; or

 

(d)        claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Chargor or any Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Chargor or any Security Provider or have the benefit of, or share in, any payment from or composition with any other Chargor or any Security Provider or any other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any other Chargor or any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Chargor or any Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed.

 

2.6       Recoveries by the Company

 

If contrary to Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

3.         SECURITY

 

3.1       In security of the Secured Obligations the Company hereby:

 

(a)        pledges and assigns to the Security Trustee its whole right, title, interest and benefit in and to the Pledged Securities (subject to the security created by the Existing Share Pledge and by clause 3.1(b) below); and

 

(b)        assigns to the Security Trustee all its rights, title, benefits and interest in and to the right of reconveyance of the Pledged Securities created and existing under and pursuant to the Existing Shares Pledge including, without limitation, pursuant to Clause 10 (Reconveyance) of the Existing Share Pledge.

 

3.2        The Security Trustee hereby acknowledges that, notwithstanding any transfer or delivery to it or its nominee or nominees ex facie absolutely of the Pledged Securities and any registration of the Pledged Securities in the name of the Security Trustee or any nominee(s) holding to the order of the Security Trustee, or the custody of the documents of title relating thereto by the Security Trustee or any such nominee(s), the Pledged Securities are and shall truly be held by it as security for the payment of the Secured Obligations on the terms and conditions of this Instrument.

 

3.3        The Company hereby intimates to the Existing Security Trustee that the Company has hereby assigned its rights, title, benefits and interest in and to the Pledged Securities (subject to the security created by the Existing Share Pledge) and its right, title, benefit and interest in and to the reconveyance of the Pledged Securities pursuant to the

 



 

Existing Share Pledge including, without limitation, pursuant to Clause 11 (Reconveyance) of the Existing Share Pledge and the Existing Security Trustee hereby acknowledges such intimations.

 

4.         RULE 3-16 LIMITATION

 

4.1       Clause 3 of this Instrument notwithstanding, the Excluded Charged Assets are not charged under this Instrument to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(a)        all other Pledged Securities remain charged or assigned (as the case may be) under this Instrument to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(b)        such Excluded Charged Assets remain charged under Clause 3 of this Instrument to secure any Secured Obligations that are not Designated Secured Obligations.

 

4.2       Excluded Charged Assets” in relation to any Designated Secured Obligations means any Pledged Securities or other securities of a Subsidiary of Virgin Media Inc. (excluding the Pledged Securities or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that pledging or assigning such Pledged Securities or other securities under this Instrument to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge and/or assignment of any Pledged Securities or other securities pursuant to Clause 4.1.

 

4.3       In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Pledged Securities or other securities secure any Designated Secured Obligations, then such Pledged Securities or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour of the Security Trustee on the relevant Pledged Securities and/or other securities that are so deemed to constitute Excluded Charged Assets.

 



 

4.4       In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Pledged Securities and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Pledged Securities or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph 4.4 apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Security Trustee such additional Pledged Securities or other securities that were deemed to constitute Excluded Charged Assets.

 

5.         UNDERTAKINGS

 

5.1       The Company undertakes forthwith on release of the Existing Share Pledge and receipt by the Company of a stock transfer form transferring the Pledged Securities back to the Company (provided such release and stock transfer form is received on a date during the Security Period) to transfer to the Security Trustee or its nominees such of the Pledged Securities as at the date hereof have not been so transferred and to procure the issue and delivery of certificates representing the Pledged Securities in the name of the Security Trustee or such nominee as appropriate and to register the Pledged Securities in the name of the Security Trustee or its nominee (as the Security Trustee directs) in the relevant register of members. If, as at the date of such release of the Existing Share Pledge, the Existing Security Trustee and the Security Trustee are the same entity, this Clause 5.1 shall not apply and the Pledged Securities shall remain registered in the name of such entity or any nominee(s) holding to the order thereof, provided that in such circumstances, the Existing Security Trustee, the Security Trustee, the Company and the Pledged Companies hereby acknowledge that immediately on release of the Existing Share Pledge, the Pledged Securities will cease to be held under the Existing Share Pledge and will be held pursuant to the terms of this Instrument.

 

5.2       The Company undertakes to deliver to the Security Trustee, within 5 Business Days of the date of the release of the Existing Share Pledge and receipt by the Company of a stock transfer form transferring the Pledged Securities back to the Company (provided such release and stock transfer form is received on a date during the Security Period), a certified true copy of the register of members of each of the Pledged Companies evidencing the Security Trustee or its nominee as the holder of the Pledged Securities (the “Register of Members”). If, as at the date of such release of the Existing Share Pledge, the Existing Security Trustee and the Security Trustee are the same entity, this Clause 5.2 shall not apply and such certified true copy of the Register of Members delivered to the Existing Security Trustee in connection with the Existing Share Pledge shall remain in the possession of such entity or any nominee(s) holding to the order thereof, provided that in such circumstances, the Existing Security Trustee, the Security Trustee, the Company and the Pledged Companies hereby acknowledge that immediately on release of the Existing Share Pledge, the Pledged Securities will cease to be held under the Existing Share Pledge and will be held pursuant to the terms of this Instrument.

 

5.3       The Company shall for so long as the security created pursuant to this Instrument is in force pay duly and promptly all calls which may from time to time be made in respect

 



 

of any unpaid moneys under any Pledged Securities and/or any other moneys which it may lawfully be required to pay in respect of any Pledged Securities, and in case of default the Security Trustee may, if it thinks fit, make such payments on behalf of the Company; it being acknowledged by the Company that neither the Security Trustee nor any of the Beneficiaries shall in any circumstances incur any liability whatsoever in respect of any such calls, instalments or other moneys.

 

5.4       Any moneys expended by the Security Trustee under this provision shall be deemed to be properly paid by the Security Trustee, and the Company shall reimburse the Security Trustee within 30 days of demand together with interest at the Default Rate from the date being 30 days after the date of demand until such repayment, both before and after judgment.  Such moneys shall pending reimbursement constitute a part of the Secured Obligations.

 

5.5       If the Company at any time defaults in complying with any of its obligations contained in this Instrument, the Security Trustee shall, without prejudice to any other rights of the Security Trustee arising as a consequence of such default, be entitled (but not bound) to make good any such default and the Company hereby irrevocably authorises the Security Trustee and its employees and agents by way of security to do all such things necessary or reasonably desirable in connection therewith.  Any moneys so expended by the Security Trustee shall be repayable by the Company to the Security Trustee within 30 days of demand together with interest at the Default Rate from the date being 30 days after the date of demand until such repayment, both before and after decree or judgment.

 

6.         WARRANTIES

 

The Company represents and warrants to the Security Trustee that subject to this Instrument, the Existing Share Pledge and/or implementation of the obligations contained in either of this Instrument, the Existing Share Pledge or both of them: (i) the Company is, and will remain, the sole beneficial owner of and has full right and title to the Pledged Securities (comprising 100 per cent of the issued share capital of Telewest Communications (Motherwell) Limited with registered number SC121617, Telewest Communications (Dundee & Perth) Limited with registered number SC096816 and Telewest Communications (Scotland) Limited with registered number SC080891) and the same are fully paid up and validly allotted and are free from any Encumbrance (other than the security created by or pursuant hereto, the Existing Share Pledge and any Permitted Encumbrance) and are not subject to any calls or any option (save to the extent permitted under or not restricted by each Senior Finance Document) or other third party right and (ii) the Pledged Securities represent and will continue to represent 100% of the share capital of each of the companies mentioned in (i) above.

 

7.         VOTING RIGHTS, DIVIDENDS ETC

 

7.1       Subject to the obligations under the Existing Share Pledge, if the Pledged Securities shall entitle the holder thereof to rights to subscribe for any other securities, then the Company shall do all acts and things and execute such documents (including such deed or deeds supplemental hereto) as the Security Trustee may require so as to effect a fixed security in favour of the Security Trustee (as trustee aforesaid) over such Pledged Securities when issued.

 

7.2       Until the occurrence of an Event of Default or following the occurrence of an Event of Default but provided the same is not continuing, the Company shall be entitled to exercise any and all voting rights pertaining to the Pledged Securities or any part

 



 

thereof and to receive and retain any and all cash dividends, distributions, interest and other monies paid in respect of the Pledged Securities.  While the registered holder of the Pledged Securities, the Security Trustee shall promptly supply, and shall procure that its nominee(s) in whose name(s) the Pledged Securities are registered shall promptly supply, to the Company copies of all notices, circulars, accounts and statements sent to it/them in respect of the Pledged Securities.  If the Security Trustee receives due notice before the proposed exercise of any such voting rights by the Company, and if the Company is entitled hereunder to exercise such rights, the Security Trustee shall procure its nominee to execute and deliver such documents as the Company may reasonably require in order to enable such rights to be so exercised, provided the Security Trustee shall be under no obligation to comply with any such notice where compliance would in the Security Trustee’s reasonable opinion be prejudicial to the security created by this Instrument.  In the absence of such notice, the voting rights attaching to the Pledged Securities shall not be exercised except where exercisable by the Security Trustee in the circumstances set out in Clause 7.3.  Subject to the terms of the Senior Finance Documents, and unless the Enforcement Date has occurred, the Security Trustee will hold all cash dividends, interest and other moneys paid on or received by it or its nominee(s) in respect of the Pledged Securities for the account of the Company and will pay and account for such dividends, interest and other moneys to the Company.

 

7.3       Notwithstanding any other provision of this Instrument, this Instrument shall take effect so that:

 

7.3.1                prior to the Enforcement Date all rights attached to the Pledged Securities shall be exercisable only in the interests of the Company in accordance with the Company’s instructions in writing to the Security Trustee provided that the Security Trustee shall be under no obligation to comply with any such instructions where compliance would, in the Security Trustee’s reasonable opinion, be prejudicial to the security created by this Instrument; and

 

7.3.2                upon any enforcement of the security created pursuant to this Instrument all rights attached to the Pledged Securities shall be exercisable by the Security Trustee (subject to the terms of the Existing Share Pledge) for the purpose of enforcing such security and otherwise in accordance with Clause 7.3.1, to the intent that nothing contained herein shall give or is intended to have the effect of giving control of the Pledged Companies to the Security Trustee or the Beneficiaries otherwise than on enforcement of such security.

 

7.4       The Security Trustee may after notifying the Company of its intention to do so, but shall not be obliged to, pay any calls or other sums that may be or become due in respect of any of the securities for the time being the subject of this Instrument (including, without limitation, the Pledged Securities).

 

8.         LIABILITY TO PERFORM

 

It is expressly agreed that, notwithstanding anything to the contrary herein contained, the Company shall remain liable to observe and perform all of the conditions and obligations assumed by it in respect of the Pledged Securities and the Security Trustee shall be under no obligation or liability by reason of or arising out of this Instrument.  The Security Trustee shall not be required in any manner to perform or fulfil any obligations of the Company in respect of the Pledged Securities.

 



 

9.         ENFORCEMENT

 

9.1       If (and only if) the Enforcement Date has occurred then this Instrument shall become enforceable.

 

9.2       At any time on or after the Enforcement Date or if requested by the Company, subject to the terms of the Existing Share Pledge, then if and for so long as the Security Trustee is, or is entitled to be, registered as the holder of the Pledged Securities in the register of members of Telewest Communications (Motherwell) Limited, Telewest Communications (Dundee & Perth) Limited and Telewest Communications (Scotland) Limited the security created pursuant to this Instrument may be enforced in the following manner:

 

9.2.1                the Security Trustee shall become entitled to sell, call in, collect or convert into money its interest in any Pledged Securities with full power on giving notice to the Company to such effect to sell any of the same either together or in parcels and whether by private contract or otherwise and for such consideration (whether in cash, securities or other assets and whether deferred or not) as the Security Trustee may think fit and with full power to buy in or rescind or vary any contract of sale of its interest in the Pledged Securities or any part thereof and to resell the same without being responsible for any loss which may be occasioned thereby and with full power to compromise and effect compositions and for the purposes aforesaid or any of them to execute and do all such assurances and things as it shall think fit;

 

9.2.2                the Security Trustee shall become entitled to apply all or any moneys received or held by it in respect of the Pledged Securities in respect of the exercise of any of its rights in relation thereto in accordance with Clause 9; and

 

9.2.3                the Company shall on demand execute all such transfers and assurances and do all such things which the Security Trustee may require for perfecting its title to any Pledged Securities or for vesting the same in the Security Trustee or its nominees or any purchaser.

 

9.3       After the occurrence of an Event of Default and so long as the same is continuing:

 

9.3.1                all rights of the Company to exercise the voting rights which it would otherwise be entitled to exercise and to receive the dividends and other payments which it would otherwise be authorised to receive and retain pursuant to Clause 7.2 shall cease and if and so long as the Security Trustee is, or is entitled to be, registered as the holder of the Pledged Securities in the register of members of Telewest Communications (Motherwell) Limited, Telewest Communications (Dundee & Perth) Limited and Telewest Communications (Scotland) Limited all such rights shall (subject to the Existing Share Pledge) thereupon become vested in the Security Trustee which shall have the sole right to exercise such voting rights and to receive and hold as Pledged Securities such dividends and other payments; and

 

9.3.2                all dividends and other payments which are received by the Company contrary to the provisions of Clause 9.3.1 shall, if and for so long as the Security Trustee is entitled to be registered as the holder of the Pledged Securities in the Register of Members of Telewest Communications

 



 

(Motherwell) Limited, Telewest Communications (Dundee & Perth) Limited and Telewest Communications (Scotland) Limited to be received in, and be declared by the Company to be subject to a trust for the benefit of the Security Trustee, and shall be segregated from other funds of the Company and forthwith be paid over to the Security Trustee,

 

to the intent that the Security Trustee shall be entitled to exercise such rights and receive such payments only for the purpose of protecting or enforcing the security constituted hereby.

 

9.4       The Security Trustee shall incur no liability to the Company in the event of an over realisation of Pledged Securities or any of them or from any error or omission in the administration thereof.

 

9.5       To the extent the Pledged Securities constitute financial collateral and this Instrument constitutes a security financial collateral arrangement (as defined in the Financial Collateral Arrangements (No. 2) Regulations 2003 (SI 2003 No. 3226) at any time after the Enforcement Date the Security Trustee (subject to the terms of the Existing Share Pledge) may appropriate all or any part of the Pledged Securities in or towards satisfaction of the Secured Obligations, the value of the assets so appropriated being such amount as the Security Trustee shall determine in a commercially reasonable manner.

 

10.       APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee in the exercise of any powers conferred by this Instrument shall be applied, after the discharge of all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement except that the Security Trustee may credit the same to a suspense account for so long and in such a manner as the Security Trustee may from time to time determine.

 

11.       RECONVEYANCE

 

Upon the satisfaction in full of all of the Secured Obligations and there being no obligation on any Beneficiary to make any of the Secured Obligations available then:

 

11.1     If the Pledged Securities have been transferred to or remained registered in the name of the Security Trustee or its nominee pursuant to Clauses 5.1 and 5.2 then, subject only to Clause 16 the Security Trustee shall transfer or procure the transfer to the Company at the Company’s expense, and the Company shall accept the transfer of, all Pledged Securities then held by or to the order of the Security Trustee and the Security Trustee shall co-operate in procuring the registration of such Pledged Securities in the name of the Company or as it shall direct and the Security Trustee shall execute and do all such other deeds, acts and things as may be necessary to release the Pledged Securities from the security constituted hereby; and/or

 

11.2     If the Pledged Securities have not been transferred to or remained registered in the name of the Security Trustee or its nominee pursuant to Clauses 5.1 and 5.2 then, subject only to Clause 16, the Security Trustee shall reassign the property and assets assigned to the Security Trustee, and do all such other deeds, acts and things as may be necessary to release the Pledged Securities from the security constituted hereby.

 



 

12.       PROTECTION OF SECURITY

 

12.1     The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

12.2     The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

12.3     No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 

12.4     Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

12.5     If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Pledged Securities and/or the proceeds of sale thereof, the Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

12.6     Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

12.6.1              any present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to perfect or enforce any of the same; or

 

12.6.2              the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner

 



 

whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

12.6.3              any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company from the Secured Obligations; or

 

12.6.4              any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

12.7      The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

12.7.1              take any action or obtain judgment or decree in any Court against the Company;

 

12.7.2              make or file any claim to rank in a winding-up or liquidation of the Company; or

 

12.7.3              enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 

13.       FURTHER ASSURANCE

 

The Company shall (provided it is permitted to do so by the Existing Security Trustee under the Existing Share Pledge) execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Pledged Securities or, on or after the Enforcement Date, for facilitating the realisation of such rights and the exercise of all powers, authorities and discretions vested in the Security Trustee, and shall, in particular, on demand forthwith sign, execute, deliver and complete all transfers, assignments, assignations, renunciations, mandates, instructions, deeds and documents of every kind and do or cause to be done, all acts and things of every kind which the Security Trustee shall from time to time reasonably require by written notice to the Company to protect or perfect the interest of the Security Trustee under this Instrument or, subject to the terms of this Instrument (a) to enable the Security Trustee or the nominees of the Security Trustee to exercise any rights or powers attaching to the Pledged Securities or (b) to vest the Pledged Securities in the Security Trustee or the nominees of the Security Trustee or (c) to enable the Security Trustee to sell or dispose of the Pledged Securities or otherwise to enforce or exercise any rights or powers under or in connection with its security.

 

14.       MANDATE AND ATTORNEY

 

14.1      The Company by way of security hereby irrevocably appoints the Security Trustee to be its attorney in its name and on its behalf, subject to the terms of this Instrument;

 

14.1.1              to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee may require for perfecting the title of the Security Trustee to the Pledged Securities or for vesting the same in the Security Trustee, its nominees or any purchaser;

 



 

14.1.2              to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 13 in accordance with the terms thereof; and

 

14.1.3              otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee under this Instrument or which may be deemed expedient by the Security Trustee in connection with any disposition, realisation or getting in by the Security Trustee of the Pledged Securities or any part thereof or in connection with any other exercise of any power under this Instrument.

 

14.2     The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 14.1 shall properly do or purport to do in the exercise of his powers under such Clause.

 

15.       SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and interests constituted by this Instrument and the Pledged Securities and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.       INDEMNITIES; COSTS AND EXPENSES

 

16.1     The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

16.2     All costs, charges and expenses incurred and all payments made by the Security Trustee hereunder in or about the enforcement, preservation or attempted preservation of the security created by or pursuant to this Instrument or any of the Pledged Securities shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges, expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee and the Company on the basis of a full and unqualified indemnity.

 

16.3     The Beneficiaries, the Security Trustee and any attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Pledged Securities in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 


 

 

 

16.3.1              anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

16.3.2              any breach by the Company of any of its obligations under this Instrument; or

 

16.3.3              an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

17.        AVOIDANCE OF PAYMENTS

 

Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by the Company or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the Beneficiaries from the Company for such period as the Security Trustee may reasonably determine being not longer than 13 months following the payment, discharge or satisfaction of the Secured Obligations in full.

 

18.        CURRENCIES

 

18.1      All moneys received or held by the Security Trustee under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  The Security Trustee shall not have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

18.2      No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the security created pursuant hereto to recover the amount of the shortfall.

 

19.        MISCELLANEOUS

 

19.1      Subject to the provisions of the Senior Finance Documents, the Company hereby

 



 

authorises the Security Trustee and the Beneficiaries to exchange between themselves any information concerning the Pledged Securities unless such information is the subject of a duty of confidentiality on the part of the Security Trustee or any Beneficiary not to disclose such information.

 

19.2      This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

19.3      Save as otherwise provided herein, any ability or power which may be exercised or any determination which may be made under this Instrument by the Security Trustee or a Beneficiary may be exercised or made in its absolute and unfettered discretion and it shall not be obliged to give reasons therefor.

 

19.4      The Company may not assign or transfer any of its rights or obligations under this Instrument.

 

20.        NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

21.        SET-OFF

 

21.1      The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set off.

 

21.2      For the purpose of Clause 21.1 the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

22.        GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be construed and governed in all respects in accordance with the law of Scotland. The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this instrument is valid and binding.

 



 

23.       CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF this Instrument consisting of this and the twenty one preceding pages together with the schedule annexed hereto is executed as follows:

 

Subscribed for and on behalf of

TELEWEST COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

99 City Road

Address of Witness

 

EC1Y 1AX London

 

 

 

 

 

all together at

 

 

on

 

 

 

 

 

Robert Gale duly authorised by

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

Fried, Frank, Harris, Shriver & Jacobson (London) LLP

Address of Witness

 

99 City Road

 

 

London EC1Y 1AX

 

 

United Kingdom

 

 

Tel: +44.20.7972.9600

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

all together at

 

 

on

 

 



 

 

Subscribed for and on behalf of

 

TELEWEST COMMUNICATIONS (MOTHERWELL) LIMITED

 

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

 

 

 

 

Robert Mackenzie duly authorised by

 

Virgin Media Directors Limited to sign on its behalf as director

 

 

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

Fried, Frank, Harris, Shriver & Jacobson (London) LLP

Address of Witness

 

99 City Road

 

 

London EC1Y 1AX

 

 

United Kingdom

 

 

Tel: +44.20.7972.9600

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

all together at

 

 

on

 

 

 

 

 

Robert Gale duly authorised by

 

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

Address of Witness

 

99 City Road

 

 

London EC1Y 1AX

 

 

United Kingdom

 

 

Tel: +44.20.7972.9600

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

all together on

 

 

at

 

 



 

 

Subscribed for and on behalf of

 

TELEWEST COMMUNICATIONS (DUNDEE & PERTH) LIMITED

 

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

 

 

 

 

Robert Mackenzie duly authorised by

 

Virgin Media Directors Limited to sign on its behalf as director

 

 

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

Address of Witness

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

 

 

 

99 City Road

 

 

 

London EC1Y 1AX

 

 

 

United Kingdom

 

 

 

Tel: +44.20.7972.9600

 

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

all together at

 

 

 

on

 

 

 

 

 

 

 

Robert Gale duly authorised by

 

 

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

 

Address of Witness

 

Fried, Frank, Harris, Shriver & Jacobson (London) LLP

 

 

 

99 City Road

 

 

 

London EC1Y 1AX

 

 

 

United Kingdom

 

 

 

Tel: +44.20.7972.9600

 

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

all together at

 

 

 

on

 

 

 



 

 

Subscribed for and on behalf of

 

TELEWEST COMMUNICATIONS (SCOTLAND) LIMITED

 

Acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA SECRETARIES LIMITED:

 

 

 

Robert Mackenzie duly authorised by

 

Virgin Media Directors Limited to sign on its behalf as director

 

 

 

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

 

Address of Witness

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

 

 

 

99 City Road

 

 

 

London EC1Y 1AX

 

 

 

United Kingdom

 

 

 

Tel: +44.20.7972.9600

 

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

all together at

 

 

 

on

 

 

 

 

 

 

 

Robert Gale duly authorised by

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

 

Address of Witness

 

Fried, Frank, Harris, Shriver & Jacobson (London) LLP

 

 

 

99 City Road

 

 

 

London EC1Y 1AX

 

 

 

United Kingdom

 

 

 

Tel: +44.20.7972.9600

 

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

all together at

 

 

 

on

 

 

 



 

 

Subscribed for and on behalf of

 

DEUTSCHE BANK AG, LONDON BRANCH as Security Trustee acting by

 

 

 

 

 

/s/ NICOLA DAWES

 

Authorised Signatory

 

 

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

 

 

/s/ VIKKI MAYELL

 

Authorised Signatory

 

 

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

 

 

all together at London

 

 

 

 

 

 

 

on 19th January 2010

 

 

 

 

 

 

 

Subscribed for and on behalf of

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH as Existing Security Trustee acting by

 

 

 

 

 

/s/ NICOLA DAWES

 

Authorised Signatory

 

 

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

 

 

/s/ VIKKI MAYELL

 

Authorised Signatory

 

 

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

 

 

all together at London

 

 

 

 

 

 

 

on 19th January 2010

 

 

 



 

This is the Schedule referred to in the foregoing Shares Pledge by Telewest Communications (Scotland Holdings) in favour of Deutsche Bank AG, London Branch dated January 2010

 

Pledged Securities

 

(A)          (i)             17,560,989 fully paid ordinary shares of £1 each in the capital of Telewest Communications (Dundee & Perth) Limited (with registered number SC096816);

 

(ii)            8,637,702 fully paid ordinary ‘A’ shares of £1 each in the capital of Telewest Communications (Motherwell) Limited (with registered number SC121617);

 

(iii)           105,000,000 fully paid ordinary ‘B’ shares of £1 each in the capital of Telewest Communications (Motherwell) Limited (with registered number SC121617);

 

(iii)           480,000 fully paid ordinary shares of £1 each in the capital of Telewest Communications (Scotland) Limited (registered number SC080891)

 

(B)           all other securities of every kind which may at any time, whether directly or indirectly, be derived from any kind of the said shares, whether by way of bonus, rights, exchange, option, preference, capital re-organisation or otherwise howsoever; and

 

(C)           where the context so admits, all moneys (except cash dividends paid in accordance with the terms of the Senior Finance Documents when no Event of Default has occurred and is continuing) and assets whatsoever at any time accruing on, or payable or receivable in respect of, any of the said shares or securities and all voting and other rights and powers of any kind at any time attaching to, or exercisable in respect of, any of the said shares or securities.

 


 

 

 



Exhibit 4.26

 

BOND AND FLOATING CHARGE

of all its property and undertaking

 

by

 

PROSPECTRE LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0063

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

BOND

7

 

 

 

3.

FLOATING CHARGE

8

 

 

 

4.

RULE 3-16 LIMITATION

9

 

 

 

5.

UNDERTAKINGS

10

 

 

 

7.

ENFORCEMENT

11

 

 

 

8.

OFFICE OF RECEIVER

14

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

14

 

 

 

10.

RELEASE AND DISCHARGE

14

 

 

 

11.

PROTECTION OF SECURITY

15

 

 

 

12.

FURTHER ASSURANCE

17

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

INDEMNITIES; COSTS AND EXPENSES

17

 

 

 

15.

SECURITY TRUST AGREEMENT

18

 

 

 

16.

REORGANISATION

18

 

 

 

18.

NO ASSIGNATION

19

 

 

 

19.

NOTICES

19

 

 

 

20.

GOVERNING LAW

19

 

 

 

21.

JURISDICTION

19

 

 

 

22.

CONSENT TO REGISTRATION

20

 



 

BOND AND FLOATING CHARGE

 

by

 

1.         PROSPECTRE LIMITED incorporated under the laws of Scotland (registered number SC145280) whose registered office is at Media House, 60 Maxwell Road, Glasgow G41 1PR (the Company);

 

in favour of

 

2.         DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the Security Trustee)

 

WHEREAS:

 

(A)          The Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)          Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)          By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the Group Intercreditor Deed) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)          The board of directors of the Company is satisfied that the Company is entering into this Instrument for the purposes of its carrying on business and that its doing so benefits the Company.

 

(E)           The Security Trustee holds the benefit of this Instrument on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

1.         INTERPRETATION

 

1.1                                In this Instrument:

 

the Act

 

means the Companies Act 1985;

 

 

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Charged Assets

 

means the whole of the property (including uncalled capital) which is or may be from time to time while this Instrument is in force comprised in the property and undertaking of the Company;

 



 

Chargors

 

means each of the Original Charging Companies and each of the Original Charging Partnerships;

 

 

 

Debenture

 

means the composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original Charging Companies (including the Company), the partnerships listed therein as the Original Charging Partnerships and Deutsche Bank AG, London Branch as Security Trustee for the Beneficiaries;

 

 

 

Default Rate

 

means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Designated Secured Obligations

 

means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement;

 

 

 

Enforcement Date

 

means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Chargor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

 

 

Event of Default

 

means each of:

 

 

 

 

 

(a)

a Senior Default; and

 

 

 

 

 

 

(b)

an event of default or termination event (however described) under any Hedging Agreement;

 

 

 

Excluded Charged Assets

 

has the meaning given to such term in Clause 4.2 of this Instrument;

 

 

 

Indemnified Party

 

has the meaning set out in Clause 14.3;

 

 

 

Insolvency Act

 

means the Insolvency Act 1986;

 



 

Instructing Party

 

has the meaning given to it in the Group Intercreditor Deed;

 

 

 

Liability

 

means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, owed jointly or severally and whether owed as principal or surety or in any other capacity;

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Disposal

 

means any disposal permitted under Clause 25.4 of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Realisation Accounts

 

means each account maintained from time to time by the Security Trustee for the purposes of Clause 7.6;

 

 

 

Receiver

 

means any receiver or administrative receiver appointed in respect of all or any of the Charged Assets (whether pursuant to this Instrument, pursuant to any statute, by a Court or otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

 

 

Restricted Lease

 

has the meaning given to it in the Debenture;

 

 

 

Rule 3-16

 

has the meaning given to such term in

 



 

 

 

Designated Secured Obligations”;

 

 

 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)   in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)   that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Instrument;

 

 

 

Securities Act

 

means the United States Securities Act of 1933, as amended;

 

 

 

Security Provider

 

means any person who has granted or may at any time hereafter grant any security interest for the Secured Obligations;

 

 

 

Security Trust Agreement

 

means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Instrument between Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

 

 

Senior Facilities Agreement

 

means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment

 



 

 

 

Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

 

 

Senior Secured Notes

 

has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

 

 

Senior Secured Notes Documents

 

means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes;

 

 

 

Senior Secured Notes Indenture

 

means the indenture dated on or about the date of this Instrument governing the US$1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time;

 

 

 

Shares

 

means all shares in the capital of any company now or in the future legally or beneficially owned by the Company and/or any nominee on behalf of the Company.

 

1.2       Successors and assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Company”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Lenders, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 



 

1.3       Agreement definitions

 

Unless the context otherwise requires or unless otherwise defined in this Instrument, words and expressions defined in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Instrument (including its recitals).

 

1.4       Headings

 

Clause and schedule headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Instrument.

 

1.5       Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

(b)        references to (or to any specified provision of) this Instrument or any other agreement or document shall be construed as references to this Instrument, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

(d)        words importing the plural shall include the singular and vice versa;

 

(e)        references to a time of day are to London time;

 

(f)         references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and that person’s successors in title;

 

(g)        references to a guarantee include references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and guaranteed shall be construed accordingly;

 

(h)        references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended;

 

(i)         references to business in relation to the Company means any business referred to in the definition of Group Business in the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder,

 



 

the equivalent definition in the Relevant Facilities Agreement, which the Company engages in, and references to ordinary course of business shall be similarly construed; and

 

(j)         references in this Instrument to a fixed security shall be construed a reference to a fixed security as defined by Section 486 of the Act as in force at the date hereof.

 

1.6       Group Intercreditor Deed

 

This Instrument should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Instrument and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.7       Secured Liabilities

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)        all Liabilities under the Senior Facilities Agreement; and

 

(b)        all Liabilities under the Senior Secured Notes Documents.

 

2.         BOND

 

2.1       The Company hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid.

 

2.2       Any statement of account of the Company, signed as correct by an officer of the Security Trustee, showing the amount of any Secured Obligations of the Company shall be prima facie evidence as to the amount of the Secured Obligations of the Company from time to time.

 

2.3       The Company warrants that it has not taken or received, and undertakes that until all the Secured Obligations have been paid or discharged in full it will not, without the consent in writing of the Security Trustee, take or receive any security from any other Chargor or any other person in respect of its obligations under this Instrument.

 

2.4       All payments to be made by the Company under this Instrument shall be made in full, without any set-off or counterclaim or plea of compensation whatsoever and free and clear of any deductions or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

2.5       Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee it will not:

 

(a)        exercise its rights of subrogation, reimbursement and indemnity against any other Chargor or any other person;

 



 

(b)        save as otherwise permitted and not restricted in each of the Senior Finance Documents, the Refinancing Facilities Agreements and the Group Intercreditor Deed, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any other Chargor or any Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)        take any step to enforce any right against any other Chargor or any Security Provider in respect of any such obligations or liabilities; or

 

(d)        claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Chargor or any Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Chargor or any Security Provider or have the benefit of, or share in, any payment from or composition with any other Chargor or any Security Provider or any other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any other Chargor or any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Chargor or any Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and Security Trust Agreement.

 

2.6       Recoveries by the Company

 

If contrary to Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

3.         FLOATING CHARGE

 

3.1        The Company, being a company incorporated in Scotland, as security for the payment and discharge of all the Secured Obligations HEREBY GRANTS in favour  of the Security Trustee for itself and as  trustee  for  the Beneficiaries a floating charge over the whole of the Charged Assets PROVIDED THAT, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any lease interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not the Company.

 

3.2        The floating charge hereby created shall rank pari passu with the floating charge created by the Debenture, and, subject to Section 464(2) of the Act, rank in priority to any fixed security which shall be created by the Company after its execution hereof (other than a fixed security in favour of the Security Trustee for itself and/or as trustee aforesaid) and to any other floating charge which shall be created by the Company after its execution hereof and, subject as aforesaid, no such fixed security nor such other floating charge shall rank in priority to or equally with or postponed to the floating charge hereby created by it.

 


 

3.3       Paragraph 14 of Schedule B1 to the Insolvency Act 1986 (as amended by Schedule 16 of the Enterprise Act 2002) will apply to any floating charge created pursuant to this Instrument.

 

3.4       Notwithstanding Clause 3.1, unless and until the Company has obtained the consent of the relevant landlord and any other relevant party (each being a Consent) the floating charge granted pursuant to Clause 3.1 shall not extend to the Company’s rights over any Restricted Lease.  Unless the Company has received a written confirmation from the Security Trustee that a particular Consent is not required, the Company hereby undertakes to use its reasonable endeavours to obtain the Consents.  On obtaining each Consent the Restricted Lease shall thereupon automatically become subject to the floating charge created pursuant to Clause 3.1 and the Company shall immediately produce evidence of such Consent to the Security Trustee.

 

3.5       The Company hereby warrants that it is not a party to any Restricted Lease and that, accordingly, no Consents are required in respect of any of the Charged Assets.

 

4.         RULE 3-16 LIMITATION

 

4.1       Clause 3 of this Instrument notwithstanding, the Excluded Charged Assets are not charged under this Instrument to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(a)        all other Shares remain charged or assigned (as the case may be) under this Instrument to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(b)        such Excluded Charged Assets remain charged under Clause 3 of this Instrument to secure any Secured Obligations that are not Designated Secured Obligations.

 

4.2       Excluded Charged Assets” in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that pledging or assigning such Shares or other securities under this Instrument to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge and/or assignment of any Shares or other securities pursuant to Clause 4.1.

 

4.3       In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as

 



 

applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

4.4       In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Shares and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Shares or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph 4.4 apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Security Trustee such additional Shares or other securities that were deemed to constitute Excluded Charged Assets.

 

5.         UNDERTAKINGS

 

The Company hereby undertakes with the Security Trustee that until the security constituted by this Instrument is released in accordance with the following provisions:

 

(i)                                                                the provisions of Clause 5 of the Debenture shall apply mutatis mutandis as if set out herein but so that references therein to Chargor and this Deed shall be construed herein as references to the Company and this Instrument respectively;

 

(ii)                                                             the Company will comply with all its obligations under the Senior Finance Documents; and

 

(iii)                                                          the Company will notify the Security Trustee forthwith in the event that any claim or notice against it or any of the Charged Assets is received from any other party which is likely to materially prejudice the value of the Charged Assets and of all matters relevant thereto.

 

6.         SET-OFF

 

6.1       The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others),

 



 

whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.

 

6.2       For the purpose of Clause 6.1, the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

7.         ENFORCEMENT

 

7.1       If (and only if) the Enforcement Date has occurred this Instrument shall become enforceable.

 

7.2       At any time: (i) on or after the Enforcement Date; or (ii) if the Board of Directors of the Company requests that a Receiver or administrator be appointed forthwith; or (iii) a petition is presented for the making of an administration order of the Company, the power to appoint a Receiver or administrator of the Charged Assets shall be  immediately exercisable in relation to the security created by the Company by or pursuant  to this  Instrument, and the Security Trustee may then (i) by instrument in writing appoint any person or persons (if more than one with power to act both jointly and severally) to be a Receiver of the Charged Assets, or (ii) appoint an administrator of the Company pursuant to paragraph 14 of Schedule B1 to the Insolvency Act 1986.  In addition and without prejudice to the foregoing provisions of this sub-clause, in the event that any person appointed in pursuance hereof to be a Receiver as aforesaid shall be removed by a Court or shall otherwise cease to act as such, then the Security Trustee shall be entitled so to appoint another person as Receiver in his place.

 

7.3       A Receiver so appointed shall have and be entitled to exercise all the powers conferred upon such a Receiver by the Insolvency Act and in addition to and without limiting these powers, such Receiver shall have power to:

 

7.3.1                 implement and exercise all or any of the Company’s powers and/or rights and/or obligations under any contract or other agreement forming a part of the Charged Assets;

 

7.3.2                 make any arrangement or compromise which he shall think expedient of or in respect of any claim by or against the Company;

 

7.3.3                 subscribe for or acquire for cash or otherwise any share capital of such new company or corporation in the name of the Company and on its behalf and/or in the name(s) of a nominee(s) or trustee(s) for it;

 

7.3.4                 sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise the Charged Assets or any part thereof to any such new company or corporation and accept as consideration or part of the consideration therefor in the name of the Company and on its behalf and/or

 



 

in the name(s)  of any nominee(s) or trustee(s) for it any shares or further shares in any such company or corporation or allow the payment of the whole or any part of such consideration to remain deferred or outstanding by way of loan or debt or credit;

 

7.3.5                 sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise on behalf of the Company any such shares or deemed consideration or part thereof or any rights or benefits attaching thereto;

 

7.3.6                 convene an extraordinary general meeting of the Company;

 

7.3.7                 acquire any property on behalf of the Company;

 

7.3.8                 in respect of any assets of the Company situated in England and Wales,  exercise in addition to the foregoing all the powers conferred by the Insolvency Act or any other enactment or under law on Receivers appointed in that jurisdiction;

 

7.3.9                 take possession of, collect and get in all or any of the Charged Assets;

 

7.3.10               carry on, manage, develop, reconstruct, amalgamate or diversify the business of the Company or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Instrument;

 

7.3.11               raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to the security created by this Instrument or otherwise;

 

7.3.12               sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Company or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the Company (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of the Company;

 

7.3.13               promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or

 



 

otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 

7.3.14               make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

7.3.15               appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 7 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

7.3.16               make calls conditionally or unconditionally on the members of the Company concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

7.3.17               sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security created pursuant to this Instrument of the Security Trustee and the Beneficiaries and to use the name of the Company concerned for all the purposes aforesaid;

 

7.3.18               do all the acts and things described in schedules 1 or 2 to the Insolvency Act as if the words he and him referred to the Receiver and company referred to the Company;

 

7.3.19               do all such other acts and things as he may consider necessary or desirable for protecting or realising the Charged Assets or any part thereof or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of or pursuant to this Instrument, and exercise in relation to the Charged Assets or any part thereof all such powers and authorities and do all such things as he would be capable of exercising or doing if he were the absolute beneficial owner of the same;  and use the name of the Company for all and any of the purposes aforesaid; and

 

7.3.20               do all or any of the acts and things specified in Clause 9 of the Debenture which are not specified in this Clause 7.3

 

7.4       In the exercise of the powers hereby conferred any Receiver may sever and sell plant, machinery or other fixtures separately from the property to which they may be annexed.

 

7.5       No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Instrument has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 



 

7.6        If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the security created pursuant to this Instrument the Security Trustee (or such Receiver) may:

 

7.6.1                 open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

7.6.2                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

7.6.3                 subject to the payment of any claims having priority to the security created pursuant to this Instrument, withdraw amounts standing to the credit of the Realisation Accounts to:

 

7.6.4                 discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

7.6.5                 pay remuneration to the Receiver as and when the same becomes due and payable; and

 

7.6.6                 discharge the Secured Obligations as and when the same become due and payable.

 

8.         OFFICE OF RECEIVER

 

8.1       Any Receiver appointed under Clause 7 shall be the agent of the Company for all purposes and (subject to the provisions of the Insolvency Act) the Company alone shall be responsible for his contracts, engagements, acts, omissions, defaults and losses and for liabilities incurred by him and for his remuneration and his costs, charges and expenses, and the Security Trustee shall not incur any liability therefor (either to the Company or any other person) by reason of the Security Trustee making his appointment as such Receiver or for any other reason whatsoever.

 

8.2       Any Receiver appointed shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of the Receiver or his firm.

 

9.         APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee or by any Receiver shall be applied, after the discharge of the remuneration and expenses of the Receiver and all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, except that the Security Trustee may credit the same to a suspense account for so long and in such manner as the Security Trustee may from time to time determine and the Receiver may retain the same for such period as he and the Security Trustee consider expedient.

 

10.       RELEASE AND DISCHARGE

 

10.1     The Security Trustee acting on behalf of the Beneficiaries under the Senior Finance Documents may at any time release the Company from any or all of its obligations under or pursuant to this Instrument and/or all or any part of the Charged Assets from

 



 

the security created by this Instrument upon such terms as the Security Trustee may think fit but nothing in this Instrument does, shall or is intended to constitute a release of any of the Charged Assets.

 

10.2     Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 10.3, the Security Trustee shall, at the request and cost of the Company, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

10.3     Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by any Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due owing or incurred to the Security Trustee and the Beneficiaries from any Chargor for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

10.4     The Security Trustee shall, at the request and cost of the Company, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Charged Assets.

 

11.       PROTECTION OF SECURITY

 

11.1     The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

11.2     The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

11.3     No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 

11.4     Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is

 



 

declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

11.5     If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Charged Assets and/or the proceeds of sale thereof, the Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

11.6     Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

11.6.1               any other present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to protect or enforce any of the same; or

 

11.6.2               the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

11.6.3               any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company  from the Secured Obligations; or

 

11.6.4               any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

11.7     The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

11.7.1               take any action or obtain judgment or decree in any Court against the Company;

 

11.7.2               make or file any claim to rank in a winding-up or liquidation of the Company; or

 

11.7.3               enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 



 

12.       FURTHER ASSURANCE

 

The Company shall execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Charged Assets or, on or after the Enforcement Date, for facilitating the realisation of such assets and the exercise of all powers, authorities and discretions vested in the Security Trustee or in any Receiver and shall, in particular, execute all fixed securities, floating charges, assignations, securities, transfers, dispositions and assurances of the Charged Assets whether to the Security Trustee or to its nominee(s) or otherwise and give all notices, orders and directions which the Security Trustee may think expedient, acting reasonably, which fixed securities over heritable or leasehold property situated in Scotland shall be standard securities in the agreed form for property of that type.

 

13.       MANDATE AND ATTORNEY

 

13.1     The Company by way of security hereby irrevocably appoints each of the Security Trustee and any Receiver or administrator severally to be its attorney in its name and on its behalf:

 

13.1.1               to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver or administrator may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

13.1.2               to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 12 in accordance with the terms thereof; and

 

13.1.3               otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee or a Receiver or administrator under this Instrument or which may be deemed expedient by the Security Trustee or a Receiver or administrator in connection with any disposition, realisation or getting in by the Security Trustee or such Receiver of the Charged Assets or any part thereof or in connection with any other exercise of any power under this Instrument.

 

13.2     The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 shall do or purport to do in the proper exercise of his powers under such Clause.

 

14.       INDEMNITIES; COSTS AND EXPENSES

 

14.1     The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

14.2     All costs, charges and expenses incurred and all payments made by the Security Trustee or any Receiver hereunder in or about the enforcement, preservation or attempted preservation of the security created by or pursuant to this Instrument or any of the Charged Assets shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges,

 



 

expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee or any Receiver and the Company on the basis of a full and unqualified indemnity.

 

14.3     The Beneficiaries, the Security Trustee and any Receiver or administrator, attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Charged Assets in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

14.3.1               anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

14.3.2               any breach by the Company of any of its obligations under this Instrument; or

 

14.3.3               an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

15.       SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and interests constituted by this Instrument and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.       REORGANISATION

 

This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 



 

17.       CURRENCIES

 

17.1     Conversion of currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

17.2     Currency indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

18.       NO ASSIGNATION

 

The Company may not assign or transfer any of its rights or obligations under this Instrument.

 

19.       NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

20.       GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be governed by, and construed in all respects in accordance with, the law of Scotland.  The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this Instrument is valid and binding subject to the Reservations.

 

21.       JURISDICTION

 

For the benefit of the Security Trustee and the Beneficiaries, the Company irrevocably agrees that the Scottish courts are to have jurisdiction to settle any disputes which may arise out of or in connection with this Instrument and that, accordingly, any suit, action or proceedings arising out of or in connection with this Instrument (Proceedings) may be brought in any such court. The Company irrevocably waives any objection to Proceedings in such a court on the grounds of venue or on the ground that the Proceedings have been brought in an inconvenient forum.

 



 

22.       CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, in the absence of manifest error, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company hereby consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF these presents consisting of this and the preceding twenty two pages are subscribed as follows:

 

Subscribed for and on behalf of

PROSPECTRE LIMITED

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA

SECRETARIES LIMITED:

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ MANOJ BHUNDIA

Witness

 

 

 

 

Manoj Bhundia

Print full name of Witness

 

 

 

 

99 City Road,

Address of Witness

 

London, EC1Y 1AX

 

 

 

 

 

all together at

 

 

on

 

 

 

Robert Gale duly authorised by

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

/s/ ROBERT GALE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ MANOJ BHUNDIA

Witness

 

 

 

 

Manoj Bhundia

Print full name of Witness

 

 

 

 

99 City Road,

Address of Witness

 

London, EC1Y 1AX

 

 

 

 

 

all together at

 

 

on

 

 



 

Subscribed for and on behalf of

DEUTSCHE BANK AG, LONDON BRANCH acting by

 

 

/s/ NICOLA ANNE DAWES

Authorised Signatory

 

 

 

 

Nicola Anne Dawes

Print full name of Authorised Signatory

 

 

 

 

/s/ VIKKI ANNE MAYELL

Authorised Signatory

 

 

 

 

Vikki Anne Mayell

Print full name of Authorised Signatory

 

 

 

 

all together at London

 

 

 

 

 

on 19th January 2010

 

 




Exhibit 4.27

 

BOND AND FLOATING CHARGE

of all its property and undertaking

 

by

 

NTL GLASGOW

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel  0131 228 8000

 

Fax  0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0063

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

BOND

7

 

 

 

3.

FLOATING CHARGE

8

 

 

 

4.

RULE 3-16 LIMITATION

9

 

 

 

5.

UNDERTAKINGS

10

 

 

 

6.

SET-OFF

11

 

 

 

7.

ENFORCEMENT

11

 

 

 

8.

OFFICE OF RECEIVER

14

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

14

 

 

 

10.

RELEASE AND DISCHARGE

15

 

 

 

11.

PROTECTION OF SECURITY

15

 

 

 

12.

FURTHER ASSURANCE

17

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

INDEMNITIES; COSTS AND EXPENSES

17

 

 

 

15.

SECURITY TRUST AGREEMENT

18

 

 

 

16.

REORGANISATION

18

 

 

 

17.

CURRENCIES

19

 

 

 

18.

NO ASSIGNATION

19

 

 

 

19.

NOTICES

19

 

 

 

20.

GOVERNING LAW

19

 

 

 

21.

JURISDICTION

19

 

 

 

22.

CONSENT TO REGISTRATION

20

 



 

BOND AND FLOATING CHARGE

 

by

 

1.         NTL GLASGOW incorporated under the laws of Scotland (registered number SC075177) whose registered office is at Media House, 60 Maxwell Road, Glasgow G41 1PR (the Company);

 

in favour of

 

2.         DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the Security Trustee)

 

WHEREAS:

 

(A)          The Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)           Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)           By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the Group Intercreditor Deed) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)          The board of directors of the Company is satisfied that the Company is entering into this Instrument for the purposes of its carrying on business and that its doing so benefits the Company.

 

(E)           The Security Trustee holds the benefit of this Instrument on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

1.         INTERPRETATION

 

1.1                                In this Instrument:

 

the Act

 

means the Companies Act 1985;

 

 

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Charged Assets

 

means the whole of the property (including uncalled capital) which is or may be from time to time while this Instrument is in force comprised in the property and undertaking of the Company;

 



 

Chargors

 

means each of the Original Charging Companies and each of the Original Charging Partnerships;

 

 

 

Debenture

 

means the composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original Charging Companies (including the Company), the partnerships listed therein as the Original Charging Partnerships and Deutsche Bank AG, London Branch as Security Trustee for the Beneficiaries;

 

 

 

Default Rate

 

means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Designated Secured Obligations

 

means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement;

 

 

 

Enforcement Date

 

means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Chargor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

 

 

Event of Default

 

means each of:

 

 

 

 

 

(a) a Senior Default; and

 

 

 

 

 

(b) an event of default or termination event (however described) under any Hedging Agreement;

 

 

 

Excluded Charged Assets

 

has the meaning given to such term in Clause 4.2 of this Instrument;

 



 

Indemnified Party

 

has the meaning set out in Clause 14.3;

 

 

 

Insolvency Act

 

means the Insolvency Act 1986;

 

 

 

Instructing Party

 

has the meaning given to it in the Group Intercreditor Deed;

 

 

 

Liability

 

means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, owed jointly or severally and whether owed as principal or surety or in any other capacity;

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Disposal

 

means any disposal permitted under Clause 25.4 of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Realisation Accounts

 

means each account maintained from time to time by the Security Trustee for the purposes of Clause 7.6;

 

 

 

Receiver

 

means any receiver or administrative receiver appointed in respect of all or any of the Charged Assets (whether pursuant to this Instrument, pursuant to any statute, by a Court or otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated

 



 

 

 

Refinancing Facilities Agreement immediately prior to such termination.

 

 

 

Restricted Lease

 

has the meaning given to it in the Debenture;

 

 

 

Rule 3-16

 

has the meaning given to such term in “Designated Secured Obligations”;

 

 

 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

 

 

 

 

(a)

in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

 

 

 

 

 

(b)

that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

 

 

 

 

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Instrument;

 

 

 

Securities Act

 

means the United States Securities Act of 1933, as amended;

 

 

 

Security Provider

 

means any person who has granted or may at any time hereafter grant any security interest for the Secured Obligations;

 

 

 

Security Trust Agreement

 

means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Instrument between Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

 

 

Senior Facilities Agreement

 

means the senior facilities agreement dated 3

 



 

 

 

March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

 

 

Senior Secured Notes

 

has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

 

 

Senior Secured Notes Documents

 

means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes;

 

 

 

Senior Secured Notes Indenture

 

means the indenture dated on or about the date of this Instrument governing the US$1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time;

 

 

 

Shares

 

means all shares in the capital of any company now or in the future legally or beneficially owned by the Company and/or any nominee on behalf of the Company.

 



 

1.2        Successors and assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Company”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Lenders, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 

1.3        Agreement definitions

 

Unless the context otherwise requires or unless otherwise defined in this Instrument, words and expressions defined in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Instrument (including its recitals).

 

1.4        Headings

 

Clause and schedule headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Instrument.

 

1.5           Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

(b)        references to (or to any specified provision of) this Instrument or any other agreement or document shall be construed as references to this Instrument, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

(d)        words importing the plural shall include the singular and vice versa;

 

(e)        references to a time of day are to London time;

 

(f)         references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and that person’s successors in title;

 



 

(g)        references to a guarantee include references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and guaranteed shall be construed accordingly;

 

(h)        references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended;

 

(i)         references to business in relation to the Company means any business referred to in the definition of Group Business in the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the equivalent definition in the Relevant Facilities Agreement, which the Company engages in, and references to ordinary course of business shall be similarly construed; and

 

(j)         references in this Instrument to a fixed security shall be construed a reference to a fixed security as defined by Section 486 of the Act as in force at the date hereof.

 

1.6           Group Intercreditor Deed

 

This Instrument should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Instrument and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.7           Secured Liabilities

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)               all Liabilities under the Senior Facilities Agreement; and

 

(b)              all Liabilities under the Senior Secured Notes Documents.

 

2.          BOND

 

2.1        The Company hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid.

 

2.2        Any statement of account of the Company, signed as correct by an officer of the Security Trustee, showing the amount of any Secured Obligations of the Company shall be prima facie evidence as to the amount of the Secured Obligations of the Company from time to time.

 

2.3        The Company warrants that it has not taken or received, and undertakes that until all the Secured Obligations have been paid or discharged in full it will not, without the consent in writing of the Security Trustee, take or receive any security from any other Chargor or any other person in respect of its obligations under this Instrument.

 

2.4        All payments to be made by the Company under this Instrument shall be made in full, without any set-off or counterclaim or plea of compensation whatsoever and free and

 



 

clear of any deductions or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

2.5        Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee it will not:

 

(a)        exercise its rights of subrogation, reimbursement and indemnity against any other Chargor or any other person;

 

(b)        save as otherwise permitted and not restricted in each of the Senior Finance Documents, the Refinancing Facilities Agreements and the Group Intercreditor Deed, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any other Chargor or any Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)        take any step to enforce any right against any other Chargor or any Security Provider in respect of any such obligations or liabilities; or

 

(d)        claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Chargor or any Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Chargor or any Security Provider or have the benefit of, or share in, any payment from or composition with any other Chargor or any Security Provider or any other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any other Chargor or any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Chargor or any Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and Security Trust Agreement.

 

2.6           Recoveries by the Company

 

If contrary to Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

3.          FLOATING CHARGE

 

3.1        The Company, being a company incorporated in Scotland, as security for the payment and discharge of all the Secured Obligations HEREBY GRANTS in favour  of the Security Trustee for itself and as  trustee  for  the Beneficiaries a floating charge over the whole of the Charged Assets PROVIDED THAT, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any lease interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not the Company.

 



 

3.2        The floating charge hereby created shall rank pari passu with the floating charge created by the Debenture, and, subject to Section 464(2) of the Act, rank in priority to any fixed security which shall be created by the Company after its execution hereof (other than a fixed security in favour of the Security Trustee for itself and/or as trustee aforesaid) and to any other floating charge which shall be created by the Company after its execution hereof and, subject as aforesaid, no such fixed security nor such other floating charge shall rank in priority to or equally with or postponed to the floating charge hereby created by it.

 

3.3        Paragraph 14 of Schedule B1 to the Insolvency Act 1986 (as amended by Schedule 16 of the Enterprise Act 2002) will apply to any floating charge created pursuant to this Instrument.

 

3.4        Notwithstanding Clause 3.1, unless and until the Company has obtained the consent of the relevant landlord and any other relevant party (each being a Consent) the floating charge granted pursuant to Clause 3.1 shall not extend to the Company’s rights over any Restricted Lease.  Unless the Company has received a written confirmation from the Security Trustee that a particular Consent is not required, the Company hereby undertakes to use its reasonable endeavours to obtain the Consents.  On obtaining each Consent the Restricted Lease shall thereupon automatically become subject to the floating charge created pursuant to Clause 3.1 and the Company shall immediately produce evidence of such Consent to the Security Trustee.

 

3.5        The Company hereby warrants that it is not a party to any Restricted Lease and that, accordingly, no Consents are required in respect of any of the Charged Assets.

 

4.             RULE 3-16 LIMITATION

 

4.1           Clause 3 of this Instrument notwithstanding, the Excluded Charged Assets are not charged under this Instrument to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(a)     all other Shares remain charged or assigned (as the case may be) under this Instrument to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(b)     such Excluded Charged Assets remain charged under Clause 3 of this Instrument to secure any Secured Obligations that are not Designated Secured Obligations.

 

4.2           Excluded Charged Assets” in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that pledging or assigning such Shares or other securities under this Instrument to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the

 



 

limitation of the pledge and/or assignment of any Shares or other securities pursuant to Clause 4.1.

 

4.3           In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

4.4           In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Shares and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Shares or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph 4.4 apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Security Trustee such additional Shares or other securities that were deemed to constitute Excluded Charged Assets.

 

5.          UNDERTAKINGS

 

The Company hereby undertakes with the Security Trustee that until the security constituted by this Instrument is released in accordance with the following provisions:

 

(i)                     the provisions of Clause 5 of the Debenture shall apply mutatis mutandis as if set out herein but so that references therein to Chargor and this Deed shall be construed herein as references to the Company and this Instrument respectively;

 

(ii)                    the Company will comply with all its obligations under the Senior Finance Documents; and

 

(iii)                   the Company will notify the Security Trustee forthwith in the event that any claim or notice against it or any of the Charged Assets is received from any

 


 

other party which is likely to materially prejudice the value of the Charged Assets and of all matters relevant thereto.

 

6.         SET-OFF

 

6.1        The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.

 

6.2        For the purpose of Clause 6.1, the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

7.         ENFORCEMENT

 

7.1        If (and only if) the Enforcement Date has occurred this Instrument shall become enforceable.

 

7.2        At any time: (i) on or after the Enforcement Date; or (ii) if the Board of Directors of the Company requests that a Receiver or administrator be appointed forthwith; or (iii) a petition is presented for the making of an administration order of the Company, the power to appoint a Receiver or administrator of the Charged Assets shall be  immediately exercisable in relation to the security created by the Company by or pursuant  to this  Instrument, and the Security Trustee may then (i) by instrument in writing appoint any person or persons (if more than one with power to act both jointly and severally) to be a Receiver of the Charged Assets, or (ii) appoint an administrator of the Company pursuant to paragraph 14 of Schedule B1 to the Insolvency Act 1986.  In addition and without prejudice to the foregoing provisions of this sub-clause, in the event that any person appointed in pursuance hereof to be a Receiver as aforesaid shall be removed by a Court or shall otherwise cease to act as such, then the Security Trustee shall be entitled so to appoint another person as Receiver in his place.

 

7.3        A Receiver so appointed shall have and be entitled to exercise all the powers conferred upon such a Receiver by the Insolvency Act and in addition to and without limiting these powers, such Receiver shall have power to:

 

7.3.1                 implement and exercise all or any of the Company’s powers and/or rights and/or obligations under any contract or other agreement forming a part of the Charged Assets;

 

7.3.2                 make any arrangement or compromise which he shall think expedient of or in respect of any claim by or against the Company;

 



 

7.3.3                 subscribe for or acquire for cash or otherwise any share capital of such new company or corporation in the name of the Company and on its behalf and/or in the name(s) of a nominee(s) or trustee(s) for it;

 

7.3.4                 sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise the Charged Assets or any part thereof to any such new company or corporation and accept as consideration or part of the consideration therefor in the name of the Company and on its behalf and/or in the name(s)  of any nominee(s) or trustee(s) for it any shares or further shares in any such company or corporation or allow the payment of the whole or any part of such consideration to remain deferred or outstanding by way of loan or debt or credit;

 

7.3.5                 sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise on behalf of the Company any such shares or deemed consideration or part thereof or any rights or benefits attaching thereto;

 

7.3.6                 convene an extraordinary general meeting of the Company;

 

7.3.7                 acquire any property on behalf of the Company;

 

7.3.8                 in respect of any assets of the Company situated in England and Wales,  exercise in addition to the foregoing all the powers conferred by the Insolvency Act or any other enactment or under law on Receivers appointed in that jurisdiction;

 

7.3.9                 take possession of, collect and get in all or any of the Charged Assets;

 

7.3.10               carry on, manage, develop, reconstruct, amalgamate or diversify the business of the Company or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Instrument;

 

7.3.11               raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to the security created by this Instrument or otherwise;

 

7.3.12               sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Company or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the Company (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures

 



 

may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of the Company;

 

7.3.13               promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 

7.3.14               make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

7.3.15               appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 7 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

7.3.16               make calls conditionally or unconditionally on the members of the Company concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

7.3.17               sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security created pursuant to this Instrument of the Security Trustee and the Beneficiaries and to use the name of the Company concerned for all the purposes aforesaid;

 

7.3.18               do all the acts and things described in schedules 1 or 2 to the Insolvency Act as if the words he and him referred to the Receiver and company referred to the Company;

 

7.3.19               do all such other acts and things as he may consider necessary or desirable for protecting or realising the Charged Assets or any part thereof or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of or pursuant to this Instrument, and exercise in relation to the Charged Assets or any part thereof all such powers and authorities and do all such things as he would be capable of exercising or doing if he were the absolute beneficial owner of the same;  and use the name of the Company for all and any of the purposes aforesaid; and

 

7.3.20               do all or any of the acts and things specified in Clause 9 of the Debenture which are not specified in this Clause 7.3

 

7.4        In the exercise of the powers hereby conferred any Receiver may sever and sell plant, machinery or other fixtures separately from the property to which they may be annexed.

 



 

7.5        No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Instrument has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

7.6        If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the security created pursuant to this Instrument the Security Trustee (or such Receiver) may:

 

7.6.1                 open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

7.6.2                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

7.6.3                 subject to the payment of any claims having priority to the security created pursuant to this Instrument, withdraw amounts standing to the credit of the Realisation Accounts to:

 

7.6.4                 discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

7.6.5                 pay remuneration to the Receiver as and when the same becomes due and payable; and

 

7.6.6                 discharge the Secured Obligations as and when the same become due and payable.

 

8.         OFFICE OF RECEIVER

 

8.1        Any Receiver appointed under Clause 7 shall be the agent of the Company for all purposes and (subject to the provisions of the Insolvency Act) the Company alone shall be responsible for his contracts, engagements, acts, omissions, defaults and losses and for liabilities incurred by him and for his remuneration and his costs, charges and expenses, and the Security Trustee shall not incur any liability therefor (either to the Company or any other person) by reason of the Security Trustee making his appointment as such Receiver or for any other reason whatsoever.

 

8.2        Any Receiver appointed shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of the Receiver or his firm.

 

9.         APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee or by any Receiver shall be applied, after the discharge of the remuneration and expenses of the Receiver and all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, except that the Security Trustee may credit the same to a suspense account for so long and in such manner as the Security Trustee may from time to time determine and the Receiver may retain the same for such period as he and the Security Trustee consider expedient.

 



 

10.       RELEASE AND DISCHARGE

 

10.1      The Security Trustee acting on behalf of the Beneficiaries under the Senior Finance Documents may at any time release the Company from any or all of its obligations under or pursuant to this Instrument and/or all or any part of the Charged Assets from the security created by this Instrument upon such terms as the Security Trustee may think fit but nothing in this Instrument does, shall or is intended to constitute a release of any of the Charged Assets.

 

10.2      Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 10.3, the Security Trustee shall, at the request and cost of the Company, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

10.3      Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by any Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due owing or incurred to the Security Trustee and the Beneficiaries from any Chargor for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

10.4      The Security Trustee shall, at the request and cost of the Company, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Charged Assets.

 

11.       PROTECTION OF SECURITY

 

11.1      The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

11.2      The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

11.3      No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this

 



 

Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 

11.4      Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

11.5      If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Charged Assets and/or the proceeds of sale thereof, the Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

11.6      Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

11.6.1               any other present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to protect or enforce any of the same; or

 

11.6.2               the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

11.6.3               any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company  from the Secured Obligations; or

 

11.6.4               any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

11.7      The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

11.7.1               take any action or obtain judgment or decree in any Court against the Company;

 

11.7.2               make or file any claim to rank in a winding-up or liquidation of the Company; or

 



 

11.7.3               enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 

12.       FURTHER ASSURANCE

 

The Company shall execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Charged Assets or, on or after the Enforcement Date, for facilitating the realisation of such assets and the exercise of all powers, authorities and discretions vested in the Security Trustee or in any Receiver and shall, in particular, execute all fixed securities, floating charges, assignations, securities, transfers, dispositions and assurances of the Charged Assets whether to the Security Trustee or to its nominee(s) or otherwise and give all notices, orders and directions which the Security Trustee may think expedient, acting reasonably, which fixed securities over heritable or leasehold property situated in Scotland shall be standard securities in the agreed form for property of that type.

 

13.       MANDATE AND ATTORNEY

 

13.1      The Company by way of security hereby irrevocably appoints each of the Security Trustee and any Receiver or administrator severally to be its attorney in its name and on its behalf:

 

13.1.1               to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver or administrator may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

13.1.2               to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 12 in accordance with the terms thereof; and

 

13.1.3               otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee or a Receiver or administrator under this Instrument or which may be deemed expedient by the Security Trustee or a Receiver or administrator in connection with any disposition, realisation or getting in by the Security Trustee or such Receiver of the Charged Assets or any part thereof or in connection with any other exercise of any power under this Instrument.

 

13.2      The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 shall do or purport to do in the proper exercise of his powers under such Clause.

 

14.       INDEMNITIES; COSTS AND EXPENSES

 

14.1      The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

14.2      All costs, charges and expenses incurred and all payments made by the Security Trustee or any Receiver hereunder in or about the enforcement, preservation or

 



 

attempted preservation of the security created by or pursuant to this Instrument or any of the Charged Assets shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges, expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee or any Receiver and the Company on the basis of a full and unqualified indemnity.

 

14.3      The Beneficiaries, the Security Trustee and any Receiver or administrator, attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Charged Assets in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

14.3.1               anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

14.3.2               any breach by the Company of any of its obligations under this Instrument; or

 

14.3.3               an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

15.           SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and interests constituted by this Instrument and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.           REORGANISATION

 

This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 



 

17.           CURRENCIES

 

17.1         Conversion of currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

17.2         Currency indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

18.           NO ASSIGNATION

 

The Company may not assign or transfer any of its rights or obligations under this Instrument.

 

19.           NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

20.           GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be governed by, and construed in all respects in accordance with, the law of Scotland.  The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this Instrument is valid and binding subject to the Reservations.

 

21.           JURISDICTION

 

For the benefit of the Security Trustee and the Beneficiaries, the Company irrevocably agrees that the Scottish courts are to have jurisdiction to settle any disputes which may arise out of or in connection with this Instrument and that, accordingly, any suit, action or proceedings arising out of or in connection with this Instrument (Proceedings) may be brought in any such court. The Company irrevocably waives any objection to Proceedings in such a court on the grounds of venue or on the ground that the Proceedings have been brought in an inconvenient forum.

 



 

22.           CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, in the absence of manifest error, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company hereby consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF these presents consisting of this and the preceding twenty two pages are subscribed as follows:

 

Subscribed for and on behalf of

 

NTL GLASGOW

 

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA

 

SECRETARIES LIMITED:

 

Robert Mackenzie duly authorised by

 

Virgin Media Directors Limited to sign on its behalf as director

 

 

/S/ ROBERT MACKENZIE

 

 

in the presence of:

 

 

/s/ SARAH COTTELL

Witness

 

 

Sarah Cottell

Print full name of Witness

 

Address of Witness

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

 

 

99 City Road

 

 

London EC1Y 1AX

 

 

United Kingdom

 

 

Tel: +44.20.7972.9600

 

 

Fax: +44.20.7972.9602

 

all together at

on

 

Robert Gale duly authorised by

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

/S/ ROBERT GALE

 

 

in the presence of:

 

 

/s/ SARAH COTTELL

Witness

 

 

Sarah Cottell

Print full name of Witness

 

Address of Witness

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

 

 

99 City Road

 

 

London EC1Y 1AX

 

 

United Kingdom

 



 

 

 

Tel: +44.20.7972.9600

 

 

Fax: +44.20.7972.9602

 

all together at

 

on

 

Subscribed for and on behalf of

 

DEUTSCHE BANK AG, LONDON BRANCH acting by

 

 

/s/ NICOLA ANNE DAWES

Authorised Signatory

 

 

 

 

Nicola Anne Dawes

Print full name of Authorised Signatory

 

 

 

 

/s/ VIKKI ANNE MAYELL

Authorised Signatory

 

 

 

 

Vikki Anne Mayell

Print full name of Authorised Signatory

 

all together at London

 

on 19th January 2010

 




Exhibit 4.28

 

BOND AND FLOATING CHARGE

of all its property and undertaking

 

by

 

CABLETEL SCOTLAND LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0063

 



 

Table of Contents

 

1.

INTERPRETATION

2

 

 

 

2.

BOND

10

 

 

 

3.

FLOATING CHARGE

11

 

 

 

4.

RULE 3-16 LIMITATION

12

 

 

 

5.

UNDERTAKINGS

14

 

 

 

7.

ENFORCEMENT

15

 

 

 

8.

OFFICE OF RECEIVER

19

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

20

 

 

 

10.

RELEASE AND DISCHARGE

20

 

 

 

11.

PROTECTION OF SECURITY

21

 

 

 

12.

FURTHER ASSURANCE

23

 

 

 

13.

MANDATE AND ATTORNEY

23

 

 

 

14.

INDEMNITIES; COSTS AND EXPENSES

24

 

 

 

15.

SECURITY TRUST AGREEMENT

24

 

 

 

16.

REORGANISATION

24

 

 

 

18.

NO ASSIGNATION

24

 

 

 

19.

NOTICES

24

 

 

 

20.

GOVERNING LAW

24

 

 

 

21.

JURISDICTION

24

 

 

 

22.

CONSENT TO REGISTRATION

24

 



 

BOND AND FLOATING CHARGE

 

by

 

1.                          CABLETEL SCOTLAND LIMITED incorporated under the laws of Scotland (registered number SC119938) whose registered office is at Media House, 60 Maxwell Road, Glasgow G41 1PR (the Company);

 

in favour of

 

2.                          DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the Security Trustee)

 

WHEREAS:

 

(A)                            The Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)                              Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)                              By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the Group Intercreditor Deed) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)                             The board of directors of the Company is satisfied that the Company is entering into this Instrument for the purposes of its carrying on business and that its doing so benefits the Company.

 

(E)                               The Security Trustee holds the benefit of this Instrument on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

1.                          INTERPRETATION

 

1.1                                In this Instrument:

 

the Act

 

means the Companies Act 1985;

 

 

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Charged Assets

 

means the whole of the property (including uncalled capital) which is or may be from time to time while this Instrument is in force comprised in the property and undertaking of the Company;

 



 

Chargors

 

means each of the Original Charging Companies and each of the Original Charging Partnerships;

 

 

 

Debenture

 

means the composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original Charging Companies (including the Company), the partnerships listed therein as the Original Charging Partnerships and Deutsche Bank AG, London Branch as Security Trustee for the Beneficiaries;

 

 

 

Default Rate

 

means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Designated Secured Obligations

 

means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement;

 

 

 

Enforcement Date

 

means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Chargor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

 

 

Event of Default

 

means each of:

 

(a)          a Senior Default; and

 

(b)         an event of default or termination event (however described) under any Hedging Agreement;

 

 

 

Excluded Charged Assets

 

has the meaning given to such term in Clause 4.2 of this Instrument;

 

 

 

Indemnified Party

 

has the meaning set out in Clause 14.3;

 

 

 

Insolvency Act

 

means the Insolvency Act 1986;

 



 

Instructing Party

 

has the meaning given to it in the Group Intercreditor Deed;

 

 

 

Liability

 

means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, owed jointly or severally and whether owed as principal or surety or in any other capacity;

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Disposal

 

means any disposal permitted under Clause 25.4 of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Realisation Accounts

 

means each account maintained from time to time by the Security Trustee for the purposes of Clause 7.6;

 

 

 

Receiver

 

means any receiver or administrative receiver appointed in respect of all or any of the Charged Assets (whether pursuant to this Instrument, pursuant to any statute, by a Court or otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

 

 

Restricted Lease

 

has the meaning given to it in the Debenture;

 

 

 

Rule 3-16

 

has the meaning given to such term in “Designated Secured Obligations”;

 



 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

(a)               in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)              that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Instrument;

 

 

 

Securities Act

 

means the United States Securities Act of 1933, as amended;

 

 

 

Security Provider

 

means any person who has granted or may at any time hereafter grant any security interest for the Secured Obligations;

 

 

 

Security Trust Agreement

 

means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Instrument between Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

 

 

Senior Facilities Agreement

 

means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly

 



 

 

 

known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

 

 

Senior Secured Notes

 

has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

 

 

Senior Secured Notes Documents

 

means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes;

 

 

 

Senior Secured Notes Indenture

 

means the indenture dated on or about the date of this Instrument governing the US$1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time;

 

 

 

Shares

 

means all shares in the capital of any company now or in the future legally or beneficially owned by the Company and/or any nominee on behalf of the Company.

 

1.2                     Successors and assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Company”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Lenders, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 

1.3                     Agreement definitions

 

Unless the context otherwise requires or unless otherwise defined in this Instrument, words and expressions defined in the Group Intercreditor Deed and (unless otherwise

 



 

defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Instrument (including its recitals).

 

1.4                     Headings

 

Clause and schedule headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Instrument.

 

1.5                                Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)                        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

(b)                       references to (or to any specified provision of) this Instrument or any other agreement or document shall be construed as references to this Instrument, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)                        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

(d)                       words importing the plural shall include the singular and vice versa;

 

(e)                        references to a time of day are to London time;

 

(f)                          references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and that person’s successors in title;

 

(g)                       references to a guarantee include references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and guaranteed shall be construed accordingly;

 

(h)                       references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended;

 

(i)                           references to business in relation to the Company means any business referred to in the definition of Group Business in the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the equivalent definition in the Relevant Facilities Agreement, which the Company engages in, and references to ordinary course of business shall be similarly construed; and

 



 

(j)                           references in this Instrument to a fixed security shall be construed a reference to a fixed security as defined by Section 486 of the Act as in force at the date hereof.

 

1.6                                Group Intercreditor Deed

 

This Instrument should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Instrument and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.7                                Secured Liabilities

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)                        all Liabilities under the Senior Facilities Agreement; and

 

(b)                       all Liabilities under the Senior Secured Notes Documents.

 

2.                             BOND

 

2.1                     The Company hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid.

 

2.2                     Any statement of account of the Company, signed as correct by an officer of the Security Trustee, showing the amount of any Secured Obligations of the Company shall be prima facie evidence as to the amount of the Secured Obligations of the Company from time to time.

 

2.3                     The Company warrants that it has not taken or received, and undertakes that until all the Secured Obligations have been paid or discharged in full it will not, without the consent in writing of the Security Trustee, take or receive any security from any other Chargor or any other person in respect of its obligations under this Instrument.

 

2.4                     All payments to be made by the Company under this Instrument shall be made in full, without any set-off or counterclaim or plea of compensation whatsoever and free and clear of any deductions or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

2.5                     Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee it will not:

 

(a)                        exercise its rights of subrogation, reimbursement and indemnity against any other Chargor or any other person;

 

(b)                       save as otherwise permitted and not restricted in each of the Senior Finance Documents, the Refinancing Facilities Agreements and the Group Intercreditor Deed, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any other Chargor or any

 



 

Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)                        take any step to enforce any right against any other Chargor or any Security Provider in respect of any such obligations or liabilities; or

 

(d)                       claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Chargor or any Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Chargor or any Security Provider or have the benefit of, or share in, any payment from or composition with any other Chargor or any Security Provider or any other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any other Chargor or any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Chargor or any Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and Security Trust Agreement.

 

2.6                       Recoveries by the Company

 

If contrary to Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

3.                             FLOATING CHARGE

 

3.1                       The Company, being a company incorporated in Scotland, as security for the payment and discharge of all the Secured Obligations HEREBY GRANTS in favour  of the Security Trustee for itself and as  trustee  for  the Beneficiaries a floating charge over the whole of the Charged Assets PROVIDED THAT, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any lease interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not the Company.

 

3.2                       The floating charge hereby created shall rank pari passu with the floating charge created by the Debenture, and, subject to Section 464(2) of the Act, rank in priority to any fixed security which shall be created by the Company after its execution hereof (other than a fixed security in favour of the Security Trustee for itself and/or as trustee aforesaid) and to any other floating charge which shall be created by the Company after its execution hereof and, subject as aforesaid, no such fixed security nor such other floating charge shall rank in priority to or equally with or postponed to the floating charge hereby created by it.

 

3.3                       Paragraph 14 of Schedule B1 to the Insolvency Act 1986 (as amended by Schedule 16 of the Enterprise Act 2002) will apply to any floating charge created pursuant to this Instrument.

 



 

3.4                       Notwithstanding Clause 3.1, unless and until the Company has obtained the consent of the relevant landlord and any other relevant party (each being a Consent) the floating charge granted pursuant to Clause 3.1 shall not extend to the Company’s rights over any Restricted Lease.  Unless the Company has received a written confirmation from the Security Trustee that a particular Consent is not required, the Company hereby undertakes to use its reasonable endeavours to obtain the Consents.  On obtaining each Consent the Restricted Lease shall thereupon automatically become subject to the floating charge created pursuant to Clause 3.1 and the Company shall immediately produce evidence of such Consent to the Security Trustee.

 

3.5                       The Company hereby warrants that it is not a party to any Restricted Lease and that, accordingly, no Consents are required in respect of any of the Charged Assets.

 

4.                                     RULE 3-16 LIMITATION

 

4.1                               Clause 3 of this Instrument notwithstanding, the Excluded Charged Assets are not charged under this Instrument to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(a)              all other Shares remain charged or assigned (as the case may be) under this Instrument to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(b)             such Excluded Charged Assets remain charged under Clause 3 of this Instrument to secure any Secured Obligations that are not Designated Secured Obligations.

 

4.2                               Excluded Charged Assets” in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that pledging or assigning such Shares or other securities under this Instrument to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge and/or assignment of any Shares or other securities pursuant to Clause 4.1.

 

4.3                               In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been

 


 

 

applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

4.4                               In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Shares and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Shares or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph 4.4 apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Security Trustee such additional Shares or other securities that were deemed to constitute Excluded Charged Assets.

 

5.                             UNDERTAKINGS

 

The Company hereby undertakes with the Security Trustee that until the security constituted by this Instrument is released in accordance with the following provisions:

 

(i)                                                               the provisions of Clause 5 of the Debenture shall apply mutatis mutandis as if set out herein but so that references therein to Chargor and this Deed shall be construed herein as references to the Company and this Instrument respectively;

 

(ii)                                                            the Company will comply with all its obligations under the Senior Finance Documents; and

 

(iii)                                                         the Company will notify the Security Trustee forthwith in the event that any claim or notice against it or any of the Charged Assets is received from any other party which is likely to materially prejudice the value of the Charged Assets and of all matters relevant thereto.

 

6.                            SET-OFF

 

6.1                     The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed

 



 

to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.

 

6.2                     For the purpose of Clause 6.1, the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

7.                            ENFORCEMENT

 

7.1                     If (and only if) the Enforcement Date has occurred this Instrument shall become enforceable.

 

7.2                     At any time: (i) on or after the Enforcement Date; or (ii) if the Board of Directors of the Company requests that a Receiver or administrator be appointed forthwith; or (iii) a petition is presented for the making of an administration order of the Company, the power to appoint a Receiver or administrator of the Charged Assets shall be  immediately exercisable in relation to the security created by the Company by or pursuant  to this  Instrument, and the Security Trustee may then (i) by instrument in writing appoint any person or persons (if more than one with power to act both jointly and severally) to be a Receiver of the Charged Assets, or (ii) appoint an administrator of the Company pursuant to paragraph 14 of Schedule B1 to the Insolvency Act 1986.  In addition and without prejudice to the foregoing provisions of this sub-clause, in the event that any person appointed in pursuance hereof to be a Receiver as aforesaid shall be removed by a Court or shall otherwise cease to act as such, then the Security Trustee shall be entitled so to appoint another person as Receiver in his place.

 

7.3                     A Receiver so appointed shall have and be entitled to exercise all the powers conferred upon such a Receiver by the Insolvency Act and in addition to and without limiting these powers, such Receiver shall have power to:

 

7.3.1                                                  implement and exercise all or any of the Company’s powers and/or rights and/or obligations under any contract or other agreement forming a part of the Charged Assets;

 

7.3.2                                                  make any arrangement or compromise which he shall think expedient of or in respect of any claim by or against the Company;

 

7.3.3                                                  subscribe for or acquire for cash or otherwise any share capital of such new company or corporation in the name of the Company and on its behalf and/or in the name(s) of a nominee(s) or trustee(s) for it;

 

7.3.4                                                  sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise the Charged Assets or any part thereof to any such new company or corporation and accept as consideration or part of the consideration therefor in the name of the Company and on its behalf and/or in the name(s)  of any nominee(s) or trustee(s) for it any shares or further shares in any such company or corporation or allow the payment of the whole or any part of such consideration to remain deferred or outstanding by way of loan or debt or credit;

 



 

7.3.5                                                  sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise on behalf of the Company any such shares or deemed consideration or part thereof or any rights or benefits attaching thereto;

 

7.3.6                                                  convene an extraordinary general meeting of the Company;

 

7.3.7                                                  acquire any property on behalf of the Company;

 

7.3.8                                                  in respect of any assets of the Company situated in England and Wales, exercise in addition to the foregoing all the powers conferred by the Insolvency Act or any other enactment or under law on Receivers appointed in that jurisdiction;

 

7.3.9                                                  take possession of, collect and get in all or any of the Charged Assets;

 

7.3.10                                            carry on, manage, develop, reconstruct, amalgamate or diversify the business of the Company or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Instrument;

 

7.3.11                                            raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to the security created by this Instrument or otherwise;

 

7.3.12                                            sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Company or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the Company (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of the Company;

 

7.3.13                                            promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 



 

7.3.14                                            make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

7.3.15                                            appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 7 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

7.3.16                                            make calls conditionally or unconditionally on the members of the Company concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

7.3.17                                            sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security created pursuant to this Instrument of the Security Trustee and the Beneficiaries and to use the name of the Company concerned for all the purposes aforesaid;

 

7.3.18                                            do all the acts and things described in schedules 1 or 2 to the Insolvency Act as if the words he and him referred to the Receiver and company referred to the Company;

 

7.3.19                                            do all such other acts and things as he may consider necessary or desirable for protecting or realising the Charged Assets or any part thereof or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of or pursuant to this Instrument, and exercise in relation to the Charged Assets or any part thereof all such powers and authorities and do all such things as he would be capable of exercising or doing if he were the absolute beneficial owner of the same;  and use the name of the Company for all and any of the purposes aforesaid; and

 

7.3.20                                            do all or any of the acts and things specified in Clause 9 of the Debenture which are not specified in this Clause 7.3

 

7.4                     In the exercise of the powers hereby conferred any Receiver may sever and sell plant, machinery or other fixtures separately from the property to which they may be annexed.

 

7.5                     No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Instrument has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

7.6                     If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the security created pursuant to this Instrument the Security Trustee (or such Receiver) may:

 

7.6.1                                                  open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 



 

7.6.2                                                  pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

7.6.3                                                  subject to the payment of any claims having priority to the security created pursuant to this Instrument, withdraw amounts standing to the credit of the Realisation Accounts to:

 

7.6.4                                                  discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

7.6.5                                                  pay remuneration to the Receiver as and when the same becomes due and payable; and

 

7.6.6                                                  discharge the Secured Obligations as and when the same become due and payable.

 

8.                           OFFICE OF RECEIVER

 

8.1                     Any Receiver appointed under Clause 7 shall be the agent of the Company for all purposes and (subject to the provisions of the Insolvency Act) the Company alone shall be responsible for his contracts, engagements, acts, omissions, defaults and losses and for liabilities incurred by him and for his remuneration and his costs, charges and expenses, and the Security Trustee shall not incur any liability therefor (either to the Company or any other person) by reason of the Security Trustee making his appointment as such Receiver or for any other reason whatsoever.

 

8.2                     Any Receiver appointed shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of the Receiver or his firm.

 

9.                           APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee or by any Receiver shall be applied, after the discharge of the remuneration and expenses of the Receiver and all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, except that the Security Trustee may credit the same to a suspense account for so long and in such manner as the Security Trustee may from time to time determine and the Receiver may retain the same for such period as he and the Security Trustee consider expedient.

 

10.                    RELEASE AND DISCHARGE

 

10.1               The Security Trustee acting on behalf of the Beneficiaries under the Senior Finance Documents may at any time release the Company from any or all of its obligations under or pursuant to this Instrument and/or all or any part of the Charged Assets from the security created by this Instrument upon such terms as the Security Trustee may think fit but nothing in this Instrument does, shall or is intended to constitute a release of any of the Charged Assets.

 

10.2               Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 10.3, the Security Trustee shall, at the request and cost of

 



 

the Company, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

10.3               Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by any Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due owing or incurred to the Security Trustee and the Beneficiaries from any Chargor for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

10.4               The Security Trustee shall, at the request and cost of the Company, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Charged Assets.

 

11.                    PROTECTION OF SECURITY

 

11.1               The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

11.2               The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

11.3               No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 

11.4               Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

11.5               If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Charged Assets and/or the proceeds of sale thereof, the

 



 

Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

11.6               Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

11.6.1                                            any other present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to protect or enforce any of the same; or

 

11.6.2                                            the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

11.6.3                                            any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company  from the Secured Obligations; or

 

11.6.4                                            any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

11.7               The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

11.7.1                                            take any action or obtain judgment or decree in any Court against the Company;

 

11.7.2                                            make or file any claim to rank in a winding-up or liquidation of the Company; or

 

11.7.3                                            enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 

12.                    FURTHER ASSURANCE

 

The Company shall execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Charged Assets or, on or after the Enforcement Date, for facilitating the realisation of such assets and the exercise of all powers, authorities and discretions vested in the Security Trustee or in

 



 

any Receiver and shall, in particular, execute all fixed securities, floating charges, assignations, securities, transfers, dispositions and assurances of the Charged Assets whether to the Security Trustee or to its nominee(s) or otherwise and give all notices, orders and directions which the Security Trustee may think expedient, acting reasonably, which fixed securities over heritable or leasehold property situated in Scotland shall be standard securities in the agreed form for property of that type.

 

13.                    MANDATE AND ATTORNEY

 

13.1               The Company by way of security hereby irrevocably appoints each of the Security Trustee and any Receiver or administrator severally to be its attorney in its name and on its behalf:

 

13.1.1                                            to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver or administrator may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

13.1.2                                            to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 12 in accordance with the terms thereof; and

 

13.1.3                                            otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee or a Receiver or administrator under this Instrument or which may be deemed expedient by the Security Trustee or a Receiver or administrator in connection with any disposition, realisation or getting in by the Security Trustee or such Receiver of the Charged Assets or any part thereof or in connection with any other exercise of any power under this Instrument.

 

13.2               The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 shall do or purport to do in the proper exercise of his powers under such Clause.

 

14.                    INDEMNITIES; COSTS AND EXPENSES

 

14.1               The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

14.2               All costs, charges and expenses incurred and all payments made by the Security Trustee or any Receiver hereunder in or about the enforcement, preservation or attempted preservation of the security created by or pursuant to this Instrument or any of the Charged Assets shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges, expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee or any Receiver and the Company on the basis of a full and unqualified indemnity.

 



 

14.3               The Beneficiaries, the Security Trustee and any Receiver or administrator, attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Charged Assets in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

14.3.1                                            anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

14.3.2                                            any breach by the Company of any of its obligations under this Instrument; or

 

14.3.3                                            an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

15.                                SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and interests constituted by this Instrument and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.                                REORGANISATION

 

This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

17.                                CURRENCIES

 

17.1                          Conversion of currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale. 

 



 

Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

17.2                          Currency indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

18.                                NO ASSIGNATION

 

The Company may not assign or transfer any of its rights or obligations under this Instrument.

 

19.                                NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

20.                                GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be governed by, and construed in all respects in accordance with, the law of Scotland.  The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this Instrument is valid and binding subject to the Reservations.

 

21.                              JURISDICTION

 

For the benefit of the Security Trustee and the Beneficiaries, the Company irrevocably agrees that the Scottish courts are to have jurisdiction to settle any disputes which may arise out of or in connection with this Instrument and that, accordingly, any suit, action or proceedings arising out of or in connection with this Instrument (Proceedings) may be brought in any such court. The Company irrevocably waives any objection to Proceedings in such a court on the grounds of venue or on the ground that the Proceedings have been brought in an inconvenient forum.

 

21.                                CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, in the absence of manifest error, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company hereby consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF these presents consisting of this and the preceding twenty two pages are subscribed as follows:

 



 

Subscribed for and on behalf of

CABLETEL SCOTLAND LIMITED

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA

SECRETARIES LIMITED:

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 

/s/ ROBERT MACKENZIE

 

 

 

in the presence of:

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

99 City Road

 

Address of Witness

London, EC1Y 1AX

 

 

 

all together at

on

 

Robert Gale duly authorised by

Virgin Media Secretaries Limited to sign on its behalf as director

 

/s/ Robert Gale

 

 

 

in the presence of:

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

99 City Road

 

Address of Witness

London, EC1Y 1AX

 

 

 

all together at

on

 



 

Subscribed for and on behalf of

DEUTSCHE BANK AG, LONDON BRANCH acting by

 

/s/ NICOLA ANNE DAWES

 

Authorised Signatory

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

/s/ VIKKI ANNE MAYELL

 

Authorised Signatory

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

all together at London

 

on 19th January 2010

 


 



Exhibit 4.29

 

BOND AND FLOATING CHARGE

of all its property and undertaking

 

by

 

TELEWEST COMMUNICATIONS

(SCOTLAND HOLDINGS) LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0063

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

BOND

7

 

 

 

3.

FLOATING CHARGE

8

 

 

 

4.

RULE 3-16 LIMITATION

9

 

 

 

5.

UNDERTAKINGS

10

 

 

 

6.

SET-OFF

10

 

 

 

7.

ENFORCEMENT

11

 

 

 

8.

OFFICE OF RECEIVER

14

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

14

 

 

 

10.

RELEASE AND DISCHARGE

14

 

 

 

11.

PROTECTION OF SECURITY

15

 

 

 

12.

FURTHER ASSURANCE

16

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

INDEMNITIES; COSTS AND EXPENSES

17

 

 

 

15.

SECURITY TRUST AGREEMENT

18

 

 

 

16.

REORGANISATION

18

 

 

 

17.

CURRENCIES

18

 

 

 

18.

NO ASSIGNATION

19

 

 

 

19.

NOTICES

19

 

 

 

20.

GOVERNING LAW

19

 

 

 

21.

JURISDICTION

19

 

 

 

21.

CONSENT TO REGISTRATION

19

 



 

BOND AND FLOATING CHARGE

 

by

 

1.         TELEWEST COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED incorporated under the laws of Scotland (registered number SC150058) whose registered office is at 1 South Gyle Crescent Lane, Edinburgh, EH12 9EG (the Company);

 

in favour of

 

2.         DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the Security Trustee)

 

WHEREAS:

 

(A)          The Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)           Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)           By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the Group Intercreditor Deed) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)          The board of directors of the Company is satisfied that the Company is entering into this Instrument for the purposes of its carrying on business and that its doing so benefits the Company.

 

(E)           The Security Trustee holds the benefit of this Instrument on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

1.             INTERPRETATION

 

1.1           In this Instrument:

 

the Act

 

means the Companies Act 1985;

 

 

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Charged Assets

 

means the whole of the property (including uncalled capital) which is or may be from time to time while this Instrument is in force comprised in the property and undertaking of the Company;

 



 

Chargors

 

means each of the Original Charging Companies and each of the Original Charging Partnerships;

 

 

 

Debenture

 

means the composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original Charging Companies (including the Company), the partnerships listed therein as the Original Charging Partnerships and Deutsche Bank AG, London Branch as Security Trustee for the Beneficiaries;

 

 

 

Default Rate

 

means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Designated Secured Obligations

 

means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement;

 

 

 

Enforcement Date

 

means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Chargor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

 

 

Event of Default

 

means each of:

 

(a)        a Senior Default; and

 

(b)       an event of default or termination event (however described) under any Hedging Agreement;

 

 

 

Excluded Charged Assets

 

has the meaning given to such term in Clause 4.2 of this Instrument;

 

 

 

Indemnified Party

 

has the meaning set out in Clause 14.3;

 

 

 

Insolvency Act

 

means the Insolvency Act 1986;

 



 

Instructing Party

 

has the meaning given to it in the Group Intercreditor Deed;

 

 

 

Liability

 

means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, owed jointly or severally and whether owed as principal or surety or in any other capacity;

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Disposal

 

means any disposal permitted under Clause 25.4 of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Realisation Accounts

 

means each account maintained from time to time by the Security Trustee for the purposes of Clause 7.6;

 

 

 

Receiver

 

means any receiver or administrative receiver appointed in respect of all or any of the Charged Assets (whether pursuant to this Instrument, pursuant to any statute, by a Court or otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

 

 

Restricted Lease

 

has the meaning given to it in the Debenture;

 

 

 

Rule 3-16

 

has the meaning given to such term in

 



 

 

 

Designated Secured Obligations”;

 

 

 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)        in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)       that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Instrument;

 

 

 

Securities Act

 

means the United States Securities Act of 1933, as amended;

 

 

 

Security Provider

 

means any person who has granted or may at any time hereafter grant any security interest for the Secured Obligations;

 

 

 

Security Trust Agreement

 

means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Instrument between Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

 

 

Senior Facilities Agreement

 

means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications

 



 

 

 

Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

 

 

Senior Secured Notes

 

has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

 

 

Senior Secured Notes Documents

 

means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes;

 

 

 

Senior Secured Notes Indenture

 

means the indenture dated on or about the date of this Instrument governing the US$1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time;

 

 

 

Shares

 

means all shares in the capital of any company now or in the future legally or beneficially owned by the Company and/or any nominee on behalf of the Company.

 

1.2        Successors and assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Company”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Lenders, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 

1.3        Agreement definitions

 

Unless the context otherwise requires or unless otherwise defined in this Instrument, words and expressions defined in the Group Intercreditor Deed and (unless otherwise

 



 

defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Instrument (including its recitals).

 

1.4        Headings

 

Clause and schedule headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Instrument.

 

1.5           Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

(b)        references to (or to any specified provision of) this Instrument or any other agreement or document shall be construed as references to this Instrument, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

(d)        words importing the plural shall include the singular and vice versa;

 

(e)        references to a time of day are to London time;

 

(f)         references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and that person’s successors in title;

 

(g)        references to a guarantee include references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and guaranteed shall be construed accordingly;

 

(h)        references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended;

 

(i)         references to business in relation to the Company means any business referred to in the definition of Group Business in the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the equivalent definition in the Relevant Facilities Agreement, which the Company engages in, and references to ordinary course of business shall be similarly construed; and

 



 

(j)         references in this Instrument to a fixed security shall be construed a reference to a fixed security as defined by Section 486 of the Act as in force at the date hereof.

 

1.6           Group Intercreditor Deed

 

This Instrument should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Instrument and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.7           Secured Liabilities

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)        all Liabilities under the Senior Facilities Agreement; and

 

(b)        all Liabilities under the Senior Secured Notes Documents.

 

2.         BOND

 

2.1        The Company hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid.

 

2.2        Any statement of account of the Company, signed as correct by an officer of the Security Trustee, showing the amount of any Secured Obligations of the Company shall be prima facie evidence as to the amount of the Secured Obligations of the Company from time to time.

 

2.3        The Company warrants that it has not taken or received, and undertakes that until all the Secured Obligations have been paid or discharged in full it will not, without the consent in writing of the Security Trustee, take or receive any security from any other Chargor or any other person in respect of its obligations under this Instrument.

 

2.4        All payments to be made by the Company under this Instrument shall be made in full, without any set-off or counterclaim or plea of compensation whatsoever and free and clear of any deductions or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

2.5        Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee it will not:

 

(a)        exercise its rights of subrogation, reimbursement and indemnity against any other Chargor or any other person;

 

(b)        save as otherwise permitted and not restricted in each of the Senior Finance Documents, the Refinancing Facilities Agreements and the Group Intercreditor Deed, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any other Chargor or any

 



 

Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)        take any step to enforce any right against any other Chargor or any Security Provider in respect of any such obligations or liabilities; or

 

(d)        claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Chargor or any Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Chargor or any Security Provider or have the benefit of, or share in, any payment from or composition with any other Chargor or any Security Provider or any other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any other Chargor or any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Chargor or any Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and Security Trust Agreement.

 

2.6       Recoveries by the Company

 

If contrary to Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

3.          FLOATING CHARGE

 

3.1        The Company, being a company incorporated in Scotland, as security for the payment and discharge of all the Secured Obligations HEREBY GRANTS in favour of the Security Trustee for itself and as trustee for the Beneficiaries a floating charge over the whole of the Charged Assets PROVIDED THAT, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any lease interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not the Company.

 

3.2        The floating charge hereby created shall rank pari passu with the floating charge created by the Debenture, and, subject to Section 464(2) of the Act, rank in priority to any fixed security which shall be created by the Company after its execution hereof (other than a fixed security in favour of the Security Trustee for itself and/or as trustee aforesaid) and to any other floating charge which shall be created by the Company after its execution hereof and, subject as aforesaid, no such fixed security nor such other floating charge shall rank in priority to or equally with or postponed to the floating charge hereby created by it.

 

3.3        Paragraph 14 of Schedule B1 to the Insolvency Act 1986 (as amended by Schedule 16 of the Enterprise Act 2002) will apply to any floating charge created pursuant to this Instrument.

 



 

3.4        Notwithstanding Clause 3.1, unless and until the Company has obtained the consent of the relevant landlord and any other relevant party (each being a Consent) the floating charge granted pursuant to Clause 3.1 shall not extend to the Company’s rights over any Restricted Lease.  Unless the Company has received a written confirmation from the Security Trustee that a particular Consent is not required, the Company hereby undertakes to use its reasonable endeavours to obtain the Consents.  On obtaining each Consent the Restricted Lease shall thereupon automatically become subject to the floating charge created pursuant to Clause 3.1 and the Company shall immediately produce evidence of such Consent to the Security Trustee.

 

3.5        The Company hereby warrants that it is not a party to any Restricted Lease and that, accordingly, no Consents are required in respect of any of the Charged Assets.

 

4.             RULE 3-16 LIMITATION

 

4.1           Clause 3 of this Instrument notwithstanding, the Excluded Charged Assets are not charged under this Instrument to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(a)     all other Shares remain charged or assigned (as the case may be) under this Instrument to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(b)     such Excluded Charged Assets remain charged under Clause 3 of this Instrument to secure any Secured Obligations that are not Designated Secured Obligations.

 

4.2           Excluded Charged Assets” in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that pledging or assigning such Shares or other securities under this Instrument to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge and/or assignment of any Shares or other securities pursuant to Clause 4.1.

 

4.3           In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been

 



 

applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

4.4           In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Shares and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Shares or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph 4.4 apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Security Trustee such additional Shares or other securities that were deemed to constitute Excluded Charged Assets.

 

5.          UNDERTAKINGS

 

The Company hereby undertakes with the Security Trustee that until the security constituted by this Instrument is released in accordance with the following provisions:

 

(i)                     the provisions of Clause 5 of the Debenture shall apply mutatis mutandis as if set out herein but so that references therein to Chargor and this Deed shall be construed herein as references to the Company and this Instrument respectively;

 

(ii)                    the Company will comply with all its obligations under the Senior Finance Documents; and

 

(iii)                   the Company will notify the Security Trustee forthwith in the event that any claim or notice against it or any of the Charged Assets is received from any other party which is likely to materially prejudice the value of the Charged Assets and of all matters relevant thereto.

 

6.          SET-OFF

 

6.1           The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured

 



 

Obligations owed to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.

 

6.2           For the purpose of Clause 6.1, the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

7.          ENFORCEMENT

 

7.1           If (and only if) the Enforcement Date has occurred this Instrument shall become enforceable.

 

7.2           At any time: (i) on or after the Enforcement Date; or (ii) if the Board of Directors of the Company requests that a Receiver or administrator be appointed forthwith; or (iii) a petition is presented for the making of an administration order of the Company, the power to appoint a Receiver or administrator of the Charged Assets shall be immediately exercisable in relation to the security created by the Company by or pursuant to this Instrument, and the Security Trustee may then (i) by instrument in writing appoint any person or persons (if more than one with power to act both jointly and severally) to be a Receiver of the Charged Assets, or (ii) appoint an administrator of the Company pursuant to paragraph 14 of Schedule B1 to the Insolvency Act 1986.  In addition and without prejudice to the foregoing provisions of this sub-clause, in the event that any person appointed in pursuance hereof to be a Receiver as aforesaid shall be removed by a Court or shall otherwise cease to act as such, then the Security Trustee shall be entitled so to appoint another person as Receiver in his place.

 

7.3           A Receiver so appointed shall have and be entitled to exercise all the powers conferred upon such a Receiver by the Insolvency Act and in addition to and without limiting these powers, such Receiver shall have power to:

 

7.3.1        implement and exercise all or any of the Company’s powers and/or rights and/or obligations under any contract or other agreement forming a part of the Charged Assets;

 

7.3.2        make any arrangement or compromise which he shall think expedient of or in respect of any claim by or against the Company;

 

7.3.3        subscribe for or acquire for cash or otherwise any share capital of such new company or corporation in the name of the Company and on its behalf and/or in the name(s) of a nominee(s) or trustee(s) for it;

 

7.3.4        sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise the Charged Assets or any part thereof to any such new company or corporation and accept as consideration or part of the consideration therefor in the name of the Company and on its behalf and/or in the name(s)  of any nominee(s) or trustee(s) for it any shares or further shares in any such company or corporation or allow the payment of the whole or any part of such consideration to remain deferred or outstanding by way of loan or debt or credit;

 


 

7.3.5        sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise on behalf of the Company any such shares or deemed consideration or part thereof or any rights or benefits attaching thereto;

 

7.3.6        convene an extraordinary general meeting of the Company;

 

7.3.7        acquire any property on behalf of the Company;

 

7.3.8        in respect of any assets of the Company situated in England and Wales,  exercise in addition to the foregoing all the powers conferred by the Insolvency Act or any other enactment or under law on Receivers appointed in that jurisdiction;

 

7.3.9        take possession of, collect and get in all or any of the Charged Assets;

 

7.3.10      carry on, manage, develop, reconstruct, amalgamate or diversify the business of the Company or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Instrument;

 

7.3.11      raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to the security created by this Instrument or otherwise;

 

7.3.12      sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Company or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the Company (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of the Company;

 

7.3.13      promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 



 

7.3.14      make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

7.3.15      appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 7 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

7.3.16      make calls conditionally or unconditionally on the members of the Company concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

7.3.17      sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security created pursuant to this Instrument of the Security Trustee and the Beneficiaries and to use the name of the Company concerned for all the purposes aforesaid;

 

7.3.18      do all the acts and things described in schedules 1 or 2 to the Insolvency Act as if the words he and him referred to the Receiver and company referred to the Company;

 

7.3.19      do all such other acts and things as he may consider necessary or desirable for protecting or realising the Charged Assets or any part thereof or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of or pursuant to this Instrument, and exercise in relation to the Charged Assets or any part thereof all such powers and authorities and do all such things as he would be capable of exercising or doing if he were the absolute beneficial owner of the same;  and use the name of the Company for all and any of the purposes aforesaid; and

 

7.3.20      do all or any of the acts and things specified in Clause 9 of the Debenture which are not specified in this Clause 7.3.

 

7.4           In the exercise of the powers hereby conferred any Receiver may sever and sell plant, machinery or other fixtures separately from the property to which they may be annexed.

 

7.5           No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Instrument has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

7.6           If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the security created pursuant to this Instrument the Security Trustee (or such Receiver) may:

 

7.6.1        open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 

7.6.2        pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 



 

7.6.3        subject to the payment of any claims having priority to the security created pursuant to this Instrument, withdraw amounts standing to the credit of the Realisation Accounts to:

 

7.6.4        discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

7.6.5        pay remuneration to the Receiver as and when the same becomes due and payable; and

 

7.6.6        discharge the Secured Obligations as and when the same become due and payable.

 

8.          OFFICE OF RECEIVER

 

8.1           Any Receiver appointed under Clause 7 shall be the agent of the Company for all purposes and (subject to the provisions of the Insolvency Act) the Company alone shall be responsible for his contracts, engagements, acts, omissions, defaults and losses and for liabilities incurred by him and for his remuneration and his costs, charges and expenses, and the Security Trustee shall not incur any liability therefor (either to the Company or any other person) by reason of the Security Trustee making his appointment as such Receiver or for any other reason whatsoever.

 

8.2           Any Receiver appointed shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of the Receiver or his firm.

 

9.          APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee or by any Receiver shall be applied, after the discharge of the remuneration and expenses of the Receiver and all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, except that the Security Trustee may credit the same to a suspense account for so long and in such manner as the Security Trustee may from time to time determine and the Receiver may retain the same for such period as he and the Security Trustee consider expedient.

 

10.        RELEASE AND DISCHARGE

 

10.1         The Security Trustee acting on behalf of the Beneficiaries under the Senior Finance Documents may at any time release the Company from any or all of its obligations under or pursuant to this Instrument and/or all or any part of the Charged Assets from the security created by this Instrument upon such terms as the Security Trustee may think fit but nothing in this Instrument does, shall or is intended to constitute a release of any of the Charged Assets.

 

10.2         Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 10.3, the Security Trustee shall, at the request and cost of the Company, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 



 

10.3         Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by any Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due owing or incurred to the Security Trustee and the Beneficiaries from any Chargor for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

10.4         The Security Trustee shall, at the request and cost of the Company, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Charged Assets.

 

11.        PROTECTION OF SECURITY

 

11.1         The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

11.2         The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

11.3         No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 

11.4         Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

11.5         If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Charged Assets and/or the proceeds of sale thereof, the Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the

 



 

Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

11.6         Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

11.6.1      any other present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to protect or enforce any of the same; or

 

11.6.2      the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

11.6.3      any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company from the Secured Obligations; or

 

11.6.4      any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

11.7         The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

11.7.1      take any action or obtain judgment or decree in any Court against the Company;

 

11.7.2      make or file any claim to rank in a winding-up or liquidation of the Company; or

 

11.7.3      enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 

12.        FURTHER ASSURANCE

 

The Company shall execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Charged Assets or, on or after the Enforcement Date, for facilitating the realisation of such assets and the exercise of all powers, authorities and discretions vested in the Security Trustee or in any Receiver and shall, in particular, execute all fixed securities, floating charges, assignations, securities, transfers, dispositions and assurances of the Charged Assets whether to the Security Trustee or to its nominee(s) or otherwise and give all notices, orders and directions which the Security Trustee may think expedient, acting

 



 

reasonably, which fixed securities over heritable or leasehold property situated in Scotland shall be standard securities in the agreed form for property of that type.

 

13.        MANDATE AND ATTORNEY

 

13.1         The Company by way of security hereby irrevocably appoints each of the Security Trustee and any Receiver or administrator severally to be its attorney in its name and on its behalf:

 

13.1.1      to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver or administrator may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

13.1.2      to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 12 in accordance with the terms thereof; and

 

13.1.3      otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee or a Receiver or administrator under this Instrument or which may be deemed expedient by the Security Trustee or a Receiver or administrator in connection with any disposition, realisation or getting in by the Security Trustee or such Receiver of the Charged Assets or any part thereof or in connection with any other exercise of any power under this Instrument.

 

13.2         The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 shall do or purport to do in the proper exercise of his powers under such Clause.

 

14.        INDEMNITIES; COSTS AND EXPENSES

 

14.1         The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

14.2         All costs, charges and expenses incurred and all payments made by the Security Trustee or any Receiver hereunder in or about the enforcement, preservation or attempted preservation of the security created by or pursuant to this Instrument or any of the Charged Assets shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges, expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee or any Receiver and the Company on the basis of a full and unqualified indemnity.

 

14.3         The Beneficiaries, the Security Trustee and any Receiver or administrator, attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Charged Assets in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be

 



 

incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

14.3.1      anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

14.3.2      any breach by the Company of any of its obligations under this Instrument; or

 

14.3.3      an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

15.        SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and interests constituted by this Instrument and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.        REORGANISATION

 

This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

17.        CURRENCIES

 

17.1         Conversion of currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale.  Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 



 

17.2         Currency indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

18.        NO ASSIGNATION

 

The Company may not assign or transfer any of its rights or obligations under this Instrument.

 

19.        NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

20.        GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be governed by, and construed in all respects in accordance with, the law of Scotland.  The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this Instrument is valid and binding subject to the Reservations.

 

21.           JURISDICTION

 

For the benefit of the Security Trustee and the Beneficiaries, the Company irrevocably agrees that the Scottish courts are to have jurisdiction to settle any disputes which may arise out of or in connection with this Instrument and that, accordingly, any suit, action or proceedings arising out of or in connection with this Instrument (Proceedings) may be brought in any such court. The Company irrevocably waives any objection to Proceedings in such a court on the grounds of venue or on the ground that the Proceedings have been brought in an inconvenient forum.

 

22.       CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, in the absence of manifest error, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company hereby consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF these presents consisting of this and the preceding twenty two pages are subscribed as follows:

 



 

Subscribed for and on behalf of

TELEWEST COMMUNICATIONS (SCOTLAND HOLDINGS) LIMITED

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA

SECRETARIES LIMITED:

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

99 City Road

 

Address of Witness

LONDON, EC1Y 1AX

 

 

 

 

 

all together at

 

 

on

 

 

 

 

Robert Gale duly authorised by

Virgin Media Secretaries Limited to sign on its behalf as director

 

/S/ ROBERT GALE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

99 City Road

 

Address of Witness

LONDON EC1Y 1AX

 

 

 

 

 

all together at

 

 

on

 

 

 



 

Subscribed for and on behalf of

DEUTSCHE BANK AG, LONDON BRANCH acting by

 

/s/ NICOLA ANNE DAWES

 

Authorised Signatory

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

/s/ VIKKI ANNE MAYELL

 

Authorised Signatory

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

all together at London

 

 

 

 

 

on     19th January 2010

 

 

 




Exhibit 4.30

 

BOND AND FLOATING CHARGE

of all its property and undertaking

 

by

 

TELEWEST COMMUNICATIONS

(SCOTLAND) LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0063

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

BOND

7

 

 

 

3.

FLOATING CHARGE

8

 

 

 

4.

RULE 3-16 LIMITATION

9

 

 

 

5.

UNDERTAKINGS

10

 

 

 

7.

ENFORCEMENT

11

 

 

 

8.

OFFICE OF RECEIVER

14

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

14

 

 

 

10.

RELEASE AND DISCHARGE

14

 

 

 

11.

PROTECTION OF SECURITY

15

 

 

 

12.

FURTHER ASSURANCE

16

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

INDEMNITIES; COSTS AND EXPENSES

17

 

 

 

15.

SECURITY TRUST AGREEMENT

18

 

 

 

16.

REORGANISATION

18

 

 

 

18.

NO ASSIGNATION

19

 

 

 

19.

NOTICES

19

 

 

 

20.

GOVERNING LAW

19

 

 

 

21.

JURISDICTION

19

 



 

BOND AND FLOATING CHARGE

 

by

 

1.         TELEWEST COMMUNICATIONS (SCOTLAND) LIMITED incorporated under the laws of Scotland (registered number SC080891) whose registered office is at 1 South Gyle Crescent Lane, Edinburgh, EH12 9EG (the Company);

 

in favour of

 

2.         DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the Security Trustee)

 

WHEREAS:

 

(A)          The Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)           Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)           By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the Group Intercreditor Deed) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)          The board of directors of the Company is satisfied that the Company is entering into this Instrument for the purposes of its carrying on business and that its doing so benefits the Company.

 

(E)           The Security Trustee holds the benefit of this Instrument on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

1.         INTERPRETATION

 

1.1           In this Instrument:

 

the Act

 

means the Companies Act 1985;

 

 

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Charged Assets

 

means the whole of the property (including uncalled capital) which is or may be from time to time while this Instrument is in force comprised in the property and undertaking of the Company;

 



 

Chargors

 

means each of the Original Charging Companies and each of the Original Charging Partnerships;

 

 

 

Debenture

 

means the composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original Charging Companies (including the Company), the partnerships listed therein as the Original Charging Partnerships and Deutsche Bank AG, London Branch as Security Trustee for the Beneficiaries;

 

 

 

Default Rate

 

means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Designated Secured Obligations

 

means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement;

 

 

 

Enforcement Date

 

means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Chargor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

 

 

Event of Default

 

means each of:

 

(a)   a Senior Default; and

 

(b)   an event of default or termination event (however described) under any Hedging Agreement;

 

 

 

Excluded Charged Assets

 

has the meaning given to such term in Clause 4.2 of this Instrument;

 

 

 

Indemnified Party

 

has the meaning set out in Clause 14.3;

 

 

 

Insolvency Act

 

means the Insolvency Act 1986;

 



 

Instructing Party

 

has the meaning given to it in the Group Intercreditor Deed;

 

 

 

Liability

 

means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, owed jointly or severally and whether owed as principal or surety or in any other capacity;

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Disposal

 

means any disposal permitted under Clause 25.4 of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Realisation Accounts

 

means each account maintained from time to time by the Security Trustee for the purposes of Clause 7.6;

 

 

 

Receiver

 

means any receiver or administrative receiver appointed in respect of all or any of the Charged Assets (whether pursuant to this Instrument, pursuant to any statute, by a Court or otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

 

 

Restricted Lease

 

has the meaning given to it in the Debenture;

 

 

 

Rule 3-16

 

has the meaning given to such term in “Designated Secured Obligations”;

 



 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)   in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)   that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Instrument;

 

 

 

Securities Act

 

means the United States Securities Act of 1933, as amended;

 

 

 

Security Provider

 

means any person who has granted or may at any time hereafter grant any security interest for the Secured Obligations;

 

 

 

Security Trust Agreement

 

means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Instrument between Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

 

 

Senior Facilities Agreement

 

means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly

 



 

 

 

known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

 

 

Senior Secured Notes

 

has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

 

 

Senior Secured Notes Documents

 

means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes;

 

 

 

Senior Secured Notes Indenture

 

means the indenture dated on or about the date of this Instrument governing the US$1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time;

 

 

 

Shares

 

means all shares in the capital of any company now or in the future legally or beneficially owned by the Company and/or any nominee on behalf of the Company.

 

1.2        Successors and assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Company”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Lenders, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 

1.3        Agreement definitions

 

Unless the context otherwise requires or unless otherwise defined in this Instrument, words and expressions defined in the Group Intercreditor Deed and (unless otherwise

 



 

defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Instrument (including its recitals).

 

1.4        Headings

 

Clause and schedule headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Instrument.

 

1.5           Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

(b)        references to (or to any specified provision of) this Instrument or any other agreement or document shall be construed as references to this Instrument, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

(d)      words importing the plural shall include the singular and vice versa;

 

(e)        references to a time of day are to London time;

 

(f)         references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and that person’s successors in title;

 

(g)        references to a guarantee include references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and guaranteed shall be construed accordingly;

 

(h)        references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended;

 

(i)         references to business in relation to the Company means any business referred to in the definition of Group Business in the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the equivalent definition in the Relevant Facilities Agreement, which the Company engages in, and references to ordinary course of business shall be similarly construed; and

 



 

(j)         references in this Instrument to a fixed security shall be construed a reference to a fixed security as defined by Section 486 of the Act as in force at the date hereof.

 

1.6           Group Intercreditor Deed

 

This Instrument should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Instrument and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.7           Secured Liabilities

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)        all Liabilities under the Senior Facilities Agreement; and

 

(b)      all Liabilities under the Senior Secured Notes Documents.

 

2.          BOND

 

2.1        The Company hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid.

 

2.2        Any statement of account of the Company, signed as correct by an officer of the Security Trustee, showing the amount of any Secured Obligations of the Company shall be prima facie evidence as to the amount of the Secured Obligations of the Company from time to time.

 

2.3        The Company warrants that it has not taken or received, and undertakes that until all the Secured Obligations have been paid or discharged in full it will not, without the consent in writing of the Security Trustee, take or receive any security from any other Chargor or any other person in respect of its obligations under this Instrument.

 

2.4        All payments to be made by the Company under this Instrument shall be made in full, without any set-off or counterclaim or plea of compensation whatsoever and free and clear of any deductions or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

2.5        Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee it will not:

 

(a)        exercise its rights of subrogation, reimbursement and indemnity against any other Chargor or any other person;

 

(b)        save as otherwise permitted and not restricted in each of the Senior Finance Documents, the Refinancing Facilities Agreements and the Group Intercreditor Deed, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any other Chargor or any

 



 

Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)        take any step to enforce any right against any other Chargor or any Security Provider in respect of any such obligations or liabilities; or

 

(d)        claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Chargor or any Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Chargor or any Security Provider or have the benefit of, or share in, any payment from or composition with any other Chargor or any Security Provider or any other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any other Chargor or any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Chargor or any Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and Security Trust Agreement.

 

2.6        Recoveries by the Company

 

If contrary to Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

3.          FLOATING CHARGE

 

3.1        The Company, being a company incorporated in Scotland, as security for the payment and discharge of all the Secured Obligations HEREBY GRANTS in favour  of the Security Trustee for itself and as  trustee  for  the Beneficiaries a floating charge over the whole of the Charged Assets PROVIDED THAT, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any lease interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not the Company.

 

3.2        The floating charge hereby created shall rank pari passu with the floating charge created by the Debenture, and, subject to Section 464(2) of the Act, rank in priority to any fixed security which shall be created by the Company after its execution hereof (other than a fixed security in favour of the Security Trustee for itself and/or as trustee aforesaid) and to any other floating charge which shall be created by the Company after its execution hereof and, subject as aforesaid, no such fixed security nor such other floating charge shall rank in priority to or equally with or postponed to the floating charge hereby created by it.

 

3.3        Paragraph 14 of Schedule B1 to the Insolvency Act 1986 (as amended by Schedule 16 of the Enterprise Act 2002) will apply to any floating charge created pursuant to this Instrument.

 



 

3.4        Notwithstanding Clause 3.1, unless and until the Company has obtained the consent of the relevant landlord and any other relevant party (each being a Consent) the floating charge granted pursuant to Clause 3.1 shall not extend to the Company’s rights over any Restricted Lease.  Unless the Company has received a written confirmation from the Security Trustee that a particular Consent is not required, the Company hereby undertakes to use its reasonable endeavours to obtain the Consents.  On obtaining each Consent the Restricted Lease shall thereupon automatically become subject to the floating charge created pursuant to Clause 3.1 and the Company shall immediately produce evidence of such Consent to the Security Trustee.

 

3.5        The Company hereby warrants that it is not a party to any Restricted Lease and that, accordingly, no Consents are required in respect of any of the Charged Assets.

 

4.             RULE 3-16 LIMITATION

 

4.1           Clause 3 of this Instrument notwithstanding, the Excluded Charged Assets are not charged under this Instrument to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(a)     all other Shares remain charged or assigned (as the case may be) under this Instrument to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(b)     such Excluded Charged Assets remain charged under Clause 3 of this Instrument to secure any Secured Obligations that are not Designated Secured Obligations.

 

4.2           Excluded Charged Assets” in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that pledging or assigning such Shares or other securities under this Instrument to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge and/or assignment of any Shares or other securities pursuant to Clause 4.1.

 

4.3           In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been

 



 

applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

4.4           In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Shares and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Shares or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph 4.4 apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Security Trustee such additional Shares or other securities that were deemed to constitute Excluded Charged Assets.

 

5.          UNDERTAKINGS

 

The Company hereby undertakes with the Security Trustee that until the security constituted by this Instrument is released in accordance with the following provisions:

 

(i)            the provisions of Clause 5 of the Debenture shall apply mutatis mutandis as if set out herein but so that references therein to Chargor and this Deed shall be construed herein as references to the Company and this Instrument respectively;

 

(ii)           the Company will comply with all its obligations under the Senior Finance Documents; and

 

(iii)          the Company will notify the Security Trustee forthwith in the event that any claim or notice against it or any of the Charged Assets is received from any other party which is likely to materially prejudice the value of the Charged Assets and of all matters relevant thereto.

 

6.         SET-OFF

 

6.1        The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed

 



 

to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.

 

6.2        For the purpose of Clause 6.1, the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

7.         ENFORCEMENT

 

7.1        If (and only if) the Enforcement Date has occurred this Instrument shall become enforceable.

 

7.2        At any time: (i) on or after the Enforcement Date; or (ii) if the Board of Directors of the Company requests that a Receiver or administrator be appointed forthwith; or (iii) a petition is presented for the making of an administration order of the Company, the power to appoint a Receiver or administrator of the Charged Assets shall be  immediately exercisable in relation to the security created by the Company by or pursuant  to this  Instrument, and the Security Trustee may then (i) by instrument in writing appoint any person or persons (if more than one with power to act both jointly and severally) to be a Receiver of the Charged Assets, or (ii) appoint an administrator of the Company pursuant to paragraph 14 of Schedule B1 to the Insolvency Act 1986.  In addition and without prejudice to the foregoing provisions of this sub-clause, in the event that any person appointed in pursuance hereof to be a Receiver as aforesaid shall be removed by a Court or shall otherwise cease to act as such, then the Security Trustee shall be entitled so to appoint another person as Receiver in his place.

 

7.3        A Receiver so appointed shall have and be entitled to exercise all the powers conferred upon such a Receiver by the Insolvency Act and in addition to and without limiting these powers, such Receiver shall have power to:

 

7.3.1        implement and exercise all or any of the Company’s powers and/or rights and/or obligations under any contract or other agreement forming a part of the Charged Assets;

 

7.3.2       make any arrangement or compromise which he shall think expedient of or in respect of any claim by or against the Company;

 

7.3.3       subscribe for or acquire for cash or otherwise any share capital of such new company or corporation in the name of the Company and on its behalf and/or in the name(s) of a nominee(s) or trustee(s) for it;

 

7.3.4       sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise the Charged Assets or any part thereof to any such new company or corporation and accept as consideration or part of the consideration therefor in the name of the Company and on its behalf and/or in the name(s)  of any nominee(s) or trustee(s) for it any shares or further shares in any such company or corporation or allow the payment of the whole or any part of such consideration to remain deferred or outstanding by way of loan or debt or credit;

 


 

7.3.5                        sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise on behalf of the Company any such shares or deemed consideration or part thereof or any rights or benefits attaching thereto;

 

7.3.6                      convene an extraordinary general meeting of the Company;

 

7.3.7                      acquire any property on behalf of the Company;

 

7.3.8                      in respect of any assets of the Company situated in England and Wales,  exercise in addition to the foregoing all the powers conferred by the Insolvency Act or any other enactment or under law on Receivers appointed in that jurisdiction;

 

7.3.9                      take possession of, collect and get in all or any of the Charged Assets;

 

7.3.10                carry on, manage, develop, reconstruct, amalgamate or diversify the business of the Company or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Instrument;

 

7.3.11                raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to the security created by this Instrument or otherwise;

 

7.3.12                sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Company or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the Company (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of the Company;

 

7.3.13                promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 



 

7.3.14                make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

7.3.15                appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 7 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

7.3.16                make calls conditionally or unconditionally on the members of the Company concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

7.3.17                sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security created pursuant to this Instrument of the Security Trustee and the Beneficiaries and to use the name of the Company concerned for all the purposes aforesaid;

 

7.3.18                do all the acts and things described in schedules 1 or 2 to the Insolvency Act as if the words he and him referred to the Receiver and company referred to the Company;

 

7.3.19                do all such other acts and things as he may consider necessary or desirable for protecting or realising the Charged Assets or any part thereof or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of or pursuant to this Instrument, and exercise in relation to the Charged Assets or any part thereof all such powers and authorities and do all such things as he would be capable of exercising or doing if he were the absolute beneficial owner of the same;  and use the name of the Company for all and any of the purposes aforesaid; and

 

7.3.20                do all or any of the acts and things specified in Clause 9 of the Debenture which are not specified in this Clause 7.3

 

7.4                       In the exercise of the powers hereby conferred any Receiver may sever and sell plant, machinery or other fixtures separately from the property to which they may be annexed.

 

7.5                       No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Instrument has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

7.6                       If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the security created pursuant to this Instrument the Security Trustee (or such Receiver) may:

 

7.6.1                      open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 



 

7.6.2                      pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

7.6.3                      subject to the payment of any claims having priority to the security created pursuant to this Instrument, withdraw amounts standing to the credit of the Realisation Accounts to:

 

7.6.4                      discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

7.6.5                      pay remuneration to the Receiver as and when the same becomes due and payable; and

 

7.6.6                      discharge the Secured Obligations as and when the same become due and payable.

 

8.                            OFFICE OF RECEIVER

 

8.1                       Any Receiver appointed under Clause 7 shall be the agent of the Company for all purposes and (subject to the provisions of the Insolvency Act) the Company alone shall be responsible for his contracts, engagements, acts, omissions, defaults and losses and for liabilities incurred by him and for his remuneration and his costs, charges and expenses, and the Security Trustee shall not incur any liability therefor (either to the Company or any other person) by reason of the Security Trustee making his appointment as such Receiver or for any other reason whatsoever.

 

8.2                       Any Receiver appointed shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of the Receiver or his firm.

 

9.                            APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee or by any Receiver shall be applied, after the discharge of the remuneration and expenses of the Receiver and all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, except that the Security Trustee may credit the same to a suspense account for so long and in such manner as the Security Trustee may from time to time determine and the Receiver may retain the same for such period as he and the Security Trustee consider expedient.

 

10.                     RELEASE AND DISCHARGE

 

10.1                 The Security Trustee acting on behalf of the Beneficiaries under the Senior Finance Documents may at any time release the Company from any or all of its obligations under or pursuant to this Instrument and/or all or any part of the Charged Assets from the security created by this Instrument upon such terms as the Security Trustee may think fit but nothing in this Instrument does, shall or is intended to constitute a release of any of the Charged Assets.

 

10.2                 Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 10.3, the Security Trustee shall, at the request and cost of

 



 

the Company, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

10.3                 Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by any Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due owing or incurred to the Security Trustee and the Beneficiaries from any Chargor for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

10.4                 The Security Trustee shall, at the request and cost of the Company, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Charged Assets.

 

11.                     PROTECTION OF SECURITY

 

11.1                 The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

11.2                 The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

11.3                 No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 

11.4                 Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

11.5                 If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Charged Assets and/or the proceeds of sale thereof, the

 



 

Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

11.6                 Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

11.6.1                any other present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to protect or enforce any of the same; or

 

11.6.2                the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

11.6.3                any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company  from the Secured Obligations; or

 

11.6.4                  any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

11.7                 The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

11.7.1                take any action or obtain judgment or decree in any Court against the Company;

 

11.7.2                make or file any claim to rank in a winding-up or liquidation of the Company; or

 

11.7.3                enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 

12.                     FURTHER ASSURANCE

 

The Company shall execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Charged Assets or, on or after the Enforcement Date, for facilitating the realisation of such assets and the exercise of all powers, authorities and discretions vested in the Security Trustee or in

 



 

any Receiver and shall, in particular, execute all fixed securities, floating charges, assignations, securities, transfers, dispositions and assurances of the Charged Assets whether to the Security Trustee or to its nominee(s) or otherwise and give all notices, orders and directions which the Security Trustee may think expedient, acting reasonably, which fixed securities over heritable or leasehold property situated in Scotland shall be standard securities in the agreed form for property of that type.

 

13.                     MANDATE AND ATTORNEY

 

13.1                 The Company by way of security hereby irrevocably appoints each of the Security Trustee and any Receiver or administrator severally to be its attorney in its name and on its behalf:

 

13.1.1                to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver or administrator may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

13.1.2                to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 12 in accordance with the terms thereof; and

 

13.1.3                otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee or a Receiver or administrator under this Instrument or which may be deemed expedient by the Security Trustee or a Receiver or administrator in connection with any disposition, realisation or getting in by the Security Trustee or such Receiver of the Charged Assets or any part thereof or in connection with any other exercise of any power under this Instrument.

 

13.2                 The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 shall do or purport to do in the proper exercise of his powers under such Clause.

 

14.                     INDEMNITIES; COSTS AND EXPENSES

 

14.1                 The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

14.2                 All costs, charges and expenses incurred and all payments made by the Security Trustee or any Receiver hereunder in or about the enforcement, preservation or attempted preservation of the security created by or pursuant to this Instrument or any of the Charged Assets shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges, expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee or any Receiver and the Company on the basis of a full and unqualified indemnity.

 



 

14.3                 The Beneficiaries, the Security Trustee and any Receiver or administrator, attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Charged Assets in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

14.3.1                anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

14.3.2                any breach by the Company of any of its obligations under this Instrument; or

 

14.3.3                an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

15.                                SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and interests constituted by this Instrument and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.                                REORGANISATION

 

This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

17.                                CURRENCIES

 

17.1                          Conversion of currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale. 

 



 

Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

17.2                          Currency indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

18.                                NO ASSIGNATION

 

The Company may not assign or transfer any of its rights or obligations under this Instrument.

 

19.                                NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

20.                                GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be governed by, and construed in all respects in accordance with, the law of Scotland.  The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this Instrument is valid and binding subject to the Reservations.

 

21.                                JURISDICTION

 

For the benefit of the Security Trustee and the Beneficiaries, the Company irrevocably agrees that the Scottish courts are to have jurisdiction to settle any disputes which may arise out of or in connection with this Instrument and that, accordingly, any suit, action or proceedings arising out of or in connection with this Instrument (Proceedings) may be brought in any such court. The Company irrevocably waives any objection to Proceedings in such a court on the grounds of venue or on the ground that the Proceedings have been brought in an inconvenient forum.

 

21.                       CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, in the absence of manifest error, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company hereby consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF these presents consisting of this and the preceding twenty two pages are subscribed as follows:

 



 

Subscribed for and on behalf of

TELEWEST COMMUNICATIONS (SCOTLAND) LIMITED

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA

SECRETARIES LIMITED:

 

Robert Mackenzie duly authorised by

Virgin Media Directors Limited to sign on its behalf as director

 

 

/S/ ROBERT MACKENZIE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

Address of Witness

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

 

 

 

 

99 City Road

 

 

 

 

London EC1Y 1AX

 

 

 

 

UNITED KINGDOM

 

 

 

 

Tel: +44.20.7972.9600

 

 

 

 

Fax: +44.20.7972.9602

 

 

all together at

on

 

Robert Gale duly authorised by

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

/S/ ROBERT GALE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

Witness

 

 

 

 

Viera Sulikova

Print full name of Witness

 

 

 

 

Address of Witness

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

 

 

 

 

99 City Road

 

 

 

 

London EC1Y 1AX

 

 

 

 

United Kingdom

 

 

 

 

Tel: +44.20.7972.9600

 

 

 

 

Fax: +44.20.7972.9602

 

 

all together at

on

 



 

Subscribed for and on behalf of

DEUTSCHE BANK AG, LONDON BRANCH acting by

 

 

/s/ NICOLA ANNE DAWES

Authorised Signatory

 

 

 

 

Nicola Anne Dawes

Print full name of Authorised Signatory

 

 

 

 

/s/ VIKKI ANNE MAYELL

Authorised Signatory

 

 

 

 

Vikki Anne Mayell

Print full name of Authorised Signatory

 

 

 

 

all together at London

 

 

 

 

 

on

19th January 2010

 

 




Exhibit 4.31

 

BOND AND FLOATING CHARGE

of all its property and undertaking

 

by

 

TELEWEST COMMUNICATIONS

(MOTHERWELL) LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0063

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

BOND

7

 

 

 

3.

FLOATING CHARGE

8

 

 

 

4.

RULE 3-16 LIMITATION

9

 

 

 

5.

UNDERTAKINGS

10

 

 

 

6.

SET-OFF

10

 

 

 

7.

ENFORCEMENT

11

 

 

 

8.

OFFICE OF RECEIVER

14

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

14

 

 

 

10.

RELEASE AND DISCHARGE

14

 

 

 

11.

PROTECTION OF SECURITY

15

 

 

 

12.

FURTHER ASSURANCE

16

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

INDEMNITIES; COSTS AND EXPENSES

17

 

 

 

15.

SECURITY TRUST AGREEMENT

18

 

 

 

16.

REORGANISATION

18

 

 

 

17.

CURRENCIES

18

 

 

 

18.

NO ASSIGNATION

19

 

 

 

19.

NOTICES

19

 

 

 

20.

GOVERNING LAW

19

 

 

 

21.

JURISDICTION

19

 

 

 

22.

CONSENT TO REGISTRATION

19

 



 

BOND AND FLOATING CHARGE

 

by

 

1.         TELEWEST COMMUNICATIONS (MOTHWERWELL) LIMITED incorporated under the laws of Scotland (registered number SC121617) whose registered office is at 1 South Gyle Crescent Lane, Edinburgh, EH12 9EG (the Company);

 

in favour of

 

2.         DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the Security Trustee)

 

WHEREAS:

 

(A)          The Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)           Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)           By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the Group Intercreditor Deed) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)          The board of directors of the Company is satisfied that the Company is entering into this Instrument for the purposes of its carrying on business and that its doing so benefits the Company.

 

(E)           The Security Trustee holds the benefit of this Instrument on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

1.             INTERPRETATION

 

1.1           In this Instrument:

 

the Act

 

means the Companies Act 1985;

 

 

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Charged Assets

 

means the whole of the property (including uncalled capital) which is or may be from time to time while this Instrument is in force comprised in the property and undertaking of the Company;

 



 

Chargors

 

means each of the Original Charging Companies and each of the Original Charging Partnerships;

 

 

 

Debenture

 

means the composite debenture dated on or about the date hereof among, inter alios, the companies listed therein as Original Charging Companies (including the Company), the partnerships listed therein as the Original Charging Partnerships and Deutsche Bank AG, London Branch as Security Trustee for the Beneficiaries;

 

 

 

Default Rate

 

means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Designated Secured Obligations

 

means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement;

 

 

 

Enforcement Date

 

means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Chargor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

 

 

Event of Default

 

means each of:

 

(a)   a Senior Default; and

 

(b)   an event of default or termination event (however described) under any Hedging Agreement;

 

 

 

Excluded Charged Assets

 

has the meaning given to such term in Clause 4.2 of this Instrument;

 

 

 

Indemnified Party

 

has the meaning set out in Clause 14.3;

 

 

 

Insolvency Act

 

means the Insolvency Act 1986;

 



 

Instructing Party

 

has the meaning given to it in the Group Intercreditor Deed;

 

 

 

Liability

 

means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, owed jointly or severally and whether owed as principal or surety or in any other capacity;

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Disposal

 

means any disposal permitted under Clause 25.4 of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Realisation Accounts

 

means each account maintained from time to time by the Security Trustee for the purposes of Clause 7.6;

 

 

 

Receiver

 

means any receiver or administrative receiver appointed in respect of all or any of the Charged Assets (whether pursuant to this Instrument, pursuant to any statute, by a Court or otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

 

 

Restricted Lease

 

has the meaning given to it in the Debenture;

 

 

 

Rule 3-16

 

has the meaning given to such term in

 



 

 

 

Designated Secured Obligations”;

 

 

 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)        in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)        that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Instrument;

 

 

 

Securities Act

 

means the United States Securities Act of 1933, as amended;

 

 

 

Security Provider

 

means any person who has granted or may at any time hereafter grant any security interest for the Secured Obligations;

 

 

 

Security Trust Agreement

 

means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Instrument between Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

 

 

Senior Facilities Agreement

 

means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications

 



 

 

 

Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

 

 

Senior Secured Notes

 

has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

 

 

Senior Secured Notes Documents

 

means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes; 

 

 

 

Senior Secured Notes Indenture

 

means the indenture dated on or about the date of this Instrument governing the US$1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time;

 

 

 

Shares

 

means all shares in the capital of any company now or in the future legally or beneficially owned by the Company and/or any nominee on behalf of the Company.

 

1.2        Successors and assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Company”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Lenders, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 

1.3        Agreement definitions

 

Unless the context otherwise requires or unless otherwise defined in this Instrument, words and expressions defined in the Group Intercreditor Deed and (unless otherwise

 



 

defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Instrument (including its recitals).

 

1.4        Headings

 

Clause and schedule headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Instrument.

 

1.5           Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

(b)        references to (or to any specified provision of) this Instrument or any other agreement or document shall be construed as references to this Instrument, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

(d)        words importing the plural shall include the singular and vice versa;

 

(e)        references to a time of day are to London time;

 

(f)         references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and that person’s successors in title;

 

(g)        references to a guarantee include references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and guaranteed shall be construed accordingly;

 

(h)        references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended;

 

(i)         references to business in relation to the Company means any business referred to in the definition of Group Business in the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the equivalent definition in the Relevant Facilities Agreement, which the Company engages in, and references to ordinary course of business shall be similarly construed; and

 



 

(j)         references in this Instrument to a fixed security shall be construed a reference to a fixed security as defined by Section 486 of the Act as in force at the date hereof.

 

1.6           Group Intercreditor Deed

 

This Instrument should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Instrument and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.7           Secured Liabilities

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)               all Liabilities under the Senior Facilities Agreement; and

 

(b)              all Liabilities under the Senior Secured Notes Documents.

 

2.          BOND

 

2.1        The Company hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid.

 

2.2        Any statement of account of the Company, signed as correct by an officer of the Security Trustee, showing the amount of any Secured Obligations of the Company shall be prima facie evidence as to the amount of the Secured Obligations of the Company from time to time.

 

2.3        The Company warrants that it has not taken or received, and undertakes that until all the Secured Obligations have been paid or discharged in full it will not, without the consent in writing of the Security Trustee, take or receive any security from any other Chargor or any other person in respect of its obligations under this Instrument.

 

2.4        All payments to be made by the Company under this Instrument shall be made in full, without any set-off or counterclaim or plea of compensation whatsoever and free and clear of any deductions or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

2.5        Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee it will not:

 

(a)        exercise its rights of subrogation, reimbursement and indemnity against any other Chargor or any other person;

 

(b)        save as otherwise permitted and not restricted in each of the Senior Finance Documents, the Refinancing Facilities Agreements and the Group Intercreditor Deed, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any other Chargor or any

 



 

Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)        take any step to enforce any right against any other Chargor or any Security Provider in respect of any such obligations or liabilities; or

 

(d)        claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Chargor or any Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Chargor or any Security Provider or have the benefit of, or share in, any payment from or composition with any other Chargor or any Security Provider or any other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any other Chargor or any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Chargor or any Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and Security Trust Agreement.

 

2.6        Recoveries by the Company

 

If contrary to Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

3.          FLOATING CHARGE

 

3.1        The Company, being a company incorporated in Scotland, as security for the payment and discharge of all the Secured Obligations HEREBY GRANTS in favour  of the Security Trustee for itself and as  trustee  for  the Beneficiaries a floating charge over the whole of the Charged Assets PROVIDED THAT, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any lease interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not the Company.

 

3.2        The floating charge hereby created shall rank pari passu with the floating charge created by the Debenture, and, subject to Section 464(2) of the Act, rank in priority to any fixed security which shall be created by the Company after its execution hereof (other than a fixed security in favour of the Security Trustee for itself and/or as trustee aforesaid) and to any other floating charge which shall be created by the Company after its execution hereof and, subject as aforesaid, no such fixed security nor such other floating charge shall rank in priority to or equally with or postponed to the floating charge hereby created by it.

 

3.3        Paragraph 14 of Schedule B1 to the Insolvency Act 1986 (as amended by Schedule 16 of the Enterprise Act 2002) will apply to any floating charge created pursuant to this Instrument.

 



 

3.4        Notwithstanding Clause 3.1, unless and until the Company has obtained the consent of the relevant landlord and any other relevant party (each being a Consent) the floating charge granted pursuant to Clause 3.1 shall not extend to the Company’s rights over any Restricted Lease.  Unless the Company has received a written confirmation from the Security Trustee that a particular Consent is not required, the Company hereby undertakes to use its reasonable endeavours to obtain the Consents.  On obtaining each Consent the Restricted Lease shall thereupon automatically become subject to the floating charge created pursuant to Clause 3.1 and the Company shall immediately produce evidence of such Consent to the Security Trustee.

 

3.5        The Company hereby warrants that it is not a party to any Restricted Lease and that, accordingly, no Consents are required in respect of any of the Charged Assets.

 

4.             RULE 3-16 LIMITATION

 

4.1           Clause 3 of this Instrument notwithstanding, the Excluded Charged Assets are not charged under this Instrument to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(a)     all other Shares remain charged or assigned (as the case may be) under this Instrument to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(b)     such Excluded Charged Assets remain charged under Clause 3 of this Instrument to secure any Secured Obligations that are not Designated Secured Obligations.

 

4.2           Excluded Charged Assets” in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that pledging or assigning such Shares or other securities under this Instrument to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge and/or assignment of any Shares or other securities pursuant to Clause 4.1.

 

4.3           In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the

 



 

SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

4.4           In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Shares and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Shares or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph 4.4 apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Security Trustee such additional Shares or other securities that were deemed to constitute Excluded Charged Assets.

 

5.          UNDERTAKINGS

 

The Company hereby undertakes with the Security Trustee that until the security constituted by this Instrument is released in accordance with the following provisions:

 

(i)                     the provisions of Clause 5 of the Debenture shall apply mutatis mutandis as if set out herein but so that references therein to Chargor and this Deed shall be construed herein as references to the Company and this Instrument respectively;

 

(ii)                    the Company will comply with all its obligations under the Senior Finance Documents; and

 

(iii)                   the Company will notify the Security Trustee forthwith in the event that any claim or notice against it or any of the Charged Assets is received from any other party which is likely to materially prejudice the value of the Charged Assets and of all matters relevant thereto.

 

6.         SET-OFF

 

6.1        The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed to the Security Trustee and/or such other Beneficiary which, to the extent not then

 



 

payable, shall automatically become payable to the extent necessary to effect such set-off.

 

6.2        For the purpose of Clause 6.1, the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

7.         ENFORCEMENT

 

7.1        If (and only if) the Enforcement Date has occurred this Instrument shall become enforceable.

 

7.2        At any time: (i) on or after the Enforcement Date; or (ii) if the Board of Directors of the Company requests that a Receiver or administrator be appointed forthwith; or (iii) a petition is presented for the making of an administration order of the Company, the power to appoint a Receiver or administrator of the Charged Assets shall be  immediately exercisable in relation to the security created by the Company by or pursuant  to this  Instrument, and the Security Trustee may then (i) by instrument in writing appoint any person or persons (if more than one with power to act both jointly and severally) to be a Receiver of the Charged Assets, or (ii) appoint an administrator of the Company pursuant to paragraph 14 of Schedule B1 to the Insolvency Act 1986.  In addition and without prejudice to the foregoing provisions of this sub-clause, in the event that any person appointed in pursuance hereof to be a Receiver as aforesaid shall be removed by a Court or shall otherwise cease to act as such, then the Security Trustee shall be entitled so to appoint another person as Receiver in his place.

 

7.3        A Receiver so appointed shall have and be entitled to exercise all the powers conferred upon such a Receiver by the Insolvency Act and in addition to and without limiting these powers, such Receiver shall have power to:

 

7.3.1                 implement and exercise all or any of the Company’s powers and/or rights and/or obligations under any contract or other agreement forming a part of the Charged Assets;

 

7.3.2                 make any arrangement or compromise which he shall think expedient of or in respect of any claim by or against the Company;

 

7.3.3                 subscribe for or acquire for cash or otherwise any share capital of such new company or corporation in the name of the Company and on its behalf and/or in the name(s) of a nominee(s) or trustee(s) for it;

 

7.3.4                 sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise the Charged Assets or any part thereof to any such new company or corporation and accept as consideration or part of the consideration therefor in the name of the Company and on its behalf and/or in the name(s)  of any nominee(s) or trustee(s) for it any shares or further shares in any such company or corporation or allow the payment of the whole or any part of such consideration to remain deferred or outstanding by way of loan or debt or credit;

 


 

7.3.5                 sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise on behalf of the Company any such shares or deemed consideration or part thereof or any rights or benefits attaching thereto;

 

7.3.6                 convene an extraordinary general meeting of the Company;

 

7.3.7                 acquire any property on behalf of the Company;

 

7.3.8                 in respect of any assets of the Company situated in England and Wales,  exercise in addition to the foregoing all the powers conferred by the Insolvency Act or any other enactment or under law on Receivers appointed in that jurisdiction;

 

7.3.9                 take possession of, collect and get in all or any of the Charged Assets;

 

7.3.10               carry on, manage, develop, reconstruct, amalgamate or diversify the business of the Company or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Instrument;

 

7.3.11               raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to the security created by this Instrument or otherwise;

 

7.3.12               sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Company or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the Company (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of the Company;

 

7.3.13               promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 



 

7.3.14               make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

7.3.15               appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 7 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

7.3.16               make calls conditionally or unconditionally on the members of the Company concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

7.3.17               sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security created pursuant to this Instrument of the Security Trustee and the Beneficiaries and to use the name of the Company concerned for all the purposes aforesaid;

 

7.3.18               do all the acts and things described in schedules 1 or 2 to the Insolvency Act as if the words he and him referred to the Receiver and company referred to the Company;

 

8.3.19               do all such other acts and things as he may consider necessary or desirable for protecting or realising the Charged Assets or any part thereof or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of or pursuant to this Instrument, and exercise in relation to the Charged Assets or any part thereof all such powers and authorities and do all such things as he would be capable of exercising or doing if he were the absolute beneficial owner of the same;  and use the name of the Company for all and any of the purposes aforesaid; and

 

7.3.20               do all or any of the acts and things specified in Clause 9 of the Debenture which are not specified in this Clause 7.3

 

7.4        In the exercise of the powers hereby conferred any Receiver may sever and sell plant, machinery or other fixtures separately from the property to which they may be annexed.

 

7.5        No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Instrument has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

7.6        If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the security created pursuant to this Instrument the Security Trustee (or such Receiver) may:

 

7.6.1                 open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 



 

7.6.2                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

7.6.3                 subject to the payment of any claims having priority to the security created pursuant to this Instrument, withdraw amounts standing to the credit of the Realisation Accounts to:

 

7.6.4                 discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

7.6.5                 pay remuneration to the Receiver as and when the same becomes due and payable; and

 

7.6.6                 discharge the Secured Obligations as and when the same become due and payable.

 

8.         OFFICE OF RECEIVER

 

8.1        Any Receiver appointed under Clause 7 shall be the agent of the Company for all purposes and (subject to the provisions of the Insolvency Act) the Company alone shall be responsible for his contracts, engagements, acts, omissions, defaults and losses and for liabilities incurred by him and for his remuneration and his costs, charges and expenses, and the Security Trustee shall not incur any liability therefor (either to the Company or any other person) by reason of the Security Trustee making his appointment as such Receiver or for any other reason whatsoever.

 

8.2        Any Receiver appointed shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of the Receiver or his firm.

 

9.         APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee or by any Receiver shall be applied, after the discharge of the remuneration and expenses of the Receiver and all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, except that the Security Trustee may credit the same to a suspense account for so long and in such manner as the Security Trustee may from time to time determine and the Receiver may retain the same for such period as he and the Security Trustee consider expedient.

 

10.       RELEASE AND DISCHARGE

 

10.1      The Security Trustee acting on behalf of the Beneficiaries under the Senior Finance Documents may at any time release the Company from any or all of its obligations under or pursuant to this Instrument and/or all or any part of the Charged Assets from the security created by this Instrument upon such terms as the Security Trustee may think fit but nothing in this Instrument does, shall or is intended to constitute a release of any of the Charged Assets.

 

10.2      Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 10.3, the Security Trustee shall, at the request and cost of

 



 

the Company, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

10.3      Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by any Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due owing or incurred to the Security Trustee and the Beneficiaries from any Chargor for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

10.4      The Security Trustee shall, at the request and cost of the Company, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Charged Assets.

 

11.       PROTECTION OF SECURITY

 

11.1      The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

11.2      The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

11.3      No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 

11.4      Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

11.5      If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Charged Assets and/or the proceeds of sale thereof, the

 



 

Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

11.6      Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

11.6.1               any other present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to protect or enforce any of the same; or

 

11.6.2               the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

11.6.3               any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company  from the Secured Obligations; or

 

11.6.4               any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

11.7      The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

11.7.1               take any action or obtain judgment or decree in any Court against the Company;

 

11.7.2               make or file any claim to rank in a winding-up or liquidation of the Company; or

 

11.7.3               enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 

12.       FURTHER ASSURANCE

 

The Company shall execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Charged Assets or, on or after the Enforcement Date, for facilitating the realisation of such assets and the exercise of all powers, authorities and discretions vested in the Security Trustee or in

 



 

any Receiver and shall, in particular, execute all fixed securities, floating charges, assignations, securities, transfers, dispositions and assurances of the Charged Assets whether to the Security Trustee or to its nominee(s) or otherwise and give all notices, orders and directions which the Security Trustee may think expedient, acting reasonably, which fixed securities over heritable or leasehold property situated in Scotland shall be standard securities in the agreed form for property of that type.

 

13.       MANDATE AND ATTORNEY

 

13.1      The Company by way of security hereby irrevocably appoints each of the Security Trustee and any Receiver or administrator severally to be its attorney in its name and on its behalf:

 

13.1.1               to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver or administrator may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

13.1.2               to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 12 in accordance with the terms thereof; and

 

13.1.3               otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee or a Receiver or administrator under this Instrument or which may be deemed expedient by the Security Trustee or a Receiver or administrator in connection with any disposition, realisation or getting in by the Security Trustee or such Receiver of the Charged Assets or any part thereof or in connection with any other exercise of any power under this Instrument.

 

13.2      The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 shall do or purport to do in the proper exercise of his powers under such Clause.

 

14.       INDEMNITIES; COSTS AND EXPENSES

 

14.1      The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

14.2      All costs, charges and expenses incurred and all payments made by the Security Trustee or any Receiver hereunder in or about the enforcement, preservation or attempted preservation of the security created by or pursuant to this Instrument or any of the Charged Assets shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges, expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee or any Receiver and the Company on the basis of a full and unqualified indemnity.

 



 

14.3      The Beneficiaries, the Security Trustee and any Receiver or administrator, attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Charged Assets in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

14.3.1               anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

14.3.2               any breach by the Company of any of its obligations under this Instrument; or

 

14.3.3               an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

15.           SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and interests constituted by this Instrument and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.           REORGANISATION

 

This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

17.           CURRENCIES

 

17.1         Conversion of currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale. 

 



 

Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

17.2         Currency indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

18.           NO ASSIGNATION

 

The Company may not assign or transfer any of its rights or obligations under this Instrument.

 

19.           NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

20.           GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be governed by, and construed in all respects in accordance with, the law of Scotland.  The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this Instrument is valid and binding subject to the Reservations.

 

21.           JURISDICTION

 

For the benefit of the Security Trustee and the Beneficiaries, the Company irrevocably agrees that the Scottish courts are to have jurisdiction to settle any disputes which may arise out of or in connection with this Instrument and that, accordingly, any suit, action or proceedings arising out of or in connection with this Instrument (Proceedings) may be brought in any such court. The Company irrevocably waives any objection to Proceedings in such a court on the grounds of venue or on the ground that the Proceedings have been brought in an inconvenient forum.

 

22.           CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, in the absence of manifest error, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company hereby consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF these presents consisting of this and the preceding twenty two pages are subscribed as follows:

 



 

 

Subscribed for and on behalf of

 

TELEWEST COMMUNICATIONS (MOTHERWELL) LIMITED

 

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA

 

SECRETARIES LIMITED:

 

 

 

Robert Mackenzie duly authorised by

 

Virgin Media Directors Limited to sign on its behalf as director

 

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

 

 

99 CITY ROAD

 

ADDRESS OF WITNESS

 

LONDON, EC1Y 1AX

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 

 

 

 

 

 

 

 

 

Robert Gale duly authorised by

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

 

 

in the presence of:

 

 

 

 

 

 

 

/s/ MANOJ BHUNDIA

 

Witness

 

 

 

 

 

Manoj Bhundia

 

Print full name of Witness

 

 

 

 

 

99 City Road

 

Address of Witness

 

LONDON EC1Y 1AX

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 



 

 

Subscribed for and on behalf of

 

DEUTSCHE BANK AG, LONDON BRANCH acting by

 

 

 

 

/s/ NICOLA ANNE DAWES

 

Authorised Signatory

 

 

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

 

 

/s/ VIKKI ANNE MAYELL

 

Authorised Signatory

 

 

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

 

 

all together at London

 

 

 

 

 

 

 

on    19th January 2010

 

 

 




Exhibit 4.32

 

BOND AND FLOATING CHARGE

of all its property and undertaking

 

by

 

TELEWEST COMMUNICATIONS

(DUNDEE AND PERTH) LIMITED

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

as Security Trustee

 

 

DUNDAS & WILSON CS LLP

 

 

 

Saltire Court

 

20 Castle Terrace

 

Edinburgh EH1 2EN

 

 

 

Tel 0131 228 8000

 

Fax 0131 228 8888

 

Legal Post: LP2 Edinburgh 6

 

 

 

Ref: DO/CLP/DEU002.0063

 



 

Table of Contents

 

1.

INTERPRETATION

1

 

 

 

2.

BOND

7

 

 

 

3.

FLOATING CHARGE

8

 

 

 

4.

RULE 3-16 LIMITATION

9

 

 

 

5.

UNDERTAKINGS

10

 

 

 

6.

SET-OFF

11

 

 

 

7.

ENFORCEMENT

11

 

 

 

8.

OFFICE OF RECEIVER

14

 

 

 

9.

APPLICATION OF ENFORCEMENT MONEYS

14

 

 

 

10.

RELEASE AND DISCHARGE

14

 

 

 

11.

PROTECTION OF SECURITY

15

 

 

 

12.

FURTHER ASSURANCE

16

 

 

 

13.

MANDATE AND ATTORNEY

17

 

 

 

14.

INDEMNITIES; COSTS AND EXPENSES

17

 

 

 

15.

SECURITY TRUST AGREEMENT

18

 

 

 

16.

REORGANISATION

18

 

 

 

17.

CURRENCIES

19

 

 

 

18.

NO ASSIGNATION

19

 

 

 

19.

NOTICES

19

 

 

 

20.

GOVERNING LAW

19

 

 

 

21.

JURISDICTION

19

 

 

 

22.

CONSENT TO REGISTRATION

19

 



 

BOND AND FLOATING CHARGE

 

by

 

1.                            TELEWEST COMMUNICATIONS (DUNDEE AND PERTH) LIMITED incorporated under the laws of Scotland (registered number SC096816) whose registered office is at 1 South Gyle Crescent Lane, Edinburgh, EH12 9EG (the Company);

 

in favour of

 

2.                            DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the Security Trustee)

 

WHEREAS:

 

(A)                             The Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)                                Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)                                By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the Group Intercreditor Deed) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)                               The board of directors of the Company is satisfied that the Company is entering into this Instrument for the purposes of its carrying on business and that its doing so benefits the Company.

 

(E)                                 The Security Trustee holds the benefit of this Instrument on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

1.             INTERPRETATION

 

1.1                                In this Instrument:

 

the Act

 

means the Companies Act 1985;

 

 

 

Beneficiaries

 

means the First Beneficiary and the Second Beneficiaries;

 

 

 

Charged Assets

 

means the whole of the property (including uncalled capital) which is or may be from time to time while this Instrument is in force comprised in the property and undertaking of the Company;

 



 

Chargors

 

means each of the Original Charging Companies and each of the Original Charging Partnerships;

 

 

 

Debenture

 

means the composite debenture dated on or about the date hereof among, inter alios,  the companies listed therein as Original Charging Companies (including the Company), the partnerships listed therein as the Original Charging Partnerships and Deutsche Bank AG, London Branch as Security Trustee for the Beneficiaries;

 

 

 

Default Rate

 

means the rate specified in Clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Designated Secured Obligations

 

means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement;

 

 

 

Enforcement Date

 

means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Chargor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

 

 

Event of Default

 

means each of:

 

(a)        a Senior Default; and

 

(b)        an event of default or termination event (however described) under any Hedging Agreement;

 

 

 

Excluded Charged Assets

 

has the meaning given to such term in Clause 4.2 of this Instrument;

 

 

 

Indemnified Party

 

has the meaning set out in Clause 14.3;

 

 

 

Insolvency Act

 

means the Insolvency Act 1986;

 



 

Instructing Party

 

has the meaning given to it in the Group Intercreditor Deed;

 

 

 

Liability

 

means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, owed jointly or severally and whether owed as principal or surety or in any other capacity;

 

 

 

Original Charging Companies

 

has the meaning given to it in the Debenture;

 

 

 

Original Charging Partnerships

 

has the meaning given to it in the Debenture;

 

 

 

Permitted Disposal

 

means any disposal permitted under Clause 25.4 of the Senior Facilities Agreement or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement;

 

 

 

Realisation Accounts

 

means each account maintained from time to time by the Security Trustee for the purposes of Clause 7.6;

 

 

 

Receiver

 

means any receiver or administrative receiver appointed in respect of all or any of the Charged Assets (whether pursuant to this Instrument, pursuant to any statute, by a Court or otherwise) and includes joint receivers;

 

 

 

Relevant Facilities Agreement

 

means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

 

 

Restricted Lease

 

has the meaning given to it in the Debenture;

 

 

 

Rule 3-16

 

has the meaning given to such term in “Designated Secured Obligations”;

 



 

SEC

 

means the United States Securities and Exchange Commission;

 

 

 

Secured Obligations

 

means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)        in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)        that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Instrument;

 

 

 

Securities Act

 

means the United States Securities Act of 1933, as amended;

 

 

 

Security Provider

 

means any person who has granted or may at any time hereafter grant any security interest for the Secured Obligations;

 

 

 

Security Trust Agreement

 

means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Instrument between Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

 

 

Senior Facilities Agreement

 

means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly

 



 

 

 

known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

 

 

Senior Secured Notes

 

has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

 

 

Senior Secured Notes Documents

 

means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes; 

 

 

 

Senior Secured Notes Indenture

 

means the indenture dated on or about the date of this Instrument governing the US$1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time;

 

 

 

Shares

 

means all shares in the capital of any company now or in the future legally or beneficially owned by the Company and/or any nominee on behalf of the Company.

 

1.2                       Successors and assigns

 

The expressions “Senior Lenders”, “Beneficiaries”, “Chargor”, “Senior Finance Party”, “Company”, “Original Charging Company”, “Original Charging Partnership”, “Relevant Agent”, “Security Provider” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Lenders, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Beneficiaries pursuant to the provisions of the Security Trust Agreement.

 

1.3                       Agreement definitions

 

Unless the context otherwise requires or unless otherwise defined in this Instrument, words and expressions defined in the Group Intercreditor Deed and (unless otherwise

 



 

defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Instrument (including its recitals).

 

1.4                       Headings

 

Clause and schedule headings and the contents page are inserted for convenience of reference only and shall be ignored in the interpretation of this Instrument.

 

1.5                                Construction of certain terms

 

In this Instrument, unless the context otherwise requires:

 

(a)                        references to clauses and the schedules are to be construed as references to the clauses of, and the schedules to, this Instrument and references to this Instrument include its schedules;

 

(b)                       references to (or to any specified provision of) this Instrument or any other agreement or document shall be construed as references to this Instrument, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, replaced or novated in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of the Relevant Agent, the Security Trustee, all of the Beneficiaries, an Instructing Party or all or any of the other Senior Finance Parties (as the case may be);

 

(c)                        references to a regulation include any present or future regulation, rule, directive, requirement, request or guideline (whether or not having the force of law) of any agency, authority, central bank or government department or any self-regulatory or other national or supra-national authority;

 

(d)                       words importing the plural shall include the singular and vice versa;

 

(e)                        references to a time of day are to London time;

 

(f)                          references to a person shall be construed as including references to an individual, firm, company, corporation, unincorporated body of persons or any state or any agency thereof and that person’s successors in title;

 

(g)                       references to a guarantee include references to an indemnity or other assurance against financial loss including, without limitation, an obligation to purchase assets or services as a consequence of a default by any other person to pay any Indebtedness and guaranteed shall be construed accordingly;

 

(h)                       references to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended;

 

(i)                           references to business in relation to the Company means any business referred to in the definition of Group Business in the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the equivalent definition in the Relevant Facilities Agreement, which the Company engages in, and references to ordinary course of business shall be similarly construed; and

 



 

(j)                           references in this Instrument to a fixed security shall be construed a reference to a fixed security as defined by Section 486 of the Act as in force at the date hereof.

 

1.6                                Group Intercreditor Deed

 

This Instrument should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Instrument and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.7                                Secured Liabilities

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)               all Liabilities under the Senior Facilities Agreement; and

 

(b)              all Liabilities under the Senior Secured Notes Documents.

 

2.                             BOND

 

2.1                       The Company hereby covenants that it will on demand made on it by the Security Trustee pay to the Security Trustee for the account of the relevant Beneficiaries any Secured Obligation which is due and payable but unpaid.

 

2.2                       Any statement of account of the Company, signed as correct by an officer of the Security Trustee, showing the amount of any Secured Obligations of the Company shall be prima facie evidence as to the amount of the Secured Obligations of the Company from time to time.

 

2.3                       The Company warrants that it has not taken or received, and undertakes that until all the Secured Obligations have been paid or discharged in full it will not, without the consent in writing of the Security Trustee, take or receive any security from any other Chargor or any other person in respect of its obligations under this Instrument.

 

2.4                       All payments to be made by the Company under this Instrument shall be made in full, without any set-off or counterclaim or plea of compensation whatsoever and free and clear of any deductions or withholdings in the relevant currency on the due date to such account as the Security Trustee may from time to time specify.

 

2.5                       Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) the Company agrees that without the prior written consent of the Security Trustee it will not:

 

(a)                        exercise its rights of subrogation, reimbursement and indemnity against any other Chargor or any other person;

 

(b)                       save as otherwise permitted and not restricted in each of the Senior Finance Documents, the Refinancing Facilities Agreements and the Group Intercreditor Deed, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to the Company from any other Chargor or any

 



 

Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or security interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)                        take any step to enforce any right against any other Chargor or any Security Provider in respect of any such obligations or liabilities; or

 

(d)                       claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Chargor or any Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Chargor or any Security Provider or have the benefit of, or share in, any payment from or composition with any other Chargor or any Security Provider or any other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any other Chargor or any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Chargor or any Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and Security Trust Agreement.

 

2.6                       Recoveries by the Company

 

If contrary to Clause 2.3 or 2.5 the Company takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

3.                             FLOATING CHARGE

 

3.1                       The Company, being a company incorporated in Scotland, as security for the payment and discharge of all the Secured Obligations HEREBY GRANTS in favour  of the Security Trustee for itself and as  trustee  for  the Beneficiaries a floating charge over the whole of the Charged Assets PROVIDED THAT, for the avoidance of doubt, the floating charge shall not attach to any plant or machinery, or any lease interest therein, which is the subject of a lease where the title thereto vests in the relevant lessor and not the Company.

 

3.2                       The floating charge hereby created shall rank pari passu with the floating charge created by the Debenture, and, subject to Section 464(2) of the Act, rank in priority to any fixed security which shall be created by the Company after its execution hereof (other than a fixed security in favour of the Security Trustee for itself and/or as trustee aforesaid) and to any other floating charge which shall be created by the Company after its execution hereof and, subject as aforesaid, no such fixed security nor such other floating charge shall rank in priority to or equally with or postponed to the floating charge hereby created by it.

 

3.3                       Paragraph 14 of Schedule B1 to the Insolvency Act 1986 (as amended by Schedule 16 of the Enterprise Act 2002) will apply to any floating charge created pursuant to this Instrument.

 



 

3.4                       Notwithstanding Clause 3.1, unless and until the Company has obtained the consent of the relevant landlord and any other relevant party (each being a Consent) the floating charge granted pursuant to Clause 3.1 shall not extend to the Company’s rights over any Restricted Lease.  Unless the Company has received a written confirmation from the Security Trustee that a particular Consent is not required, the Company hereby undertakes to use its reasonable endeavours to obtain the Consents.  On obtaining each Consent the Restricted Lease shall thereupon automatically become subject to the floating charge created pursuant to Clause 3.1 and the Company shall immediately produce evidence of such Consent to the Security Trustee.

 

3.5                       The Company hereby warrants that it is not a party to any Restricted Lease and that, accordingly, no Consents are required in respect of any of the Charged Assets.

 

4.                                      RULE 3-16 LIMITATION

 

4.1                                Clause 3 of this Instrument notwithstanding, the Excluded Charged Assets are not charged under this Instrument to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(a)               all other Shares remain charged or assigned (as the case may be) under this Instrument to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(b)              such Excluded Charged Assets remain charged under Clause 3 of this Instrument to secure any Secured Obligations that are not Designated Secured Obligations.

 

4.2                                Excluded Charged Assets” in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by the Company to the extent that pledging or assigning such Shares or other securities under this Instrument to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge and/or assignment of any Shares or other securities pursuant to Clause 4.1.

 

4.3                                In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been

 



 

applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the charge (but only to the extent securing such Designated Secured Obligations and without prejudice to the charge securing Secured Obligations referred to in Clause 4.1(b)) in favour of the Security Trustee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

4.4                                In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Shares and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Shares or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph 4.4 apply, this Instrument may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Security Trustee such additional Shares or other securities that were deemed to constitute Excluded Charged Assets.

 

5.                             UNDERTAKINGS

 

The Company hereby undertakes with the Security Trustee that until the security constituted by this Instrument is released in accordance with the following provisions:

 

(i)                                                                the provisions of Clause 5 of the Debenture shall apply mutatis mutandis as if set out herein but so that references therein to Chargor and this Deed shall be construed herein as references to the Company and this Instrument respectively;

 

(ii)                                                             the Company will comply with all its obligations under the Senior Finance Documents; and

 

(iii)                                                          the Company will notify the Security Trustee forthwith in the event that any claim or notice against it or any of the Charged Assets is received from any other party which is likely to materially prejudice the value of the Charged Assets and of all matters relevant thereto.

 

6.                            SET-OFF

 

6.1                       The Company hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such other Beneficiary or of the Company jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed

 



 

to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.

 

6.2                       For the purpose of Clause 6.1, the Company authorises the Security Trustee and each other Beneficiary to purchase with the moneys standing to the credit of such accounts such other currencies as may be necessary to effect such applications at the spot rate of exchange (as, save in the case of manifest error, conclusively determined by the Security Trustee or the relevant other Beneficiary) prevailing in the London foreign exchange market for purchasing Sterling with the currency in which the sum standing to the credit of the relevant account is denominated.

 

7.                           ENFORCEMENT

 

7.1                       If (and only if) the Enforcement Date has occurred this Instrument shall become enforceable.

 

7.2                       At any time: (i) on or after the Enforcement Date; or (ii) if the Board of Directors of the Company requests that a Receiver or administrator be appointed forthwith; or (iii) a petition is presented for the making of an administration order of the Company, the power to appoint a Receiver or administrator of the Charged Assets shall be  immediately exercisable in relation to the security created by the Company by or pursuant  to this  Instrument, and the Security Trustee may then (i) by instrument in writing appoint any person or persons (if more than one with power to act both jointly and severally) to be a Receiver of the Charged Assets, or (ii) appoint an administrator of the Company pursuant to paragraph 14 of Schedule B1 to the Insolvency Act 1986.  In addition and without prejudice to the foregoing provisions of this sub-clause, in the event that any person appointed in pursuance hereof to be a Receiver as aforesaid shall be removed by a Court or shall otherwise cease to act as such, then the Security Trustee shall be entitled so to appoint another person as Receiver in his place.

 

7.3                       A Receiver so appointed shall have and be entitled to exercise all the powers conferred upon such a Receiver by the Insolvency Act and in addition to and without limiting these powers, such Receiver shall have power to:

 

7.3.1                                                   implement and exercise all or any of the Company’s powers and/or rights and/or obligations under any contract or other agreement forming a part of the Charged Assets;

 

7.3.2                                                   make any arrangement or compromise which he shall think expedient of or in respect of any claim by or against the Company;

 

7.3.3                                                   subscribe for or acquire for cash or otherwise any share capital of such new company or corporation in the name of the Company and on its behalf and/or in the name(s) of a nominee(s) or trustee(s) for it;

 

7.3.4                                                   sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise the Charged Assets or any part thereof to any such new company or corporation and accept as consideration or part of the consideration therefor in the name of the Company and on its behalf and/or in the name(s)  of any nominee(s) or trustee(s) for it any shares or further shares in any such company or corporation or allow the payment of the whole or any part of such consideration to remain deferred or outstanding by way of loan or debt or credit;

 


 

7.3.5                 sell, feu, assign, transfer, exchange, hire out, grant leases of or otherwise dispose of or realise on behalf of the Company any such shares or deemed consideration or part thereof or any rights or benefits attaching thereto;

 

7.3.6                 convene an extraordinary general meeting of the Company;

 

7.3.7                 acquire any property on behalf of the Company;

 

7.3.8                 in respect of any assets of the Company situated in England and Wales,  exercise in addition to the foregoing all the powers conferred by the Insolvency Act or any other enactment or under law on Receivers appointed in that jurisdiction;

 

7.3.9                 take possession of, collect and get in all or any of the Charged Assets;

 

7.3.10               carry on, manage, develop, reconstruct, amalgamate or diversify the business of the Company or any part thereof or concur in so doing; lease or otherwise acquire and develop or improve properties or other assets without being responsible for loss or damage subject to the terms of this Instrument;

 

7.3.11               raise or borrow any money from or incur any other Liability to the Security Trustee or the Beneficiaries or others on such terms with or without security as he may think fit and so that any such security may be or include a charge on the whole or any part of the Charged Assets ranking in priority to the security created by this Instrument or otherwise;

 

7.3.12               sell by public auction or private contract, let, surrender or accept surrenders, grant licences or otherwise dispose of or deal with all or any of the Charged Assets or concur in so doing in such manner for such consideration and generally on such terms and conditions as he may think fit with full power to convey, let, surrender, accept surrenders or otherwise transfer or deal with such Charged Assets in the name and on behalf of the Company or otherwise and so that covenants and contractual obligations may be granted and assumed in the name of and so as to bind the Company (or other estate owner) if he shall consider it necessary or expedient so to do; any such sale, lease or disposition may be for cash, debentures or other obligations, shares, stock, securities or other valuable consideration and be payable immediately or by instalments spread over such period as he shall think fit and so that any consideration received or receivable shall ipso facto forthwith be and become charged with the payment of all the Secured Obligations; plant, machinery and other fixtures may be severed and sold separately from the premises containing them and the Receiver may apportion any rent and the performance of any obligations affecting the premises sold without the consent of the Company;

 

7.3.13               promote the formation of companies with a view to the same becoming a Subsidiary of the Chargor concerned and purchasing, leasing, licensing or otherwise acquiring interests in all or any of the Charged Assets or otherwise, arrange for such companies to trade or cease to trade and to purchase, lease, license or otherwise acquire all or any of the Charged Assets on such terms and conditions whether or not including payment by instalments secured or unsecured as he may think fit;

 



 

7.3.14               make and effect such repairs, renewals and improvements to the Charged Assets or any part thereof as he may think fit and maintain, renew, take out or increase insurances;

 

7.3.15               appoint managers, agents, officers and employees for any of the purposes referred to in this Clause 7 or to guard or protect the Charged Assets at such salaries and commissions and for such periods and on such terms as he may determine and may dismiss the same;

 

7.3.16               make calls conditionally or unconditionally on the members of the Company concerned in respect of uncalled capital and institute, continue, enforce, defend, settle or discontinue any actions, suits or proceedings in relation to the Charged Assets or any part thereof or submit to arbitration as he may think fit;

 

7.3.17               sign any document, execute any deed and do all such other acts and things as may be considered by him to be incidental or conducive to any of the matters or powers aforesaid or to the realisation of the security created pursuant to this Instrument of the Security Trustee and the Beneficiaries and to use the name of the Company concerned for all the purposes aforesaid;

 

7.3.18               do all the acts and things described in schedules 1 or 2 to the Insolvency Act as if the words he and him referred to the Receiver and company referred to the Company;

 

7.3.19               do all such other acts and things as he may consider necessary or desirable for protecting or realising the Charged Assets or any part thereof or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of or pursuant to this Instrument, and exercise in relation to the Charged Assets or any part thereof all such powers and authorities and do all such things as he would be capable of exercising or doing if he were the absolute beneficial owner of the same;  and use the name of the Company for all and any of the purposes aforesaid; and

 

7.3.20               do all or any of the acts and things specified in Clause 9 of the Debenture which are not specified in this Clause 7.3

 

7.4        In the exercise of the powers hereby conferred any Receiver may sever and sell plant, machinery or other fixtures separately from the property to which they may be annexed.

 

7.5        No purchaser or other person shall be bound or concerned to see or enquire whether the right of the Security Trustee or any Receiver to exercise any of the powers conferred by this Instrument has arisen or not or be concerned with notice to the contrary or with the propriety of the exercise or purported exercise of such powers.

 

7.6        If the Security Trustee (whether by the appointment of a Receiver or otherwise) enforces the security created pursuant to this Instrument the Security Trustee (or such Receiver) may:

 

7.6.1                 open and maintain with such bank or banks (or other financial institutions) as it thinks fit one or more Realisation Accounts;

 



 

7.6.2                 pay the proceeds of any recoveries effected by it into any such number of Realisation Accounts as it considers appropriate; and

 

7.6.3                 subject to the payment of any claims having priority to the security created pursuant to this Instrument, withdraw amounts standing to the credit of the Realisation Accounts to:

 

7.6.4                 discharge all costs, charges and expenses incurred and payments made by the Security Trustee (or such Receiver) in the course of such enforcement;

 

7.6.5                 pay remuneration to the Receiver as and when the same becomes due and payable; and

 

7.6.6                 discharge the Secured Obligations as and when the same become due and payable.

 

8.         OFFICE OF RECEIVER

 

8.1        Any Receiver appointed under Clause 7 shall be the agent of the Company for all purposes and (subject to the provisions of the Insolvency Act) the Company alone shall be responsible for his contracts, engagements, acts, omissions, defaults and losses and for liabilities incurred by him and for his remuneration and his costs, charges and expenses, and the Security Trustee shall not incur any liability therefor (either to the Company or any other person) by reason of the Security Trustee making his appointment as such Receiver or for any other reason whatsoever.

 

8.2        Any Receiver appointed shall be entitled to remuneration appropriate to the work and responsibilities involved upon the basis of charging from time to time adopted by the Receiver in accordance with the current practice of the Receiver or his firm.

 

9.         APPLICATION OF ENFORCEMENT MONEYS

 

All moneys received by the Security Trustee or by any Receiver shall be applied, after the discharge of the remuneration and expenses of the Receiver and all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, except that the Security Trustee may credit the same to a suspense account for so long and in such manner as the Security Trustee may from time to time determine and the Receiver may retain the same for such period as he and the Security Trustee consider expedient.

 

10.       RELEASE AND DISCHARGE

 

10.1      The Security Trustee acting on behalf of the Beneficiaries under the Senior Finance Documents may at any time release the Company from any or all of its obligations under or pursuant to this Instrument and/or all or any part of the Charged Assets from the security created by this Instrument upon such terms as the Security Trustee may think fit but nothing in this Instrument does, shall or is intended to constitute a release of any of the Charged Assets.

 

10.2      Upon the satisfaction in full of all of the Secured Obligations and there no longer being any obligation on any Beneficiary to make any of the Secured Obligations available, then subject only to Clause 10.3, the Security Trustee shall, at the request and cost of

 



 

the Company, execute and do all such deeds, acts and things as may be necessary to release the Charged Assets from the security constituted, and to reassign the property and assets assigned to the Security Trustee, hereby.

 

10.3      Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by any Chargor or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Instrument subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain the security created pursuant to this Instrument after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due owing or incurred to the Security Trustee and the Beneficiaries from any Chargor for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

10.4      The Security Trustee shall, at the request and cost of the Company, execute such letters of non-crystallisation as may be reasonably necessary to permit any Permitted Disposal of the Charged Assets.

 

11.       PROTECTION OF SECURITY

 

11.1      The security created by this Instrument shall be a continuing security notwithstanding any settlement of account or other matter or thing whatsoever, and in particular (but without prejudice to the generality of the foregoing) shall not be considered satisfied by an intermediate repayment or satisfaction of part only of the Secured Obligations, and shall continue in full force and effect until total and irrevocable satisfaction of all the Secured Obligations.

 

11.2      The security created by this Instrument shall be in addition to and shall not in any way prejudice or be prejudiced by any collateral or other security, right or remedy which the Security Trustee may now or at any time hereafter hold for all or any part of the Secured Obligations.

 

11.3      No failure on the part of the Security Trustee or any Beneficiary to exercise and no delay on its part in exercising any right, remedy, power or privilege under or pursuant to this Instrument or any other document relating to or securing all or any part of the Secured Obligations will operate as a waiver thereof, nor will any single or partial exercise of any right or remedy preclude any other or further exercise thereof or the exercise of any other right or remedy.  The rights and remedies provided in this Instrument and any such other document are cumulative and not exclusive of any right or remedies provided by law.

 

11.4      Each of the provisions in this Instrument shall be severable and distinct from one another and if at any time any one or more of such provisions is or becomes or is declared null and void, invalid, illegal or unenforceable in any respect under any law or otherwise howsoever the validity, legality and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby.

 

11.5      If the Security Trustee or any Beneficiary receives or is deemed to be affected by notice whether actual or constructive of any subsequent security or other interest affecting any part of the Charged Assets and/or the proceeds of sale thereof, the

 



 

Security Trustee or such Beneficiary may open a new account or accounts for the Company.  If the Security Trustee or such Beneficiary does not open a new account it shall nevertheless be treated as if it had done so at the time when it received or was deemed to have received notice and as from that time all payments made to the Security Trustee or such Beneficiary shall be credited or be treated as having been credited to the new account and shall not operate to reduce the amount for which this Instrument is security.

 

11.6      Neither the security created by this Instrument nor the rights, powers, discretions and remedies conferred upon the Security Trustee by this Instrument or by law shall be discharged, impaired or otherwise affected by reason of:

 

11.6.1               any other present or future security, guarantee, indemnity or other right or remedy held by or available to the Security Trustee or any Beneficiary being or becoming wholly or in part void, voidable or unenforceable on any ground whatsoever or by the Security Trustee or any Beneficiary from time to time exchanging, varying, realising, releasing or failing to protect or enforce any of the same; or

 

11.6.2               the Security Trustee or any Beneficiary compounding with, discharging or releasing or varying the liability of, or granting any time, indulgence or concession to, the Company or any other person or renewing, determining, varying or increasing any accommodation or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from the Company or any other person; or

 

11.6.3               any act or omission which would not have discharged or affected the liability of the Company had it been a principal debtor instead of cautioner or by anything done or omitted which but for this provision might operate to exonerate the Company  from the Secured Obligations; or

 

11.6.4               any legal limitation, disability, Incapacity or other similar circumstance relating to the Company.

 

11.7      The Security Trustee shall not be obliged, before exercising any of the rights, powers or remedies conferred upon it by or pursuant to this Instrument or by law, to:

 

11.7.1               take any action or obtain judgment or decree in any Court against the Company;

 

11.7.2               make or file any claim to rank in a winding-up or liquidation of the Company; or

 

11.7.3               enforce or seek to enforce any other security taken, or exercise any right or plea available to the Security Trustee, in respect of any of the Company’s obligations under the Security Documents other than this Instrument.

 

12.       FURTHER ASSURANCE

 

The Company shall execute and do all such assurances, acts and things as the Security Trustee shall from time to time reasonably require for perfecting or protecting the security created by or pursuant to this Instrument over the Charged Assets or, on or after the Enforcement Date, for facilitating the realisation of such assets and the exercise of all powers, authorities and discretions vested in the Security Trustee or in

 



 

any Receiver and shall, in particular, execute all fixed securities, floating charges, assignations, securities, transfers, dispositions and assurances of the Charged Assets whether to the Security Trustee or to its nominee(s) or otherwise and give all notices, orders and directions which the Security Trustee may think expedient, acting reasonably, which fixed securities over heritable or leasehold property situated in Scotland shall be standard securities in the agreed form for property of that type.

 

13.       MANDATE AND ATTORNEY

 

13.1      The Company by way of security hereby irrevocably appoints each of the Security Trustee and any Receiver or administrator severally to be its attorney in its name and on its behalf:

 

13.1.1               to execute and complete on or after the Enforcement Date any documents or instruments which the Security Trustee or such Receiver or administrator may require for perfecting the title of the Security Trustee to the Charged Assets or for vesting the same in the Security Trustee, its nominees or any purchaser;

 

13.1.2               to sign, execute, seal and deliver and otherwise perfect any further security document or notice referred to in Clause 12 in accordance with the terms thereof; and

 

13.1.3               otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents and to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee or a Receiver or administrator under this Instrument or which may be deemed expedient by the Security Trustee or a Receiver or administrator in connection with any disposition, realisation or getting in by the Security Trustee or such Receiver of the Charged Assets or any part thereof or in connection with any other exercise of any power under this Instrument.

 

13.2      The Company ratifies and confirms and agrees to ratify and confirm all acts and things which any attorney as is mentioned in Clause 13.1 shall do or purport to do in the proper exercise of his powers under such Clause.

 

14.       INDEMNITIES; COSTS AND EXPENSES

 

14.1      The Company binds and obliges itself for the whole expenses of completing and enforcing the security hereby granted and the expenses of any discharge hereof.

 

14.2      All costs, charges and expenses incurred and all payments made by the Security Trustee or any Receiver hereunder in or about the enforcement, preservation or attempted preservation of the security created by or pursuant to this Instrument or any of the Charged Assets shall carry interest from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by the Company at the Default Rate (both before and after judgment).  The amount of all such costs, charges, expenses and payments and all interest thereon and all remuneration payable hereunder shall be payable by the Company on demand and shall be a Secured Obligation.  All such costs, charges, expenses and payments shall be paid and charged as between the Security Trustee or any Receiver and the Company on the basis of a full and unqualified indemnity.

 



 

14.3      The Beneficiaries, the Security Trustee and any Receiver or administrator, attorney, agent or other person appointed by the Security Trustee under this Instrument and the officers and employees of each of the aforementioned (each an Indemnified Party) shall be entitled to be indemnified out of the Charged Assets in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

14.3.1               anything done or omitted in the exercise or purported exercise of the powers contained in this Instrument; or

 

14.3.2               any breach by the Company of any of its obligations under this Instrument; or

 

14.3.3               an Environmental Claim made or asserted against an Indemnified Party which would not have arisen if this Instrument had not been executed and which was not caused by the negligence or wilful default of the relevant Indemnified Party

 

in each case, except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

15.           SECURITY TRUST AGREEMENT

 

The Company and the Security Trustee hereby acknowledge that the covenants of the Company contained in this Instrument and the security and other rights, titles and interests constituted by this Instrument and the Charged Assets and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Instrument are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

16.           REORGANISATION

 

This Instrument shall remain binding on the Company notwithstanding any change in the constitution of the Security Trustee or any Beneficiary or the absorption of the Security Trustee or any Beneficiary in, or amalgamation with, or the acquisition of all or part of its undertaking by, any other person, or any reconstruction or reorganisation of any kind.  The security granted by this Instrument shall remain valid and effective in all respects in favour of the Security Trustee as trustee for the Beneficiaries.

 

17.           CURRENCIES

 

17.1         Conversion of currencies

 

All moneys received or held by the Security Trustee or by a Receiver under this Instrument at any time on or after the Enforcement Date in a currency other than a currency in which the Secured Obligations are denominated may from time to time be sold for such one or more of the currencies in which the Secured Obligations are denominated as the Security Trustee or Receiver considers necessary or desirable and the Company shall indemnify the Security Trustee against the full Sterling cost (including all costs, charges and expenses) properly incurred in relation to such sale. 

 



 

Neither the Security Trustee nor any Receiver shall have any liability to the Company in respect of any loss resulting from any fluctuation in exchange rates after any such sale.

 

17.2         Currency indemnity

 

No payment to the Security Trustee (whether under any judgment or court order or otherwise) shall discharge the obligation or liability of the Company in respect of which it was made unless and until the Security Trustee shall have received payment in full in the currency in which such obligation or liability was incurred.  To the extent that the amount of any such payment shall on actual conversion into such currency fall short of such obligation or liability expressed in that currency the Security Trustee shall have a further separate cause of action against the Company and shall be entitled to enforce the charges hereby created to recover the amount of the shortfall.

 

18.           NO ASSIGNATION

 

The Company may not assign or transfer any of its rights or obligations under this Instrument.

 

19.           NOTICES

 

All notices, requests, demands and other communications to be given under this Instrument shall be deemed to be duly given or made when delivered or despatched in accordance with Clause 20 of the Group Intercreditor Deed.

 

20.           GOVERNING LAW

 

This Instrument (and all non-contractual disputes arising out of it) shall be governed by, and construed in all respects in accordance with, the law of Scotland.  The Company hereby represents and warrants to the Security Trustee that its choice of the law of Scotland to govern this Instrument is valid and binding subject to the Reservations.

 

21.           JURISDICTION

 

For the benefit of the Security Trustee and the Beneficiaries, the Company irrevocably agrees that the Scottish courts are to have jurisdiction to settle any disputes which may arise out of or in connection with this Instrument and that, accordingly, any suit, action or proceedings arising out of or in connection with this Instrument (Proceedings) may be brought in any such court. The Company irrevocably waives any objection to Proceedings in such a court on the grounds of venue or on the ground that the Proceedings have been brought in an inconvenient forum.

 

22.        CONSENT TO REGISTRATION

 

A Certificate signed by an officer of the Security Trustee shall, in the absence of manifest error, be prima facie evidence of the amount of the Secured Obligations at any relevant time and shall constitute a balance and charge against the Company, and no suspension of a charge or of a threatened charge for payment of the balance so constituted shall pass nor any sist of execution thereon be granted except on consignation.  The Company hereby consents to the registration of this Instrument and of any such certificate for preservation:  IN WITNESS WHEREOF these presents consisting of this and the preceding twenty two pages are subscribed as follows:

 



 

 

Subscribed for and on behalf of

 

TELEWEST COMMUNICATIONS (DUNDEE AND PERTH) LIMITED

 

acting by its directors VIRGIN MEDIA DIRECTORS LIMITED and VIRGIN MEDIA

 

SECRETARIES LIMITED:

 

 

 

Robert Mackenzie duly authorised by

 

Virgin Media Directors Limited to sign on its behalf as director

 

 

 

 

/S/ ROBERT MACKENZIE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

 

Witness

 

 

 

 

 

Viera Sulikova

 

Print full name of Witness

 

 

 

 

Address of Witness

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

 

 

 

99 City Road

 

 

 

London EC1Y 1AX

 

 

 

United Kingdom

 

 

 

Tel: +44.20.7972.9600

 

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

all together at

 

on

 

 

 

 

 

Robert Gale duly authorised by

 

Virgin Media Secretaries Limited to sign on its behalf as director

 

 

 

/S/ ROBERT GALE

 

 

 

 

 

in the presence of:

 

 

 

 

 

/s/ VIERA SULIKOVA

 

Witness

 

 

 

 

 

Viera Sulikova

 

Print full name of Witness

 

 

 

 

 

Address of Witness

 

Fried, Frank Harris, Shriver & Jacobson (London) LLP

 

 

 

99 CITY ROAD

 

 

 

London EC1Y 1AX

 

 

 

United Kingdom

 

 

 

Tel: +44.20.7972.9600

 

 

 

Fax: +44.20.7972.9602

 

 

 

 

 

 

 

 

 

all together at

 

 

 

on

 

 

 



 

 

Subscribed for and on behalf of

 

DEUTSCHE BANK AG, LONDON BRANCH acting by

 

 

 

 

 

/s/ NICOLA ANNE DAWES

 

Authorised Signatory

 

 

 

 

 

Nicola Anne Dawes

 

Print full name of Authorised Signatory

 

 

 

 

 

/s/ VIKKI ANNE MAYELL

 

Authorised Signatory

 

 

 

 

 

Vikki Anne Mayell

 

Print full name of Authorised Signatory

 

 

 

 

 

all together at London

 

 

 

 

 

 

 

on   19th January 2010

 

 

 


 



Exhibit 4.33

 

GRAPHIC

 

BIRMINGHAM CABLE LIMITED (BCL)

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH (as Security Trustee)

 

SECURITY AGREEMENT

in respect of shares in Birmingham Cable Finance Limited

 

Date: 19 January 2010

 

Mourant du Feu & Jeune

 

22 Grenville Street, St Helier, Jersey JE4 8PX, Channel Islands

T +44 (0)1534 609 000  F +44 (0)1534 609 333

www.mourant.com

 

Cayman | Guernsey | Jersey | London

 



 

THIS SECURITY AGREEMENT is made 19 January 2010

 

BETWEEN:

 

1.                                       BIRMINGHAM CABLE LIMITED (“BCL”); and

 

2.                                       DEUTSCHE BANK AG, LONDON BRANCH as security trustee for the Beneficiaries (the “Security Trustee”).

 

WHEREAS:

 

(A)                              The Senior Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)                                Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)                                By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the “Group Intercreditor Deed”) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, Intergroup Debtors and the Intergroup Creditors (as each of those terms are defined therein) and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)                               The board of directors of BCL are satisfied that BCL is entering into this Security Agreement for the purposes of its business and that its doing so benefits BCL.

 

(E)                                 The Security Trustee holds the benefit of this Security Agreement on trust for itself and the other Beneficiaries on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

NOW THIS SECURITY AGREEMENT WITNESSES as follows:-

 

1.                                       INTERPRETATION

 

1.1.                              In this Security Agreement and the recitals hereto:

 

2006 Security Agreement” means the Jersey security agreement dated 3 March 2006 between BCL and the Security Trustee in respect of the Collateral as amended by a supplemental agreement dated 19 January 2010.

 

Acknowledgement of Notice” means an acknowledgement of receipt of a notice in the form set out in Schedule 3 or such other form as may be approved by the Security Trustee.

 

Beneficiaries” means the First Beneficiaries and the Second Beneficiaries.

 

Collateral” means the Shares and the Rights.

 

Company” means Birmingham Cable Finance Limited, a company incorporated in Jersey with registration number 60972 whose registered office is at 22 Grenville Street, St. Helier, Jersey, JE4 8PX.

 

Default Rate” means the rate specified in clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement.

 

1



 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from  Virgin Media Investment Holding Limited or its successors in title from time to time to the Security Trustee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies BCL of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Default” means each of:

 

(a)          any Event of Default (as defined in the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facility Agreement);

 

(b)         any event of default (howsoever described) under any other Senior Finance Document; and

 

(c)          an event of default or termination event (however described) under any Hedging Agreement;.

 

Incapacity” means, in relation to any person, the insolvency, bankruptcy, liquidation, dissolution, winding-up, administration, receivership, amalgamation, reconstruction or other incapacity of that person whatsoever (and, in the case of a partnership, includes the termination or change in composition of the partnership).

 

Liabilities” means any one or more of the Senior Liabilities, the Hedging Liabilities and the Intergroup Liabilities collectively, and “Liability” means any of them.

 

Notice of Assignment of Collateral” means a notice of assignment with respect to the Collateral or any part thereof substantially in the form set out in Schedule 2.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Rights” means from time to time all moneys, dividends, rights, options, bonuses, new shares, stock, debentures, warrants, distributions, rights to take up securities or other securities of whatever nature (including, without limitation, any security resulting from any conversion, consolidation or subdivision of the Shares or rights arising from a reduction of capital or corpus liquidation or scheme of arrangement) attributable to the Shares or the securities or new rights previously described howsoever arising.

 

Rule 3-16” has the meaning given to such term in the definition of “Designated Secured Obligations”.

 

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SEC” means the United States Securities and Exchange Commission.

 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)          in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)         that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Security Agreement.

 

Securities Act” means the United States Securities Act of 1933, as amended.

 

Security Interest” means a security interest, mortgage, charge, pledge, lien or other encumbrance which shall take effect in accordance with the law of the jurisdiction in which the relevant asset is situate and without limit to the foregoing shall include an interest in property created pursuant to the provisions of the Security Interests (Jersey) Law 1983.

 

Security Provider means any person who has granted or may at any time hereafter grant any security interest as security for the Secured Obligations.

 

Security Trust Agreement means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Security Agreement between, between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

Senior Facilities Agreement” means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 August 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders.

 

Senior Secured Notes” has the meaning given to the term “Notes” in the Senior Secured Notes Indenture.

 

Senior Secured Notes Documents” means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes.

 

Senior Secured Notes Indenture” means the indenture dated on or about the date of this Deed governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as

 

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trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent.

 

Shares” means the shares specified in Schedule 1 and any legal or beneficial interest in any other shares in the Company now or hereafter owned by BCL.

 

Transfer” means a blank stock transfer in registrable form duly executed by BCL but with the identity of the transferee and the date not completed and in a form which complies with the provisions of the Companies (Jersey) Law 1991, as amended, and the relevant provisions (if any) of the memorandum and articles of association of the Company.

 

1.2.                              Unless the context otherwise requires or unless otherwise defined in this Security Agreement, words and expressions defined in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Security Agreement (including its recitals).

 

1.3.                              Unless the context otherwise requires:

 

(a)                                  words importing the singular shall include the plural and vice versa;

 

(b)                                 words importing a gender shall include all genders;

 

(c)                                  references to Clauses and Schedules are to be construed as references to clauses of and schedules to this Security Agreement;

 

(d)                                 clause headings are used for convenience only and shall not affect the interpretation hereof;

 

(e)                                  references herein to any agreement or document (including, without limitation, references to this Security Agreement) shall be deemed to include references to such agreement or other document as varied, supplemented or replaced from time to time;

 

(f)                                    references herein to any enactment shall be deemed to include references to such enactment as re-enacted, amended or extended; and

 

(g)                                 references to a person includes its successors and assigns.

 

2.                                       SECURITY INTEREST IN THE COLLATERAL

 

2.1.                              For good and valuable consideration, receipt whereof is hereby acknowledged, BCL, to the intent that the Security Trustee shall have Security Interests pursuant to this Security Agreement in all of BCL’s right, title and interest in and to the Collateral, hereby:

 

(a)                                  agrees that the Security Trustee (or its nominee) shall have possession of the certificates of title to the Collateral pursuant to the terms of this Security Agreement and undertakes to deposit forthwith with the Security Trustee (or its nominee) such certificates of title; and

 

(b)                                 assigns to the Security Trustee title to the Collateral;

 

as security for the due and punctual performance of the Secured Obligations, such security ranking in priority immediately after the Security Interests created by the 2006 Security Agreement until such time as the Security Interests created by the 2006 Security Agreement are wholly discharged in accordance with Article 7 of the Security Interests (Jersey) Law 1983).

 

2.2.                              To the extent that the Security Trustee (or its nominee) has possession of the certificates of title to the Collateral and/or title to the Collateral pursuant to the 2006 Security

 

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Agreement it shall hold such certificates of title and/or title pursuant to the 2006 Security Agreement and this Security Agreement.

 

2.3.                              It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)                                  all Liabilities under the Senior Facilities Agreement; and

 

(b)                                 all Liabilities under the Senior Secured Notes Documents.

 

2.4.                              BCL shall deliver to the Security Trustee:

 

(a)                                  on the date hereof such number of Transfers in respect of the Shares as the Security Trustee may reasonably require so as to enable the Shares to be registered in the name of the Security Trustee, or its nominees or agents, together with all such consents or waivers as may be necessary to enable such registration to take place; and

 

(b)                                 on the date BCL acquires any Rights, such number of duly executed Transfers in respect of such Rights as the Security Trustee may reasonably require so as to enable such Rights to be registered in the name of the Security Trustee, or its nominees or agents, together with all such consents or waivers as may be necessary to enable such registration to take place.

 

2.5.                              BCL undertakes to deposit forthwith with the Security Trustee an executed Notice of Assignment of Collateral duly completed (but undated) with respect to the Collateral and covenants to procure that the Company executes and delivers a duly completed Acknowledgement of Notice with respect to such Notice of Assignment of Collateral within 3 Business Days of the date of the Notice of Assignment of Collateral.

 

2.6.                              BCL covenants from time to time upon demand to execute and deliver to the Security Trustee such transfers, blank transfers, assignments and notices and to make such payments and do all such acts and things as the Security Trustee may reasonably specify to protect or perfect the Security Trustee’s Security Interests in the Collateral or any of them or, on or after the Enforcement Date, to facilitate the realisation of the Collateral.

 

2.7.                              Upon irrevocable payment and discharge in full of the Secured Obligations and there being no obligations on any Beneficiary to make any of the Secured Obligations available then, subject to the provisions of Clause 4.3, the Security Trustee will at the request and expense of BCL re-transfer to BCL all the right, title and interest of the Security Trustee in or to the Collateral free from any Security Interest created pursuant hereto and from any other securities or trusts whatsoever.

 

3.                                       RULE 3-16 LIMITATION

 

3.1.                              The provisions of Clause 2.1 of this Security Agreement notwithstanding, the Security Interests in the Collateral shall not secure the Designated Secured Obligations insofar as the existence of Security Interests in the Collateral securing such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of the Company to be filed with the SEC, for so long as such requirement is in existence and provided that no member of the Group files or is otherwise required to file separate financial statements of the Company with the SEC under a separate rule or regulation; provided that the Security Interests will secure all the Secured Obligations including the Designated Secured Obligations if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the Security Interests in the Shares (or other securities issued by the Company forming part of the Collateral) pursuant to this Clause 3.1.

 

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3.2.                              In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of the Company due to the fact that BCL has granted Security Interests in the Shares or other securities issued by the Company (to the extent comprised within the Collateral) as security for any Designated Secured Obligations, then the Security Interests created pursuant to Clause 2.1 of this Security Agreement shall not secure the Designated Secured Obligations for so long as such financial statement requirement would otherwise have been applicable to the Company provided that no member of the Group files or is otherwise required to file separate financial statements of the Company with the SEC or such other governmental agency under a separate rule or regulation in which event the security interests will secure all the Secured Obligations including the Designated Secured Obligations.

 

4.                                       PRESERVATION OF SECURITY

 

4.1.                              All Security Interests created pursuant to this Security Agreement shall be continuing and not satisfied by any intermediate payment or satisfaction of the whole or any part of the Secured Obligations but shall secure the ultimate balance of the Secured Obligations.

 

4.2.                              All Security Interests created pursuant hereto shall be in addition to and shall not be affected by any other security now or hereafter held by the Security Trustee for all or any of the Secured Obligations.

 

4.3.                              Where any discharge (whether in respect of this Security Agreement, any other Senior Finance Document or otherwise) is made in whole or in part or any arrangement is made on the faith of any payment, security or other disposition which is avoided or must be repaid on bankruptcy, liquidation or otherwise without limitation, this Security Agreement and the liability of BCL under this Security Agreement shall continue as if there had been no such discharge or arrangement.

 

5.                                       UNDERTAKINGS

 

5.1.                              BCL hereby undertakes with the Security Trustee that during the continuance of the Security Interests created pursuant to this Security Agreement it will:

 

(a)                                  deposit with the Security Trustee forthwith (to be held at the risk of BCL save where BCL suffers any loss, costs or expenses as a result of the Security Trustee’s gross negligence or wilful default):

 

(i)                                     all certificates and documents of title relating to the Collateral and such deeds of transfer in blank and other documents as the Security Trustee may from time to time reasonably require for perfecting the title of the Security Trustee to the Collateral (duly executed by or signed on behalf of the registered holder) or for vesting or enabling it to vest the same in itself or its nominees or in any purchaser; and

 

(ii)                                  all such other documents relating to the Collateral as are in its possession or which it can reasonably obtain as the Security Trustee may from time to time reasonably require;

 

(b)                                 duly and promptly pay all calls, instalments or other moneys which may from time to time become due in respect of any of the Collateral, it being acknowledged by BCL that neither the Security Trustee nor any of the Beneficiaries shall in any circumstances incur any liability whatsoever in respect of any such calls, instalments or other moneys;

 

(c)                                  forthwith inform the Security Trustee of any claim or notice relating to the Collateral received from any other party and likely materially to prejudice the value of the Collateral and of all matters relevant thereto;

 

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(d)                                 not, save as otherwise permitted or not restricted under each of the Senior Finance Documents (without the prior consent in writing of the Security Trustee) redeem or purchase any of its own shares or participate in or permit any purchase or redemption of any of the Collateral by the Company, or sell, transfer or otherwise dispose of any part of the Collateral; and

 

(e)                                  save to the extent expressly permitted or not restricted under each of the Senior Finance Documents, not, without the prior consent in writing of the Security Trustee, grant any option with respect to any of the Shares.

 

6.                                       POWER TO SELL COLLATERAL

 

6.1.                              At any time on or after the occurrence of an Event of Default the Security Trustee shall have the right to give written notice thereof to BCL and, if the Event of Default is, in the reasonable opinion of the Security Trustee, capable of remedy, require it to be remedied and BCL hereby agrees that, without requiring any order of the Jersey Court, the Security Trustee shall have the power to sell the Collateral in or towards payment or discharge of the Secured Obligations, which power shall become exercisable either:

 

(a)                                  immediately upon the service of such notice if the Event of Default is, in the reasonable opinion of the Security Trustee, incapable of remedy; or

 

(b)                                 14 days after such service if the Event of Default is not remedied within that period.

 

7.                                       POWERS OF THE SECURITY TRUSTEE ON A POWER OF SALE BEING EXERCISABLE

 

7.1.                              The power to sell the Collateral under Clause 6 shall, notwithstanding any delay or waiver of any previous default, include the power to do all acts and things and exercise all rights, powers and remedies that BCL could do or exercise in relation to the Collateral including, without limitation, the power to:

 

(a)                                  take possession and assume control of the Collateral;

 

(b)                                 receive all dividends and other distributions (whether monetary or otherwise) made in respect of the Collateral;

 

(c)                                  sell, or agree to sell, the Collateral on such terms as the Security Trustee thinks fit and:

 

(i)                                     whether by public auction, private treaty or by tender;

 

(ii)                                  for cash or on terms that payment of all or any part of the purchase price is deferred (whether at interest or not and whether with or without security);

 

(iii)                               in one lot or in parcels;

 

(iv)                              whether or not in conjunction with the sale of other property by the Security Trustee or any other person; and

 

(v)                                 whether with or without special provisions as to title or time or mode of payment of the purchase money or otherwise;

 

(d)                                 grant to any person an option to purchase all or any part of the Collateral upon such terms as the Security Trustee thinks fit;

 

(e)                                  exchange with any person any part of the Collateral for an interest in property of any tenure and the property so acquired may be dealt with by the Security Trustee as if it were part of the Collateral and, for that purpose, the Security Trustee may

 

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require that a Security Interest is created over that property in favour of the Security Trustee;

 

(f)                                    carry out and enforce, or refrain from carrying out or enforcing, rights and obligations of BCL which may arise in connection with the Collateral or which may be obtained or incurred in the exercise of the rights, powers and remedies of the Security Trustee;

 

(g)                                 cause the name of the Security Trustee, or its nominees or agents, to be inserted on the Transfers delivered under Clause 2 and effect the registration of the Transfers and the Rights in favour of the Security Trustee, or its nominees or agents, with the effect that the Security Trustee, or its nominees or agents, shall become the registered owner of the Shares and the Rights and shall enjoy the same rights as any third party purchaser for value of the Shares and the Rights; and

 

(h)                                 institute, conduct, defend, settle, arrange, compromise and submit to arbitration any claims, questions or disputes whatsoever which may arise in respect of any Security Interest created pursuant hereto or in any way relating to this Security Agreement and to execute releases or other discharges in relation thereto.

 

PROVIDED HOWEVER that the Security Trustee agrees that (without prejudice to the provisions of Clause 8.2) before the Enforcement Date it will not exercise the powers set out at Clauses 7.1(a), (b), (c), (d) or (e) above.

 

7.2.                              On or after the Enforcement Date and notwithstanding any other provisions hereof the rights and powers of the Security Trustee with respect to the Collateral shall be unfettered and without limitation to the foregoing the Security Trustee may without being subject to the proviso to Clause 7.1 and without regard to the provisions of Clauses 8.1 and 8.2 exercise any of the powers set out in Clause 7.1 without further notice to BCL.

 

8.                                       DIVIDENDS AND VOTING RIGHTS

 

8.1.                              Subject to Clause 8.2, BCL may exercise the right to vote, if any, in respect of the Shares and all dividends and other moneys paid on the Collateral may be retained by BCL.

 

8.2.                              BCL covenants and agrees with the Security Trustee that:

 

(a)                                  the Security Trustee and its nominees at the discretion of the Security Trustee may after an Event of Default has occurred and so long as the same is continuing exercise in the name of BCL or otherwise at any time, whether before or after demand for payment and without any further consent or authority on the part of BCL (but subject to Clause 8.2(d)), any voting rights in respect of the Collateral;

 

(b)                                 after an Event of Default has occurred and so long as the same is continuing the Security Trustee may cause the name of the Security Trustee, or its nominees or agents, to be inserted on the Transfers delivered under Clause 2 and effect the registration of the Transfers in favour of the Security Trustee, or its nominees or agents, with the effect that the Security Trustee, or its nominees or agents, shall become the registered owner of the Shares and the Rights;

 

(c)                                  until the Enforcement Date, the Security Trustee will hold all dividends, distributions, interest and other moneys paid on and received by it in respect of any Collateral which is transferred to it, or its nominees or agents, pursuant to Clause 8.2(b) for the account of BCL and will, subject to any right of set-off, pay such dividends, interest and other moneys to BCL upon request; and

 

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(d)                                 until the Enforcement Date, the Security Trustee will exercise all voting and other rights and powers attached to the Collateral transferred to it pursuant to Clause 8.2(b) as BCL may from time to time in writing direct provided that the Security Trustee shall be under no obligation to comply with any such direction where compliance would in the Security Trustee’s reasonable opinion, be prejudicial to the security created by this Security Agreement.

 

8.3.                              Subject to the provisions of the Senior Finance Documents, if BCL receives any cash dividend or any other property which forms part of the Collateral after the same are registered in the name of the Security Trustee in accordance with the terms hereof, or its nominees or agents, BCL shall promptly pay the amount of any such cash dividend and deliver any such other property received by it to the Security Trustee and the Security Trustee shall apply such amount or other property in accordance with the provisions of the Senior Finance Documents.

 

8.4.                              Subject to the provisions of the Senior Finance Documents, on or after the Enforcement Date, all dividends interest and other distributions relating to the Collateral may be applied by the Security Trustee as though they were proceeds of sale.

 

9.                                       LIABILITY TO PERFORM

 

9.1.                              It is expressly agreed that, notwithstanding anything to the contrary herein contained, BCL shall remain liable to observe and perform all of the conditions and obligations assumed by it in respect of the Collateral and the Security Trustee shall be under no obligation or liability by reason of or arising out of this Security Agreement.  The Security Trustee shall not be required in any manner to perform or fulfil any obligations of BCL in respect of the Collateral, or to make any payment, or to make any enquiry as to the nature or sufficiency of any payment received by it, or to present or file any claim or take any other action to collect or enforce the payment of any amount to which it may have been or to which it may be entitled hereunder at any time or times.

 

10.                                 REGISTRATION

 

BCL authorises the Security Trustee after the Enforcement Date to transfer or cause all or any of the Collateral to be transferred to and registered in the name of any purchasers or transferees from the Security Trustee.

 

11.                                 APPLICATION OF PROCEEDS

 

All moneys received or held by the Security Trustee in respect of the Collateral after the Security Interests created pursuant to this Security Agreement have become enforceable shall be applied by the Security Trustee in accordance with the provisions of the Group Intercreditor Deed and the Security Trust Agreement in or towards payment of the Secured Obligations in such order as the Security Trustee sees fit but without prejudice to the right of the Security Trustee to recover any shortfall from BCL or any other person.

 

12.                                 PROTECTION OF PURCHASER

 

No purchaser or other person dealing with the Security Trustee or with its attorneys shall be concerned to enquire (i) whether any power exercised or purported to be exercised by it, him or them has become exercisable, (ii) whether any money remains due on the security hereby created, (iii) as to the propriety or regularity of any of his, its or their actions or (iv) as to the application of any money paid to him, it or them.  In the absence of mala fides on the part of such purchaser or other person such dealings shall be deemed so far as regards the safety and protection of such purchaser or other person to be within the powers hereby conferred and to be valid accordingly.  The remedy of BCL in respect of any impropriety or irregularity whatever in the exercise of such powers shall be in damages only.

 

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13.                                 DELEGATION

 

The Security Trustee may at any time:

 

(a)                                  delegate to any person(s) all or any of its rights, powers and discretions hereunder on such terms (including power to subdelegate) as the Security Trustee sees fit; and

 

(b)                                 employ security trustees, managers, employees, advisers and others on such terms as the Security Trustee sees fit for any of the purposes set out herein.

 

14.                                 INDEMNITY

 

14.1.                        BCL hereby undertakes with the Security Trustee to pay on demand all costs, charges and expenses which  the Security Trustee shall certify as sustained or incurred by it as a consequence of  the enforcement, preservation or attempted preservation of any of the Security Interests created by or pursuant to this Security Agreement or any of the Collateral on a full indemnity basis, together with interest at the Default Rate from the date falling 30 days after the date of demand for payment of such expenses to the date of payment by BCL (both before and after judgment).

 

14.2.                        The Beneficiaries, the Security Trustee and any attorney, agent or other person appointed by the Security Trustee under this Security Agreement and the officers and employees of each of the aforementioned (each an “Indemnified Party”) shall be entitled to be indemnified out of the Collateral in respect of all costs, losses, actions, claims, demands or liabilities whether in contract, tort, delict or otherwise and whether arising at common law, in equity or by statute which may be incurred by, or made against, any of them (or by or against any manager, agent, officer or employee for whose liability, act or omission any of them may be answerable) at any time relating to or arising directly or indirectly out of or as a consequence of:

 

(a)                                  anything done or omitted in the exercise or purported exercise of the powers contained in this Security Agreement; or

 

(b)                                 any breach by BCL of any of its obligations under this Security Agreement;

 

except in the case of fraud, wilful misconduct or gross negligence on the part of an Indemnified Party.

 

14.3.                        The Security Trustee shall not be liable for any losses arising in connection with the proper exercise or purported exercise of any of its rights, powers and discretions in good faith hereunder and in particular without limitation the Security Trustee in possession shall not be liable to account for anything except actual receipts.

 

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15.                                 WAIVERS; REMEDIES CUMULATIVE

 

No waiver of any of the terms hereof shall be effective unless in writing signed by the Security Trustee.  No delay or omission by the Security Trustee shall constitute a waiver. Any waiver may be on such terms as the Security Trustee sees fit.  The rights, powers and discretions of the Security Trustee herein are additional to and not exclusive of those provided by law, by any agreement with or security in favour of the Security Trustee or otherwise.

 

16.                                 THE SECURITY TRUST AGREEMENT

 

BCL and the Security Trustee hereby acknowledge that the covenants of BCL contained in this Security Agreement and the other rights, title and interests constituted by this Security Agreement and the Collateral and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Security Agreement are held by the Security Trustee subject to and on the terms of the trusts declared in the Security Trust Agreement.

 

17.                                 ATTORNEY

 

17.1.                        BCL by way of security irrevocably appoints the Security Trustee to be its attorney in its name and on its behalf, subject to the terms of this Security Agreement:

 

(a)                                  to execute and complete any documents or instruments which the Security Trustee may require for perfecting the title of the Security Trustee to the Collateral or for vesting the same in the Security Trustee or its nominee or, on or after the Enforcement Date, any purchaser;

 

(b)                                 to sign, execute, seal and deliver and otherwise perfect any further security document referred to in Clause 2.6 in accordance with the terms thereof; and

 

(c)                                  otherwise generally on or after the Enforcement Date to sign, seal, execute and deliver all deeds, assurances, agreements and documents to do all acts and things which may be required for the full exercise of all or any of the powers conferred on the Security Trustee under this Security Agreement or which may be deemed expedient by the Security Trustee in connection with any disposition, realisation or getting in by the Security Trustee of the Collateral or any part thereof or in connection with any other exercise of any power under this Security Agreement.

 

17.2.                        BCL ratifies and confirms and agrees to ratify and confirm all acts and things which the attorney as is named in Clause 17.1 shall properly do or purport to do in the exercise of his powers under such Clause.

 

18.                                 NOTICES

 

All notices, requests, demands and other communications to be given under this Security Agreement shall be deemed to be duly given or made when delivered or despatched in accordance with clause 20 (Notices) of the Group Intercreditor Deed.

 

19.                                 WAIVER OF DEFENCES

 

19.1.                        Any right which at any time BCL may have under the existing or future laws of Jersey whether by virtue of the droit de discussion or otherwise to require that recourse be had to the assets of any other person before any claim is enforced against BCL in respect of the obligations assumed by BCL under or in connection with any Senior Finance Document is hereby waived.

 

19.2.                        Any right which at any time BCL may have under the existing or future laws of Jersey whether by virtue of the droit de division or otherwise to require that any liability under

 

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any guarantee or indemnity given in or in connection with any Senior Finance Document be divided or apportioned with any other person or reduced in any manner whatsoever is hereby waived.

 

19.3.                        The liability of BCL shall not be affected nor shall the Security Interests hereby created be discharged or diminished by reason of:

 

(a)                                  the Incapacity or any change in the name, style or constitution of BCL or any other person liable; or

 

(b)                                 the Security Trustee or any of the Beneficiaries compounding with, discharging, releasing or varying the liability of or granting any time indulgence or concession to BCL or any other person or renewing, determining, varying or increasing any accommodation, facility or transaction in any manner whatsoever or concurring in accepting or varying any compromise, arrangement or settlement or omitting to claim or enforce payment from BCL or any other person; or

 

(c)                                  any act or omission which would not have discharged or affected the liability of BCL had it been principal debtor instead of guarantor or by anything done or omitted which but for this provision might operate to exonerate BCL.

 

19.4.                        Until all the Secured Obligations have been paid, discharged or satisfied in full (and notwithstanding payment of a dividend in any liquidation or under any compromise or arrangement or the discharge by any person of its liability) BCL agrees that without the prior written consent of the Security Trustee it will not:

 

(a)                                  exercise its rights of subrogation, reimbursement and indemnity against any other person;

 

(b)                                 save as otherwise permitted or not restricted in the Senior Finance Documents, the Refinancing Facilities Agreement and the Group Intercreditor Deed, demand or accept repayment in whole or in part of any obligations or liabilities now or hereafter due to BCL from any other Security Provider or demand or accept any guarantee or any other document or instrument (including, without limitation, any other document or instrument creating or evidencing a mortgage, charge (whether fixed or floating), pledge, lien, hypothecation, assignment, trust arrangement or Security Interest of any kind) in respect of such obligations or liabilities or dispose of the same;

 

(c)                                  take any step to enforce any right against any other Security Provider in respect of any such obligations or liabilities; or

 

(d)                                 claim any set-off or counter-claim in respect of any such obligations or liabilities against any other Security Provider or claim or prove in competition with the Security Trustee or any of the Beneficiaries in the bankruptcy, liquidation or administration of any other Security Provider or have the benefit of, or share in, any payment from or composition with any Security Provider or other Security Document now or hereafter held by the Security Trustee or any of the Beneficiaries for any obligations or liabilities of any Security Provider but so that, if so directed by the Security Trustee, it will prove for the whole or any part of its claim in the liquidation of any other Security Provider on terms that the benefit of such proof and of all money received by it in respect thereof shall be held on trust for the Security Trustee and applied in or towards discharge of the Secured Obligations in accordance with the provisions of the Group Intercreditor Deed and Security Trust Agreement.

 

19.5.                        If contrary to Clause 5.1 or 19.4 BCL takes or receives the benefit of any security or receives or recovers any money or other property, such security, money or other property shall be held on trust for the Security Trustee and shall be delivered to the Security Trustee on demand.

 

12



 

19.6.                        BCL hereby agrees not to assert or enforce (whether by or in a legal or equitable proceeding or otherwise) any, claims (as defined in section 101(4) of the United States Bankruptcy Code) against any other Security Provider, whether arising under any applicable law or otherwise, to which the Security Provider is or would be entitled.  It is hereby acknowledged by the Security Trustee that this Clause 19.6 does not restrict the right of BCL to assert or enforce any claims against any other Security Provider to the extent that such claims arise after all the Security Providers have been released from all their respective obligations and liabilities hereunder.

 

20.                                 MISCELLANEOUS

 

20.1.                        No variation of this Security Agreement shall be valid unless it is in writing and signed by or on behalf of each of the parties hereto.

 

20.2.                        BCL hereby agrees that after the Enforcement Date the Security Trustee and/or each other Beneficiary may at any time without notice, notwithstanding any settlement of account or other matter whatsoever, combine or consolidate all or any of its then existing accounts wheresoever situate (including accounts in the name of the Security Trustee, such Beneficiary or of BCL jointly with others), whether such accounts are current, deposit, loan or of any other nature whatsoever, whether they are subject to notice or not and whether they are denominated in Sterling or in any other currency, and set-off or transfer any sum standing to the credit of any one or more such accounts in or towards satisfaction of the Secured Obligations owed to the Security Trustee and/or such other Beneficiary which, to the extent not then payable, shall automatically become payable to the extent necessary to effect such set-off.

 

20.3.                        BCL may not assign or transfer any of its rights or obligations under this Security Agreement.

 

21.                                 PROPER LAW

 

21.1.                        This Security Agreement shall be governed by and construed in accordance with the laws of the Island of Jersey and the parties hereto hereby submit to the non-exclusive jurisdiction of the Jersey courts in connection herewith.

 

21.2.                        BCL irrevocably waives (and irrevocably agrees not to raise) any objection which it may have now or subsequently to the laying of the venue of any proceedings and any claim that any such proceedings have been brought in an inconvenient forum and further irrevocably agrees that a judgment in any proceedings brought in Jersey will be conclusive and binding upon BCL.

 

22.                                 SEVERABILITY OF PROVISIONS

 

22.1.                        If any provision of this Security Agreement is prohibited or unenforceable in any jurisdiction, such prohibition or unenforceability shall not invalidate the remaining provisions hereof or affect the validity or enforceability of such provisions in any other jurisdiction.

 

23.                                 COUNTERPARTS

 

23.1.                        This Security Agreement may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

 

13



 

IN WITNESS WHEREOF the parties have caused this Security Agreement to be duly executed the day and year first above written.

 

 

SIGNED for and on behalf of

)

 

BIRMINGHAM CABLE LIMITED by

)

 

 

)

/s/ ROBERT MACKENZIE

 

)

Robert Mackenzie, a director

 

)

 

 

)

 

 

)

/s/ ROBERT GALE

 

)

Robert Gale, a director

 

 

 

 

 

 

SIGNED by

)

/s/ NICOLA DAWES

 

/s/ V. MAYELL

duly authorised for and on behalf of DEUTSCHE BANK AG, LONDON BRANCH in the presence of:-

)

)

Nicola Dawes

 

V. Mayell

 

 

 

 

 

/s/ BEN WILKINSON

 

 

Ben Wilkinson

Solicitor

White & Case LLP

5 Old Broad Street

London

 

 

EC2N 1DW

 

14



 

SCHEDULE 1

 

Shares

 

175,020 ordinary shares of £1.00 each in the share capital of the Company registered in the name of BCL.

 

15



 

SCHEDULE 2

 

Notice of Assignment of Collateral

 

To:

 

Birmingham Cable Finance Limited (the “Company”)

 

 

 

From:

 

Birmingham Cable Limited (“BCL”)

 

 

 

And From:

 

Deutsche Bank AG, London Branch as security trustee pursuant to the terms of the Security Agreement (as defined below) (the “Security Trustee”)

 

We hereby give you notice that by a security agreement dated on or about [ ] 2010 (the “Security Agreement”), BCL has assigned to the Security Trustee the Collateral. Capitalised terms not otherwise defined herein shall have the respective meanings given to them in the Security Agreement (a copy of which has been provided to you)

 

We irrevocably and unconditionally authorise and instruct you:

 

(1)                                  to enter the name of                                                                                                     (insert name of transferee) in the register of members of the Company as the holder of the Shares;

 

(2)                                  to disclose to the Security Trustee such information relating to the Collateral as it may from time to time require; and

 

(3)                                  to comply with all instructions given to you from time to time and at any time by the Security Trustee or by its nominees or agents without any enquiry by you as to the justification or validity of such instructions.

 

This notice may not be varied or revoked without the Security Trustee’s prior written consent.

 

We shall be grateful if you will sign and forward to the Security Trustee at                                                                                            the enclosed form of acknowledgement.

 

This notice shall be governed by and construed in accordance with the laws of Jersey.

 

Date:

 

 

 

 

 

 

 

 

 

 

 

 

For and on behalf of

 

For and on behalf of

BCL

 

the Security Trustee

 

16



 

SCHEDULE 3

 

Acknowledgement of Notice

 

To:

Deutsche Bank AG, London Branch as security trustee pursuant to the terms of the Security Agreement

 

 

From:

Birmingham Cable Finance Limited (the “Company”)

 

We hereby acknowledge receipt of a notice (the “Notice”) dated [ ] 2010 addressed to us by you and Birmingham Cable Limited (“BCL”).  Capitalised terms not otherwise defined herein shall have the respective meanings given to them in the Notice.

 

We confirm that:

 

(a)                                  we accept the authorisations and instructions contained in the Notice and we undertake to act in accordance and comply with the terms of the Notice;

 

(b)                                 we confirm that the person named in paragraph (1) of the Notice has been entered in the register of members of the Company as the holder of the Shares;

 

(c)                                  we do not have any claims or demands, any rights of counter-claim, rights of set-off or any other equities against BCL in respect of the Collateral and will not hereafter make any such claims or demands or exercise any such rights;

 

(d)                                 we have not, at the date of this acknowledgement, received any notice that any third party has or will have any right or interest whatsoever in the Collateral or is taking any action whatsoever against the same; and

 

(e)                                  if we become aware of any matter referred to in paragraph (d) above, we will immediately inform you in writing thereof.

 

Terms not otherwise defined herein shall have the respective meanings given to them in the Notice.

 

This acknowledgement shall be governed by and construed in accordance with the laws of Jersey.

 

Date:

 

 

 

 

 

 

 

 

For and on behalf of

 

Birmingham Cable Finance Limited

 

 

17




Exhibit 4.34

 

EXECUTION COPY

 

 

January 19, 2010

 

 

AMENDED AND RESTATED PLEDGE AGREEMENT

 

 

between

 

 

NTL VICTORIA LIMITED
as Pledgor

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee and Pledgee

 

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINITIONS

2

 

 

 

2.

SECURITY FOR OBLIGATIONS

6

 

 

 

3.

PLEDGE OF SECURITIES, ETC.

6

 

 

 

 

3.1

PLEDGE

6

 

 

 

 

 

3.2

PROCEDURES

9

 

 

 

 

 

3.3

SUBSEQUENTLY ACQUIRED COLLATERAL

10

 

 

 

 

 

3.4

TRANSFER TAXES

10

 

 

 

 

 

3.5

CERTAIN REPRESENTATIONS AND WARRANTIES REGARDING THE COLLATERAL

10

 

 

 

4.

APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC.

10

 

 

 

5.

VOTING, ETC., WHILE NO EVENT OF DEFAULT

11

 

 

 

6.

DISTRIBUTIONS

11

 

 

 

7.

REMEDIES; ENFORCEMENT

11

 

 

 

8.

REMEDIES, CUMULATIVE, ETC.

12

 

 

 

9.

APPLICATION OF PROCEEDS

13

 

 

 

10.

PURCHASERS OF COLLATERAL

13

 

 

 

11.

INDEMNITY

13

 

 

 

12.

PLEDGEE NOT A LIMITED LIABILITY COMPANY MEMBER

14

 

 

 

13.

FURTHER ASSURANCES; POWER-OF-ATTORNEY

14

 

 

 

14.

THE PLEDGEE AS SECURITY TRUSTEE

15

 

 

 

15.

TRANSFER BY THE PLEDGOR

15

 

 

 

16.

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGOR

15

 

 

 

17.

LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBER; CHANGES THERETO; ETC.

17

 

 

 

18.

PLEDGOR’S OBLIGATIONS ABSOLUTE, ETC.

18

 

 

 

19.

SALE OF COLLATERAL WITHOUT REGISTRATION

18

 

 

 

20.

TERMINATION; RELEASE

19

 

 

 

21.

NOTICES, ETC.

20

 

 

 

22.

WAIVER; AMENDMENT

20

 

 

 

23.

SUCCESSORS AND ASSIGNS

20

 

 

 

24.

HEADINGS DESCRIPTIVE

21

 

i



 

25.

GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL

21

 

 

 

26.

PLEDGOR’S DUTIES

22

 

 

 

27.

COUNTERPARTS

22

 

 

 

28.

SEVERABILITY

22

 

 

 

29.

RECOURSE

22

 

 

 

30.

LIMITED OBLIGATIONS

23

 

 

 

31.

AMENDMENT AND RESTATEMENT

23

 

ANNEX A

 

-

 

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION, JURISDICTION OF ORGANIZATION, LOCATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS

 

 

 

 

 

ANNEX B

 

-

 

SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS

 

 

 

 

 

ANNEX C

 

-

 

SCHEDULE OF CHIEF EXECUTIVE OFFICES

 

ii


 

AMENDED AND RESTATED PLEDGE AGREEMENT

 

AMENDED AND RESTATED PLEDGE AGREEMENT (as amended, modified, restated and/or supplemented from time to time, this “Agreement”), dated as of March 3, 2006 and amended and restated as of January 19, 2010, among NTL Victoria Limited (the “Pledgor”) and Deutsche Bank AG, London Branch, as Security Trustee (together with any successor Security Trustee, (the “Pledgee”), for the benefit of the Beneficiaries (as defined below)).  Except as otherwise defined herein, all capitalized terms used herein and defined in the Senior Facilities Agreement or the Group Intercreditor Deed shall be used herein as therein defined.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) (the “Company”), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms is defined therein), the Intergroup Debtors and the Intergroup Creditors (as each of those terms is defined therein), certain banks, financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”) governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018 (the “Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), among Virgin Media Inc., the Company, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time, Virgin Media Secured Finance PLC has agreed to issue the Senior Secured Notes.

 



 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgor and Security Trustee entered into a pledge agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgor granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgor and Security Trustee desire to amend and restate the Original Pledge Agreement to, among other things, provide for the security for the due and punctual payment and performance of the Secured Obligations on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to the Pledgor, the receipt and sufficiency of which are hereby acknowledged, the Pledgor hereby makes the following representations and warranties to the Pledgee for the benefit of the Beneficiaries and hereby covenants and agrees with the Pledgee for the benefit of the Beneficiaries as follows:

 

1.                                      CONSTRUCTION; DEFINITIONS

 

(a)                                  This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless the context otherwise requires or unless otherwise provided or defined herein, all capitalized terms used herein and defined in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall be used herein as therein defined.

 

(b)                                 Reference to singular terms shall include the plural and vice versa.

 

(c)                                  References to (or to any specified provision of) this Agreement or any other agreement or document shall be construed as references to this Agreement, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, and/or replaced in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party.

 

(d)                                 The following capitalized terms used herein shall have the definitions specified below:

 

Adverse Claim” shall have the meaning given such term in Section 8-102(a)(1) of the UCC.

 

Agent” means the Facility Agent, the US Paying Agent, the Administrative Agent and the Relevant Agent.

 

2



 

Agreement” means this Pledge Agreement.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Certificated Security” shall have the meaning given such term in Section 8-102(a)(4) of the UCC.

 

Clearing Corporation” shall have the meaning given such term in Section 8-102(a)(5) of the UCC.

 

Collateral” shall have the meaning set forth in Section 3.1 hereof.

 

“Commitments” means, in respect of a Senior Lender, its Commitment as defined in the Senior Facilities Agreement, and in respect of any other Senior Finance Party, the aggregate of the principal amount advanced by it that has not been repaid, in each case under the Senior Finance Documents, and (without duplication) its uncancelled commitment to extend further credit to the Obligors under the Senior Finance Documents.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company and its successors in title from time to time to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the Pledgor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Default” shall mean each of:

 

(i)                                     a Senior Default; and

 

(ii)                                  an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence

 

3



 

and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 3.1.

 

Group Intercreditor Deed” shall have the meaning set forth in the recitals.

 

Indemnitees” shall have the meaning set forth in Section 11 hereof.

 

Limited Liability Company Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all limited liability company capital and interest in other limited liability companies), at any time owned by the Pledgor and represented by any Limited Liability Company Interest.

 

Limited Liability Company Interests” shall mean the entire limited liability company membership interest at any time owned by the Pledgor in any limited liability company.

 

Location” of the Pledgor has the meaning given such term in Section 9-307 of the UCC.

 

Obligations” shall have the meaning set forth in Section 2 hereof.

 

Original Pledge Agreement” shall have the meaning set forth in the recitals hereto.

 

Ownership Interests” has the meaning given to such term in the definition of “Excluded Charged Assets”.

 

Pledgee” shall have the meaning set forth in the first paragraph hereof.

 

Pledgor” shall have the meaning set forth in the first paragraph hereof.

 

Proceeds” shall have the meaning given such term in Section 9-102(a)(64) of the UCC.

 

Registered Organization” shall have the meaning given such term in Section 9-102(a)(70) of the UCC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a

 

4



 

Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Rule 3-16” has the meaning given to such term in the definition of “Designated Secured Obligations”.

 

SEC” means the United States Securities and Exchange Commission.

 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement.

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Securities Intermediary” shall have the meaning given such term in Section 8-102(14) of the UCC.

 

Security” and “Securities” shall have the meaning given such term in Section 8-102(a)(15) of the UCC.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, the Company, and the companies named therein as Original Obligors.

 

Senior Facilities Agreement” shall have the meaning given such term in the recitals hereto.

 

Termination Date” shall have the meaning set forth in Section 20 hereof.

 

Transmitting Utility” has the meaning given such term in Section 9-102(a)(80) of the UCC.

 

UCC” shall mean the Uniform Commercial Code as in effect in the State of New York from time to time; provided that all references herein to specific Sections or subsections of the UCC are references to such Sections or subsections, as the case may be, of the Uniform Commercial Code as in effect in the State of New York on the

 

5



 

date hereof; provided further that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the Security Interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect on or after the date hereof in any other jurisdiction, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy.

 

Uncertificated Security” shall have the meaning given such term in Section 8-102(a)(18) of the UCC.

 

2.                                      SECURITY FOR OBLIGATIONS

 

This Agreement is made by the Pledgor for the benefit of the Pledgee acting on behalf of the Beneficiaries to secure:

 

(a)                                  the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all Secured Obligations;

 

(b)                                 any and all sums advanced by the Pledgee in order to preserve the Collateral (as hereinafter defined) or preserve its security interest in the Collateral;

 

(c)                                  in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of the Pledgor referred to in clauses (a) and (b) above, after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Pledgee of its rights hereunder, together with reasonable attorneys’ fees and court costs;

 

(d)                                 all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement under Section 11 of this Agreement; and

 

(e)                                  all amounts owing to any Agent or any of its affiliates pursuant to any of the Senior Finance Documents in its respective capacity as such;

 

all such obligations, liabilities, indebtedness, sums and expenses set forth in clauses (a) through (e) of this Section 2 being herein collectively called the “Obligations”, it being acknowledged and agreed that the “Obligations” shall include (without limitation) extensions of credit of the types described above, whether outstanding on the date of this Agreement or extended from time to time after the date of this Agreement, and (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) all Liabilities arising under or in connection with the Senior Facilities Agreement and the Senior Secured Notes Documents.

 

3.                                      PLEDGE OF SECURITIES, ETC.

 

3.1                                 Pledge

 

To secure the Obligations now or hereafter owed by the Pledgor, the Pledgor does hereby grant, pledge and assign to the Pledgee for the benefit of the Beneficiaries, and

 

6



 

does hereby create a continuing security interest (subject to those Encumbrances permitted to exist with respect to the Collateral pursuant to the terms of all of the Senior Finance Documents then in effect) in favor of the Pledgee for the benefit of the Beneficiaries in, all of its right, title and interest in and to the following, whether now existing or hereafter from time to time acquired, (the “Collateral”):

 

(a)                                  all Limited Liability Company Interests owned by the Pledgor from time to time and all of its right, title and interest in each limited liability company to which each such Limited Liability Company Interest relates, whether now existing or hereafter acquired, including, without limitation, to the fullest extent permitted under the terms and provisions of the documents and agreements governing such Limited Liability Company Interests and applicable law:

 

(i)                                     all other payments due or to become due to the Pledgor in respect of such Limited Liability Company Interests, whether under any limited liability company agreement or otherwise, whether as contractual obligations, damages, insurance proceeds or otherwise;

 

(ii)                                  all of its claims, rights, powers, privileges, authority, options, security interests, liens and remedies, if any, under any limited liability company agreement or operating agreement, or at law or otherwise in respect of such Limited Liability Company Interests;

 

(iii)                               all of the Pledgor’s rights under any limited liability company agreement or operating agreement or at law to exercise and enforce every right, power, remedy, authority, option and privilege of the Pledgor relating to such Limited Liability Company Interests, including any power to terminate, cancel or modify any such limited liability company agreement or operating agreement, to execute any instruments and to take any and all other action on behalf of and in the name of the Pledgor in respect of such Limited Liability Company Interests and any such limited liability company, to make determinations, to exercise any election (including, but not limited to, election of remedies) or option or to give or receive any notice, consent, amendment, waiver or approval, together with full power and authority to demand, receive, enforce, collect or receipt for any of the foregoing or for any Limited Liability Company Asset, to enforce or execute any checks, or other instruments or orders, to file any claims and to take any action in connection with any of the foregoing; and

 

(iv)                              all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof; and

 

(b)                                 all Proceeds of any and all the foregoing;

 

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provided, however, that notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)                                     all Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain pledged under this Section 3.1 to secure any Secured Obligations that are not Designated Secured Obligations.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph apply, this Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply, this Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

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3.2                                 Procedures

 

(a)                                  To the extent that the Pledgor at any time or from time to time owns, acquires or obtains any right, title or interest in any Collateral, such Collateral shall automatically (and without the taking of any action by the Pledgor) be pledged pursuant to Section 3.1 of this Agreement and, in addition thereto, the Pledgor shall (to the extent provided below) take the following actions as set forth below (as promptly as practicable and, in any event, within 10 days after it obtains such Collateral) for the benefit of the Pledgee and the Beneficiaries:

 

(i)                                     with respect to any Collateral which constitutes a Certificated Security (other than a Certificated Security credited on the books of a Clearing Corporation or Securities Intermediary), the Pledgor shall physically deliver such Certificated Security to the Pledgee, endorsed to the Pledgee or endorsed in blank; and

 

(ii)                                  with respect to any Collateral which constitutes a Certificated Security, Uncertificated Security, or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary (including a Federal Reserve Bank, Participants Trust Company or The Depository Trust Company), the Pledgor shall promptly notify the Pledgee thereof and shall promptly take (x) all actions required (i) to comply with the applicable rules of such Clearing Corporation or Securities Intermediary, and (ii) to perfect the security interest of the Pledgee under applicable law (including, in any event, under Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC) and (y) such other actions as the Pledgee deems necessary or desirable to effect the foregoing;

 

provided that to the extent that any certificates, instruments of transfer or other documents of title relating to any Collateral (“Title Documents”) that are required to be delivered to the Security Trustee pursuant to this Section 3.2(a) have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 3.2(a) shall be deemed satisfied.

 

(b)                                 In addition to the actions required to be taken pursuant to Section 3.2(a) hereof, the Pledgor shall take the following additional actions with respect to the Collateral:

 

(i)                                     with respect to all Collateral of the Pledgor whereby or with respect to which the Pledgee may obtain “control” thereof within the meaning of Section 8-106 of the UCC (or under any provision of the UCC as same may be amended or supplemented from time to time, or under the laws of any relevant State other than the State of New York), the Pledgor shall take all actions as may be requested from time to time by the Pledgee so that “control” of such Collateral is obtained and at all times held by the Pledgee; and

 

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(ii)                                  the Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the various relevant States, covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Pledgee), to be filed in the relevant filing offices so that at all times the Pledgee’s security interest in all Collateral which can be perfected by the filing of such financing statements (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant States, including, without limitation, Section 9-312(a) of the UCC) is so perfected..

 

3.3                                 Subsequently Acquired Collateral

 

If the Pledgor shall acquire (by purchase or otherwise) any additional Collateral at any time or from time to time after the date hereof, (i) such Collateral shall automatically (and without any further action being required to be taken) be subject to the pledge and security interests created pursuant to Section 3.1 hereof and, furthermore, the Pledgor will thereafter take (or cause to be taken) all actions (as promptly as practicable and, in any event, within 10 days after it obtains such Collateral) required with respect to such Collateral pursuant to and in accordance with the procedures set forth in Section 3.2 hereof, and will promptly thereafter deliver to the Pledgee (i) a certificate executed by an authorized officer of the Pledgor describing such Collateral and certifying that the same has been duly pledged in favor of the Pledgee (for the benefit of the Beneficiaries) hereunder, and (ii) supplements to Annexes A through C hereto as are necessary to cause such Annexes to be complete and accurate at such time.

 

3.4                                 Transfer Taxes

 

The pledge of Collateral under Section 3.1 or Section 3.3 hereof shall be accompanied by any transfer tax stamps required in connection with the pledge of such Collateral.

 

3.5                                 Certain Representations and Warranties Regarding the Collateral

 

The Pledgor represents and warrants that on the date hereof: (i) the Limited Liability Company Interests held by the Pledgor consist of the number and type of interests of the persons described in Annex B hereto; (ii) each such Limited Liability Company Interest referenced in clause (i) of this paragraph constitutes that percentage of the issued and outstanding equity interest of the issuing person set forth in Annex B hereto; (iii) the exact address of the chief executive office of the Pledgor is listed on Annex C hereto; and (iv) the Pledgor has complied with the respective procedure set forth in Section 3.2(a) hereof with respect to the Collateral described in Annex B hereto.

 

4.                                      APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC.

 

The Pledgee shall have the right to appoint one or more sub-agents for the purpose of retaining physical possession of the Collateral.

 

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5.                                      VOTING, ETC., WHILE NO EVENT OF DEFAULT.

 

Unless and until there shall have occurred and be continuing any Event of Default, the Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral owned by it, and to give consents, waivers or ratifications in respect thereof; provided that, in each case, no vote shall be cast or any consent, waiver or ratification given or any action taken or omitted to be taken which would violate, result in a breach of any covenant contained in, or be inconsistent with any of the terms of any Security Document or other Senior Finance Document, or which could reasonably be expected to have the effect of impairing the value of the Collateral or any part thereof or the position or interests of the Pledgee.  All such rights of the Pledgor to vote and to give consents, waivers and ratifications shall cease in case an Event of Default has occurred and is continuing, and the Enforcement Date has occurred.

 

6.                                      DISTRIBUTIONS

 

Unless and until there shall have occurred and be continuing an Event of Default, all cash distributions, cash Proceeds and other cash amounts payable in respect of the Collateral shall be paid to the Pledgor.  The Pledgee shall be entitled to receive directly, and to retain as part of the Collateral any and all Proceeds of the Collateral consisting of:

 

(i)                                     additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash (although such cash may be paid directly to the Pledgor so long as no Event of Default then exists)) paid or distributed by way of dividend or otherwise in respect of the Collateral;

 

(ii)                                  additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash (although such cash may be paid directly to the Pledgor so long as no Event of Default then exists)) paid or distributed in respect of the Collateral by way of stock-split, spin-off, split-up, reclassification, combination of shares or similar rearrangement; and

 

(iii)                               additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash (although such cash may be paid directly to the Pledgor so long as no Event of Default then exists)) which may be paid in respect of the Collateral by reason of any consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar corporate or other reorganization.

 

7.                                      REMEDIES; ENFORCEMENT

 

If the Enforcement Date shall have occurred, the Pledgee shall be entitled to exercise all of the rights, powers and remedies (whether vested in it by this Agreement, the Group Intercreditor Deed, any other Senior Finance Document or by law) for the protection and enforcement of its rights in respect of the Collateral, and the Pledgee shall be entitled to exercise all the rights and remedies of a secured party under the UCC as in effect in any relevant jurisdiction and also shall be entitled, without

 

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limitation, to exercise the following rights, which the Pledgor hereby agrees to be commercially reasonable:

 

(a)                                  to receive all amounts payable in respect of the Collateral otherwise payable under Section 6 hereof to the Pledgor;

 

(b)                                 to transfer all or any part of the Collateral into the Pledgee’s name or the name of its nominee or nominees;

 

(c)                                  to vote (and exercise all rights and powers in respect of voting) all or any part of the Collateral (whether or not transferred into the name of the Pledgee) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto as though it were the outright owner thereof (the Pledgor hereby irrevocably constituting and appointing the Pledgee the proxy and attorney-in-fact of the Pledgor, with full power of substitution to do so);

 

(d)                                 at any time and from time to time to sell, assign and deliver, or grant options to purchase, all or any part of the Collateral, or any interest therein, at any public or private sale, without demand of performance, advertisement or, notice of intention to sell or of the time or place of sale or adjournment thereof or to redeem or otherwise purchase or dispose (all of which are hereby waived by the Pledgor), for cash, on credit or for other property, for immediate or future delivery without any assumption of credit risk, and for such price or prices and on such terms as the Pledgee in its absolute discretion may determine, provided at least 10 days’ written notice of the time and place of any such sale shall be given to the Pledgor. The Pledgee shall not be obligated to make any such sale of Collateral regardless of whether any such notice of sale has theretofore been given. The Pledgor hereby waives and releases to the fullest extent permitted by law any right with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security or the Obligations or otherwise. At any such sale, unless prohibited by applicable law, the Pledgee on behalf of the Beneficiaries may bid for and purchase all or any part of the Collateral so sold free from any such right. Neither the Pledgee nor any other Beneficiary shall be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing nor shall any of them be under any obligation to take any action whatsoever with regard thereto; and

 

(e)                                  to set off any and all Collateral against any and all Obligations.

 

8.                                      REMEDIES, CUMULATIVE, ETC.

 

Each and every right, power and remedy of the Pledgee provided for in this Agreement or in any other Senior Finance Document, or now or hereafter existing at law or in equity or by statute shall be cumulative and concurrent and shall be in addition to every other such right, power or remedy. The exercise or beginning of the exercise by the Pledgee or any other Beneficiary of any one or more of the rights, powers or remedies provided for in this Agreement or any other Senior Finance Document or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the Pledgee or any other

 

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Beneficiary of all such other rights, powers or remedies, and no failure or delay on the part of the Pledgee or any other Beneficiary to exercise any such right, power or remedy shall operate as a waiver thereof.  No notice to or demand on the Pledgor in any case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Pledgee or any other Beneficiary to any other or further action in any circumstances without notice or demand.  The Beneficiaries agree that this Agreement may be enforced only by the action of the Pledgee, in each case, acting upon the instruction of the Relevant Agent, and that no other Beneficiary shall have any right individually to seek to enforce or to enforce this Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Pledgee for the benefit of the Beneficiaries upon the terms of this Agreement and the Security Trust Agreement.

 

9.                                      APPLICATION OF PROCEEDS

 

All monies collected by the Pledgee upon any sale or other disposition of the Collateral pursuant to the terms of this Agreement, together with all other monies received by the Pledgee hereunder, shall be applied in the manner provided in the Group Intercreditor Deed and the Security Trust Agreement.

 

10.                               PURCHASERS OF COLLATERAL

 

Upon any sale of the Collateral by the Pledgee hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the receipt of the Pledgee or the officer making such sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Pledgee or such officer or be answerable in any way for the misapplication or nonapplication thereof.

 

11.                               INDEMNITY

 

The Pledgor agrees (i) to indemnify, reimburse and hold harmless the Pledgee and the Beneficiaries and their respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and collectively, the “Indemnitees”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Senior Finance Document (but excluding any obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or willful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Pledgee hereunder be liable, in the absence of gross negligence or willful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), for any matter or thing in connection with this Agreement other than to account for monies or other

 

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property actually received by it in accordance with the terms hereof.  If and to the extent that the obligations of the Pledgor under this Section 11 are unenforceable for any reason, the Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law. The indemnity obligations of the Pledgor contained in this Section 11 shall continue in full force and effect notwithstanding the full payment of all Obligations and notwithstanding the discharge thereof.

 

12.                               PLEDGEE NOT A LIMITED LIABILITY COMPANY MEMBER.

 

(a)                                  Nothing herein shall be construed to make the Pledgee or any other Beneficiary liable as a member of any limited liability company and neither the Pledgee nor any other Beneficiary by virtue of this Agreement or otherwise (except as referred to in the following sentence) shall have any of the duties, obligations or liabilities of a member of any limited liability company or as a partner in any partnership.  The parties hereto expressly agree that, unless the Pledgee shall become the absolute owner of Collateral consisting of a Limited Liability Company Interest pursuant hereto, this Agreement shall not be construed as creating a partnership or joint venture among the Pledgee, any other Beneficiary, the Pledgor and/or any other person.

 

(b)                                 Except as provided in the last sentence of paragraph (a) of this Section 12, the Pledgee, by accepting this Agreement, did not intend to become a member of any limited liability company or otherwise be deemed to be a co-venturer with respect to the Pledgor, any limited liability company and/or any other person either before or after an Event of Default shall have occurred.  The Pledgee shall have only those powers set forth herein and the Beneficiaries shall assume none of the duties, obligations or liabilities of a member of any limited liability company or the Pledgor except as provided in the last sentence of paragraph (a) of this Section 12.

 

13.                               FURTHER ASSURANCES; POWER-OF-ATTORNEY

 

(a)                                  The Pledgor agrees that it will join with the Pledgee in executing any encumbrance or assurance and, at the Pledgor’s own expense, if necessary, file and refile under the UCC or any other applicable law such financing statements, continuation statements and other documents, in form reasonably acceptable to the Pledgee, in such offices as the Pledgee may reasonably deem necessary or appropriate, and agrees to do such further acts and things and to execute and deliver to the Pledgee such additional conveyances, assignments, agreements and instruments as the Pledgee may reasonably require or deem advisable to carry into effect the purposes of this Agreement or to further assure and confirm unto the Pledgee its rights, powers and remedies hereunder or thereunder.

 

(b)                                 The Pledgor hereby constitutes and appoints the Pledgee its true and lawful attorney-in-fact, irrevocably, with full authority in the place and stead of the Pledgor and in the name of the Pledgor or otherwise, from time to time after the occurrence and during the continuance of an Event of Default, in the Pledgee’s discretion, to act, require, demand, receive and give acquittance for

 

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any and all monies and claims for monies due or to become due to the Pledgor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings and to execute any instrument which the Pledgee may deem necessary or advisable to accomplish the purposes of this Agreement, which appointment as attorney is coupled with an interest.

 

14.                               THE PLEDGEE AS SECURITY TRUSTEE

 

The Pledgee will hold, as Security Trustee, in accordance with this Agreement all items of the Collateral at any time received under this Agreement. It is expressly understood, acknowledged and agreed by each Beneficiary that by accepting the benefits of this Agreement each such Beneficiary acknowledges and agrees that the obligations of the Pledgee as holder of the Collateral and interests therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement, in the Group Intercreditor Deed, the Security Trust Agreement and in the other Senior Finance Documents.  The Pledgee shall act hereunder on the terms and conditions set forth herein, the Group Intercreditor Deed, the Security Trust Agreement and in the other Senior Finance Documents.

 

15.                               TRANSFER BY THE PLEDGOR

 

Except as permitted pursuant to or not restricted by any of the Senior Finance Documents (i) prior to the date all Secured Obligations (other than contingent indemnification obligations not then due) and all other amounts owing under and with respect to the Senior Finance Documents have been paid in full and all Commitments under the Senior Finance Documents have been terminated, and (ii) thereafter, pursuant to the other Security Documents, no Pledgor will sell or otherwise dispose of, grant any option with respect to, or mortgage, pledge or otherwise encumber any of the Collateral or any interest therein.

 

16.                               REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGOR

 

(a)                                  The Pledgor represents, warrants and covenants that:

 

(i)                                     it is a limited company validly existing under the laws of England and has all requisite limited company power and authority to own its property and other assets;

 

(ii)                                  it is the legal, beneficial and record owner of, and has good and marketable title to, all of its Collateral and that it has sufficient interest in all of its Collateral in which a security interest is purported to be created hereunder for such security interest to attach (subject, in each case, to no pledge, lien, mortgage, hypothecation, security interest, charge, option, Adverse Claim or other encumbrance whatsoever, except the liens and security interests created by this Agreement or permitted under the Senior Finance Documents);

 

(iii)                               it has full power, authority and legal right to pledge all the Collateral pledged by it pursuant to this Agreement;

 

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(iv)                              this Agreement has been duly authorized, executed and delivered by the Pledgor and constitutes a legal, valid and binding obligation of the Pledgor enforceable against the Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(v)                                 except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of the Pledgor or any of its Subsidiaries) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by the Pledgor in connection with (a) the execution, delivery or performance of this Agreement by the Pledgor, (b) the validity or enforceability of this Agreement against the Pledgor (except as set forth in clause (iii) above), (c) the perfection or enforceability of the Pledgee’s security interest in the Pledgor’s Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Pledgee of any of its rights or remedies provided herein;

 

(vi)                              neither the execution, delivery or performance by the Pledgor of this Agreement, or any other Senior Finance Document to which it is a party, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein:  (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to the Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Encumbrance (except pursuant to the Senior Finance Documents) upon any of the properties or assets of the Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which the Pledgor or any of its Subsidiaries is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of formation or limited liability company agreement (or equivalent organizational documents), as the case may be, of the Pledgor;

 

(vii)                           all of the Pledgor’s Collateral has been duly and validly issued, is fully paid and, to the extent relevant, non-assessable and is subject to no options to purchase or similar rights;

 

(viii)                        the pledge, collateral assignment and delivery to the Pledgee of the Pledgor’s Collateral consisting of Certificated Securities pursuant to

 

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this Agreement creates a valid and perfected first priority security interest in such Certificated Securities, and the proceeds thereof, subject to no prior lien or Encumbrance or to any agreement purporting to grant to any third party a lien or Encumbrance on the property or assets of the Pledgor (other than the Encumbrances permitted under the Senior Finance Documents then in effect) and the Pledgee is entitled to all the rights, priorities and benefits afforded by the UCC or other relevant law as enacted in any relevant jurisdiction to perfect security interests in respect of such Collateral; and

 

(ix)                                “control” (as defined in Section 8-106 of the UCC) has been obtained by the Pledgee over all of the Pledgor’s Collateral consisting of Securities with respect to which such “control” may be obtained pursuant to Section 8-106 of the UCC, except to the extent that the obligation of the Pledgor to provide the Pledgee with “control” of such Collateral has not yet arisen under this Agreement.

 

(b)                                 The Pledgor covenants and agrees that it will defend the Pledgee’s right, title and security interest in and to the Pledgor’s Collateral and the proceeds thereof against the claims and demands of all persons whomsoever.

 

17.                               LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBER; CHANGES THERETO; ETC.

 

The exact legal name of the Pledgor, the type of organization of the Pledgor, whether or not the Pledgor is a Registered Organization, the jurisdiction of organization of the Pledgor, the Pledgor’s Location, the organizational identification number (if any) of the Pledgor, and whether or not the Pledgor is a Transmitting Utility, is listed on Annex A hereto.  Save as permitted by the Senior Finance Documents the Pledgor shall not change its legal name, its type of organization, its status as a Registered Organization (in the case of a Registered Organization), its status as a Transmitting Utility or as a person which is not a Transmitting Utility, as the case may be, its jurisdiction of organization, its Location, or its organizational identification number (if any), except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Senior Finance Documents and so long as same do not involve (x) a Registered Organization ceasing to constitute same or (y) the Pledgor changing its jurisdiction of organization or Location from the United States or a State thereof to a jurisdiction of organization or Location, as the case may be, outside the United States or a State thereof) if (i) it shall have given to the Pledgee not less than 15 days’ prior written notice of each change to the information listed on Annex A, together with a supplement to Annex A which shall correct all information contained therein for the Pledgor, and (ii) in connection with the respective such change or changes, it shall have taken all action reasonably requested by the Pledgee to maintain the security interests of the Pledgee in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect.  In addition, to the extent that the Pledgor does not have an organizational identification number on the date hereof and later obtains one, the Pledgor shall promptly thereafter deliver a notification to the Pledgee of such organizational identification number and shall take all actions reasonably satisfactory to the Pledgee to the extent necessary to maintain

 

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the security interest of the Pledgee in the Collateral intended to be granted hereby fully perfected and in full force and effect.

 

18.                               PLEDGOR’S OBLIGATIONS ABSOLUTE, ETC.

 

The obligations of the Pledgor under this Agreement shall be absolute and unconditional and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever (other than termination of this Agreement pursuant to Section 20), including, without limitation:

 

(a)                                  any renewal, extension, amendment or modification of, or addition or supplement to or deletion from any Senior Finance Document (other than this Agreement in accordance with its terms), or any other instrument or agreement referred to therein, or any assignment or transfer of any thereof;

 

(b)                                 any waiver, consent, extension, indulgence or other action or inaction under or in respect of any such agreement or instrument including, without limitation, this Agreement (other than a waiver, consent or extension with respect to this Agreement in accordance with its terms);

 

(c)                                  any furnishing of any additional security to the Pledgee or its assignee or any acceptance thereof or any release of any security by the Pledgee or its assignee;

 

(d)                                 any limitation on any party’s liability or obligations under any such instrument or agreement or any invalidity or unenforceability, in whole or in part, of any such instrument or agreement or any term thereof; or

 

(e)                                  any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to the Pledgor or any Subsidiary of the Pledgor, or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding, whether or not the Pledgor shall have notice or knowledge of any of the foregoing.

 

19.                               SALE OF COLLATERAL WITHOUT REGISTRATION

 

If at any time when the Pledgee shall determine to exercise its right to sell all or any part of the Collateral consisting of Securities, Limited Liability Company Interests or partnership interests pursuant to Section 7 hereof, and such Collateral or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under the Securities Act, as then in effect, the Pledgee may, in its sole and absolute discretion, sell such Collateral or part thereof by private sale in such manner and under such circumstances as the Pledgee may deem necessary or advisable in order that such sale may legally be effected without such registration.  Without limiting the generality of the foregoing, in any such event the Pledgee, in its sole and absolute discretion (i) may proceed to make such private sale notwithstanding that a registration statement for the purpose of registering such Collateral or part thereof shall have been filed under such Securities Act, (ii) may approach and negotiate with a single possible purchaser to effect such sale, and (iii) may restrict such sale to a purchaser who will represent and agree that such purchaser is purchasing for its own account, for investment, and not with a view to the distribution or sale of such Collateral or part thereof.  In the event of

 

18



 

any such sale, the Pledgee shall incur no responsibility or liability for selling all or any part of the Collateral at a price which the Pledgee, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might be realized if the sale were deferred until the registration as aforesaid.

 

20.                               TERMINATION; RELEASE

 

(a)                                  On the Termination Date, this Agreement shall terminate (provided that all indemnities set forth herein including, without limitation, in Section 11 hereof shall survive any such termination) and the Pledgee, at the request and expense of the Pledgor, will execute and deliver to the Pledgor a proper instrument or instruments acknowledging the satisfaction and termination of this Agreement, and will duly release from the security interest created hereby and assign, transfer and deliver to the Pledgor (without recourse and without any representation or warranty) such of the Collateral as may be in the possession of the Pledgee and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement, together with any moneys at the time held by the Pledgee or any of its sub-agents hereunder.  As used in this Agreement, “Termination Date” shall mean the date upon which the Commitments under the Senior Finance Documents have been terminated, no Documentary Credit (as defined in the Relevant Facilities Agreement) is outstanding (and all Advances have been paid in full), all Documentary Credits have been terminated, and all other Obligations (other than indemnities described in the Senior Finance Documents which are not then due and payable) then due and payable have been paid in full.

 

(b)                                 In the event that any part of the Collateral is sold or otherwise disposed of to a person other than an Obligor and (x) such disposal is permitted or not restricted under any of the Senior Finance Documents, or (y) is otherwise released with the consent of the Instructing Party in accordance with the terms of the Group Intercreditor Deed, and in the case of clauses (x) and (y), the proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Senior Finance Documents to the extent required to be so applied, the Pledgee, at the request and expense of the Pledgor, will duly release from the security interest created hereby (and will execute and deliver such documentation, including termination or partial release statements and the like in connection therewith) and assign, transfer and deliver to the Pledgor (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so sold or released and as may be in the possession of the Pledgee (or, in the case of Collateral held by any sub-agent designated pursuant to Section 4 hereto, such sub-agent) and has not theretofore been released pursuant to this Agreement.

 

(c)                                  At any time that the Pledgor desires that Collateral be released as provided in the foregoing Section 20(a) or (b), it shall deliver to the Pledgee (and the relevant sub-agent, if any, designated pursuant to Section 4 hereof) a certificate signed by an authorized officer of the Pledgor stating that the release of the respective Collateral is permitted pursuant to Section 20(a) or (b) hereof.  If reasonably requested by the Pledgee (although the Pledgee shall have no obligation to make any such request), the Pledgor shall furnish

 

19



 

appropriate legal opinions (from counsel, reasonably acceptable to the Pledgee) to the effect set forth in the immediately preceding sentence.

 

21.                               NOTICES, ETC.

 

Except as otherwise specified herein, all notices, requests, demands or other communications to or upon the respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by courier, be effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the Pledgee or the Pledgor shall not be effective until received by the Pledgee or the Pledgor, as the case may be.  All notices and other communications shall be in writing and addressed as follows:

 

(a)                                  if to the Pledgor, at:

 

Address:

NTL Victoria Limited

 

c/o Virgin Media Limited

 

160 Great Portland Street

 

London W1W 5QA

Attention:

FAO Group Legal Director

Telefax:

020 7299 6000

 

(b)                                 if to the Pledgee, at:

 

Address:

Winchester House

 

1 Great Winchester Street

 

London EC2N 2DB England

Attention:

Nicola Dawes and Rajeen Thaheria

Telefax:

+44 (20) 7547 6419

 

22.                               WAIVER; AMENDMENT

 

None of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever except in accordance with the provisions of the Senior Finance Documents.

 

23.                               SUCCESSORS AND ASSIGNS

 

This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to release and/or termination as set forth in Section 20, (ii) be binding upon the Pledgor, its successors and assigns; provided, however, that the Pledgor shall not assign any of its rights or obligations hereunder without the prior written consent of the Pledgee, and (iii) inure, together with the rights and remedies of the Pledgee hereunder, to the benefit of the Pledgee, the Beneficiaries and their respective successors, transferees and assigns.  All agreements, statements, representations and warranties made by the Pledgor herein or in any certificate or other instrument delivered by the Pledgor or on its behalf under this Agreement shall be considered to have been relied upon by the Beneficiaries and shall survive the execution and delivery of this Agreement and the other Security

 

20


 

Documents regardless of any investigation made by the Beneficiaries or on their behalf.

 

24.                               HEADINGS DESCRIPTIVE

 

The headings of the several Sections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.

 

25.                               GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL

 

(a)                                  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER SENIOR FINANCE DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE PLEDGOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. THE PLEDGOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER THE PLEDGOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER SENIOR FINANCE DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS PERSONAL JURISDICTION OVER THE PLEDGOR.  THE PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO THE PLEDGOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 21 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  THE PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER SENIOR FINANCE DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE PLEDGEE UNDER THIS AGREEMENT, OR ANY BENEFICIARIES, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE PLEDGOR IN ANY OTHER JURISDICTION.

 

21



 

(b)                                 THE PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER SENIOR FINANCE DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c)                                  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER SENIOR FINANCE DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

26.                               PLEDGOR’S DUTIES

 

It is expressly agreed, anything herein contained to the contrary notwithstanding, that the Pledgor shall remain liable to perform all of the obligations, if any, assumed by it with respect to the Collateral and the Pledgee shall not have any obligations or liabilities with respect to any Collateral by reason of or arising out of this Agreement, except for the safekeeping of Collateral actually in Pledgee’s possession, nor shall the Pledgee be required or obligated in any manner to perform or fulfill any of the obligations of the Pledgor under or with respect to any Collateral.

 

27.                               COUNTERPARTS

 

This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but both of which shall together constitute one and the same instrument.  A set of counterparts executed by all the parties hereto shall be lodged with the Pledgor and the Pledgee.

 

28.                               SEVERABILITY

 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

29.                               RECOURSE

 

This Agreement is made with full recourse to the Pledgor and pursuant to and upon all the representations, warranties, covenants and agreements on the part of the Pledgor contained herein and in the other Senior Finance Documents and otherwise in writing in connection herewith or therewith.

 

22



 

30.                               LIMITED OBLIGATIONS

 

It is the desire and intent of the Pledgor and the Beneficiaries that this Agreement shall be enforced against the Pledgor to the fullest extent permissible under the laws applied in each jurisdiction in which enforcement is sought.

 

31.                               AMENDMENT AND RESTATEMENT

 

This Agreement shall amend and restate in its entirety the Original Pledge Agreement, and all obligations of the Pledgor thereunder shall be deemed replaced and extended as obligations under this Agreement and be governed hereby without novation.  In no event shall such amendment and restatement be construed as a termination of the obligations under the Original Pledge Agreement.

 

23



 

IN WITNESS WHEREOF, the Pledgor and the Pledgee have caused this Agreement to be executed by their duly elected officers duly authorized as of the date first above written.

 

NTL VICTORIA LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: Authorised Signatory of Virgin Media Directors Limited

 



 

Accepted and agreed to:

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee and Pledgee

 

 

 

 

 

By:

/s/ N. DAWES

 

 

Name: N. Dawes

 

 

Title: V.P.

 

 

 

 

 

By:

/s/ V. MAYELL

 

 

Name: V. Mayell

 

 

Title: A.V.P.

 

 


 

ANNEX A

to

PLEDGE AGREEMENT

 

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION
(AND WHETHER A REGISTERED ORGANIZATION AND/OR
A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION,
LOCATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exact Legal 
Name of the 
Pledgor

 

Type of 
Organization

 

Registered 
Organization? 
(Yes/No)

 

Jurisdiction of
Organization

 

Pledgor’s 
Location (for
purposes of NY
UCC § 9-307)

 

Pledgor’s 
Organization
Identification
Number (or, if it 
has none, so
indicate)

 

Transmitting
Utility? 
(Yes/No)

 

NTL Victoria Limited

 

Private Limited Company

 

No

 

UK

 

UK

 

05685196

 

No

 

 


 

ANNEX B

to

PLEDGE AGREEMENT

 

SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS

 

 

 

 

 

 

 

 

1.             NTL VICTORIA LIMITED

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Issuing
Limited Liability
Company

 

Type of Interest

 

Percentage Owned

 

Sub-clause of Section 
3.2(a) of Pledge
Agreement

 

Virgin Media Dover LLC

 

LLC Interest

 

100

%

n/a

 

 



 

ANNEX C

to

PLEDGE AGREEMENT

 

SCHEDULE OF CHIEF EXECUTIVE OFFICES

 

Name of Pledgor

 

Address(es) of Chief Executive Office

NTL Victoria Limited

 

160 Great Portland Street,
London W1W 5QA, England

 




Exhibit 4.35

 

EXECUTION COPY

 

 

January 19, 2010

 

AMENDED AND RESTATED PLEDGE AGREEMENT

 

between

 

THE PARTIES LISTED ON THE SIGNATURE PAGES HERETO,
as Pledgors

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee and Pledgee

 

 



 

TABLE OF CONTENTS

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINITIONS

2

2.

SECURITY FOR OBLIGATIONS

7

3.

PLEDGE OF SECURITIES, ETC.

8

 

3.1

PLEDGE

8

 

3.2

PROCEDURES

11

 

3.3

SUBSEQUENTLY ACQUIRED COLLATERAL

13

 

3.4

TRANSFER TAXES

14

 

3.5

CERTAIN REPRESENTATIONS AND WARRANTIES REGARDING THE COLLATERAL

14

4.

APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC.

14

5.

VOTING, ETC., WHILE NO EVENT OF DEFAULT

14

6.

DIVIDENDS AND OTHER DISTRIBUTIONS

15

7.

REMEDIES; ENFORCEMENT

15

8.

REMEDIES, CUMULATIVE, ETC.

16

9.

APPLICATION OF PROCEEDS

17

10.

PURCHASERS OF COLLATERAL

17

11.

INDEMNITY

17

12.

PLEDGEE NOT A LIMITED LIABILITY COMPANY MEMBER

18

13.

FURTHER ASSURANCES; POWER-OF-ATTORNEY

19

14.

THE PLEDGEE AS SECURITY TRUSTEE

19

15.

TRANSFER BY THE PLEDGORS

20

16.

REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS

20

17.

LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBER; CHANGES THERETO; ETC.

22

18.

PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC.

23

19.

SALE OF COLLATERAL WITHOUT REGISTRATION

23

20.

TERMINATION; RELEASE

24

21.

NOTICES, ETC.

25

22.

WAIVER; AMENDMENT

25

23.

SUCCESSORS AND ASSIGNS

26

24.

HEADINGS DESCRIPTIVE

26

 

i



 

25.

GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL

26

26.

PLEDGOR’S DUTIES

27

27.

COUNTERPARTS

27

28.

SEVERABILITY

28

29.

RECOURSE

28

30.

ADDITIONAL PLEDGORS

28

31.

LIMITED OBLIGATIONS

28

32.

RELEASE OF PLEDGORS

28

33.

AMENDMENT AND RESTATEMENT

29

 

ANNEX A

-

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION, JURISDICTION OF ORGANIZATION, LOCATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS

 

 

 

ANNEX B

-

SCHEDULE OF STOCK

 

 

 

ANNEX C

-

SCHEDULE OF NOTES

 

 

 

ANNEX D

-

SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS

 

 

 

ANNEX E

-

SCHEDULE OF PARTNERSHIP INTERESTS

 

 

 

ANNEX F

-

SCHEDULE OF CHIEF EXECUTIVE OFFICES

 

 

 

ANNEX G

-

FORM OF AGREEMENT REGARDING UNCERTIFICATED SECURITIES, LIMITED LIABILITY COMPANY INTERESTS AND PARTNERSHIP INTERESTS

 

ii



 

AMENDED AND RESTATED PLEDGE AGREEMENT

 

AMENDED AND RESTATED PLEDGE AGREEMENT (as amended, modified, restated and/or supplemented from time to time, this “Agreement”), dated as of March 3, 2006 and amended and restated as of January 19, 2010, among the parties listed on the signature pages hereto (each a “Pledgor” and collectively the “Pledgors”) and Deutsche Bank AG, London Branch, as Security Trustee (together with any successor Security Trustee, (the “Pledgee”), for the benefit of the Beneficiaries (as defined below)).  Except as otherwise defined herein, all capitalized terms used herein and defined in the Senior Facilities Agreement or the Group Intercreditor Deed shall be used herein as therein defined.

 

W I T N E S S E T H :

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”) among Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) (the “Company”), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms is defined therein), the Intergroup Debtor and Intergroup Creditors (as each of those terms is defined therein) and listed therein, certain banks, financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”) governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018 (the “Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), among Virgin Media Inc., the Company, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time, Virgin Media Secured Finance PLC has agreed to issue the Senior Secured Notes.

 



 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge agreement dated March 3 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective interests in the Collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement to, among other things, provide for the security for the due and punctual payment and performance of the Secured Obligations on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each Pledgor, the receipt and sufficiency of which are hereby acknowledged, each Pledgor hereby makes the following representations and warranties to the Pledgee for the benefit of the Beneficiaries and hereby covenants and agrees with the Pledgee for the benefit of the Beneficiaries as follows:

 

1.                                      CONSTRUCTION; DEFINITIONS

 

(a)                                  This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless the context otherwise requires or unless otherwise provided or defined herein, all capitalized terms used herein and defined in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall be used herein as therein defined.

 

(b)                                 Reference to singular terms shall include the plural and vice versa.

 

(c)                                  References to (or to any specified provision of) this Agreement or any other agreement or document shall be construed as references to this Agreement, that provision, that agreement or that document as in force for the time being and as from time to time amended, supplemented, varied, extended, restated, and/or replaced in accordance with the terms thereof, or, as the case may be, with the agreement of the relevant parties and (where such consent is, by the terms of any Security Document or the relevant document, required to be obtained as a condition to such amendment being permitted) the prior written consent of an Instructing Party.

 

(d)                                 The following capitalized terms used herein shall have the definitions specified below:

 

Adverse Claim” shall have the meaning given such term in Section 8-102(a)(1) of the UCC.

 

Agent” means the Facility Agent, the US Paying Agent, the Administrative Agent and the Relevant Agent.

 

2



 

Agreement” means this Pledge Agreement.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Certificated Security” shall have the meaning given such term in Section 8-102(a)(4) of the UCC.

 

Clearing Corporation” shall have the meaning given such term in Section 8-102(a)(5) of the UCC.

 

Collateral” shall have the meaning set forth in Section 3.1 hereof.

 

Collateral Accounts” shall mean any and all accounts established and maintained by the Pledgee in the name of any Pledgor to which Collateral may be credited.

 

“Commitments” means, in respect of a Senior Lender, its Commitment as defined in the Senior Facilities Agreement, and in respect of any other Senior Finance Party, the aggregate of the principal amount advanced by it that has not been repaid, in each case under the Senior Finance Documents, and (without duplication) its uncancelled commitment to extend further credit to the Obligors under the Senior Finance Documents.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company and its successors in title from time to time to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Pledgor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Equity Interests” of any person shall mean any and all shares, interests, rights to purchase, warrants, options, participation or other equivalents of or interest in (however designated) equity of such person, including any common stock, preferred stock, any limited or general partnership interest and any limited liability company membership interest.

 

Event of Default” shall mean each of:

 

(i)                                     a Senior Default; and

 

(ii)                                  an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or

 

3



 

other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by any Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 3.1.

 

Financial Asset” shall have the meaning given such term in Section 8-102(a)(9) of the UCC.

 

Group Intercreditor Deed” shall have the meaning set forth in the recitals.

 

Indemnitees” shall have the meaning set forth in Section 11 hereof.

 

Instrument” shall have the meaning given such term in Section 9-102(a)(47) of the UCC.

 

Investment Property” shall have the meaning given such term in Section 9-102(a)(49) of the UCC.

 

Limited Liability Company Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all limited liability company capital and interest in other limited liability companies), at any time owned by any Pledgor and represented by any Limited Liability Company Interest.

 

Limited Liability Company Interests” shall mean the entire limited liability company membership interest at any time owned by any Pledgor in any limited liability company organized under the laws of the United States or any State or territory thereof or the District of Columbia

 

Location” of any Pledgor has the meaning given such term in Section 9-307 of the UCC.

 

Notes” shall mean (x) all intercompany notes at any time issued to and held by any Pledgor and (y) all other promissory notes from time to time issued to or held by any Pledgor.

 

Obligations” shall have the meaning set forth in Section 2 hereof.

 

Original Pledge Agreement” shall have the meaning set forth in the recitals hereto.

 

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Ownership Interests” shall have the meaning set forth in the definition of “Excluded Charged Assets”.

 

Partnership Assets” shall mean all assets, whether tangible or intangible and whether real, personal or mixed (including, without limitation, all partnership capital and interest in other partnerships), at any time owned by any Pledgor and represented by any Partnership Interest.

 

Partnership Interest” shall mean the entire general partnership interest or limited partnership interest at any time owned by any Pledgor in any general partnership or limited partnership organized under the laws of the United States or any State or territory thereof or the District of Columbia.

 

Pledged Notes” shall mean all Notes at any time pledged or required to be pledged hereunder.

 

Pledgee” shall have the meaning set forth in the first paragraph hereof.

 

Pledgor” shall have the meaning set forth in the first paragraph hereof.

 

Proceeds” shall have the meaning given such term in Section 9-102(a)(64) of the UCC.

 

Registered Organization” shall have the meaning given such term in Section 9-102(a)(70) of the UCC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Rule 3-16” has the meaning given to such term in the definition of “Designated Secured Obligations”.

 

SEC” means the United States Securities and Exchange Commission.

 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

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(a)           in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)           that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement.

 

Securities Account” shall have the meaning given such term in Section 8-501(a) of the UCC.

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Securities Intermediary” shall have the meaning given such term in Section 8-102(14) of the UCC.

 

Security” and “Securities” shall have the meaning given such term in Section 8-102(a)(15) of the UCC and shall in any event also include all Stock and all Notes.

 

Security Agreement” shall mean the Security Agreement, dated as of the date hereof, among the Debtors from time to time party thereto and Deutsche Bank AG, London Branch, as Security Trustee.

 

“Security Entitlement” shall have the meaning given such term in Section 8-102(a)(17) of the UCC.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, the Company, and the companies named therein as Original Obligors.

 

Senior Facilities Agreement” shall have the meaning given such term in the recitals hereto.

 

Senior Secured Notes” shall have the meaning given such term in the recitals hereto.

 

Senior Secured Notes Documents” shall have the meaning given such term in the recitals hereto.

 

Senior Secured Notes Indenture” shall have the meaning given such term in the recitals hereto.

 

Stock” shall mean all of the issued and outstanding shares of capital stock of any corporation incorporated under the laws of the United States or any State or territory thereof or the District of Columbia at any time owned by any Pledgor.

 

Termination Date” shall have the meaning set forth in Section 20 hereof.

 

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Transmitting Utility” has the meaning given such term in Section 9-102(a)(80) of the UCC.

 

UCC” shall mean the Uniform Commercial Code as in effect in the State of New York from time to time; provided that all references herein to specific Sections or subsections of the UCC are references to such Sections or subsections, as the case may be, of the Uniform Commercial Code as in effect in the State of New York on the date hereof; provided further that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the Security Interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect on or after the date hereof in any other jurisdiction, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy.

 

Uncertificated Security” shall have the meaning given such term in Section 8-102(a)(18) of the UCC.

 

2.             SECURITY FOR OBLIGATIONS

 

This Agreement is made by each Pledgor for the benefit of the Pledgee acting on behalf of the Beneficiaries to secure:

 

(a)           the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all Secured Obligations;

 

(b)           any and all sums advanced by the Pledgee in order to preserve the Collateral (as hereinafter defined) or preserve its security interest in the Collateral;

 

(c)           in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of such Pledgor referred to in clauses (a) and (b) above, after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Pledgee of its rights hereunder, together with reasonable attorneys’ fees and court costs;

 

(d)           all amounts paid by any Indemnitee as to which such Indemnitee has the right to reimbursement under Section 11 of this Agreement; and

 

(e)           all amounts owing to any Agent or any of its affiliates pursuant to any of the Senior Finance Documents in its respective capacity as such;

 

all such obligations, liabilities, indebtedness, sums and expenses set forth in clauses (a) through (e) of this Section 2 being herein collectively called the “Obligations”, it being acknowledged and agreed that the “Obligations” shall include (without limitation) extensions of credit of the types described above, whether outstanding on the date of this Agreement or extended from time to time after the date of this Agreement, and (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) all

 

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Liabilities arising under or in connection with the Senior Facilities Agreement and the Senior Secured Notes Documents.

 

3.             PLEDGE OF SECURITIES, ETC.

 

3.1           Pledge

 

To secure the Obligations now or hereafter owed by such Pledgor, each Pledgor does hereby grant, pledge and assign to the Pledgee for the benefit of the Beneficiaries, and does hereby create a continuing security interest (subject to those Encumbrances permitted to exist with respect to the Collateral pursuant to the terms of all of the Senior Finance Documents then in effect) in favor of the Pledgee for the benefit of the Beneficiaries in, all of its right, title and interest in and to the following, whether now existing or hereafter from time to time acquired, (the “Collateral”):

 

(a)           each of the Collateral Accounts (to the extent a security interest therein is not created pursuant to the Security Agreement), including any and all assets of whatever type or kind deposited by such Pledgor in any such Collateral Account, whether now owned or hereafter acquired, existing or arising, including, without limitation, all Financial Assets, Investment Property, monies, checks, drafts, Instruments, Securities or interests therein of any type or nature deposited or required by any Senior Finance Document to be deposited in such Collateral Account, and all investments and all certificates and other Instruments (including depository receipts, if any) from time to time representing or evidencing the same, and all dividends, interest, distributions, cash and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing;

 

(b)           all Securities owned or held by such Pledgor from time to time and all options and warrants owned by such Pledgor from time to time to purchase Securities;

 

(c)           all Limited Liability Company Interests owned by such Pledgor from time to time and all of its right, title and interest in each limited liability company to which each such Limited Liability Company Interest relates, whether now existing or hereafter acquired, including, without limitation, to the fullest extent permitted under the terms and provisions of the documents and agreements governing such Limited Liability Company Interests and applicable law:

 

(A)          all its capital therein and its interest in all profits, income, surpluses, losses, Limited Liability Company Assets and other distributions to which such Pledgor shall at any time be entitled in respect of such Limited Liability Company Interests;

 

(B)           all other payments due or to become due to such Pledgor in respect of such Limited Liability Company Interests, whether under any limited liability company agreement or otherwise, whether as contractual obligations, damages, insurance proceeds or otherwise;

 

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(C)           all of its claims, rights, powers, privileges, authority, options, security interests, liens and remedies, if any, under any limited liability company agreement or operating agreement, or at law or otherwise in respect of such Limited Liability Company Interests;

 

(D)          all present and future claims, if any, of such Pledgor against any such limited liability company for monies loaned or advanced, for services rendered or otherwise;

 

(E)           all of such Pledgor’s rights under any limited liability company agreement or operating agreement or at law to exercise and enforce every right, power, remedy, authority, option and privilege of such Pledgor relating to such Limited Liability Company Interests, including any power to terminate, cancel or modify any such limited liability company agreement or operating agreement, to execute any instruments and to take any and all other action on behalf of and in the name of any such Pledgor in respect of such Limited Liability Company Interests and any such limited liability company, to make determinations, to exercise any election (including, but not limited to, election of remedies) or option or to give or receive any notice, consent, amendment, waiver or approval, together with full power and authority to demand, receive, enforce, collect or receipt for any of the foregoing or for any Limited Liability Company Asset, to enforce or execute any checks, or other instruments or orders, to file any claims and to take any action in connection with any of the foregoing; and

 

(F)           all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof;

 

(d)           all Partnership Interests owned by such Pledgor from time to time and all of its right, title and interest in each partnership to which each such Partnership Interest relates, whether now existing or hereafter acquired, including, without limitation, to the fullest extent permitted under the terms and provisions of the documents and agreements governing such Partnership Interests and applicable law:

 

(A)          all its capital therein and its interest in all profits, income, surpluses, losses, Partnership Assets and other distributions to which such Pledgor shall at any time be entitled in respect of such Partnership Interests;

 

(B)           all other payments due or to become due to such Pledgor in respect of Partnership Interests, whether under any partnership

 

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agreement or otherwise, whether as contractual obligations, damages, insurance proceeds or otherwise;

 

(C)           all of its claims, rights, powers, privileges, authority, options, security interests, liens and remedies, if any, under any partnership agreement or operating agreement, or at law or otherwise in respect of such Partnership Interests;

 

(D)          all present and future claims, if any, of such Pledgor against any such partnership for monies loaned or advanced, for services rendered or otherwise;

 

(E)           all of such Pledgor’s rights under any partnership agreement or operating agreement or at law to exercise and enforce every right, power, remedy, authority, option and privilege of such Pledgor relating to such Partnership Interests, including any power to terminate, cancel or modify any partnership agreement or operating agreement, to execute any instruments and to take any and all other action on behalf of and in the name of such Pledgor in respect of such Partnership Interests and any such partnership, to make determinations, to exercise any election (including, but not limited to, election of remedies) or option or to give or receive any notice, consent, amendment, waiver or approval, together with full power and authority to demand, receive, enforce, collect or receipt for any of the foregoing or for any Partnership Asset, to enforce or execute any checks, or other instruments or orders, to file any claims and to take any action in connection with any of the foregoing; and

 

(F)           all other property hereafter delivered in substitution for or in addition to any of the foregoing, all certificates and instruments representing or evidencing such other property and all cash, securities, interest, dividends, rights and other property at any time and from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all thereof;

 

(e)           all Financial Assets and Investment Property owned by such Pledgor from time to time;

 

(f)            all Security Entitlements owned by such Pledgor from time to time in any and all of the foregoing; and

 

(g)           all Proceeds of any and all of the foregoing;

 

provided, however, that notwithstanding the foregoing, in no event shall the Pledgors be required to pledge any Excluded Charged Assets to the Security Trustee under this Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

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(i)            all Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)           such Excluded Charged Assets remain pledged under this Section 3.1 to secure any Secured Obligations that are not Designated Secured Obligations.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph apply, this Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply, this Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.2           Procedures

 

(a)           To the extent that any Pledgor at any time or from time to time owns, acquires or obtains any right, title or interest in any Collateral, such Collateral shall automatically (and without the taking of any action by such Pledgor) be pledged pursuant to Section 3.1 of this Agreement and, in addition thereto, such Pledgor shall (as promptly as practicable and, in any event, within 10

 

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days after it obtains such Collateral) for the benefit of the Pledgee and the Beneficiaries:

 

(i)            with respect to a Certificated Security (other than a Certificated Security credited on the books of a Clearing Corporation or Securities Intermediary), such Pledgor shall physically deliver such Certificated Security to the Pledgee, endorsed to the Pledgee or endorsed in blank;

 

(ii)           with respect to an Uncertificated Security (other than an Uncertificated Security credited on the books of a Clearing Corporation or Securities Intermediary), such Pledgor shall cause the issuer of such Uncertificated Security to duly authorize, execute, and deliver to the Pledgee, an agreement for the benefit of the Pledgee and the other Beneficiaries substantially in the form of Annex G hereto (appropriately completed to the satisfaction of the Pledgee and with such modifications, if any, as shall be satisfactory to the Pledgee) pursuant to which such issuer agrees to comply with any and all instructions originated by the Pledgee without further consent by the registered owner and not to comply with instructions regarding such Uncertificated Security (and any Partnership Interests and Limited Liability Company Interests issued by such issuer) originated by any other person other than a court of competent jurisdiction;

 

(iii)          with respect to any Collateral which constitutes a Certificated Security, Uncertificated Security, Partnership Interest or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary (including a Federal Reserve Bank, Participants Trust Company or The Depository Trust Company), such Pledgor shall promptly notify the Pledgee thereof and shall promptly take (x) all actions required (i) to comply with the applicable rules of such Clearing Corporation or Securities Intermediary, and (ii) to perfect the security interest of the Pledgee under applicable law (including, in any event, under Sections 9-314(a), (b) and (c), 9-106 and 8-106(d) of the UCC) and (y) such other actions as the Pledgee deems necessary or desirable to effect the foregoing;

 

(iv)          with respect to a Partnership Interest or a Limited Liability Company Interest (other than a Partnership Interest or Limited Liability Company Interest credited on the books of a Clearing Corporation or Securities Intermediary), (1) if such Partnership Interest or Limited Liability Company Interest is represented by a certificate and is a Security for purposes of the UCC, the procedure set forth in Section 3.2(a)(i) hereof, and (2) if such Partnership Interest or Limited Liability Company Interest is not represented by a certificate or is not a Security for purposes of the UCC, the procedure set forth in Section 3.2(a)(ii) hereof;

 

(v)           with respect to any Note, physical delivery of such Note to the Pledgee, endorsed in blank, or, at the request of the Pledgee, endorsed to the Pledgee; and

 

(vi)          with respect to cash proceeds from any of the Collateral described in Section 3.1 hereof retained by the Pledgee in accordance with the terms hereof, (i) establishment by the Pledgee of a cash account in the name of such Pledgor over which the Pledgee shall have “control” within the meaning of the UCC and at any time any Default or Event of Default is in existence no withdrawals or transfers may

 

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be made therefrom by any person except with the prior written consent of the Pledgee, and (ii) deposit of such cash in such cash account.

 

(b)           In addition to the actions required to be taken pursuant to Section 3.2(a) hereof, each Pledgor shall take the following additional actions with respect to the Collateral:

 

(i)            with respect to all Collateral of such Pledgor whereby or with respect to which the Pledgee may obtain “control” thereof within the meaning of Section 8-106 of the UCC (or under any provision of the UCC as same may be amended or supplemented from time to time, or under the laws of any relevant State other than the State of New York), such Pledgor shall take all actions as may be requested from time to time by the Pledgee so that “control” of such Collateral is obtained and at all times held by the Pledgee; and

 

(ii)           each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the various relevant States, covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Pledgee), to be filed in the relevant filing offices so that at all times the Pledgee’s security interest in all Investment Property and other Collateral which can be perfected by the filing of such financing statements (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant States, including, without limitation, Section 9-312(a) of the UCC) is so perfected.

 

(c)           To the extent that any certificates, instruments of transfer or other documents of title relating to any Collateral (“Title Documents”) that are required to be delivered to the Security Trustee pursuant to Section 3.2(a) have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Collateral pursuant to the Original Pledge Agreement, the requirements of Section 3.2(a) shall be deemed satisfied.

 

3.3           Subsequently Acquired Collateral

 

If any Pledgor shall acquire (by purchase, stock dividend, distribution or otherwise) any additional Collateral at any time or from time to time after the date hereof, (i) such Collateral shall automatically (and without any further action being required to be taken) be subject to the pledge and security interests created pursuant to Section 3.1 hereof and, furthermore, such Pledgor will thereafter take (or cause to be taken) all actions (as promptly as practicable and, in any event, within 10 days after it obtains such Collateral) required with respect to such Collateral pursuant to and in accordance with, the procedures set forth in Section 3.2 hereof, and will promptly thereafter deliver to the Pledgee (i) a certificate executed by an authorized officer of such Pledgor describing such Collateral and certifying that the same has been duly pledged in favor of the Pledgee (for the benefit of the Beneficiaries) hereunder, and (ii) supplements to Annexes A through F hereto as are necessary to cause such Annexes to be complete and accurate at such time.

 

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3.4                                 Transfer Taxes

 

Each pledge of Collateral under Section 3.1 or Section 3.3 hereof shall be accompanied by any transfer tax stamps required in connection with the pledge of such Collateral.

 

3.5                                 Certain Representations and Warranties Regarding the Collateral

 

Each Pledgor represents and warrants that on the date hereof: (i)  the Stock (and any warrants or options to purchase Stock) held by such Pledgor consists of the number and type of shares of the stock (or warrants or options to purchase any stock) of the corporations as described in Annex B hereto; (ii) such Stock referenced in clause (i) of this paragraph constitutes that percentage of the issued and outstanding capital stock of the issuing corporation as is set forth in Annex B hereto; (iii) the Notes held by such Pledgor consist of the promissory notes described in Annex C hereto where such Pledgor is listed as the lender; (iv) the Limited Liability Company Interests held by such Pledgor consist of the number and type of interests of the persons described in Annex D hereto; (v) each such Limited Liability Company Interest referenced in clause (iv) of this paragraph constitutes that percentage of the issued and outstanding equity interest of the issuing person as set forth in Annex D hereto; (vi) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Annex E hereto; (vii) each such Partnership Interest referenced in clause (vi) of this paragraph constitutes that percentage or portion of the entire partnership interest of the Partnership as set forth in Annex E hereto; (viii) the exact address of each chief executive office of such Pledgor is listed on Annex F hereto; and (ix) each Pledgor has complied with the respective procedure set forth in Section 3.2(a) hereof with respect to each item of Collateral described in Annexes C through E hereto; and (x) on the date hereof, such Pledgor owns no other Securities, Stock, Notes, Limited Liability Company Interests or Partnership Interests.

 

4.                                      APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC.

 

The Pledgee shall have the right to appoint one or more sub-agents for the purpose of retaining physical possession of the Collateral, which may be held (in the discretion of the Pledgee) in the name of the relevant Pledgor, endorsed or assigned in blank or in favor of the Pledgee or any nominee or nominees of the Pledgee or a sub-agent appointed by the Pledgee.

 

5.                                      VOTING, ETC., WHILE NO EVENT OF DEFAULT.

 

Unless and until there shall have occurred and be continuing any Event of Default, each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Collateral owned by it, and to give consents, waivers or ratifications in respect thereof; provided that, in each case, no vote shall be cast or any consent, waiver or ratification given or any action taken or omitted to be taken which would violate, result in a breach of any covenant contained in, or be inconsistent with any of the terms of any Security Document or other Senior Finance Document, or which could reasonably be expected to have the effect of impairing the value of the Collateral or any part thereof or the position or interests of the Pledgee or any other Beneficiary in the Collateral, unless expressly permitted by the terms of the Senior Finance Documents.  All such rights of each Pledgor to vote and to give consents,

 

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waivers and ratifications shall cease in case an Event of Default has occurred and is continuing, and the Enforcement Date has occurred.

 

6.                                      DIVIDENDS AND OTHER DISTRIBUTIONS.

 

Unless and until there shall have occurred and be continuing an Event of Default, all cash dividends, cash distributions, cash Proceeds and other cash amounts payable in respect of the Collateral shall be paid to the respective Pledgor.  The Pledgee shall be entitled to receive directly, and to retain as part of the Collateral any and all Proceeds of the Collateral consisting of:

 

(i)                                     additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash (although such cash may be paid directly to the Pledgor so long as no Event of Default then exists)) paid or distributed by way of dividend or otherwise in respect of the Collateral;

 

(ii)                                  additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash (although such cash may be paid directly to the respective Pledgor so long as no Event of Default then exists)) paid or distributed in respect of the Collateral by way of stock-split, spin-off, split-up, reclassification, combination of shares or similar rearrangement; and

 

(iii)                               additional stock, notes, certificates, limited liability company interests, partnership interests, instruments or other securities or property (including, but not limited to, cash (although such cash may be paid directly to the Pledgor so long as no Event of Default then exists)) which may be paid in respect of the Collateral by reason of any consolidation, merger, exchange of stock, conveyance of assets, liquidation or similar corporate or other reorganization.

 

Nothing contained in this Section 6 shall limit or restrict in any way the Pledgee’s right to receive the proceeds of the Collateral in any form in accordance with Section 3 of this Agreement.  All dividends, distributions or other payments which are received by any Pledgor contrary to the provisions of this Section 6 or Section 7 hereof shall be received in trust for the benefit of the Pledgee, shall be segregated from other property or funds of such Pledgor and shall be forthwith paid over to the Pledgee as Collateral in the same form as so received (with any necessary endorsement).

 

7.                                      REMEDIES; ENFORCEMENT

 

If the Enforcement Date shall have occurred, the Pledgee shall be entitled to exercise all of the rights, powers and remedies (whether vested in it by this Agreement, the Group Intercreditor Deed, any other Senior Finance Document or by law) for the protection and enforcement of its rights in respect of the Collateral, and the Pledgee shall be entitled to exercise all the rights and remedies of a secured party under the UCC as in effect in any relevant jurisdiction and also shall be entitled, without limitation, to exercise the following rights, which each Pledgor hereby agrees to be commercially reasonable:

 

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(i)                                     to receive all amounts payable in respect of the Collateral otherwise payable under Section 6 hereof to the Pledgor;

 

(ii)                                  to transfer all or any part of the Collateral into the Pledgee’s name or the name of its nominee or nominees;

 

(iii)                               to accelerate any Pledged Note which may be accelerated in accordance with its terms, and take any other lawful action to collect upon any Pledged Note (including, without limitation, to make any demand for payment thereon);

 

(iv)                              to vote (and exercise all rights and powers in respect of voting) all or any part of the Collateral (whether or not transferred into the name of the Pledgee) and give all consents, waivers and ratifications in respect of the Collateral and otherwise act with respect thereto as though it were the outright owner thereof (each Pledgor hereby irrevocably constituting and appointing the Pledgee the proxy and attorney-in-fact of such Pledgor, with full power of substitution to do so);

 

(v)                                 at any time and from time to time to sell, assign and deliver, or grant options to purchase, all or any part of the Collateral, or any interest therein, at any public or private sale, without demand of performance, advertisement or, notice of intention to sell or of the time or place of sale or adjournment thereof or to redeem or otherwise purchase or dispose (all of which are hereby waived by each Pledgor), for cash, on credit or for other property, for immediate or future delivery without any assumption of credit risk, and for such price or prices and on such terms as the Pledgee in its absolute discretion may determine, provided at least 10 days’ written notice of the time and place of any such sale shall be given to the respective Pledgor. The Pledgee shall not be obligated to make any such sale of Collateral regardless of whether any such notice of sale has theretofore been given. Each Pledgor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security or the Obligations or otherwise. At any such sale, unless prohibited by applicable law, the Pledgee on behalf of the Beneficiaries may bid for and purchase all or any part of the Collateral so sold free from any such right or equity of redemption. Neither the Pledgee nor any other Beneficiary shall be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing nor shall any of them be under any obligation to take any action whatsoever with regard thereto; and

 

(vi)                              to set off any and all Collateral against any and all Obligations , and to withdraw any and all cash or other Collateral from any and all Collateral Accounts and to apply such cash and other Collateral to the payment of any and all Obligations.

 

8.                                      REMEDIES, CUMULATIVE, ETC.

 

Each and every right, power and remedy of the Pledgee provided for in this Agreement or in any other Senior Finance Document, or now or hereafter existing at law or in equity or by statute shall be cumulative and concurrent and shall be in

 

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addition to every other such right, power or remedy. The exercise or beginning of the exercise by the Pledgee or any other Beneficiary of any one or more of the rights, powers or remedies provided for in this Agreement or any other Senior Finance Document or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the Pledgee or any other Beneficiary of all such other rights, powers or remedies, and no failure or delay on the part of the Pledgee or any other Beneficiary to exercise any such right, power or remedy shall operate as a waiver thereof.  No notice to or demand on any Pledgor in any case shall entitle it to any other or further notice or demand in similar or other circumstances or constitute a waiver of any of the rights of the Pledgee or any other Beneficiary to any other or further action in any circumstances without notice or demand.  The Beneficiaries agree that this Agreement may be enforced only by the action of the Pledgee, in each case, acting upon the instruction of the Relevant Agent, and that no other Beneficiary shall have any right individually to seek to enforce or to enforce this Agreement or to realize upon the security to be granted hereby, it being understood and agreed that such rights and remedies may be exercised by the Pledgee for the benefit of the Beneficiaries upon the terms of this Agreement and the Security Trust Agreement.

 

9.                                      APPLICATION OF PROCEEDS

 

(a)                                  All monies collected by the Pledgee upon any sale or other disposition of the Collateral pursuant to the terms of this Agreement, together with all other monies received by the Pledgee hereunder, shall be applied in the manner provided in the Group Intercreditor Deed and the Security Trust Agreement.

 

(b)                                 It is understood and agreed that each Pledgor shall remain jointly and severally liable with respect to its Obligations to the extent of any deficiency between the amount of the proceeds of the Collateral pledged by it hereunder and the aggregate amount of such Obligations, provided that before any demand for payment by the Security Trustee is made on any Pledgor that is a Restricted Guarantor, demand for payment of the relevant Obligation shall first have been made on the Borrower from which such unpaid Obligation is due (if any).

 

10.                               PURCHASERS OF COLLATERAL

 

Upon any sale of the Collateral by the Pledgee hereunder (whether by virtue of the power of sale herein granted, pursuant to judicial process or otherwise), the receipt of the Pledgee or the officer making such sale shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold, and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Pledgee or such officer or be answerable in any way for the misapplication or nonapplication thereof.

 

11.                               INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Pledgee and the Beneficiaries and their respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and collectively, the “Indemnitees”) from and against any and all obligations, damages, injuries, penalties,

 

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claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Senior Finance Document (but excluding any obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or willful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Pledgee hereunder be liable, in the absence of gross negligence or willful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), for any matter or thing in connection with this Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligations of any Pledgor under this Section 11 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law. The indemnity obligations of each Pledgor contained in this Section 11 shall continue in full force and effect notwithstanding the full payment of all Obligations and notwithstanding the discharge thereof.

 

12.                               PLEDGEE NOT A PARTNER OR LIMITED LIABILITY COMPANY MEMBER.

 

(a)                                  Nothing herein shall be construed to make the Pledgee or any other Beneficiary liable as a member of any limited liability company or as a partner of any partnership and neither the Pledgee nor any other Beneficiary by virtue of this Agreement or otherwise (except as referred to in the following sentence) shall have any of the duties, obligations or liabilities of a member of any limited liability company or as a partner in any partnership.  The parties hereto expressly agree that, unless the Pledgee shall become the absolute owner of Collateral consisting of a Limited Liability Company Interest or a Partnership Interest pursuant hereto, this Agreement shall not be construed as creating a partnership or joint venture among the Pledgee, any other Beneficiary, any Pledgor and/or any other person.

 

(b)                                 Except as provided in the last sentence of paragraph (a) of this Section 12, the Pledgee, by accepting this Agreement, did not intend to become a member of any limited liability company or a partner of any partnership or otherwise be deemed to be a co-venturer with respect to any Pledgor, any limited liability company, partnership and/or any other person either before or after an Event of Default shall have occurred.  The Pledgee shall have only those powers set forth herein and the Beneficiaries shall assume none of the duties, obligations or liabilities of a member of any limited liability company or as a partner of any partnership or any Pledgor except as provided in the last sentence of paragraph (a) of this Section 12.

 

(c)                                  The Pledgee and the other Beneficiaries shall not be obligated to perform or discharge any obligation of any Pledgor as a result of the pledge hereby effected.

 

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(d)                                 The acceptance by the Pledgee of this Agreement, with all the rights, powers, privileges and authority so created, shall not at any time or in any event obligate the Pledgee or any other Beneficiary to appear in or defend any action or proceeding relating to the Collateral to which it is not a party, or to take any action hereunder or thereunder, or to expend any money or incur any expenses or perform or discharge any obligation, duty or liability under the Collateral.

 

13.                               FURTHER ASSURANCES; POWER-OF-ATTORNEY

 

(a)                                  Each Pledgor agrees that it will join with the Pledgee in executing any encumbrance or assurance and, at such Pledgor’s own expense, if necessary, file and refile under the UCC or any other applicable law such financing statements, continuation statements and other documents, in form reasonably acceptable to the Pledgee, in such offices as the Pledgee may reasonably deem necessary or appropriate, and wherever required or permitted by law in order to perfect and preserve the Pledgee’s security interest in the Collateral hereunder and hereby authorizes the Pledgee to file financing statements and amendments thereto relative to all or any part of the Collateral (including, without limitation, (x) financing statements which list the Collateral specifically and/or “all assets” as collateral) without the signature of such Pledgor where permitted by law, and agrees to do such further acts and things and to execute and deliver to the Pledgee such additional conveyances, assignments, agreements and instruments as the Pledgee may reasonably require or deem advisable to carry into effect the purposes of this Agreement or to further assure and confirm unto the Pledgee its rights, powers and remedies hereunder or thereunder.

 

(b)                                 Each Pledgor hereby constitutes and appoints the Pledgee its true and lawful attorney-in-fact, irrevocably, with full authority in the place and stead of such Pledgor and in the name of such Pledgor or otherwise, from time to time after the occurrence and during the continuance of an Event of Default, in the Pledgee’s discretion, to act, require, demand, receive and give acquittance for any and all monies and claims for monies due or to become due to such Pledgor under or arising out of the Collateral, to endorse any checks or other instruments or orders in connection therewith and to file any claims or take any action or institute any proceedings and to execute any instrument which the Pledgee may deem necessary or advisable to accomplish the purposes of this Agreement, which appointment as attorney is coupled with an interest.

 

14.                               THE PLEDGEE AS SECURITY TRUSTEE

 

The Pledgee will hold, as Security Trustee, in accordance with this Agreement all items of the Collateral at any time received under this Agreement. It is expressly understood, acknowledged and agreed by each Beneficiary that by accepting the benefits of this Agreement each such Beneficiary acknowledges and agrees that the obligations of the Pledgee as holder of the Collateral and interests therein and with respect to the disposition thereof, and otherwise under this Agreement, are only those expressly set forth in this Agreement, in the Group Intercreditor Deed, the Security Trust Agreement and in the other Senior Finance Documents.  The Pledgee shall act hereunder on the terms and conditions set forth herein, the Group Intercreditor Deed, the Security Trust Agreement and in the other Senior Finance Documents.

 

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15.                               TRANSFER BY THE PLEDGORS

 

Except as permitted pursuant to or not restricted by any of the Senior Finance Documents (i) prior to the date all Secured Obligations (other than contingent indemnification obligations not then due) and all other amounts owing under and with respect to the Senior Finance Documents have been paid in full and all Commitments under the Senior Finance Documents have been terminated, and (ii) thereafter, pursuant to the other Security Documents, no Pledgor will sell or otherwise dispose of, grant any option with respect to, or mortgage, pledge or otherwise encumber any of the Collateral or any interest therein.

 

16.                               REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS

 

(a)                                  Each Pledgor represents, warrants and covenants as to itself and each of its Subsidiaries that:

 

(i)                                     it is duly formed validly existing as a corporation, limited liability company or partnership, as applicable, and has all requisite corporate limited liability company or partnership power and authority, as applicable, to own its property and other assets;

 

(ii)                                  it is the legal, beneficial and record owner of, and has good and marketable title to, all of its Collateral consisting of one or more Securities, Partnership Interests and Limited Liability Company Interests and that it has sufficient interest in all of its Collateral in which a security interest is purported to be created hereunder for such security interest to attach (subject, in each case, to no pledge, lien, mortgage, hypothecation, security interest, charge, option, Adverse Claim or other encumbrance whatsoever, except the liens and security interests created by this Agreement or permitted under the Senior Finance Documents);

 

(iii)                               it has full power, authority and legal right to pledge all the Collateral pledged by it pursuant to this Agreement;

 

(iv)                              this Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(v)                                 except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor or any of its Subsidiaries) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with

 

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(a) the execution, delivery or performance of this Agreement by such Pledgor, (b) the validity or enforceability of this Agreement against such Pledgor (except as set forth in clause (iii) above), (c) the perfection or enforceability of the Pledgee’s security interest in such Pledgor’s Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Pledgee of any of its rights or remedies provided herein;

 

(vi)                              neither the execution, delivery or performance by such Pledgor of this Agreement, or any other Senior Finance Document to which it is a party, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein:  (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Encumbrance (except pursuant to the Senior Finance Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor or any of its Subsidiaries is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of incorporation, by-laws, certificate of partnership, partnership agreement, certificate of formation or limited liability company agreement (or equivalent organizational documents), as the case may be, of such Pledgor or any of its Subsidiaries;

 

(vii)                           all of such Pledgor’s Collateral (consisting of Securities, Limited Liability Company Interests and Partnership Interests) has been duly and validly issued, is fully paid and, to the extent relevant, non-assessable and is subject to no options to purchase or similar rights;

 

(viii)                        each of such Pledgor’s Pledged Notes constitutes, or when executed by the obligor thereof will constitute, the legal, valid and binding obligation of such obligor, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(ix)                                the pledge, collateral assignment and delivery to the Pledgee of such Pledgor’s Collateral consisting of Certificated Securities and Pledged Notes pursuant to this Agreement creates a valid and perfected first priority security interest in such Certificated Securities, and Pledged Notes and the proceeds thereof, subject to no prior lien or Encumbrance or to any agreement purporting to grant to any third

 

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party a lien or Encumbrance on the property or assets of such Pledgor which would include the Securities (other than the Encumbrances permitted under the Senior Finance Documents then in effect) and the Pledgee is entitled to all the rights, priorities and benefits afforded by the UCC or other relevant law as enacted in any relevant jurisdiction to perfect security interests in respect of such Collateral; and

 

(x)                                   “control” (as defined in Section 8-106 of the UCC) has been obtained by the Pledgee over all of such Pledgor’s Collateral consisting of Securities (including, without limitation, Notes which are Securities) with respect to which such “control” may be obtained pursuant to Section 8-106 of the UCC, except to the extent that the obligation of the applicable Pledgor to provide the Pledgee with “control” of such Collateral has not yet arisen under this Agreement, provided that in the case of the Pledgee obtaining “control” over Collateral consisting of a Security Entitlement, such Pledgor shall have taken all steps in its control so that the Pledgee obtains “control” over such Security Entitlement.

 

(b)                                 Each Pledgor covenants and agrees that it will defend the Pledgee’s right, title and security interest in and to such Pledgor’s Collateral and the proceeds thereof against the claims and demands of all persons whomsoever; and each Pledgor covenants and agrees that it will have like title to and right to pledge any other property at any time hereafter pledged to the Pledgee by such Pledgor as Collateral hereunder and will likewise defend the right thereto and security interest therein of the Pledgee and the other Beneficiaries.

 

17.                               LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY); JURISDICTION OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION NUMBER; CHANGES THERETO; ETC.

 

The exact legal name of each Pledgor, the type of organization of such Pledgor, whether or not such Pledgor is a Registered Organization, the jurisdiction of organization of such Pledgor, such Pledgor’s Location, the organizational identification number (if any) of each Pledgor, and whether or not such Pledgor is a Transmitting Utility, is listed on Annex A hereto.  Save as permitted by the Senior Finance Documents no Pledgor shall change its legal name, its type of organization, its status as a Registered Organization (in the case of a Registered Organization), its status as a Transmitting Utility or as a person which is not a Transmitting Utility, as the case may be, its jurisdiction of organization, its Location, or its organizational identification number (if any), except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Senior Finance Documents and so long as same do not involve (x) a Registered Organization ceasing to constitute same or (y) any Pledgor which is organized under the laws of the United States or any State thereof changing its jurisdiction of organization or Location from the United States or a State thereof to a jurisdiction of organization or Location, as the case may be, outside the United States or a State thereof) if (i) it shall have given to the Pledgee not less than 15 days’ prior written notice of each change to the information listed on Annex A (as adjusted for any subsequent changes thereto previously made in accordance with this sentence), together with a supplement to

 

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Annex A which shall correct all information contained therein for such Pledgor, and (ii) in connection with the respective such change or changes, it shall have taken all action reasonably requested by the Pledgee to maintain the security interests of the Security Trustee in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect.  In addition, to the extent that any Pledgor does not have an organizational identification number on the date hereof and later obtains one, such Pledgor shall promptly thereafter deliver a notification to the Pledgee of such organizational identification number and shall take all actions reasonably satisfactory to the Security Trustee to the extent necessary to maintain the security interest of the Security Trustee in the Collateral intended to be granted hereby fully perfected and in full force and effect.

 

18.                               PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC.

 

The obligations of each Pledgor under this Agreement shall be absolute and unconditional and shall remain in full force and effect without regard to, and shall not be released, suspended, discharged, terminated or otherwise affected by, any circumstance or occurrence whatsoever (other than termination of this Agreement pursuant to Section 20), including, without limitation:

 

(a)                                  any renewal, extension, amendment or modification of, or addition or supplement to or deletion from any Senior Finance Document (other than this Agreement in accordance with its terms), or any other instrument or agreement referred to therein, or any assignment or transfer of any thereof;

 

(b)                                 any waiver, consent, extension, indulgence or other action or inaction under or in respect of any such agreement or instrument including, without limitation, this Agreement (other than a waiver, consent or extension with respect to this Agreement in accordance with its terms);

 

(c)                                  any furnishing of any additional security to the Pledgee or its assignee or any acceptance thereof or any release of any security by the Pledgee or its assignee;

 

(d)                                 any limitation on any party’s liability or obligations under any such instrument or agreement or any invalidity or unenforceability, in whole or in part, of any such instrument or agreement or any term thereof; or

 

(e)                                  any bankruptcy, insolvency, reorganization, composition, adjustment, dissolution, liquidation or other like proceeding relating to any Pledgor or any Subsidiary of any Pledgor, or any action taken with respect to this Agreement by any trustee or receiver, or by any court, in any such proceeding, whether or not such Pledgor shall have notice or knowledge of any of the foregoing.

 

19.                               SALE OF COLLATERAL WITHOUT REGISTRATION

 

If at any time when the Pledgee shall determine to exercise its right to sell all or any part of the Collateral consisting of Securities, Limited Liability Company Interests or Partnership Interests pursuant to Section 7 hereof, and such Collateral or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under the Securities Act, as then in effect, the Pledgee may, in its sole and absolute

 

23



 

discretion, sell such Collateral or part thereof by private sale in such manner and under such circumstances as the Pledgee may deem necessary or advisable in order that such sale may legally be effected without such registration.  Without limiting the generality of the foregoing, in any such event the Pledgee, in its sole and absolute discretion (i) may proceed to make such private sale notwithstanding that a registration statement for the purpose of registering such Collateral or part thereof shall have been filed under such Securities Act, (ii) may approach and negotiate with a single possible purchaser to effect such sale, and (iii) may restrict such sale to a purchaser who will represent and agree that such purchaser is purchasing for its own account, for investment, and not with a view to the distribution or sale of such Collateral or part thereof.  In the event of any such sale, the Pledgee shall incur no responsibility or liability for selling all or any part of the Collateral at a price which the Pledgee, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might be realized if the sale were deferred until the registration as aforesaid.

 

20.                               TERMINATION; RELEASE

 

(a)                                  On the Termination Date, this Agreement shall terminate (provided that all indemnities set forth herein including, without limitation, in Section 11 hereof shall survive any such termination) and the Pledgee, at the request and expense of such Pledgor, will execute and deliver to such Pledgor a proper instrument or instruments acknowledging the satisfaction and termination of this Agreement, and will duly release from the security interest created hereby and assign, transfer and deliver to such Pledgor (without recourse and without any representation or warranty) such of the Collateral as may be in the possession of the Pledgee and as has not theretofore been sold or otherwise applied or released pursuant to this Agreement, together with any moneys at the time held by the Pledgee or any of its sub-agents hereunder.  As used in this Agreement, “Termination Date” shall mean the date upon which the Commitments under the Senior Finance Documents have been terminated, no Documentary Credit (as defined in the Relevant Facilities Agreement) is outstanding (and all Advances have been paid in full), all Documentary Credits have been terminated, and all other Obligations (other than indemnities described in the Senior Finance Documents which are not then due and payable) then due and payable have been paid in full.

 

(b)                                 In the event that any part of the Collateral is sold or otherwise disposed of to a person other than an Obligor and (x) such disposal is permitted or not restricted under any of the Senior Finance Documents, or (y) is otherwise released with the consent of the Instructing Party in accordance with the terms of the Group Intercreditor Deed, and in the case of clauses (x) and (y), the proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Senior Finance Documents to the extent required to be so applied, the Pledgee, at the request and expense of such Pledgor, will duly release from the security interest created hereby (and will execute and deliver such documentation, including termination or partial release statements and the like in connection therewith) and assign, transfer and deliver to such Pledgor (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so sold or

 

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released and as may be in the possession of the Pledgee (or, in the case of Collateral held by any sub-agent designated pursuant to Section 4 hereto, such sub-agent) and has not theretofore been released pursuant to this Agreement.

 

(c)                                  At any time that any Pledgor desires that Collateral be released as provided in the foregoing Section 20(a) or (b), it shall deliver to the Pledgee (and the relevant sub-agent, if any, designated pursuant to Section 4 hereof) a certificate signed by an authorized officer of such Pledgor stating that the release of the respective Collateral is permitted pursuant to Section 20(a) or (b) hereof.  If reasonably requested by the Pledgee (although the Pledgee shall have no obligation to make any such request), such Pledgor shall furnish appropriate legal opinions (from counsel, reasonably acceptable to the Pledgee) to the effect set forth in the immediately preceding sentence.

 

(d)                                 The Pledgee shall have no liability whatsoever to any other Beneficiary as the result of any release of Collateral by it in accordance with (or which the Pledgee in good faith believes to be in accordance with) this Section 20.

 

21.                               NOTICES, ETC.

 

Except as otherwise specified herein, all notices, requests, demands or other communications to or upon the respective parties hereto shall be sent or delivered by mail, telegraph, telex, telecopy, cable or courier service and all such notices and communications shall, when mailed, telegraphed, telexed, telecopied, or cabled or sent by courier, be effective when deposited in the mails, delivered to the telegraph company, cable company or overnight courier, as the case may be, or sent by telex or telecopier, except that notices and communications to the Pledgee or any Pledgor shall not be effective until received by the Pledgee or such Pledgor, as the case may be.  All notices and other communications shall be in writing and addressed as follows:

 

(a)                                  if to any Pledgor, at:

 

 

Address:

c/o Virgin Media Limited

 

 

160 Great Portland Street

 

 

London W1W 5QA

 

Attention:

FAO Group Legal Director

 

Telefax:

020 7299 6000

 

(b)                                 if to the Pledgee, at:

 

 

Address:

Winchester House

 

 

1 Great Winchester Street

 

 

London EC2N 2DB England

 

Attention:

Nicola Dawes and Rajeen Thaheria

 

Telefax:

+44 (20) 7547 6419

 

22.                               WAIVER; AMENDMENT

 

Except as provided in Sections 30 and 32 hereof, none of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner

 

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whatsoever except in accordance with the provisions of the Senior Finance Documents.

 

23.                               SUCCESSORS AND ASSIGNS

 

This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect, subject to release and/or termination as set forth in Section 20, (ii) be binding upon each Pledgor, its successors and assigns; provided, however, that no Pledgor shall assign any of its rights or obligations hereunder without the prior written consent of the Pledgee, and (iii) inure, together with the rights and remedies of the Pledgee hereunder, to the benefit of the Pledgee, the other Beneficiaries and their respective successors, transferees and assigns.  All agreements, statements, representations and warranties made by each Pledgor herein or in any certificate or other instrument delivered by such Pledgor or on its behalf under this Agreement shall be considered to have been relied upon by the Beneficiaries and shall survive the execution and delivery of this Agreement and the other Security Documents regardless of any investigation made by the Beneficiaries or on their behalf.

 

24.                               HEADINGS DESCRIPTIVE

 

The headings of the several Sections of this Agreement are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Agreement.

 

25.                               GOVERNING LAW; SUBMISSION TO JURISDICTION; VENUE; WAIVER OF JURY TRIAL

 

(a)                                  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAW OF THE STATE OF NEW YORK.  ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER SENIOR FINANCE DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PLEDGOR HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS. EACH PLEDGOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER SUCH PLEDGOR, AND AGREES NOT TO PLEAD OR CLAIM IN ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER SENIOR FINANCE DOCUMENT BROUGHT IN ANY OF THE AFORESAID COURTS THAT ANY SUCH COURT LACKS PERSONAL JURISDICTION OVER SUCH PLEDGOR.  EACH PLEDGOR FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY

 

26



 

REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO ANY SUCH PLEDGOR AT ITS ADDRESS FOR NOTICES AS PROVIDED IN SECTION 21 ABOVE, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING.  EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER ANY OTHER SENIOR FINANCE DOCUMENT THAT SUCH SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE.  NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE PLEDGEE UNDER THIS AGREEMENT, OR ANY BENEFICIARIES, TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PLEDGOR IN ANY OTHER JURISDICTION.

 

(b)                                 EACH PLEDGOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER SENIOR FINANCE DOCUMENT BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (a) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c)                                  EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE OTHER SENIOR FINANCE DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

26.                               PLEDGOR’S DUTIES

 

It is expressly agreed, anything herein contained to the contrary notwithstanding, that each Pledgor shall remain liable to perform all of the obligations, if any, assumed by it with respect to the Collateral and the Pledgee shall not have any obligations or liabilities with respect to any Collateral by reason of or arising out of this Agreement, except for the safekeeping of Collateral actually in Pledgee’s possession, nor shall the Pledgee be required or obligated in any manner to perform or fulfill any of the obligations of any Pledgor under or with respect to any Collateral.

 

27.                               COUNTERPARTS

 

This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.  A set of counterparts executed by all the parties hereto shall be lodged with each Pledgor and the Pledgee.

 

27



 

28.                               SEVERABILITY

 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

29.                               RECOURSE

 

This Agreement is made with full recourse to each Pledgor and pursuant to and upon all the representations, warranties, covenants and agreements on the part of such Pledgor contained herein and in the other Senior Finance Documents and otherwise in writing in connection herewith or therewith.

 

30.                               ADDITIONAL PLEDGORS

 

It is understood and agreed that any person that is required to become a party to this Agreement after the date hereof pursuant to the requirements of any Senior Finance Document, shall become a Pledgor hereunder by (x) executing a counterpart hereof and delivering same to the Pledgee or executing a joinder agreement and delivering same to the Relevant Agent, in each case as may be required by (and in form and substance satisfactory to) the Relevant Agent, (y) delivering supplements to Annexes A through F, hereto as are necessary to cause such annexes to be complete and accurate with respect to such additional Pledgor on such date and (z) taking all actions as specified in this Agreement as would have been taken by such Pledgor had it been an original party to this Agreement, in each case with all documents required above to be delivered to the Pledgee and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledgee.

 

31.                               LIMITED OBLIGATIONS

 

It is the desire and intent of each Pledgor and the Beneficiaries that this Agreement shall be enforced against each Pledgor to the fullest extent permissible under the laws applied in each jurisdiction in which enforcement is sought.

 

32.                               RELEASE OF PLEDGORS

 

If at any time all of the Equity Interests of any Pledgor owned by any Borrower or any of their respective Subsidiaries are sold (to a person other than a Senior Finance Party) in a transaction permitted under or not restricted by any Senior Finance Document, then, such Pledgor shall be released as a Pledgor pursuant to this Agreement without any further action hereunder (it being understood that the sale of all of the Equity Interests in any person that owns, directly or indirectly, all of the Equity Interests in any Pledgor shall be deemed to be a sale of all of the Equity Interests in such Pledgor for purposes of this Section), and the Pledgee is authorized and directed to execute and deliver such instruments of release as are reasonably satisfactory to it.  At any time that any Borrower desires that a Pledgor be released from this Agreement as provided in this Section 32, such Borrower shall deliver to the Pledgee a certificate signed by a principal executive officer of such Borrower stating that the release of such Pledgor is permitted pursuant to this Section 32.  If reasonably

 

28



 

requested by Pledgee (although the Pledgee shall have no obligation to make any such request), such Borrower shall furnish legal opinions (from counsel acceptable to the Pledgee) to the effect set forth in the immediately preceding sentence.  The Pledgee shall have no liability whatsoever to any other Beneficiary as a result of the release of any Pledgor by it in accordance with, or which it believes in good faith to be in accordance with, this Section 32.

 

33.                               AMENDMENT AND RESTATEMENT

 

This Agreement shall amend and restate in its entirety the Original Pledge Agreement, and all obligations of the Pledgor thereunder shall be deemed replaced and extended as obligations under this Agreement and be governed hereby without novation.  In no event shall such amendment and restatement be construed as a termination of the obligations under the Original Pledge Agreement.

 

29


 

IN WITNESS WHEREOF, each Pledgor and the Pledgee have caused this Agreement to be executed by their duly elected officers duly authorized as of the date first above written.

 

NNS U.K. HOLDINGS 1 LLC

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NNS U.K. HOLDINGS 2, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NORTH CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NORTH CABLECOMMS L.L.C.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NORTH CABLECOMMS MANAGEMENT, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL BROMLEY COMPANY

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 



 

NTL CABLECOMMS GROUP, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL CHARTWELL HOLDINGS, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL CHARTWELL HOLDINGS 2, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL NORTH CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL NORTH CABLECOMMS MANAGEMENT, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL PROGRAMMING SUBSIDIARY COMPANY

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 



 

NTL SOLENT COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL SOUTH CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL SOUTH CABLECOMMS MANAGEMENT, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL SURREY COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL SUSSEX COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL UK CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 



 

NTL WESSEX COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL WINSTON HOLDINGS, INC.

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL WIRRAL COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

SOUTH CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

SOUTH CABLECOMMS MANAGEMENT, INC.

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

SOUTH CABLECOMMS L.L.C.

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 



 

WINSTON INVESTORS L.L.C.

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

CHARTWELL INVESTORS L.P.

 

 

 

 

 

By:

Its General Partner

 

 

 

 

 

NTL Chartwell Holdings Limited

 

 

 

 

 

 

By:

Its Director

 

 

 

 

 

 

 

Virgin Media Directors Limited

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

 

Name: Robert Mackenzie

 

 

 

 

Title: Director

 

 

 

 

 

 

 

 

 

 

 

NTL (TRIANGLE) LLC

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: President

 

 

 

 

NTL WINSTON HOLDINGS LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: Director of Virgin Media Directors Limited

 

 

 

 

NTL CABLECOMMS GROUP LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: Director of Virgin Media Directors Limited

 

 



 

NTL CHARTWELL HOLDINGS LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: Director of Virgin Media Directors Limited

 

 

 

 

 

VIRGIN MEDIA LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Name: Robert Mackenzie

 

 

Title: Director

 

 



 

Accepted and agreed to:

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee and Pledgee

 

 

 

 

 

By:

/s/ N. DAWES

 

 

Name: N. Dawes

 

 

Title: V.P.

 

 

 

 

By:

/s/ V. MAYELL

 

 

Name: V. Mayell

 

 

Title: A.V.P.

 

 


 

ANNEX A

to

PLEDGE AGREEMENT

 

SCHEDULE OF LEGAL NAMES, TYPE OF ORGANIZATION
(AND WHETHER A REGISTERED ORGANIZATION AND/OR
A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION,
LOCATION AND ORGANIZATIONAL IDENTIFICATION NUMBERS

 

Exact Legal Name of the
Pledgor

 

Type of Organization

 

Registered
Organization?
(Yes/No)

 

Jurisdiction
of
Organization

 

Pledgor’s
Location (for
purposes of NY
UCC § 9-307)

 

Pledgor’s
Organization
Identification
Number (or, if it
has none, so
indicate)

 

Transmitting
Utility?
(Yes/No)

 

 

 

 

 

 

 

 

 

 

 

 

 

NNS U.K. Holdings 1 LLC

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

2477818

 

No

NNS U.K. Holdings 2, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2477819

 

No

North CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2341830

 

No

North CableComms L.L.C.

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

2442461

 

No

North CableComms Management, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2341826

 

No

NTL Bromley Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292401

 

No

NTL CableComms Group, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2478255

 

No

NTL Chartwell Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2362805

 

No

 


 

Exact Legal Name of the
Pledgor

 

Type of Organization

 

Registered
Organization?
(Yes/No)

 

Jurisdiction
of
Organization

 

Pledgor’s
Location (for
purposes of NY
UCC § 9-307)

 

Pledgor’s
Organization
Identification
Number (or, if it
has none, so
indicate)

 

Transmitting
Utility?
(Yes/No)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Chartwell Holdings 2, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2489841

 

No

NTL North CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2352712

 

No

NTL North CableComms Management, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2352711

 

No

NTL Programming Subsidiary Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2312702

 

No

NTL Solent Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292413

 

No

NTL South CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2362810

 

No

NTL South CableComms Management, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2362807

 

No

NTL Surrey Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292418

 

No

NTL Sussex Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292412

 

No

NTL UK CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2494571

 

No

NTL Wessex Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292403

 

No

NTL Winston Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2341828

 

No

 

2


 

Exact Legal Name of the
Pledgor

 

Type of Organization

 

Registered
Organization?
(Yes/No)

 

Jurisdiction
of
Organization

 

Pledgor’s
Location (for
purposes of NY
UCC § 9-307)

 

Pledgor’s
Organization
Identification
Number (or, if it
has none, so
indicate)

 

Transmitting
Utility?
(Yes/No)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Wirral Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292402

 

No

South CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2485991

 

No

South CableComms Management, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2485989

 

No

South CableComms L.L.C.

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

2491764

 

No

Winston Investors L.L.C.

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

2462336

 

No

Chartwell Investors L.P.

 

Limited Partnership

 

Yes

 

Delaware

 

Delaware

 

2366169

 

No

NTL (Triangle) LLC

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

3125387

 

No

NTL CableComms Group Limited

 

Private Limited Company

 

No

 

UK

 

UK

 

03024703

 

No

NTL Winston Holdings Limited

 

Private Limited Company

 

No

 

UK

 

UK

 

03290821

 

No

NTL Chartwell Holdings Limited

 

Private Limited Company

 

No

 

UK

 

UK

 

03290823

 

No

Virgin Media Limited

 

Private Limited Company

 

No

 

UK

 

UK

 

02591237

 

No

 

3


 

ANNEX B

to

PLEDGE AGREEMENT

 

SCHEDULE OF STOCK

 

1.             NTL UK CableComms Holdings, Inc.

 

Name of
Issuing
Corporation

 

Type of
Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NNS U.K. Holdings 2, Inc.

 

Common

 

1

 

2

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Bromley Company

 

Common

 

1

 

2

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Holdings, Inc.

 

Common

 

1

 

3

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc.

 

Common

 

1

 

3

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Programming Subsidiary Company

 

Common

 

1

 

2

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Solent Company

 

Common

 

1

 

2

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Holdings, Inc.

 

Common

 

1

 

12

 

0.0001

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc.

 

Common

 

1

 

18

 

0.0001

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Surrey Company

 

Common

 

1

 

2

 

100

%

(i)

 

 



 

NTL Sussex Company

 

Common

 

1

 

2

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Wessex Company

 

Common

 

1

 

2

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Wirral Company

 

Common

 

1

 

2

 

100

%

(i)

 

 

2.             NTL CableComms Group Limited

 

Name of
Issuing
Corporation

 

Type of
 Shares

 

Number of
 Shares

 

Certificate
 No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

North CableComms Holdings, Inc.

 

Common

 

1

 

3

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

North CableComms Management, Inc.

 

Common

 

1

 

3

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Group, Inc.

 

Common

 

2,900

 

01/02

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Chartwell Holdings, Inc.

 

Common

 

1

 

3

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL UK CableComms Holdings, Inc.

 

Common

 

100

 

1, 3, 12

 

90

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Winston Holdings, Inc.

 

Common

 

1

 

3

 

100

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

South CableComms Holdings, Inc.

 

Common

 

1

 

3

 

100

%

(i)

 

 

2



 

South CableComms Management, Inc.

 

Common

 

1

 

3

 

100

%

(i)

 

 

3.             NTL Solent Company

 

Name of
Issuing
Corporation

 

Type of
Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Holdings, Inc.

 

Common

 

41,635

 

7

 

41.63

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc.

 

Common

 

80,861

 

7 & 13

 

37.60

%

(i)

 

 

4.             NTL Sussex Company

 

Name of
Issuing
Corporation

 

Type of
Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Holdings, Inc.

 

Common

 

25,387

 

10

 

25.39

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc.

 

Common

 

51,208

 

8 & 15

 

23.81

%

(i)

 

 

3



 

5.             NTL Surrey Company

 

Name of
Issuing
Corporation

 

Type of
Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Holdings, Inc.

 

Common

 

16,090

 

8

 

16.09

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc.

 

Common

 

38,333

 

10, 14 & 17

 

17.82

%

(i)

 

 

6.             NTL Chartwell Holdings, Inc.

 

Name of
Issuing
Corporation

 

Type of
Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Chartwell Holdings 2, Inc.

 

Common

 

1

 

1

 

100

%

(i)

 

 

7.             NTL Wessex Company

 

Name of
Issuing
Corporation

 

Type of
Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Holdings, Inc.

 

Common

 

912

 

9

 

0.91

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc.

 

Common

 

11,279

 

11 & 16

 

5.25

%

(i)

 

 

4



 

8.             NTL CableComms Group, Inc.

 

Name of
Issuing
Corporation

 

Type of
Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL UK CableComms Holdings, Inc.

 

Common

 

11

 

2 & 4

 

10

%

(i)

 

 

9.             NTL Bromley Company

 

Name of
Issuing
Corporation

 

Type of
 Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Holdings, Inc.

 

Common

 

15,976

 

11

 

15.98

%

(i)

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc.

 

Common

 

33,373

 

9 & 12

 

15.52

%

(i)

 

 

10.           NNS U.K. Holdings 1 LLC

 

Name of
Issuing
Corporation

 

Type of
Shares

 

Number of
Shares

 

Certificate
No.

 

Percentage
Owned

 

Sub-clause of
Section 3.2(b)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL UK CableComms Holdings, Inc.

 

Common

 

1

 

11

 

1

%

(i)

 

 

5


 

ANNEX C

to

PLEDGE AGREEMENT

 

SCHEDULE OF NOTES

 

None.

 



 

ANNEX D

to

PLEDGE AGREEMENT

 

SCHEDULE OF LIMITED LIABILITY COMPANY INTERESTS

 

1.             Chartwell Investors L.P.

 

Name of
Issuing Limited
Liability Company

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

South CableComms L.L.C.

 

Limited Liability Company

 

75

%

(ii)

 

 

2.             North CableComms Holdings, Inc.

 

Name of
Issuing Limited
Liability Company

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

North CableComms L.L.C.

 

Limited Liability Company

 

12.5

%

(ii)

 

 

3.             North CableComms Management, Inc.

 

Name of
Issuing Limited
Liability Company

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

North CableComms L.L.C.

 

Limited Liability Company

 

12.5

%

(ii)

 

 

4.             NTL Winston Holdings, Inc.

 

Name of
Issuing Limited
Liability Company

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

Winston Investors L.L.C.

 

Limited Liability Company

 

20

%

(ii)

 

 



 

5.             South CableComms Holdings, Inc.

 

Name of
Issuing Limited
Liability Company

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

South CableComms L.L.C.

 

Limited Liability Company

 

12.5

%

(ii)

 

 

6.             South CableComms Management, Inc.

 

Name of
Issuing Limited
Liability Company

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

South CableComms L.L.C.

 

Limited Liability Company

 

12.5

%

(ii)

 

 

7.             NTL UK CableComms Holdings, Inc.

 

Name of
Issuing
Limited
Liability
Company

 

Type of
Interest

 

Numbers of
Shares

 

Certificate
Number

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NNS U.K. Holdings 1 LLC

 

Limited Liability Company

 

2

 

4

 

100

%

(i)

 

 

8.             Winston Investors L.L.C.

 

Name of
Issuing Limited
Liability Company

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

North CableComms L.L.C.

 

Limited Liability Company

 

75

%

(ii)

 

 

2



 

9.             NTL Winston Holdings Limited

 

Name of
Issuing Limited
Liability Company

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

Winston Investors L.L.C.

 

Limited Liability Company

 

80

%

(ii)

 

 

10.                                 Virgin Media Limited

 

Name of
Issuing
Limited
Liability
Company

 

Type of
Interest

 

Numbers of
Shares

 

Certificate
Number

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge
Agreement

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL (Triangle) LLC

 

Limited Liability Company

 

800,000

 

1

 

100

%

(i)

 

 

3



 

ANNEX E
to

PLEDGE AGREEMENT

 

SCHEDULE OF PARTNERSHIP INTERESTS

 

1.             NTL Chartwell Holdings, Inc.

 

Name of
Issuing Partnership

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

Chartwell Investors L.P.

 

Partnership

 

43.1

%

(ii)

 

 

2.             NTL Chartwell Holdings 2, Inc.

 

Name of
Issuing Partnership

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

Chartwell Investors L.P.

 

Partnership

 

36.9

%

(ii)

 

 

3.             NTL Chartwell Holdings Limited

 

Name of
Issuing Partnership

 

Type of
Interest

 

Percentage
Owned

 

Sub-clause of
Section 3.2(a)
of Pledge Agreement

 

 

 

 

 

 

 

 

 

Chartwell Investors L.P.

 

Partnership

 

20

%

(ii)

 

 


 

ANNEX F
to

PLEDGE AGREEMENT

 

SCHEDULE OF CHIEF EXECUTIVE OFFICES

 

Name of Pledgor

 

Address(es) of Chief Executive Office

 

 

 

NNS U.K. Holdings 1 LLC

 

160 Great Portland Street,
London W1W 5QA, England

NNS U.K. Holdings 2, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

North CableComms Holdings, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

North CableComms L.L.C.

 

160 Great Portland Street,
London W1W 5QA, England

North CableComms Management, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL Bromley Company

 

160 Great Portland Street,
London W1W 5QA, England

NTL CableComms Group, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL Chartwell Holdings, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL Chartwell Holdings 2, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL North CableComms Holdings, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL North CableComms Management, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL Programming Subsidiary Company

 

160 Great Portland Street,
London W1W 5QA, England

NTL Solent Company

 

160 Great Portland Street,
London W1W 5QA, England

NTL South CableComms Holdings, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL South CableComms Management, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL Surrey Company

 

160 Great Portland Street,
London W1W 5QA, England

 



 

Name of Pledgor

 

Address(es) of Chief Executive Office

 

 

 

NTL Sussex Company

 

160 Great Portland Street,
London W1W 5QA, England

NTL UK CableComms Holdings, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL Wessex Company

 

160 Great Portland Street,
London W1W 5QA, England

NTL Winston Holdings, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

NTL Wirral Company

 

160 Great Portland Street,
London W1W 5QA, England

South CableComms Holdings, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

South CableComms Management, Inc.

 

160 Great Portland Street,
London W1W 5QA, England

South CableComms L.L.C.

 

160 Great Portland Street,
London W1W 5QA, England

Winston Investors L.L.C.

 

160 Great Portland Street,
London W1W 5QA, England

Chartwell Investors L.P.

 

160 Great Portland Street,
London W1W 5QA, England

NTL (Triangle) LLC

 

160 Great Portland Street,
London W1W 5QA, England

NTL CableComms Group Limited

 

160 Great Portland Street,
London W1W 5QA, England

NTL Winston Holdings Limited

 

160 Great Portland Street,
London W1W 5QA, England

NTL Chartwell Holdings Limited

 

160 Great Portland Street,
London W1W 5QA, England

Virgin Media Limited

 

160 Great Portland Street,
London W1W 5QA, England

 

2



 

ANNEX G
to

PLEDGE AGREEMENT

 

FORM OF AGREEMENT REGARDING UNCERTIFICATED SECURITIES, LIMITED LIABILITY COMPANY INTERESTS AND PARTNERSHIP INTERESTS

 

AGREEMENT (as amended, modified, restated and/or supplemented from time to time, this “Agreement”), dated as of [                    , 20   ], among the undersigned pledgor (the “Pledgor”), [                    ], not in its individual capacity but solely as Security Trustee (the “Pledgee”), and [                    ], as the issuer of the Uncertificated Securities, Limited Liability Company Interests and/or Partnership Interests (each as defined below) (the “Issuer”).

 

W I T N E S S E T H :

 

WHEREAS, the Pledgor, certain of its affiliates and the Pledgee have entered into an Amended and Restated Pledge Agreement, dated as of [                    , 20   ] (as amended, modified, restated and/or supplemented from time to time, the “Pledge Agreement”), under which, among other things, in order to secure the payment of the Obligations (as defined in the Pledge Agreement), the Pledgor has or will pledge to the Pledgee for the benefit of the Beneficiaries (as defined in the Pledge Agreement), and grant a security interest in favor of the Pledgee for the benefit of the Beneficiaries in, all of the right, title and interest of the Pledgor in and to any and all [“uncertificated securities” (as defined in Section 8-102(a)(18) of the Uniform Commercial Code, as adopted in the State of New York) (“Uncertificated Securities”)] [Partnership Interests (as defined in the Pledge Agreement)] [Limited Liability Company Interests (as defined in the Pledge Agreement)], from time to time issued by the Issuer, whether now existing or hereafter from time to time acquired by the Pledgor (with all of such [Uncertificated Securities] [Partnership Interests] [Limited Liability Company Interests] being herein collectively called the “Issuer Pledged Interests”); and

 

WHEREAS, the Pledgor desires the Issuer to enter into this Agreement in order to perfect the security interest of the Pledgee under the Pledge Agreement in the Issuer Pledged Interests, to vest in the Pledgee control of the Issuer Pledged Interests and to provide for the rights of the parties under this Agreement;

 

NOW THEREFORE, in consideration of the premises and the mutual promises and agreements contained herein, and for other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.  The Pledgor hereby irrevocably authorizes and directs the Issuer, and the Issuer hereby agrees, to comply with any and all instructions and orders originated by the Pledgee (and its successors and assigns) regarding any and all of the Issuer Pledged Interests without the further consent by the registered owner (including the Pledgor), and, following its receipt of a notice from the Pledgee stating that the Pledgee is exercising exclusive control of the Issuer Pledged Interests, not to comply with any instructions or orders regarding any or all of the Issuer Pledged Interests originated by any person or entity other than the Pledgee (and its successors and assigns) or a court of competent jurisdiction.

 



 

2.  The Issuer hereby certifies that (i) no notice of any security interest, lien or other encumbrance or claim affecting the Issuer Pledged Interests (other than the security interest of the Pledgee) has been received by it, and (ii) the security interest of the Pledgee in the Issuer Pledged Interests has been registered in the books and records of the Issuer.

 

3.  The Issuer hereby represents and warrants that (i) the pledge by the Pledgor of, and the granting by the Pledgor of a security interest in, the Issuer Pledged Interests to the Pledgee, for the benefit of the Beneficiaries, does not violate the charter, by-laws, partnership agreement, membership agreement or any other agreement governing the Issuer or the Issuer Pledged Interests, and (ii) the Issuer Pledged Interests consisting of capital stock of a corporation are fully paid and nonassessable.

 

4.  All notices, statements of accounts, reports, prospectuses, financial statements and other communications to be sent to the Pledgor by the Issuer in respect of the Issuer will also be sent to the Pledgee at the following address:

 

[                                ]

[                                ]

Attention:  [                             ]

Telephone No.:  [                            ]

Telecopier No.:  [                            ]

 

5.  Following its receipt of a notice from the Pledgee stating that the Pledgee is exercising exclusive control of the Issuer Pledged Interests and until the Pledgee shall have delivered written notice to the Issuer that all of the Obligations (other than contingent indemnification obligations not then due) have been paid in full and this Agreement is terminated, the Issuer will send any and all redemptions, distributions, interest or other payments in respect of the Issuer Pledged Interests from the Issuer for the account of the Pledgee only by wire transfers to such account as the Pledgee shall instruct.

 

6.  Except as expressly provided otherwise in Sections 4 and 5, all notices, instructions, orders and communications hereunder shall be sent or delivered by mail, telegraph, telex, telecopy, cable or overnight courier service and all such notices and communications shall, when mailed, telexed, telecopied, cabled or sent by overnight courier, be effective when deposited in the mails or delivered to overnight courier, prepaid and properly addressed for delivery on such or the next Business Day, or sent by telex or telecopier, except that notices and communications to the Pledgee or the Issuer shall not be effective until received.  All notices and other communications shall be in writing and addressed as follows:

 

(a)           if to the Pledgor, at:

                                    
                                    
                                    
Attention:                    
Telephone No.: 
Fax No.:

(b)           if to the Pledgee, at the address given in Section 4 hereof;

 

2



 

(c)           if to the Issuer, at:

                                                
                                                
                                                

 

or at such other address as shall have been furnished in writing by any person described above to the party required to give notice hereunder.  As used in this Section 6, “Business Day” means any day other than a Saturday, Sunday, or other day in which banks in New York are authorized to remain closed.

 

7.  This Agreement shall be binding upon the successors and assigns of the Pledgor and the Issuer and shall inure to the benefit of and be enforceable by the Pledgee and its successors and assigns.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one instrument.  In the event that any provision of this Agreement shall prove to be invalid or unenforceable, such provision shall be deemed to be severable from the other provisions of this Agreement which shall remain binding on all parties hereto.  None of the terms and conditions of this Agreement may be changed, waived, modified or varied in any manner whatsoever except in writing signed by the Pledgee, the Issuer and the Pledgor.

 

8.  This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without regard to its principles of conflict of laws.  The Issuer’s “jurisdiction” within the meaning of the UCC and for all purposes of this Agreement shall be the State of Delaware.

 

3



 

IN WITNESS WHEREOF, the Pledgor, the Pledgee and the Issuer have caused this Agreement to be executed by their duly elected officers duly authorized as of the date first above written.

 

 

[                                                      ],

 

 

as Pledgor

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

[                                                      ],

 

 

not in its individual capacity but solely as Security Trustee and Pledgee

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 

 

 

 

 

 

[                                                      ],

 

 

as the Issuer

 

 

 

 

 

By

 

 

 

Name:

 

 

Title:

 




Exhibit 4.36

 

EXECUTION COPY

 

THE PARTIES LISTED ON THE SIGNATURE PAGES HERETO

 

as Debtors

 

and

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 

AMENDED AND RESTATED SECURITY AGREEMENT

 

 



 

TABLE OF CONTENTS

 

 

 

PAGE

 

 

 

1.

CONSTRUCTION; DEFINITIONS

2

2.

GRANT OF SECURITY INTERESTS

8

3.

SECURITY FOR OBLIGATIONS

10

4.

DEBTOR REMAINS LIABLE

11

5.

REPRESENTATIONS, WARRANTIES AND COVENANTS

11

6.

SECURED PARTY APPOINTED ATTORNEY-IN-FACT

21

7.

SECURED PARTY’S DUTIES OF REASONABLE CARE; INDEMNIFICATION

22

8.

TRANSFERS AND OTHER LIENS

23

9.

REMEDIES

23

10.

LICENSE OF INTELLECTUAL PROPERTY

24

11.

APPLICATION OF PROCEEDS

24

12.

EXPENSES

25

13.

TERMINATION OF SECURITY INTERESTS; RELEASE OF COLLATERAL

25

14.

ADMISSIBILITY OF SECURITY AGREEMENT

26

15.

NOTICES

26

16.

WAIVERS, NON-EXCLUSIVE REMEDIES

26

17.

SECURITY INTEREST ABSOLUTE

27

18.

SUCCESSORS AND ASSIGNS

27

19.

CHANGES IN WRITING

27

20.

APPLICABLE LAW

27

21.

WAIVER OF JURY TRIAL AND SETOFF; CONSENT TO JURISDICTION; ETC.

27

22.

SURVIVAL

28

23.

HEADINGS

28

24.

COUNTERPARTS

28

25.

FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE

29

26.

SEVERABILITY

29

27.

ACKNOWLEDGEMENT OF RECEIPT

29

SCHEDULE 1

LOCATIONS OF BOOKS AND RECORDS, CHIEF PLACE OF BUSINESS, CHIEF EXECUTIVE OFFICE

 

SCHEDULE 2

LEGAL NAMES, TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION, LOCATION AND ORGANIZATION IDENTIFICATION NUMBERS

38

SCHEDULE 3

TRADE-NAMES AND FICTITIOUS NAMES (PRESENT AND PAST FIVE YEARS)

 

SCHEDULE 4

TRADEMARK REGISTRATIONS

 

SCHEDULE 5

PATENTS

 

SCHEDULE 6

COPYRIGHTS

 

 

i



 

 

TABLE OF CONTENTS

 

SCHEDULE 7

LICENSES

 

 

ii



 

AMENDED AND RESTATED SECURITY AGREEMENT, dated as of March 3, 2006 and amended and restated as of January 19, 2010

 

AMONG

 

(1)                                 The parties listed on the signature pages hereto, each a Delaware corporation or limited liability company (each a “Debtor” and together, “Debtors”); and

 

(2)                                 DEUTSCHE BANK AG, LONDON BRANCH (DB”, acting in its capacity as Security Trustee (together with any successor in such capacity, “Security Trustee”).

 

WHEREAS

 

(A)                               Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) (the “Company”), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and as Security Trustee, Deutsche Bank AG, New York Branch as United States Paying Agent for the Finance Parties (the “US Paying Agent”), GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch, as Original L/C Bank, the Original Guarantors as defined therein and the Lenders as defined therein have entered into a Senior Facilities Agreement dated  March 3, 2006 (as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April, 4 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as such agreement may be amended, restated, supplemented or novated from time to time, including, without limitation, as amended and restated in the form of the Structure 2 Senior Facilities Agreement following delivery of a Structure Notice, the “Senior Facilities Agreement”).

 

(B)                               Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)                               by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors (as each of those terms is defined therein), certain banks, financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)                               in connection with the Senior Facilities Agreement each Debtor and the Security Trustee entered into a security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Security Agreement”).

 

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(E)                                 the Debtors and the Security Trustee desire to amend and restate the Original Security Agreement on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and other benefits accruing to each Debtor, the receipt and sufficiency of which are hereby acknowledged, each Debtor hereby makes the following representations and warranties to the Security Trustee for the benefit of the Beneficiaries and hereby covenants and agrees with the Security Trustee for the benefit of the Beneficiaries as follows:

 

1.                                      CONSTRUCTION; DEFINITIONS

 

1.1                               Certain Defined Terms

 

This Security Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Security Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless the context otherwise requires or unless otherwise defined in this Security Agreement, terms defined in the Group Intercreditor Deed or (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall bear the same meaning when used in this Security Agreement.  The following terms, as used herein, have the meanings set forth below:

 

Accounts” means all “accounts” (as defined in the UCC) now owned or hereafter created or acquired by any Debtor including, without limitation, all of the following now owned or hereafter created or acquired by such Debtor:  (a) accounts receivable, contract rights, book debts, notes, drafts and other obligations or indebtedness owing to any Debtor arising from the sale, lease or exchange of goods or other property and/or the performance of services; (b) any Debtor’s rights in, to and under all purchase orders for goods, services or other property; (c) any Debtor’s rights to any goods, services or other property represented by any of the foregoing (including returned or repossessed goods and unpaid sellers’ rights of rescission, replevin, reclamation and rights to stoppage in transit); (d) monies due to or to become due to any Debtor under all contracts for the sale, lease or exchange of goods or other property and/or the performance of services (whether or not yet earned by performance on the part of any Debtor); and (e) Proceeds of any of the foregoing and all collateral security and guaranties of any kind given by any person with respect to any of the foregoing.

 

Agent” means the Facility Agent, the US Paying Agent, the Administrative Agent and the Relevant Agent.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Cash Collateral Account” shall mean a non-interest bearing cash collateral account maintained with, and in the sole dominion and control of, the Security Trustee for the benefit of the Beneficiaries.

 

Collateral” has the meaning assigned to that term in Section 2.

 

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“Commitments” means, in respect of a Senior Lender, its Commitment as defined in the Senior Facilities Agreement, and in respect of any other Senior Finance Party, the aggregate of the principal amount advanced by it that has not been repaid, in each case under the Senior Finance Documents, and (without duplication) its uncancelled commitment to extend further credit to the Obligors under the Senior Facilities Documents.

 

Copyright License” means any written agreement now or hereafter in existence granting to any Debtor any right to use any Copyright.

 

Copyrights” means collectively all of the following: (a) all copyrights, rights and interests in copyrights, works protectable by copyright, copyright registrations and copyright applications now owned or hereafter created or acquired by any Debtor; (b) all renewals of any of the foregoing; (c) all income, royalties, damages and payments now or hereafter due and/or payable under any of the foregoing, including, without limitation, damages or payments for past or future infringements of any of the foregoing; (d) the right to sue for past, present and future infringements of any of the foregoing; and (e) all rights corresponding to any of the foregoing throughout the world.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company and its successors in title from time to time to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Documents” means all “documents” (as defined in the UCC) or other receipts covering, evidencing or representing goods now owned or hereafter acquired by any Debtor.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Debtor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Equipment” means all “equipment” (as defined in the UCC) now owned or hereafter acquired by any Debtor including, without limitation, all machinery, motor vehicles, trucks, trailers, vessels, aircraft and rolling stock and all parts thereof and all additions and accessions thereto and replacements therefor.

 

Event of Default” shall mean each of:

 

(i)            a Senior Default; and

 

(ii)           an event of default or termination event (however described) under any Hedging Agreement.

 

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Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by any Debtor to the extent that granting a security interest in such Ownership Interests or other securities under this Security Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the grant of security interest in any Ownership Interests or other securities pursuant to the second proviso in Section 2.

 

Fixtures” means all of the following now owned or hereafter acquired by any Debtor: plant fixtures; business fixtures; other fixtures and storage office facilities, wherever located; and all additions and accessions thereto and replacements therefor.

 

General Intangibles” means all “general intangibles” (as defined in the UCC) now owned or hereafter acquired by any Debtor including, without limitation, all right, title and interest of such Debtor in and to: (a) all leases, licenses and contracts to which such Debtor is or may become a party; (b) all obligations or indebtedness owing to such Debtor (other than Accounts and Instruments) from whatever source arising; (c) all tax refunds and pension reversions; (d) Intellectual Property; and (e) all trade secrets and other confidential information relating to the business of such Debtor including by way of illustration and not limitation:  systems and techniques for the analysis, diagnosis and correction of malfunctions of products used by such Debtor’s customers; the names and addresses of, and credit and other business information concerning, such Debtor’s past, present or future customers; the prices which such Debtor obtains for its services or at which it sells merchandise; estimating and cost procedures; profit margins; policies and procedures pertaining to the sale and design of equipment, components, devices and services furnished by such Debtor; information concerning suppliers of such Debtor; and information concerning the manner of operation, business plans, pledges, projections, and all other information of any kind or character, whether or not reduced to writing, with respect to the conduct by such Debtor of its business not generally known by the public.

 

Instruments” means all “instruments”, “chattel paper” and “letters of credit” (each as defined in the UCC) including, but not limited to, Documentary Credits, promissory notes, drafts, bills of exchange and trade acceptances, now owned or hereafter acquired by any Debtor.

 

Intellectual Property” means collectively all of the following: Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks and Trademark Licenses.

 

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Inventory” means all “inventory” (as defined in the UCC), now owned or hereafter acquired by any Debtor, wherever located including, without limitation, finished goods, raw materials, work in process and other materials and supplies (including packaging and shipping materials) used or consumed in the manufacture or production thereof and goods which are returned to or repossessed by any Debtor.

 

Investment Property” means (i) all of any Debtor’s right, title and interest in and to all present and future securities, securities entitlement and securities accounts and (ii) all of any Debtor’s right, title and interest in and to all present and future uncertificated securities and certificated securities.

 

Location” of any Debtor, means such Debtor’s “location” as determined pursuant to Section 9-307 of the UCC.

 

Obligations” has the meaning set forth in Section 3.

 

Original Security Agreement” shall have the meaning set forth in the recitals hereto.

 

Ownership Interests” has the meaning given to such term in the definition of “Excluded Charged Assets”.

 

Patent License” means any written agreement now or hereafter in existence granting to any Debtor any right to use any invention on which a Patent is in existence.

 

Patents” means collectively all of the following: (a) all patents and patent applications now owned or hereafter created or acquired by any Debtor including, without limitation, patentable inventions; (b) the reissues, divisions, continuations, renewals, extensions and continuations-in-part of any of the foregoing; (c) all income, royalties, damages or payments now and hereafter due and/or payable under any of the foregoing with respect to any of the foregoing, including, without limitation, damages of payments for past or future infringements of any of the foregoing; (d) the right to sue for past, present and future infringements of any of the foregoing; and (e) all rights corresponding to any of the foregoing throughout the world.

 

Proceeds” means all proceeds of, and all other profits, rentals or receipts, in whatever form, arising from the collection, sale, lease, exchange, assignment, licensing or other disposition of, or realization upon, any Collateral including, without limitation, all claims of any Debtor against third parties for loss of, damage to or destruction of, or for proceeds payable under, or unearned premiums with respect to, policies of insurance with respect to any Collateral, and any condemnation or requisition payments with respect to any Collateral, in each case whether now existing or hereafter arising.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and

 

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provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Registered Organization” shall have the meaning provided in the UCC.

 

Rule 3-16” has the meaning given to such term in the definition of “Designated Secured Obligations”.

 

SEC” means the United States Securities and Exchange Commission.

 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)           in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)           that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Security Agreement.

 

Securities Act” means the United States Securities Act of 1933, as amended.

 

Security Agreement” means this security agreement dated as of the date hereof among the Parties listed on the signature pages hereto and DB, in its capacity as Security Trustee.

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Security Agreement between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, the Company and the companies named therein as Original Obligors.

 

Security Interests” means the security interests granted pursuant to Section 2, as well as all other security interests created or assigned as additional security for the Obligations pursuant to the provisions of this Security Agreement.

 

Security Trustee” is Deutsche Bank AG, London Branch.

 

Senior Secured Notes” has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

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Senior Secured Notes Documents” means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes;

 

Senior Secured Notes Indenture” means the indenture dated on or about the date of this Security Agreement governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., the Company, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time.

 

Trademark License” means any written agreement now or hereafter in existence granting to any Debtor any right to use any Trademark.

 

Trademarks” means collectively all of the following now owned or hereafter created or acquired by any Debtor: (a) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos, other business identifiers, prints and labels on which any of the foregoing have appeared or appear, all registrations and recordings thereof, and all applications in connection therewith including registrations, recordings and applications in the United States Patent and Trademark Office or in any similar office or agency of the United States of America, any State thereof or any other country or any political subdivision thereof; (b) all reissues, extensions or renewals thereof; (c) all income, royalties, damages and payments now or hereafter due and/or payable under any of the foregoing or with respect to any of the foregoing including damages or payments for past or future infringements of any of the foregoing; (d) the right to sue for past, present and future infringements of any of the foregoing; (e) all rights corresponding to any of the foregoing throughout the world; and (f) all goodwill associated with and symbolized by any of the foregoing.

 

Transmitting Utility” has the meaning given such term in Section 9-102(a)(80) of the UCC.

 

UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York, provided that if by reason of mandatory provisions of law, the perfection or the effect of perfection or non-perfection of the Security Interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect on or after the date hereof in any other jurisdiction, “UCC” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy.

 

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1.2          Other Definition Provisions

 

References to “sections”, “subsections”, “Exhibits” and “Schedules” shall be to Sections, subsections, Exhibits and Schedules, respectively, of this Security Agreement unless otherwise specifically provided.  Any of the terms defined in subsection 1.1 may, unless the context otherwise requires, be used in the singular or the plural depending on the reference.  All terms defined in the UCC and not otherwise defined herein shall have the respective meanings therein provided.  All references to statutes and related regulations shall include (unless otherwise specifically provided herein) any amendments of same and any successor statutes and regulations.

 

2.             GRANT OF SECURITY INTERESTS

 

In order to secure the payment and performance of the Obligations, in accordance with the terms thereof, each Debtor hereby grants to the Security Trustee for the benefit of the Beneficiaries a continuing security interest in and to all right, title and interest of such Debtor in the following property, whether now owned or existing or hereafter acquired or arising and regardless of where located (all being collectively referred to as the “Collateral”):

 

(a)           all Accounts;

 

(b)           all Inventory;

 

(c)           all General Intangibles;

 

(d)           all Documents;

 

(e)           all Instruments;

 

(f)            all Investment Property;

 

(g)           all Equipment;

 

(h)           all Fixtures;

 

(i)            all deposit accounts of such Debtor maintained with any bank or financial institution and all claims and causes of action arising therefrom;

 

(j)            all books, records, ledger cards, files, correspondence, computer programs, tapes, disks and related data processing software that at any time evidence or contain information relating to any of the property described in subparts (a) - (i) above or are otherwise necessary or helpful in the collection thereof or realization thereon;

 

(k)           all property in the possession of the Security Trustee or any Beneficiary;

 

(l)            without limitation of clause (e), all collateral security therefor from time to time, all guarantees thereof and any and all rights and remedies of such Debtor thereunder (including, without limitation, the right to make demand and receive payments

 

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thereunder), and all claims for money due and to become due to such Debtor thereunder; and

 

(m)          all Proceeds of all or any of the property described in subparts (a) - (l) above;

 

provided, however, in no event shall the Collateral include, and no Debtor shall be deemed to have granted a security interest in, any of such Debtor’s right, title or interest in:  (i) any Intellectual Property if the grant of such security interest shall constitute or result in the abandonment, invalidation or rendering unenforceable any right, title or interest of any Debtor therein, or breach or termination pursuant to the terms of, or a default under, any Intellectual Property or the violation of any applicable law; (ii) any General Intangible or Equipment if the grant of such security interest (x) shall be prohibited by any contract, agreement, instrument or indenture governing such General Intangible or relating to such Equipment, (y) would give any other party to such contract, agreement, instrument or indenture the right to terminate its obligations thereunder or (z) is permitted only with the consent of another party, and such consent has not been obtained or (iii) any assets of any Debtor to the extent that such grant of security interest would violate applicable law or governmental regulation; in each cause of clauses (i) and (ii), other than to the extent any such term is rendered ineffective by §§ 9-406 to 9-409 of the UCC;

 

provided further, however, that notwithstanding the foregoing, in no event shall the Debtors be required to grant to the Security Trustee a security interest in any Excluded Charged Assets under this Security Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt,

 

(i)            all Collateral that does not constitute Excluded Charged Assets remains subject to the lien granted pursuant to this Security Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)           such Excluded Charged Assets remain subject to the lien granted under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph apply, this Security Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the lien (but only to the extent

 

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securing such Designated Secured Obligations and without prejudice to the security interest securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then secured without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply, this Security Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to grant a lien in favor of the Security Trustee in such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

The obligations of each Debtor pursuant to this Security Agreement shall continue to be effective or automatically be reinstated, as the case may be, if at any time payment of any of the Obligations is rescinded or otherwise must be restored or returned by the Security Trustee or any Beneficiary upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of such Debtor or any other Obligor or otherwise, all as though such payment had not been made.  If the grant, pledge, or collateral transfer or assignment of any rights of any Debtor under any contract included in the Collateral is expressly prohibited by such contract, then the security interest hereby granted nonetheless remains effective to the extent allowed by Section 9-318 of the UCC or other applicable law but is otherwise limited by that prohibition.

 

3.             SECURITY FOR OBLIGATIONS

 

This Security Agreement is made by each Debtor for the benefit of the Security Trustee acting on behalf of the Beneficiaries to secure:

 

(a)           the full and prompt payment when due (whether at stated maturity, by acceleration or otherwise) of all Secured Obligations;

 

(b)           any and all sums advanced by the Security Trustee in order to preserve the Collateral or preserve its security interest in the Collateral;

 

(c)           in the event of any proceeding for the collection or enforcement of any indebtedness, obligations or liabilities of such Debtor referred to in clauses (a) and (b) above, after an Event of Default shall have occurred and be continuing, the reasonable expenses of retaking, holding, preparing for sale or lease, selling or otherwise disposing or realizing on the Collateral, or of any exercise by the Security Trustee of its rights hereunder, together with reasonable attorneys’ fees and court costs;

 

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(d)           all amounts paid by any Indemnified Party as to which such Indemnified Party has the right to reimbursement under Section 7.3 of this Security Agreement; and

 

(e)           all amounts owing to any Agent or any of its affiliates pursuant to any of the Senior Finance Documents in its respective capacity as such;

 

all such obligations, liabilities, indebtedness, sums and expenses set forth in clauses (a) through (e) of this Section 3 being herein collectively called the “Obligations”, it being acknowledged and agreed that the “Obligations” shall include (without limitation) extensions of credit of the types described above, whether outstanding on the date of this Security Agreement or extended from time to time after the date of this Security Agreement, and (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) all Liabilities arising under or in connection with the Senior Facilities Agreement and the Senior Secured Notes Documents.

 

4.             DEBTOR REMAINS LIABLE

 

Anything herein to the contrary notwithstanding: (a)  each Debtor shall remain liable under the contracts and agreements included in the Collateral to the extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Security Agreement had not been executed; (b) the exercise by the Security Trustee or any Beneficiary of any of the rights hereunder shall not release any Debtor from any of its duties or obligations under the contracts and agreements included in the Collateral; and (c) neither the Security Trustee nor any Beneficiary shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of this Security Agreement, nor shall the Security Trustee or any Beneficiary be obligated to perform any of the obligations or duties of any Debtor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder.

 

5.             REPRESENTATIONS, WARRANTIES AND COVENANTS

 

Each Debtor represents, warrants and covenants as follows:

 

5.1          Binding Obligation

 

This Security Agreement has been duly authorized, executed and delivered by such Debtor and is the legally valid and binding obligation of such Debtor, enforceable against it in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws or equitable principles relating to or limiting creditor’s rights generally or any other reservations as to its enforceability specified in the legal opinion addressed to the Security Trustee and the Beneficiaries in connection herewith on or about the date hereof.

 

5.2          Authority

 

That it has such power, authority and legal right to pledge all the Collateral pledged by it pursuant to this Security Agreement.

 

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5.3                               Ownership of Collateral; Bailees

 

Subject to the Existing Encumbrances and Encumbrances permitted under the Senior Finance Documents (including, without limitation, the Security Interests), such Debtor owns the Collateral free and clear of any Encumbrance.  As of the date hereof, no effective financing statement or other form of lien notice covering all or any part of the Collateral is on file in any recording office, except for those in favor of the Security Trustee or evidencing Encumbrances permitted under the Senior Finance Documents.

 

5.4                               Office Locations; Fictitious Names

 

As of the date hereof, the chief place of business, the chief executive office, the registered office and the office where such Debtor keeps its books and records are located at the places specified on Schedule 1.  Such Debtor does not do business and has not done business during the five years immediately preceding the date hereof under any trade-name or fictitious business name except as disclosed on Schedule 3.

 

5.5                               Perfection

 

This Security Agreement creates a valid and, except for the Encumbrances permitted under the Senior Finance Documents and the reservations referred to in Section 5.1, a first priority security interest in the Collateral, securing the payment of the Obligations, and all filings and other actions necessary or desirable to perfect and protect such security interest have or will within the prescribed registration periods been duly taken (except with regard to deposit accounts).

 

When Uniform Commercial Code financing statements stating that the same covers “all assets of the Debtor”, “all personal property of the Debtor” or words of similar import shall have been filed in the relevant jurisdiction, the Security Interests will constitute perfect security interests in all right, title and interest of the Debtor in the Collateral to the extent that a security interest therein may be perfected by filing pursuant to the UCC, prior to all other liens and rights of others except for Encumbrances permitted under the Senior Finance Documents and the reservations set forth in Section 5.1.

 

When any applicable patent and trademark assignments have been filed with the United States Patent and Trademark Office and any applicable copyright assignments have been filed with the United States Copyright Office, the Security Interests will constitute perfected security interests in all right, title and interest of the Debtors in the United States Intellectual Property therein described to the extent that a security interest therein may be perfected by such filing pursuant to applicable law, prior to all other liens and rights of others therein except for Encumbrances permitted under the Senior Finance Documents and the reservations set forth in Section 5.1.

 

5.6                               Governmental Authorizations; Consents

 

No authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or, consent of any other person (including, without limitation, any licensor of Intellectual Property) is required either (a) for the grant by such Debtor of the security interest granted hereby or for the execution, delivery or performance of this Security Agreement by such Debtor or (b) for the perfection of such security interest or the exercise by the Security

 

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Trustee or any Beneficiary of its rights and remedies hereunder (except as may have been taken or obtained by or at the direction of such Debtor or the absence of which could not reasonably be expected to have a material adverse effect).

 

5.7                               Accounts

 

To the best of the knowledge of the Debtor, each Account, with a value in excess of $20,000 constitutes the genuine, legal, valid and binding obligation of the customer obligated to pay the same.  The amount represented by such Debtor as owing by each customer is the correct amount actually and unconditionally owing, except for normal cash discounts and allowances where applicable.  To the best of such Debtor’s knowledge, no customer has any defense, set-off, claim or counterclaim against such Debtor that can be asserted against the Security Trustee or any Beneficiary, whether in any proceeding to enforce the Security Trustee’s or any Beneficiary’s rights in the Collateral or otherwise except defenses, set-offs, claims or counterclaims that are not, in the aggregate, material to the value of the Accounts taken as a whole.  None of the Accounts, with a value in excess of $200,000, is evidenced by a promissory note or other Instrument.

 

5.8                               Accurate Information

 

All information heretofore, herein or hereafter supplied to the Security Trustee or any Beneficiary by or on behalf of such Debtor with respect to the Collateral is and will be accurate and complete in all material respects.

 

5.9                               Repetition

 

Each Repeating Representation made by such Debtor is true and correct in all material respects on the dates at which such are repeated under the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement, and such Repeating Representations are incorporated herein by this reference with the same effect as though set forth in their entirety herein.

 

5.10                        No Conflicts

 

The execution by such Debtor of this Security Agreement and the exercise by such Debtor of its rights and the performance of its obligations hereunder including, without limitation, granting the Security Interests will not (i) result in the existence or imposition of any Encumbrance nor obligate such Debtor to create any Encumbrance (other than the Security Interests and any other Encumbrance permitted under the Senior Finance Documents) in favor of any person over all or any of its assets, (ii) conflict in any material respect with any agreement, mortgage, bond or other instrument to which such Debtor is a party or which is binding upon such Debtor or any of its assets, (iii) conflict with such Debtor’s organizational documents, or (iv) conflict, in any material respect, with any existing applicable law, regulation or judicial order binding on such Debtor.

 

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5.11                        Provisions Regarding Intellectual Property

 

(a)                                  Title to Trademarks

 

Such Debtor has the sole, full and clear title to the Trademarks listed on Schedule 4 hereto for the goods and services covered by the United States of America registrations thereof and such United States of America registrations are valid and subsisting and in full force and effect.

 

(b)                                 Use of Trademarks

 

Except to the extent that (i) an Instructing Party, upon prior written notice by such Debtor, shall consent, or (ii) upon sixty (60) days’ prior written notice to the Security Trustee, such Debtor determines in its reasonable business judgment that a Trademark of such Debtor has negligible economic value, such Debtor (either itself or through licensees) will continue to use the Trademarks material to its business on each and every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain the Trademarks in full force free from any claim of abandonment of non-use and such Debtor will not (and will not permit any licensee thereof to) do any act or knowingly omit to do any act whereby any Trademark material to its business may become invalidated.

 

(c)                                  Title of Patents; Etc.

 

Such Debtor has the sole, full and clear title to each of the Patents shown on Schedule 5 hereto and to the best of such Debtor’s knowledge, the Patents are valid and subsisting and in full force and effect.  None of the Patents has been abandoned or dedicated, and, except to the extent that (i) an Instructing Party, upon prior written notice by such Debtor, shall consent, or (ii) upon sixty (60) days’ prior written notice to the Security Trustee, such Debtor determines in its reasonable business judgment that a Patent of such Debtor has negligible economic value, such Debtor will not do any act, or omit to do any act, whereby the Patents material to its business may become abandoned or dedicated and shall notify the Security Trustee immediately if it knows of any reason or has reason to know that any application or registration may become abandoned or dedicated.

 

(d)                                 Title to Copyrights; Etc.

 

Such Debtor has the sole, full and clear title to the Copyrights shown on Schedule 5 hereto and, to best of such Debtor’s knowledge, each of said Copyrights is subsisting and in full force and effect.  None of the Copyrights has been abandoned or dedicated, and except to the extent that such Debtor, in the exercise in good faith of its commercially reasonable business judgment, decides that such Copyright is no longer useful with respect to the business of such Debtor, such Debtor will not do any act, or omit to do any act, whereby the Copyrights material to its business may become abandoned or dedicated, or the remedies available against potential infringers weakened, and shall notify the Security Trustee immediately if it knows of any reason or has reason to know that any copyright or registration may become abandoned or dedicated.

 

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(e)                                  Additional Patents, Trademarks and Copyrights

 

In no event shall such Debtor, either itself or through any agent, employee, licensee or designee, (i) file an application for any Patent or the registration of any Trademark or Copyright with the United States Patent and Trademark Office, United States Copyright Office or any similar office or agency of the United States of America or any State thereof or (ii) file any assignment of any Patent, Trademark or Copyright which such Debtor may acquire, own or license from a third party, with the United States Patent and Trademark Office, United States Copyright Office or any similar office or agency of the United States of America or any State thereof, unless such Debtor shall, on or prior to the date of such filing, notify the Security Trustee thereof, and, upon request of the Security Trustee, execute and deliver any and all supplements hereto, assignments, agreements, instruments, documents and papers as the Security Trustee may request to evidence the Security Trustee’s security interest in such Patent, Trademark or Copyright and the goodwill and general intangibles of such Debtor relating thereto or represented thereby.

 

(f)                                    No Additional Patents, Trademarks or Copyrights

 

As of the date hereof, such Debtor owns no Patents, Trademarks or Copyrights and does not have any Patents, Trademarks or Copyrights registered in, or the subject of pending applications in, the United States Patent and Trademark Office, United States Copyright Office or any similar office or agency in any State of the United States of America, other than those described in Schedules 4, 5 and 6 hereto.

 

(g)                                 Additional Further Assurances

 

Subject to Sections 5.11(b), (c) and (d), such Debtor will take all necessary steps in any proceeding before the United States Patent and Trademark Office, United States Copyright Office or any similar office or agency in any State of the United States of America, to maintain each of such Debtor’s applications and registrations of the Trademarks, Copyrights and Patents (except for those that are not material to such Debtor’s business), including, without limitation, filing renewals, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings.

 

(h)                                 Security Trustee and Beneficiaries Not Liable

 

Such Debtor assumes all responsibility and liability arising from the use of the Trademarks, and hereby indemnifies and holds the Security Trustee and each Beneficiary harmless from and against any claim, suit, loss, damage or expense (including reasonable attorneys’ fees) arising out of any alleged defect in any product manufactured, promoted or sold by such Debtor (or any affiliate or subsidiary thereof) in connection with any Trademark or out of the manufacture, promotion, labeling, sale or advertisement of any such product by such Debtor (or any affiliate or subsidiary thereof).  Such Debtor agrees that neither the Security Trustee nor any Beneficiary assumes, and neither the Security Trustee nor any Beneficiary shall have any responsibility for, the payment of any sums due or to become due under any agreement or contract included in the Collateral or the performance of any obligations to be performed under or with respect to any such agreement or contract by such Debtor, and such Debtor hereby agrees to indemnify and hold the Security Trustee and each Beneficiary harmless with respect to any and all claims by

 

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any person relating thereto (save for any claim arising from the gross negligence or willful misconduct of the Security Trustee or such Beneficiary.

 

(i)                                     Protection of Trademarks

 

Such Debtor agrees that if it, or any of its affiliates or subsidiaries, learns of any use by any person of any term or design likely to cause confusion with any Trademark (except for those that are not material to such Debtor’s business), it shall promptly notify the Security Trustee of such use and, if requested by the Security Trustee, shall join with the Security Trustee, at such Debtor’s expense, in such action as the Security Trustee, in its reasonable discretion, may deem advisable for the protection of the Security Trustee’s and Beneficiaries’ interest in and to the Trademarks (except for those that are not material to such Debtor’s business), it being understood that the foregoing shall not preclude such Debtor from bringing an action against a person other than the Security Trustee or the Beneficiaries for the protection of such Debtor’s interest in and to the Trademarks).

 

(j)                                     Licenses of Trademarks, Patents and Copyrights

 

All of such Debtor’s Patent Licenses, Trademarks Licenses, and Copyrights Licenses are set forth in Schedule 7 hereto other than any such Patent Licenses, Trademark Licenses and Copyright Licenses which are immaterial to the Debtor.  Such Debtor will do all things that are necessary and proper and within such Debtor’s power and control to keep each of its Patent Licenses, Trademark Licenses and Copyright Licenses in full force and effect, except (i) to the extent that such Debtor has determined that the failure to keep such Patent License, Trademark License or Copyright License in full force and effect shall not have a Material Adverse Effect or (ii) for any of the foregoing which expire by their terms (as in effect on the date hereof) or are terminable at will by a person other than such Debtor.

 

(k)                                  Further Schedules

 

Such Debtor shall supplement Schedules 4, 5, 6 and 7 hereto to add Patents, Trademarks, Copyrights, Patent Licenses, Trademark Licenses and Copyright Licenses, which such Debtor shall acquire or grant or become aware of after the date hereof, other than any such Patent Licenses, Trademark Licenses and Copyright Licenses which are immaterial to the Debtor, and such supplements shall become part of such Schedules and such Debtor shall not be in breach of any of the representations herein if such Schedules are supplemented within 60 days of a request by the Security Trustee to update such Schedules.

 

(l)                                     Supplements

 

As requested by the Security Trustee on behalf of the Beneficiaries, such Debtor shall execute and deliver one or more supplements in the form attached hereto in respect of each registered United States Patent, Trademark and Copyright now or hereafter owned by such Debtor.

 

5.12                        Other Documents and Actions

 

Such Debtor will, from time to time, at its expense, promptly execute and deliver all further instruments and documents and take all further action that may be reasonably necessary or that

 

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Security Trustee may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Security Trustee or any Beneficiary to exercise and enforce its rights and remedies hereunder with respect to any Collateral.  Without limiting the generality of the foregoing, such Debtor will: (a) execute and file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary or desirable, or as the Security Trustee may reasonably request, in order to perfect and preserve the security interests granted or purported to be granted hereby; (b) at any reasonable time, upon demand by the Security Trustee made whilst an Event of Default is continuing exhibit the Collateral in such Debtor’s possession or control to allow inspection of the Collateral by the Security Trustee or persons designated by the Security Trustee; and (c) upon the Security Trustee’s request, appear in and defend any action or proceeding that may affect such Debtor’s title to or the Security Trustee’s security interest in the Collateral.

 

5.13                        Security Trustee Authorized

 

Such Debtor hereby authorizes the Security Trustee to file one or more financing or continuation statements, and amendments thereto, relating to all or any part of the Collateral without the signature of such Debtor to the extent permitted by law.  A photographic or other reproduction of this Security Agreement shall be sufficient as a financing statement or other filing or recording document or instrument for filing or recording in any jurisdiction.

 

5.14                        Corporate or Name Change

 

Such Debtor will notify the Security Trustee promptly in writing prior to any change in such Debtor’s name, identity or organizational structure.

 

5.15                        Business Locations

 

Such Debtor will give the Security Trustee thirty (30) days prior written notice of any change in such Debtor’s chief place of business, chief executive office or registered office.  With respect to any such change, such Debtor will execute such documents and take such actions as the Security Trustee reasonably deems necessary to perfect and protect the Security Interests in the Collateral prior to such change.

 

5.16                        Bailees

 

If any Collateral, with a value in excess of $20,000 is at any time in the possession or control of any warehouseman, bailee or any of such Debtor’s agents or processors, such Debtor shall, upon the request of the Security Trustee, (i) notify such warehouseman, bailee, agent or processor of the Security Interests created hereby, (ii) shall instruct such person to hold all such Collateral for the Security Trustee’s account subject to the Security Trustee’s instructions and (iii) use its reasonable endeavors to cause such person to enter into such agreements as to such Collateral as the Security Trustee may reasonably request.

 

5.17                        Instruments

 

Such Debtor will deliver and pledge to the Security Trustee on behalf of the Beneficiaries all Instruments (other than (i) promissory notes having individually a face value not in excess of

 

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$200,000, (ii) Cash Equivalents held in a deposit account or a securities account and subject to effective “control” by the Security Trustee; (iii) Instruments or Certificated Securities received in connection with bankruptcy or reorganization of suppliers and customers and in settlement of delinquent obligations of, and other disputes with, customers and suppliers in the ordinary course of business having individually a face amount of less than $200,000 in the case of Instruments or Certificated Securities subject to this clause (iii) and (iv) checks, drafts and similar forms of payment received in the ordinary course of business, having individually a face amount of less than $200,000, provided that the aggregate face amount of all promissory notes, Instruments, Certificated Securities and checks, drafts or similar forms of payment not delivered to the Security Trustee in reliance on this parenthetical shall at no time exceed $1,000,000) duly endorsed or accompanied by duly executed instruments of transfer or assignment, all in form and substance satisfactory to the Security Trustee.  While any Event of Default is continuing, such Debtor will mark conspicuously all chattel paper with a legend, in form and substance reasonably satisfactory to the Security Trustee, indicating that such chattel paper is subject to the Security Interests.

 

5.18                        Certificates of Title

 

If requested by the Security Trustee, such Debtor shall promptly deliver to the Security Trustee any and all certificates of title, applications for title or similar evidence of ownership of all Equipment and shall cause the Security Trustee to be named as lienholder on any such certificate of title or other evidence of ownership pursuant to this Section 5.18, provided however that such Debtor shall not be required to deliver such certificates of title, applications for title or similar evidence of ownership with respect to any Equipment having a value individually of less than $200,000, provided further that the aggregate value of all such Equipment excluded from the requirements of this Section 5.18 pursuant to the immediately preceding proviso does not exceed $1,000,000 in the aggregate.  Such Debtor shall promptly inform the Security Trustee of any additions to or deletions from Equipment in excess of $200,000 and shall not permit any such items to become fixtures to real estate other than real estate described in any mortgages or UCC fixture filings in favor of the Security Trustee.

 

5.19                        Account Covenants

 

Except as otherwise provided in this subsection 5.19, such Debtor shall continue to collect, at its own expense, all amounts due or to become due such Debtor under the Accounts, except for settlements and uncollectible Accounts in the ordinary course of business.  Debtor may use collection agents in this respect and may sell delinquent Accounts in the ordinary course of business.  In connection with such collections, such Debtor may take (and, at the Security Trustee’s direction, shall take) such action as such Debtor may reasonably deem necessary or advisable to enforce collection of the Accounts; provided, that the Security Trustee shall have the right at any time after the occurrence and during the continuation of an Event of Default to: (a) notify the customers or obligors under any Accounts of the assignment of such Accounts to the Security Trustee and to direct such customers or obligors to make payment of all amounts due or to become due directly to the Security Trustee; (b) enforce collection of any such Accounts (to the exclusion of such Debtor, except as the Security Trustee may otherwise agree in writing); and (c) adjust, settle or compromise the amount or payment of such Accounts.  After the occurrence and during the continuation of an Event of Default (i) all amounts and Proceeds

 

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(including Instruments) received by such Debtor with respect to the Accounts shall be received in trust for the benefit of the Security Trustee on behalf of the Beneficiaries, shall be segregated from other funds of such Debtor and shall be forthwith paid over to the Security Trustee in the same form as so received (with any necessary endorsement) and (ii) such Debtor shall not adjust, settle or compromise the amount or payment of any Account, or release wholly or partly any customer or obligor thereof, or allow any credit or discount thereon, other than trade discounts granted in the ordinary course of business or with respect to immaterial Accounts, in each case, without the prior consent of the Security Trustee.

 

5.20                        Equipment Covenants

 

Such Debtor shall cause such Equipment as is necessary and material to the conduct of its business to be maintained and preserved in good working order and condition, as is necessary and material to the condition of its business, ordinary wear and tear excepted, and shall promptly make or cause to be made all repairs, replacements, and other improvements in connection therewith that are necessary or desirable to such end.

 

5.21                        Insurance

 

Such Debtor shall maintain insurance with respect to the Collateral in accordance with the terms of the Relevant Facilities Agreement.

 

5.22                        Taxes and Claims

 

Such Debtor will pay promptly when due all property and other taxes, assessments and governmental charges or levies imposed upon, and all claims against, the Collateral (including claims for labor, materials and supplies), except to the extent the validity thereof is being contested in good faith and in any event for which no Encumbrance has attached to any Collateral.

 

5.23                        Collateral Description

 

Such Debtor will furnish to the Security Trustee, from time to time, statements and Schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Security Trustee may reasonably request, all in reasonable detail.

 

5.24                        Use of Collateral

 

Such Debtor will not use or permit any Collateral to be used, sold, possessed, dispensed or disposed of unlawfully or in violation of any provision of this Security Agreement or where such use, sale, possession, dispensation or disposal would have a material adverse effect on said Debtor’s business, operations, property or condition in violation of any applicable statute, regulation or ordinance or of any license, permit or registration of such Debtor or any of its affiliates or subsidiaries or any policy of insurance covering any of the Collateral.

 

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5.25                        Records of Collateral

 

Such Debtor shall keep books and records full and accurate in all material respects relating to the Collateral and shall stamp or otherwise mark such books and records in such manner as the Security Trustee may reasonably request indicating that the Collateral is subject to the Security Interests.

 

5.26                        Other Information

 

Such Debtor will, promptly upon request, provide to the Security Trustee all information and evidence it may reasonably request concerning the Collateral, and in particular the Accounts, to enable the Security Trustee to enforce the provisions of this Security Agreement.

 

5.27                        Modification of Agreements, Etc.

 

Such Debtor will not, without the prior written consent of the Security Trustee acting on the instructions of an Instructing Party, execute any document or instrument or take any other action of any kind which would be, or result in, an Event of Default.

 

5.28                        Delivery of Documents, Etc.

 

Upon the receipt of a notice from the Security Trustee the Debtor shall be required to deliver to the Security Trustee any certificate, document, application for title, evidence of ownership or instrument specified in subsections 5.11(e) (Additional Patents, Trademarks and Copyrights), 5.12 (Other Documents and Actions), 5.17 (Instruments) or 5.18 (Certificates of Title) or make any payment specified in 5.19 (Account Covenants).

 

5.29                        Legal Names; Type of Organization (and Whether a Registered Organization and/or a Transmitting Utility); Jurisdiction of Organization; Location; Organizational Identification Numbers; Changes Thereto; etc.

 

The exact legal name of each Debtor, the type of organization of such Debtor, whether or not such Debtor is a Registered Organization, the jurisdiction of organization of such Debtor, such Debtor’s Location, the organizational identification number (if any) of such Debtor, and whether or not such Debtor is a Transmitting Utility, is listed on Schedule 2 hereto for such Debtor.  Such Debtor shall not change its legal name, its type of organization, its status as a Registered Organization (in the case of a Registered Organization), its status as a Transmitting Utility or as a person which is not a Transmitting Utility, as the case may be, its jurisdiction of organization, its Location, or its organizational identification number (if any) from that used on Schedule 2 hereto, except that any such changes shall be permitted (so long as not in violation of the applicable requirements of the Senior Finance Documents and so long as same do not involve (x) a Registered Organization ceasing to constitute same or (y) such Debtor changing its jurisdiction of organization or Location from the United States or a State thereof to a jurisdiction of organization or Location, as the case may be, outside the United States or a State thereof) if (i) it shall have given to the Security Trustee  not less than 15 days’ prior written notice of each change to the information listed on Schedule 2 (as adjusted for any subsequent changes thereto previously made in accordance with this sentence), together with a supplement to Schedule 2 which shall correct all information contained therein for such Debtor, and (ii) in connection with

 

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the respective such change or changes, it shall have taken all action reasonably requested by the Security Trustee to maintain the security interests of the Security Trustee in the Collateral intended to be granted hereby at all times fully perfected and in full force and effect.  In addition, to the extent that such Debtor does not have an organizational identification number on the date hereof and later obtains one, such Debtor shall promptly thereafter notify the Security Trustee of such organizational identification number and shall take all actions reasonably satisfactory to the Security Trustee to the extent necessary to maintain the security interest of the Security Trustee in the Collateral intended to be granted hereby fully perfected and in full force and effect.

 

5.30                        Recourse

 

This Security Agreement is made with full recourse to each Debtor and pursuant to and upon all the warranties, representations, covenants and agreements on the part of such Debtor contained herein, in the Senior Finance Documents and otherwise in writing in connection herewith or therewith.

 

6.                                      SECURED PARTY APPOINTED ATTORNEY-IN-FACT

 

Each Debtor hereby irrevocably appoints the Security Trustee as such Debtor’s attorney-in-fact, with full authority, upon the occurrence and during the continuation of an Event of Default, in the place and stead of such Debtor and in the name of such Debtor, Security Trustee or otherwise, from time to time in the Security Trustee’s reasonable discretion to take any action and to execute any instrument that the Security Trustee may deem necessary or advisable to accomplish the purposes of this Security Agreement, including, without limitation:

 

(a)                                  to obtain and adjust insurance in respect of or constituting any Collateral;

 

(b)                                 to ask, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral;

 

(c)                                  to receive, endorse, and collect any drafts or other instruments, securities, documents and chattel paper, in connection with clauses (a) and (b) above;

 

(d)                                 to file any claims or take any action or institute any proceedings that the Security Trustee may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of the Security Trustee or any Beneficiary with respect to any of the Collateral;

 

(e)                                  to pay or discharge taxes or Encumbrances, levied or placed upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary to discharge the same to be determined by the Security Trustee in its sole discretion, and such payments made by the Security Trustee to become Obligations of such Debtor, due and payable immediately without demand;

 

(f)                                    to sign and endorse any invoices, freight or express bills, bills of lading, storage or warehouse receipts, assignments, verifications and notices in connection with Accounts and other documents (including without limitation financing statements, continuation

 

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statements and other documents necessary or advisable to perfect the Security Interests) relating to the Collateral; and

 

(g)                                 generally to sell, transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though the Security Trustee were the absolute owner thereof for all purposes, and to do, at the Security Trustee’s option and such Debtor’s expense, at any time or from time to time, all acts and things that the Security Trustee reasonably deems necessary to protect, preserve or realize upon the Collateral.

 

Each Debtor hereby ratifies and approves all acts of the Security Trustee made or taken pursuant to this Section 6 (provided, that, such Debtor does not, by virtue of such ratification, release any claim that such Debtor may otherwise have against the Security Trustee for any such acts made or taken by the Security Trustee through gross negligence or willful misconduct).  Neither the Security Trustee nor any person designated by the Security Trustee shall be liable for any acts or omissions or for any error of judgment or mistake of fact or law, except acts or omissions resulting from the Security Trustee’s gross negligence or willful misconduct.  This power, being coupled with an interest, is irrevocable so long as this Security Agreement shall remain in force.

 

7.                                      SECURED PARTY’S DUTIES OF REASONABLE CARE; INDEMNIFICATION

 

7.1                               Beyond the safe custody thereof, the Security Trustee shall have no duty with respect to any Collateral in its possession or control (or in the possession or control of any agent or bailee) or with respect to any income thereon or the preservation of rights against prior parties or any other rights pertaining thereto.  Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which it accords its own property.  Security Trustee shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any warehouseman, carrier, forwarding agency, consignee or other agent or bailee selected by the Security Trustee in good faith.

 

7.2                               Except as hereinabove specifically set forth, the Security Trustee shall have no further obligation to ascertain the occurrence of, or to notify any Debtor with respect to, any matters relating to any Collateral and shall not be deemed to assume any such further obligation as a result of the establishment by the Security Trustee of any internal procedures with respect to any Collateral in its possession, nor shall the Security Trustee be deemed to assume any other responsibility for, or obligation or duty with respect to, any Collateral, or its use, of any nature or kind, or any matter or proceedings arising out of or relating thereto, including, without limitation, any obligation or duty to take any action to collect, preserve or protect its or any Debtor’s rights in the Collateral or against any prior parties thereto, but the same shall be at any Debtor’s sole risk and responsibility at all times.

 

7.3                               Each Debtor hereby releases the Security Trustee, each Beneficiary and their respective officers, shareholders, directors, employees and agents (each, an “Indemnified Party”) from any claims, causes of action and demands at any time arising out of or with respect

 

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to this Security Agreement, the Obligations, the Collateral and its use and/or any actions taken or omitted to be taken by such Indemnified Party with respect thereto (except such claims, causes of action and demands arising from the bad faith, gross negligence or willful misconduct of such Indemnified Party) and such Debtor hereby agrees to hold each Indemnified Party harmless from and with respect to any and all such claims, causes of action and demands (except such claims, causes of action and demands arising from the gross negligence or willful misconduct of such Indemnified Party).

 

8.                                      TRANSFERS AND OTHER LIENS

 

8.1                               Except as otherwise permitted or not restricted by the Senior Finance Documents, each Debtor shall not:

 

(a)                                  sell, assign (by operation of law or otherwise) or otherwise dispose of, or grant any option with respect to, any of the Collateral, except that such Debtor may sell Inventory in the ordinary course of business.

 

(b)                                 create or suffer to exist any Encumbrance upon or with respect to any of the Collateral to secure indebtedness of any person except for the security interest created by this Security Agreement and Encumbrances permitted under the Senior Finance Documents.

 

9.                                      REMEDIES

 

(a)                                  If the Enforcement Date shall have occurred, the Security Trustee may exercise in respect of the Collateral, in addition to all other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party on default under the UCC (whether or not the UCC applies to the affected Collateral) and also may: (a) require each Debtor to, and such Debtor hereby agrees that it will, at its expense and upon request of the Security Trustee forthwith, assemble all or part of the Collateral as directed by the Security Trustee and make it available to the Security Trustee at a place to be designated by the Security Trustee which is reasonably convenient to both parties; (b) without notice or demand or legal process, enter upon any premises of such Debtor and take possession of the Collateral; (c) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels at public or private sale, at any of the Security Trustee’s offices or elsewhere, at such time or times, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable; (d) to the exclusion of such Debtor, make demand, collect, enforce and exercise or refrain from exercising any and all rights and remedies of such Debtor under all Accounts, Instruments, General Intangibles, Investment Property and other intangible Collateral (e) instruct the obligor or obligors on any agreement, instrument or other obligation (including, without limitation, the Accounts) constituting the Collateral to make any payment required by the terms of such agreement, instrument or other obligation directly to the Security Trustee and may exercise any and all remedies of such Debtor in respect of such Collateral, (f) license or sublicense, whether on an exclusive or nonexclusive basis, any Trademarks, Internet domain names and associated URL addresses, Patents or Copyrights included in the Collateral for such term and on such conditions and in such

 

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manner as the Security Trustee shall in its sole judgment determine, (g) apply any monies constituting Collateral or proceeds thereof in accordance with the provisions of Section 11; and (h) take any other action as specified in clauses (1) through (5), inclusive, of Section 9-607 of the UCC.  Each Debtor agrees that, to the extent notice of sale shall be required by law, at least ten days notice to such Debtor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification.  At any sale of the Collateral, if permitted by law, the Security Trustee may bid (which bid may be, in whole or in part, in the form of cancellation of indebtedness) for the purchase of the Collateral or any portion thereof for the account of the Beneficiaries.  The Security Trustee shall not be obligated to make any sale of Collateral regardless of notice of sale having been given.  the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.  To the extent permitted by law, each Debtor hereby specifically waives all rights of redemption, stay or appraisal which it has or may have under any law now existing or hereafter enacted.

 

10.                               LICENSE OF INTELLECTUAL PROPERTY

 

Each Debtor hereby assigns, transfers and conveys to the Security Trustee effective upon the occurrence and during the continuation of any Event of Default, the nonexclusive right and license to use, to the extent permitted by the terms of the license, all material Trademarks, Patents and Copyrights owned or used by such Debtor together with any goodwill associated therewith, all to the extent necessary to enable the Security Trustee to realize on the Collateral and any successor or assign to enjoy the benefits of the Collateral.  This right and license shall inure to the Security Trustee and its successors, assigns and transferees, whether by voluntary conveyance, operation of law, assignment, transfer, foreclosure, deed in lieu of foreclosure or otherwise.  Such right and license is granted free of charge, without requirement that any monetary payment whatsoever be made to such Debtor by the Security Trustee.

 

11.                               APPLICATION OF PROCEEDS

 

(a)                                  All monies collected by the Security Trustee upon any sale or other disposition of the Collateral pursuant to the terms of this Security Agreement, together with all other monies received by the Security Trustee hereunder, shall be applied in the manner provided in the Group Intercreditor Deed and the Security Trust Agreement.

 

(b)                                 It is understood and agreed that each Debtor shall remain jointly and severally liable with respect to its Obligations to the extent of any deficiency between the amount of the proceeds of the Collateral pledged by it hereunder and the aggregate amount of such Obligations, provided that before any demand for payment by the Security Trustee is made on any Debtor that is a Restricted Guarantor, demand for payment of the relevant Obligation shall first have been made on the Borrower from which such unpaid Obligation is due (if any).

 

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12.                               EXPENSES

 

Each Debtor shall pay all insurance expenses and all reasonable expenses of protecting, storing, warehousing, insuring, handling, maintaining and shipping the Collateral, all reasonable costs, fees and expenses of perfecting and maintaining the Security Interests, and any and all excise, property, sales and use taxes imposed by any state, federal or local authority on any of the Collateral to the extent required under the Senior Finance Document, or with respect to the sale or other disposition thereof.  If such Debtor fails promptly to pay any portion of the above expenses when due or to perform any other obligation of such Debtor under this Security Agreement, the Security Trustee may, at its option, but shall not be required to, pay or perform the same and charge such Debtor for all costs and expenses incurred therefor, and such Debtor agrees to reimburse the Security Trustee therefore on demand.  All sums so paid or incurred by the Security Trustee for any of the foregoing, any and all other sums for which such Debtor may become liable hereunder and all reasonable costs and expenses (including reasonable attorneys’ fees, legal expenses and court costs) incurred by the Security Trustee in enforcing or protecting the Security Interests or any of its rights or remedies under this Security Agreement shall be payable by such Debtor on demand, shall constitute Secured Obligations, shall bear interest until paid at the rate applicable to the Advance under the Relevant Facilities Agreement.

 

13.                               TERMINATION OF SECURITY INTERESTS; RELEASE OF COLLATERAL

 

(a)                                  On the Termination Date, this Security Agreement shall terminate (provided that all indemnities set forth herein including, without limitation, in Section 7.3 hereof shall survive any such termination) and the Security Trustee, at the request and expense of such Debtor, will execute and deliver to such Debtor a proper instrument or instruments acknowledging the satisfaction and termination of this Security Agreement, and will duly release from the security interest created hereby and assign, transfer and deliver to such Debtor (without recourse and without any representation or warranty) such of the Collateral as may be in the possession of the Security Trustee and as has not theretofore been sold or otherwise applied or released pursuant to this Security Agreement, together with any moneys at the time held by the Security Trustee.  As used in this Security Agreement, “Termination Date” shall mean the date upon which the Commitments under the Senior Finance Documents have been terminated, no Documentary Credit (as defined in the Relevant Facilities Agreement) is outstanding (and all Advances have been paid in full), all Documentary Credits have been terminated, and all other Obligations (other than indemnities described in the Senior Finance Documents which are not then due and payable) then due and payable have been paid in full.

 

(b)                                 In the event that any part of the Collateral is sold or otherwise disposed of to a person other than an Obligor and (x) such disposal is permitted or not restricted under any of the Senior Finance Documents, or (y) is otherwise released with the consent of the Instructing Party in accordance with the terms of the Group Intercreditor Deed, and in the case of clauses (x) and (y), the proceeds of such sale or disposition (or from such release) are applied in accordance with the terms of the Senior Finance Documents to the extent required to be so applied, the

 

25



 

Security Trustee, at the request and expense of such Debtor, will duly release from the security interest created hereby (and will execute and deliver such documentation, including termination or partial release statements and the like in connection therewith) and assign, transfer and deliver to such Debtor (without recourse and without any representation or warranty) such of the Collateral as is then being (or has been) so sold or released and as may be in the possession of the Security Trustee and has not theretofore been released pursuant to this Security Agreement.

 

(c)                                  At any time that any Debtor desires that Collateral be released as provided in the foregoing Section 13(a) or (b), it shall deliver to the Security Trustee a certificate signed by an authorized officer of such Debtor stating that the release of the respective Collateral is permitted pursuant to Section 13(a) or (b) hereof.  If reasonably requested by the Security Trustee (although the Security Trustee shall have no obligation to make any such request), such Debtor shall furnish appropriate legal opinions (from counsel, reasonably acceptable to the Security Trustee) to the effect set forth in the immediately preceding sentence.

 

(d)                                 The Security Trustee shall have no liability whatsoever to any other Beneficiary as the result of any release of Collateral by it in accordance with (or which the Security Trustee in good faith believes to be in accordance with) this Section 13.

 

14.                               ADMISSIBILITY OF SECURITY AGREEMENT

 

Each Debtor agrees that any copy of this Security Agreement signed by such Debtor and transmitted by telecopier for delivery to the Security Trustee shall be admissible in evidence as the original itself in any judicial or administrative proceeding, whether or not the original is in existence.

 

15.                               NOTICES

 

All notices, approvals, requests, demands and other communications hereunder shall be given in accordance with the notice provision of the Group Intercreditor Deed.

 

16.                               WAIVERS, NON-EXCLUSIVE REMEDIES

 

Security Trustee’s prior recourse to any Collateral shall not constitute a condition of any demand, suit or proceeding for payment or collection of the Obligations.  No act, omission or delay (other than an express written waiver) by the Security Trustee or any Beneficiary shall constitute a waiver of its rights and remedies hereunder or otherwise.  No single or partial waiver by the Security Trustee or any Beneficiary of any default hereunder or right or remedy which it may have shall operate as a waiver of any other default, right or remedy or of the same default, right or remedy on a future occasion.

 

26



 

17.                               SECURITY INTEREST ABSOLUTE

 

All rights of the Security Trustee and the Beneficiaries, all of the Security Interests hereunder, and all of the obligations of each Debtor hereunder, shall be absolute and unconditional, irrespective of:

 

(a)                                  any lack of validity, legality or enforceability of any of the Senior Finance Documents or any other agreement or instrument relating thereto or any provision or provisions herein or therein;

 

(b)                                 any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations or any other amendment or waiver of or any consent to any departure from any of the Senior Finance Documents;

 

(c)                                  any exchange, release or non-perfection of any other Collateral, or any release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Obligations; or

 

(d)                                 any other circumstance which might otherwise constitute a defense available to, or a discharge of, such Debtor or a third party grantor of a security interest.

 

18.                               SUCCESSORS AND ASSIGNS

 

This Security Agreement is for the benefit of Security Trustee and each Beneficiary and its successors and assigns, and in the event of an assignment of all or any of the Secured Obligations, the rights hereunder, to the extent applicable to the Obligations so assigned, may be transferred with such Obligations.  Each Debtor may not assign its obligations under this Security Agreement to any person.  Subject to the foregoing, this Security Agreement shall be binding on each Debtor and its successors and permitted assigns.

 

19.                               CHANGES IN WRITING

 

No amendment, modification, termination or waiver of any provision of this Security Agreement or consent to any departure by any Debtor therefrom, shall in any event be effective without the written concurrence of the Security Trustee acting on the instructions of an Instructing Party and such Debtor.

 

20.                               APPLICABLE LAW

 

THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD, TO THE FULLEST EXTENT PERMITTED BY LAW, TO ANY CONFLICT OF LAWS RULES WHICH MIGHT RESULT IN THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION.

 

21.                               WAIVER OF JURY TRIAL AND SETOFF; CONSENT TO JURISDICTION; ETC.

 

21.1                        In any litigation in any court with respect to, in connection with, or arising out of this Security Agreement, the Collateral, or any other Senior Finance Document or

 

27



 

any instrument or document delivered pursuant to this Security Agreement, or the validity, protection, interpretation, collection or enforcement thereof, or any other claim or dispute howsoever arising, between any Debtor, on the one hand and the Beneficiaries or the Security Trustee, on the other hand, such Debtor, to the fullest extent it may effectively do so, (i) waives the right to interpose any setoff, recoupment, counterclaim or cross-claim in connection with any such litigation, irrespective of the nature of such setoff, recoupment, counterclaim or cross-claim, unless such setoff, recoupment, counterclaim or cross-claim could not, by reason of any applicable Federal or State procedural laws, be interposed, pleaded or alleged in any other action and (ii) WAIVES TRIAL BY JURY IN CONNECTION WITH ANY SUCH LITIGATION.  EACH DEBTOR AGREES THAT THIS SECTION 21 IS A SPECIFIC AND MATERIAL ASPECT OF THIS SECURITY AGREEMENT AND ACKNOWLEDGES THAT THE  BENEFICIARIES WOULD NOT EXTEND TO ANY OBLIGORS ANY FACILITIES UNDER THE RELEVANT FACILITIES AGREEMENT OR ANY SERIES OF LIABILITIES UNDER ANY OTHER SENIOR FINANCE DOCUMENT IF THIS SECTION 21 WERE NOT PART OF THIS SECURITY AGREEMENT.

 

21.2                        Each Debtor hereby irrevocably consents to the jurisdiction of the courts of the State of New York and of any Federal Court located in the State of New York, in connection with any action or proceeding arising out of or relating to this Security Agreement, the Collateral, or any other Senior Finance Document or any document or instrument delivered pursuant to this Security Agreement.  In any such litigation, each Debtor waives, to the fullest extent it may effectively do so, personal service of any summons, complaint or other process and agrees that the service thereof may be made by certified or registered mail directed to such Debtor at its address set forth below its signature herein.  Each Debtor hereby waives, to the fullest extent it may effectively do so, the defenses of forum non conveniens and improper venue.

 

22.                               SURVIVAL

 

All representations and warranties of any Debtor contained in this Security Agreement shall survive the making, execution and delivery of this Security Agreement.

 

23.                               HEADINGS

 

Section and subsection headings in this Security Agreement are included herein for convenience of reference only and shall not constitute a part of this Security Agreement for any other purpose or be given any substantive effect.

 

24.                               COUNTERPARTS

 

This Security Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Security Agreement by signing any such counterpart.

 

28



 

25.                               FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE

 

No failure or delay on the part of the Security Trustee or any Beneficiary in the exercise of any power, right or privilege hereunder shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or any other right, power or privilege.  All rights and remedies existing under this Security Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

26.                               SEVERABILITY

 

If any term of this Security Agreement shall be held to be invalid, illegal or unenforceable, the validity of all other terms hereof shall in no way be affected thereby.

 

27.                               ACKNOWLEDGEMENT OF RECEIPT

 

Each Debtor acknowledges receipt of a copy of this Security Agreement.

 

28.                               AMENDMENT AND RESTATEMENT

 

This Security Agreement shall amend and restate in its entirety the Original Security Agreement, and all obligations of the Debtors thereunder shall be deemed replaced and extended as obligations under this Security Agreement and be governed hereby without novation.  In no event shall such amendment and restatement be construed as a termination of the obligations under the Original Security Agreement.

 

[Remainder of this page intentionally left blank; signature pages follow]

 

29


 

IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Security Agreement as of the date first written above.

 

NNS U.K. HOLDINGS 1 LLC

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

NNS U.K. HOLDINGS 2, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NORTH CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

NORTH CABLECOMMS L.L.C.

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

NORTH CABLECOMMS MANAGEMENT, INC.

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 



 

NTL BROMLEY COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

NTL CABLECOMMS GROUP, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

NTL CHARTWELL HOLDINGS, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL CHARTWELL HOLDINGS 2, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL NORTH CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 



 

NTL NORTH CABLECOMMS MANAGEMENT, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL PROGRAMMING SUBSIDIARY COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL SOLENT COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL SOUTH CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL SOUTH CABLECOMMS MANAGEMENT, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 



 

NTL SURREY COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL SUSSEX COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL UK CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

NTL WESSEX COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

NTL WINSTON HOLDINGS, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 



 

NTL WIRRAL COMPANY

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

SOUTH CABLECOMMS HOLDINGS, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

SOUTH CABLECOMMS MANAGEMENT, INC.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

SOUTH CABLECOMMS L.L.C.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 

 

 

 

WINSTON INVESTORS L.L.C.

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 



 

CHARTWELL INVESTORS L.P.

 

 

 

 

By:

Its General Partner

 

 

 

 

 

NTL Chartwell Holdings Limited

 

 

 

 

 

By:

Its Director

 

 

 

 

 

 

 

Virgin Media Directors Limited

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Name: Robert Gale

 

 

 

Title: Director

 

 

 

 

 

NTL (TRIANGLE) LLC

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

Name: Robert Gale

 

Title: Vice President

 

 



 

Accepted and Agreed:

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

 

 

as Security Trustee

 

 

 

 

 

 

 

By:

/s/ N. DAWES

 

Name: N. Dawes

 

Title: V.P.

 

 

 

 

 

 

 

By:

/s/ V. MAYELL

 

Name: V. Mayell

 

Title: A.V.P.

 

 



 

SCHEDULE 1

 

LOCATIONS OF BOOKS AND RECORDS, CHIEF PLACE OF BUSINESS, CHIEF EXECUTIVE OFFICE

 

Chief Executive Office:

c/o Virgin Media Limited

 

 

160 Great Portland Street

 

 

London W1W 5QA

 

 

 

 

Chief Place of Business:

c/o Virgin Media Limited

 

 

160 Great Portland Street

 

 

London W1W 5QA

 

 

 

 

Telephone:

020 7299 5000

 

 

 

 

Locations of Equipment, Inventory, Books and Records, Other locations:

 

 

 

 

Books and Records:

c/o Virgin Media Limited

 

 

160 Great Portland Street

 

 

London W1W 5QA

 

 


 

SCHEDULE 2

 

LEGAL NAMES, TYPE OF ORGANIZATION (AND WHETHER A REGISTERED ORGANIZATION AND/OR A TRANSMITTING UTILITY), JURISDICTION OF ORGANIZATION, LOCATION AND ORGANIZATION IDENTIFICATION NUMBERS

 

Exact Legal Name
of the Debtor

 

Type of
Organization

 

Registered
Organization?
(Yes/No)

 

Jurisdiction of
Organization

 

Debtor’s
Location (for
purposes of NY
UCC § 9-307)

 

Debtor’s
Organization
Identification
Number (or, if it
has none, so
indicate)

 

Transmitting
Utility?
(Yes/No)

 

 

 

 

 

 

 

 

 

 

 

 

 

NNS U.K. Holdings 1 LLC

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

2477818

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NNS U.K. Holdings 2, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2477819

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

North CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2341830

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

North CableComms L.L.C.

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

2442461

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

North CableComms Management, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2341826

 

No

 

38


 

NTL Bromley Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292401

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL CableComms Group, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2478255

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Chartwell Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2362805

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Chartwell Holdings 2, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2489841

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2352712

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL North CableComms Management, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2352711

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Programming Subsidiary Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2312702

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Solent Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292413

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2362810

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL South CableComms Management, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2362807

 

No

 


 

NTL Surrey Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292418

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Sussex Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292412

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL UK CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2494571

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Wessex Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292403

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Winston Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2341828

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

NTL Wirral Company

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2292402

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

South CableComms Holdings, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2485991

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

South CableComms Management, Inc.

 

Corporation

 

Yes

 

Delaware

 

Delaware

 

2485989

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

South CableComms L.L.C.

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

2491764

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

Winston Investors L.L.C.

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

2462336

 

No

 

 

 

 

 

 

 

 

 

 

 

 

 

Chartwell Investors L.P.

 

Limited Partnership

 

Yes

 

Delaware

 

Delaware

 

2366169

 

No

 



 

NTL (Triangle) LLC

 

Limited Liability Company

 

Yes

 

Delaware

 

Delaware

 

3125387

 

No

 


 

SCHEDULE 3

 

TRADE-NAMES AND FICTITIOUS NAMES
(PRESENT AND PAST FIVE YEARS)

 

None.

 



 

SCHEDULE 4

 

TRADEMARK REGISTRATIONS

 

None.

 



 

SCHEDULE 5

 

PATENTS

 

None.

 



 

SCHEDULE 6

 

COPYRIGHTS

 

None.

 



 

SCHEDULE 7

 

LICENSES

 

None.

 



 

SUPPLEMENT TO AMENDED AND RESTATED SECURITY AGREEMENT

 

(PATENTS)

 

WHEREAS, [          ], a Delaware corporation (herein referred to as “Debtor”), whose address is [          ], owns the letters patent, and/or applications for letters patent, of the United States of America, more particularly described on Schedule 1-A annexed hereto as part hereof (the “Patents”);

 

WHEREAS, Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited), and Virgin Media Dover LLC (formerly known as NTL Dover LLC), as Borrowers, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International, as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch, as US Paying Agent, GE Corporate Banking Europe SAS, as Administrative Agent, Deutsche Bank AG, London Branch, as Original L/C Bank and the persons named therein as Lenders have entered into a Senior Facilities Agreement dated 3 March 2006 (as such agreement may be modified, supplemented, amended or restated from time to time (the “Senior Facilities Agreement”).  Pursuant to a Security Trust Agreement dated March 3, 2006 and amended and restated as of [                            ], 2010, the Security Trustee has been appointed and is serving as trustee for the Beneficiaries, as defined therein;

 

WHEREAS, Debtor has entered into an Amended and Restated Security Agreement (said Agreement, as it may hereafter be amended or otherwise modified from time to time being the “Security Agreement”, the terms defined therein and not otherwise defined herein being used herein as therein defined) in favor of the Security Trustee for the benefit of the Beneficiaries.  It is a requirement of the Relevant Facilities Agreement that Debtor execute and deliver the Security Agreement; and

 

WHEREAS, pursuant to the Security Agreement, Debtor has granted to the Security Trustee for the benefit of the Beneficiaries a security interest in all right, title and interest of Debtor in and to the Patents, together with all registrations and recordings thereof, including, without limitation, applications, registrations and recordings in the United States Patent and Trademark Office or in any similar office or agency of the United States of America, any State thereof or any other country or any political subdivision thereof, all whether now or hereafter owned or licensable by Debtor, and all reissues, continuations, continuations-in-part, term restorations or extensions thereof and all proceeds thereof, including, without limitation, any claims by Debtor against third parties for infringement thereof for the full term of the Patents (the “Collateral”), to secure the prompt payment, performance and observance of the Obligations (as defined in the Security Agreement);

 

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, Debtor does hereby further confirm, and put on the public record, its grant to the Security Trustee for the benefit of the Beneficiaries a security interest in the Collateral to secure the prompt payment, performance and observance of the Obligations.

 



 

Debtor does hereby further acknowledge and affirm that the rights and remedies of the Security Trustee with respect to the grant of and security interest in the Collateral made hereby are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.

 

Security Trustee’s address is

 

Address:

 

 

Attention:

Fax:

 



 

IN WITNESS WHEREOF, Debtor has duly executed or caused this Supplement to Amended and Restated Security Agreement to be duly executed as of the [          ], 20    .

 

[          ]

 

By:

 

 

 

Name:

 

 

Title:

 

 



 

STATE OF

)

 

 

 

)  :

 

 

COUNTY OF

)

 

On this          day of                       , 20    , before me personally appeared                               , to me known, who, being by me duly sworn, did depose and say that he/she resides at                                                      and that he/she is                              of Debtor; that he/she knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was affixed pursuant to authority of the Board of Directors of said corporation and that he/she signed his/her name thereto in his/her capacity as an authorized officer of said corporation pursuant to such authority.

 


 

Notary Public

 



 

Schedule 1-A to the SUPPLEMENT TO AMENDED AND RESTATED SECURITY AGREEMENT

 

PATENTS

 

Title

 

Date Filed or Granted

 

Serial No. or Patent No.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

SUPPLEMENT TO AMENDED AND RESTATED SECURITY AGREEMENT

 

(TRADEMARKS)

 

WHEREAS, [          ], a Delaware corporation (herein referred to as “Debtor”), having an address at [          ], (1) has adopted, used and is using, or (2) has intended to use and filed an application indicating that intention, but has not yet filed an allegation of use under Section l(c) or l(d) of the Trademark Act, or (3) has filed an application based on an intention to use and has since used and has filed an allegation of use under [Section l(c) or l(d)] of the Trademark Act, the trademarks, trade names, trade styles and service marks listed on the annexed Schedule 2-A, which trademarks, trade names, trade styles and service marks are registered in the United States Patent and Trademark Office (the “Trademarks”); and

 

WHEREAS, Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited), and Virgin Media Dover LLC (formerly known as NTL Dover LLC), as Borrowers, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International, as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch, as US Paying Agent, GE Corporate Banking Europe SAS, as Administrative Agent, Deutsche Bank AG, London Branch, as Original L/C Bank and the persons named therein as Lenders have entered into a Senior Facilities Agreement dated 3 March 2006 (as such agreement may be modified, supplemented, amended or restated from time to time (the “Senior Facilities Agreement”).  Pursuant to a Security Trust Agreement dated March 3, 2006 and amended and restated as of [                            ], 2010, the Security Trustee has been appointed and is serving as trustee for the Beneficiaries, as defined therein;

 

WHEREAS, Debtor has entered into an Amended and Restated Security Agreement (said Agreement, as it may hereafter be amended or otherwise modified from time to time being the “Security Agreement”, the terms defined therein and not otherwise defined herein being used herein as therein defined) in favor of the Security Trustee for the benefit of the Beneficiaries.  It is a requirement of the Relevant Facilities Agreement that Debtor execute and deliver the Security Agreement; and

 

WHEREAS, pursuant to the Security Agreement, Debtor has granted to Security Trustee for the benefit of the Beneficiaries a security interest in all right, title and interest of Debtor in and to the Trademarks, together with all prints and labels on which said Trademarks have appeared or appear, designs and general intangibles of like nature, now existing or hereafter adopted or acquired, and the goodwill of the business symbolized by the Trademarks and the applications, registrations and recordings in the United States Patent and Trademark Office or in any similar office or agency of the United States of America, any State thereof, or any other country or any political subdivision thereof, all whether now or hereafter owned or licensable by Debtor, and all reissues, extensions or renewals thereof and all proceeds thereof, including, without limitation, any claims by Debtor against third parties for infringement thereof (the “Collateral”), to secure the payment, performance and observance of the Obligations (as defined in the Security Agreement);

 



 

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, Debtor does hereby further confirm, and put on the public record, its grant to the Security Trustee for the benefit of the Beneficiaries a security interest in the Collateral to secure the prompt payment, performance and observance of the  Obligations.

 

Debtor does hereby further acknowledge and affirm that the rights and remedies of the Security Trustee with respect to the grant of, security interest in and mortgage on the Collateral made hereby are more fully set forth in the Security Agreement; the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.

 

The Security Trustee’s address is:

 

Address:

 

 

Attention:

Fax:

 



 

IN WITNESS WHEREOF, Debtor has duly executed or caused this Supplement to Amended and Restated Security Agreement to be duly executed as of [          ], 20    .

 

[          ]

 

By:

 

 

 

Name:

 

 

Title:

 

 



 

STATE OF

)

 

 

 

)  :

 

 

COUNTY OF

)

 

On this          day of                   , 20    , before me personally appeared                         , to me known, who, being by me duly sworn, did depose and say that he/she resides at                                                  and that he/she is                            of Debtor; that he/she knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was affixed pursuant to authority of the Board of Directors of said corporation and that he/she signed his/her name thereto in his/her capacity as an authorized officer of said corporation pursuant to such authority.

 


 

Notary Public

 



 

Schedule 2-A to the SUPPLEMENT TO AMENDED AND RESTATED SECURITY AGREEMENT

 

TRADEMARKS

 

Trademark

 

Application or
Registration Date

 

Application Serial No.
or Registration No.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

SUPPLEMENT TO AMENDED AND RESTATED SECURITY AGREEMENT

 

(COPYRIGHTS)

 

WHEREAS, [          ], a [          ] corporation (herein referred to as “Debtor”), having an address at [          ] has adopted, used and is using the copyrights listed on the annexed Schedule 3-A, which copyrights are registered in the United States Copyright Office (the “Copyrights”);

 

WHEREAS, Virgin Media Inc., Virgin Media Finance PLC, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Network Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited), and Virgin Media Dover LLC (formerly known as NTL Dover LLC), as Borrowers, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International, as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch, as US Paying Agent, GE Corporate Banking Europe SAS, as Administrative Agent, Deutsche Bank AG, London Branch, as Original L/C Bank and the persons named therein as Lenders have entered into a Senior Facilities Agreement dated 3 March 2006 (as such agreement may be modified, supplemented, amended or restated from time to time (the “Senior Facilities Agreement”).  Pursuant to a Security Trust Agreement dated March 3, 2006 and amended and restated as of [                            ], 2010, the Security Trustee has been appointed and is serving as trustee for the Beneficiaries, as defined therein;

 

WHEREAS, Debtor has entered into an Amended and Restated Security Agreement (said Agreement, as it may hereafter be amended or otherwise modified from time to time being the “Security Agreement”, the terms defined therein and not otherwise defined herein being used herein as therein defined) in favor of the Security Trustee for the benefit of the Beneficiaries.  It is a requirement of the Relevant Facilities Agreement that Debtor execute and deliver the Security Agreement; and

 

WHEREAS, pursuant to the Security Agreement, Debtor has granted to the Security Trustee for the benefit of the Beneficiaries a security interest in all right, title and interest of Debtor in and to the Copyrights, and the registrations and recordings thereof in the United States Copyright Office or any other country or any political subdivision thereof, all whether now or hereafter owned or licensable by Debtor and all extensions or renewals thereof and all licenses thereof and all proceeds thereof, including, without limitation, any claims by Debtor against third parties for infringement thereof (the “Collateral”), to secure the payment, performance and observance of the Obligations (as defined in the Security Agreement);

 

NOW, THEREFORE, for good and valuable consideration, receipt of which is hereby acknowledged, Debtor does hereby further confirm, and put on the public record, its grant to the Security Trustee for the benefit of the Beneficiaries a security interest in, and mortgage on, the Collateral to secure the prompt payment, performance and observance of the Obligations.

 

Debtor does hereby further acknowledge and affirm that the rights and remedies of the Security Trustee with respect to the grant assignment of and security interest in the Collateral made

 



 

hereby are more fully set forth in the Security Agreement, the terms and provisions of which are hereby incorporated herein by reference as if fully set forth herein.

 

the Security Trustee’s address is:

 

Address:

 

 

Attention:

Fax:

 



 

IN WITNESS WHEREOF, Debtor has duly executed or caused this Supplement to Amended and Restated Security Agreement to be duly executed as of [          ], 20    .

 

 

[          ]

 

By:

 

 

 

Name:

 

 

Title:

 

 



 

STATE OF

)

 

 

 

)  :

 

 

COUNTY OF

)

 

On this          day of                     , 20    , before me personally appeared                            , to me known, who, being by me duly sworn, did depose and say that he/she resides at                                                     and that he/she is                        of Debtor; that he/she knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was affixed pursuant to authority of the Board of Directors of said corporation and that he/she signed his/her name thereto in his/her capacity as an authorized officer of said corporation pursuant to such authority.

 


 

Notary Public

 


 

 

SPECIAL POWER OF ATTORNEY

 

STATE OF

)

 

 

 

)  :

 

 

COUNTY OF

)

 

KNOW ALL MEN BY THESE PRESENTS, THAT [          ], a [          ] corporation with its principal office having an address at                  , (hereinafter called “Debtor”), hereby appoints and constitutes Deutsche Bank AG, London Branch, as Security Trustee (hereinafter called “Security Trustee”), its true and lawful attorney, with full power of substitution, and with full power and authority, upon the occurrence and during the continuance of an Event of Default (hereinafter defined) to perform the following acts on behalf of Debtor:

 

(a)                                  For the purpose of granting, selling, licensing or otherwise disposing of all right, title and interest of Debtor in and to any letters patent, design and plant patents, utility models, industrial designs, inventor certificates and statutory invention registrations of the United States of America or any other country or political subdivision thereof, and all registrations, recordings, reissues, continuations, continuations-in-part, term restorations and extensions thereof, and all pending applications therefor, and for the purpose of the recording, registering and filing of, or accomplishing any other formality with respect to the foregoing, to execute and deliver any and all agreements, documents, instruments of transfer or other papers necessary or advisable to effect such purpose;

 

(b)                                 For the purpose of granting, selling, licensing or otherwise disposing of all right, title and interest of Debtor in and to any trademarks, trade names, trade styles and service marks, and all registrations, recordings, reissues, extensions and renewals thereof, and all pending applications therefor, and for the purpose of the recording, registering and filing of, or accomplishing any other formality with respect to the foregoing, to execute and deliver any and all agreements, documents, instruments of transfer or other papers necessary or advisable to effect such purpose;

 

(c)                                  For the purpose of granting, selling, licensing or otherwise disposing of all right, title and interest of Debtor in and to any copyrights, and all registrations, recordings, extensions and renewals thereof, and all pending applications therefor, and for the purpose of the recording, registering and filing of, or accomplishing any other formality with respect to the foregoing, to execute and deliver any and all agreements, documents, instruments of transfer or other papers necessary or advisable to effect such purpose; and

 

(d)                                 To execute any and all documents, statements, certificates or other papers necessary or advisable in order to obtain the purposes described above as the Security Trustee may in its sole but reasonable discretion determine.

 

This power of attorney is made pursuant to an Amended and Restated Security Agreement, dated the date hereof, as amended from time to time, by Debtor in favor of the Security Trustee and will take effect solely for the purposes of Section 9 thereof and is subject to the conditions thereof and may not be revoked until the payment in full of all “Obligations” as defined in such

 



 

Amended and Restated Security Agreement and expiration or termination of all “Commitments” as such term is used in the Relevant Facilities Agreement (as defined in such Amended and Restated Security Agreement); provided, however, Security Trustee agrees that it shall only exercise the powers granted hereby following the occurrence and during the continuance of an Event of Default.  As used herein, “Event of Default” has the meaning specified in such Amended and Restated Security Agreement.

 

Dated as of                       , 20      

 

[          ]

 

By:

 

 

 

Name:

 

 

Title:

 

 


 



Exhibit 4.37

 

 

 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

(Re: Interests in Avon Cable Limited Partnership)

 

 

Dated January 19, 2010

 

 

between

 

TCI/US WEST CABLE COMMUNICATIONS GROUP

 

THESEUS NO. 1 LIMITED

 

and

 

THESEUS NO. 2 LIMITED

 

as Pledgors

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 



 

TABLE OF CONTENTS

 

 

 

 

 

Page

 

 

 

 

 

1.

 

CONSTRUCTION; DEFINED TERMS

 

2

 

 

 

 

 

2.

 

SECURITY AGREEMENT

 

4

 

 

 

 

 

3.

 

SECURED OBLIGATIONS

 

6

 

 

 

 

 

4.

 

DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

6

 

 

 

 

 

5.

 

CERTAIN COVENANTS; REPRESENTATIONS

 

7

 

 

 

 

 

6.

 

VOTING RIGHTS; DIVIDENDS; ETC.

 

8

 

 

 

 

 

7.

 

REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

9

 

 

 

 

 

8.

 

SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

9

 

 

 

 

 

9.

 

SECURITY TRUSTEE MAY PERFORM

 

10

 

 

 

 

 

10.

 

EVENTS OF DEFAULT

 

10

 

 

 

 

 

11.

 

REMEDIES

 

10

 

 

 

 

 

12.

 

EXPENSES

 

12

 

 

 

 

 

13.

 

RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

12

 

 

 

 

 

14.

 

INDEMNITY

 

15

 

 

 

 

 

15.

 

ROLE OF SECURITY TRUSTEE

 

16

 

 

 

 

 

16.

 

SEVERABILITY

 

16

 

 

 

 

 

17.

 

CONTINUED EFFECTIVENESS

 

16

 

 

 

 

 

18.

 

CUMULATIVE REMEDIES

 

16

 

 

 

 

 

19.

 

WAIVERS, AMENDMENTS

 

17

 

 

 

 

 

20.

 

WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

17

 

 

 

 

 

21.

 

SUCCESSORS AND ASSIGNS

 

17

 

 

 

 

 

22.

 

GOVERNING LAW

 

18

 

 

 

 

 

23.

 

NOTICES

 

18

 

 

 

 

 

24.

 

TERMINATION

 

19

 

 

 

 

 

25.

 

COUNTERPARTS

 

19

 

 

 

 

 

26.

 

AUTHORIZATION TO FILE

 

19

 

 

 

 

 

27.

 

GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

19

 

Schedules

Schedule 4(b)

Schedule 5(a)

Schedule 5(b)

Schedule 13

Schedule 27(a)

Schedule 27(d)

 

i



 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”), is made and entered into as of January 19, 2010 by and among TCI/US WEST CABLE COMMUNICATIONS GROUP, a Colorado general partnership, THESEUS NO. 1 LIMITED, a limited company incorporated in England and Wales and THESEUS NO. 2 LIMITED, a limited company incorporated in England and Wales (each of foregoing being referred to individually as a “Pledgor” and collectively as the “Pledgors”), and Deutsche Bank AG, London Branch, in its capacity as Security Trustee for the Beneficiaries (the “Security Trustee” which expression includes any person which is for the time being the Security Trustee for the Beneficiaries).

 

W I T N E S S E T H

 

WHEREAS, the Pledgors constitute all of the partners of Avon Cable Limited Partnership, a Colorado limited partnership (“ACLP” or the “Partnership”).

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited and VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Original Guarantors as defined therein, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms are defined therein), the intergroup creditors and intergroup debtors listed therein, certain banks financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”), in respect of the $1,000,000,000 6.5% senior secured notes due 2018 and the £875,000,000 7.00% senior secured notes due 2018 (“Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), made among Virgin Media Inc., Virgin

 



 

Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time, Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes.

 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge and security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Partnership and the other collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                      CONSTRUCTION; DEFINED TERMS

 

This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless otherwise defined herein or the context otherwise expressly requires, capitalized terms used herein shall have the respective meanings set forth in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement (including by reference to other agreements).

 

Bankruptcy Code” Title 11 of the United States Code entitled “Bankruptcy as now or hereafter in effect.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Pledgor of the occurrence of that Event of Default, or takes,

 

2



 

under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Defaultmeans each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 2.

 

Existing Pledged Collateral” means the existing security pledged by the Partnership under the relevant (i) July 2004 Pledge Agreements and the (ii) March 2001 Pledge Agreements, as such documents are set forth on Schedule 4(b) hereto.

 

Existing Security Trustee” means Barclays Bank PLC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

SEC” means the United States Securities and Exchange Commission.

 

3



 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

2.                                      SECURITY AGREEMENT

 

As security and collateral for the due and punctual payment and performance by the Obligors of their respective joint and several obligations described in Section 3 below, each of the Pledgors hereby assigns, transfers, and pledges to the Security Trustee, and grants to the Security Trustee for the benefit of the Beneficiaries, a lien on and security interest in and to such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)                                  such Pledgor’s partnership interest in the Partnership owned by such Pledgor at any time and from time to time (each, a “Partnership Interest” and collectively, the “Partnership Interests”) and any certificates, instruments or other documents representing each such Partnership Interest, all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or otherwise distributed in respect of or in exchange for all or any part of each such Partnership Interest and all proceeds thereof; and

 

(b)                                 all partnership interests (general or limited) or securities convertible into or exchangeable for such interests issued by the Partnership, or any successor thereto, from time to time and acquired by such Pledgor in substitution for or in addition to any of the foregoing, all certificates and instruments representing such interests or securities, and all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or

 

4



 

otherwise distributed in respect of or in exchange for any or all of such interests or securities and all proceeds thereof;

 

provided, that, notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Pledge Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt:

 

(i)                                     all Pledged Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Pledge Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain pledged under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations pursuant to this Pledge Agreement.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation.  If the circumstances described in this paragraph apply, this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply,

 

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this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.                                      SECURED OBLIGATIONS

 

The security interest in the Pledged Collateral granted pursuant hereto shall secure the due and punctual payment and performance of the Secured Obligations provided that before any demand for any Secured Obligation is made on a Restricted Guarantor pursuant to this Pledge Agreement, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.  It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include: (a) all Liabilities under the Senior Facilities Agreement; and (b) all Liabilities under the Senior Secured Notes Documents.

 

4.                                      DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

(a)                                  All certificates, instruments or documents, if any, representing or evidencing each and every of the Partnership Interests shall be delivered to the Security Trustee by the Pledgors on the date hereof, and shall be held by the Security Trustee pursuant hereto at all times hereafter until termination hereof pursuant to Section 24, and all certificates, instruments or documents representing or evidencing interests or securities in or issued by the Partnership and acquired by any Pledgor after the date hereof and constituting Pledged Collateral hereunder shall be delivered to the Security Trustee immediately upon, and held by the Security Trustee at all times after, acquisition thereof by such Pledgor.  All such certificates, instruments or documents, if any, shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Security Trustee.  To the extent that any certificates, instruments of transfer or other documents of title relating to any of the Pledged Collateral which are required to be delivered to the Security Trustee hereunder have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Pledged Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 4(a) shall be deemed satisfied.

 

(b)                                 Except as otherwise permitted in the Senior Finance Documents, each Pledgor agrees that it shall take all actions available to such Pledgor to cause the Partnership and, in the event of a merger or consolidation of the Partnership with any other entity, such other entity, not to issue any interests or other securities whether in addition to, by dividend or other distribution upon, or in substitution or exchange for, any of the Partnership Interests or otherwise, other than such interests or other securities issued to the Pledgors and promptly delivered to the Security Trustee pursuant to Section 4(a) hereof in which the Security Trustee, as agent and representative for the Beneficiaries, has a valid and perfected security interest free and clear of all liens and with respect to which no other party has any interest, except for the Existing

 

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Pledged Collateral and the liens created in favor of the Security Trustee pursuant to this Pledge Agreement (collectively, the “Permitted Liens”).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder, the Security Trustee shall have the right, at any time in its discretion, to transfer to or to register in the name of the Security Trustee or any of its nominees any or all of the Pledged Collateral (with, in the discretion of the Security Trustee, such transfer or registration expressly empowering the Security Trustee to vote any voting interests included in the Pledged Collateral), subject only to each Pledgor’s revocable rights specified in Section 6(a).

 

(d)                                 Each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the Colorado, the District of Columbia or any other relevant states (a “State”), covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Security Trustee), to be filed in the relevant filing offices so that at all times the Security Trustee’s security interest in all Pledged Collateral which can be perfected by the filing of such financing statement (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant State), is so perfected.

 

5.                                      CERTAIN COVENANTS; REPRESENTATIONS

 

(a)                                  Each of the Pledgors covenant and agree that: (i) save to the extent expressly permitted or not restricted under any Senior Finance Document without the prior written consent of the Security Trustee, no Pledgor will grant any option with respect to any of the Pledged Collateral; (ii) the Pledgors will defend the Pledged Collateral against the claims and demands of all persons other than the Security Trustee and the Beneficiaries, and will take any and all such action as is reasonably necessary to remove any competing or conflicting lien and will advise the Security Trustee promptly of the existence thereof; and (iii) at any time and from time to time upon the written request of the Security Trustee, the Pledgors will execute and deliver such further documents and do such further acts and things as the Security Trustee may reasonably request in order to effect the purposes of this Pledge Agreement.

 

(b)                                 Each of the Pledgors represent and warrant that:  (i) their choice of Colorado law to govern this Pledge Agreement is valid and binding subject to the Reservations; (ii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Schedule 5(a) hereto; (iii) each Partnership Interest referenced in sub-clause (ii) of this paragraph constitutes that percentage or position of the entire Partnership Interest of the Partnership as set forth in Schedule 5(a) hereto; (iv) it has complied with the respective procedure set forth in Clause 4(a) hereof with respect to each item of Pledged Collateral described in Schedule 5(a); and (v) such Pledgor owns no other Partnership Interests except as set forth in Schedule 5(b) hereto.

 

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6.                                      VOTING RIGHTS; DIVIDENDS; ETC.

 

(a)                                  So long as no Event of Default hereunder shall have occurred and be continuing:  (i) each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral belonging to such Pledgor pursuant to the limited partnership agreement creating and governing ACLP (the “ACLP Partnership Agreement”), for any purpose not prohibited by the terms of this Pledge Agreement or the Senior Finance Documents; and (ii) except as otherwise provided in Section 6(c) hereof and except for distributions prohibited by the Senior Finance Documents, each Pledgor shall be entitled to receive, retain and distribute, free and clear of the security interest granted hereunder, any dividends, distributions, cash and other property from time to time paid, payable or otherwise distributed in respect of the Pledged Collateral belonging to such Pledgor.

 

(b)                                 Pledgor hereby irrevocably appoints the Security Trustee as Pledgor’s proxyholder with respect to the Partnership Interests of Pledgor and any other voting interests or other securities belonging to Pledgor and forming a part of the Pledged Collateral with full power and authority, in the discretion of the Security Trustee, to vote such Partnership Interests and other voting interests or securities and otherwise to act with respect to such Partnership Interests or other voting interests or securities on behalf of Pledgor; provided that this proxy shall only be operative upon the occurrence of an Event of Default and so long as such Event of Default continues.  This proxy shall be irrevocable for so long as any of the Secured Obligations remain in existence.  Pledgor shall execute and deliver (or cause to be executed and delivered) to the Security Trustee all proxies and other instruments as the Security Trustee may reasonably request for the purpose of enabling the Security Trustee to exercise the voting and other rights which it is entitled to exercise pursuant to this Section 6(b).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder or as otherwise permitted or not restricted pursuant to the provisions of each of the Senior Finance Documents, all rights of the Pledgor to receive and retain dividends, distributions, cash and other property, which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii), shall cease and all such rights shall thereupon be vested in the Security Trustee, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, distributions, cash and other property; provided, that until the Enforcement Date, without prejudice to the Senior Finance Documents, the Security Trustee will hold all dividends, distributions, cash and other property paid on and received by it in respect of any Partnership Interest which are transferred to it for the account of each Pledgor and will, subject to any right of set-off, pay such dividends, interest and other moneys to such Pledgor upon request.  All cash and other property received by a Pledgor contrary to the provisions of this Section 6(c) shall be received in trust for the benefit of the Security Trustee, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Security Trustee as Pledged Collateral in the same form as so received (with any necessary transfer documents or endorsements).

 

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7.                                      REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

(a)                                  The Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Security Trustee accords its own property, it being understood that neither the Security Trustee nor any Beneficiary shall have responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain possession of the Pledged Collateral) to preserve rights against any parties with respect to any Pledged Collateral; provided that the Security Trustee agrees to notify the Pledgors if it has actual knowledge of the necessity of taking any such steps in respect of any Pledged Collateral and to cooperate with the Pledgors in connection therewith.

 

(b)                                 Anything herein to the contrary notwithstanding, (i) the Pledgors shall remain liable under the ACLP Partnership Agreement to the extent set forth therein to perform the duties and obligations thereunder to the same extent as if this Pledge Agreement had not been executed, (ii) the exercise by the Security Trustee of any of its rights hereunder shall not release any Pledgor from any of the duties or obligations under the ACLP Partnership Agreement, and (iii) the Security Trustee and the other Beneficiaries shall not have any obligation or liability under the ACLP Partnership Agreement by reason of this Pledge Agreement, nor shall the Security Trustee or the other Beneficiaries be obligated to perform any of the obligations or duties of any Pledgor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by any Pledgor or the sufficiency of any performance by any party under the ACLP Partnership Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  Except to the extent required by general partnership law, the Security Trustee and the other Beneficiaries shall not by reason of this Pledge Agreement or the exercise of any remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of ACLP or any of the liabilities of the Pledgors (or their permitted successors or assigns).

 

8.                                      SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

(a)                                  Each Pledgor hereby irrevocably appoints (which appointment is coupled with an interest) the Security Trustee (acting through its employees, attorneys, and/or agents) as such Pledgor’s attorney-in-fact, with full power of substitution and with full authority in the place and stead of Pledgor and in its name or otherwise, from time to time in the Security Trustee’s discretion, to sign, execute, seal and deliver and otherwise perfect any further security document or notice reasonably required to secure the Secured Obligations or to perfect the security intended to be created hereunder over the Pledged Collateral or any part thereof or, on or after the Enforcement Date, to take any action and to execute any instrument which the Security Trustee may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement; provided, that the Security Trustee shall be under no obligation to take any action hereunder and, absent gross negligence and wilful misconduct, the Security Trustee shall have no liability or responsibility for any action taken or omission with respect thereto.

 

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(b)                                 Each Pledgor hereby consents, acknowledges and agrees, as of the date hereof,  that the Security Trustee shall be appointed to succeed the Existing Security Trustee in relation to the Existing Pledged Collateral.

 

9.                                      SECURITY TRUSTEE MAY PERFORM

 

Upon the occurrence and during the continuance of an Event of Default hereunder (including an Event of Default resulting from a failure to perform any agreement contained herein), if any Pledgor fails to perform any agreement contained herein, the Security Trustee may itself perform, or cause performance of, such agreement, and the expenses of the Security Trustee incurred in connection therewith shall be payable by such Pledgor under Section 12 hereof.

 

10.                               EVENTS OF DEFAULT

 

The occurrence of an Event of Default shall constitute an Event of Default hereunder.

 

11.                               REMEDIES

 

At any time on or after the Enforcement Date, in addition to and without limiting any and all other remedies available under principles of law or equity:

 

(a)                                  The Security Trustee may execute, acknowledge, deliver, file and record on behalf of any or all the Pledgors and in their respective names financing statements, continuation statements, security agreements, mortgages, assignments, certificates of title, reports, notices, schedules of account, and all other documents, instruments or agreements that the Security Trustee may, in its sole and absolute discretion, deem advisable in order to obtain, perfect and maintain the Security Trustee’s security interests in the Pledged Collateral granted pursuant hereto and in order to fully consummate, implement and enforce all of the transactions contemplated and security interests granted under this Pledge Agreement.

 

(b)                                 The Security Trustee may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party after default under the Uniform Commercial Code in effect in the State of Colorado (the “Colorado UCC”) at that time or other applicable law.

 

(c)                                  The Security Trustee may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, over the counter or at any of the Security Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable or otherwise in such manner as necessary to comply with applicable federal and state securities laws.  The Pledgors agree that the Security Trustee shall not be required to register or qualify any of the Pledged Collateral under applicable state or federal securities laws in connection with any such sale if the sale is effected in a manner that complies with all applicable federal and state securities laws (to the extent applicable).  The Security Trustee shall be authorized at any such sale (if it deems it advisable to

 

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do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are “accredited investors” or “qualified institutional buyers” under applicable law and are purchasing the Pledged Collateral for their own account, for investment and not with a view to the distribution thereof.  Upon consummation of any such sale the Security Trustee shall have the right to assign, transfer and deliver the Pledged Collateral to the purchaser or purchasers at any such sale, and such purchasers shall hold the property sold absolutely free from any claim or right on the part of the Pledgors, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it now has or may at any time in the future have under applicable law now existing or hereafter enacted.

 

(d)                                 The Security Trustee shall give to each Pledgor notice in writing of the time and place of any public sale or of the time on or after which any private sale or intended disposition is to be made.  Such notice need not be given more than five (5) Business Days (or such longer period as shall be specified by applicable law) before the date fixed for any such disposition, which notice the Pledgors agree shall constitute commercially reasonable notification.  At any such sale or other disposition, the Security Trustee, to the extent permitted by applicable law, may bid, which bid may be, in whole or in part, in the form of cancellation of the Secured Obligations in proportion to the share of the Secured Obligations of each Beneficiary, and purchase for the account of the Beneficiaries the whole or any portion of the Pledged Collateral, to the further extent permitted by applicable law, free of any right of redemption, which right is hereby waived and released to the extent permitted by applicable law.  The Security Trustee shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, and the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(e)                                  If a sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take delivery of and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  The Pledgors agree that any sale of the Pledged Collateral conducted by the Security Trustee in accordance with the foregoing provisions of this Section shall be deemed to be a commercially reasonable sale under Article 9 of the Colorado UCC.

 

(f)                                    As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by a suit or suits at law or in equity to foreclose the security interests and to sell the Pledged Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction.

 

(g)                                 Subject to provisions of applicable law any cash held by the Security Trustee as Pledged Collateral and all cash proceeds received by the Security Trustee in respect of any sale of, collection from, or other realization upon all or any part

 

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of the Pledged Collateral shall be applied as set forth in the Group Intercreditor Deed and the Security Trust Agreement.

 

12.                               EXPENSES

 

Pledgors agree to pay, upon demand, to the Security Trustee (together with interest thereon from the date falling 30 days after the date of demand by the Security Trustee until the date of payment at the default interest rate as in effect from time to time under clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) (a) the amount of any and all actual fees and expenses, including without limitation the fees and expenses of its counsel and of any experts and agents, which the Security Trustee may properly incur in connection with (i) the custody or preservation of the Pledged Collateral, (ii) the exercise or enforcement of any rights of the Security Trustee hereunder or (iii) the failure by any Pledgor to perform or observe any of the provisions hereof and (b) the amount of any and all actual and fees and expenses of the Security Trustee’s counsel and outside experts and agents incurred in connection with the administration and enforcement of this Pledge Agreement.

 

13.                               RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

(a)                                  Each Pledgor acknowledges that the security interests granted hereunder will secure obligations of persons other than such Pledgor, and, in full recognition of such fact, each Pledgor hereby agrees that, at any time and from time to time the Beneficiaries may, in their sole and absolute discretion, without the necessity of any reservation of rights against, notice to or further assent by any Pledgor, and without affecting the validity, legality or enforceability hereof or the security interests hereunder (but subject to the terms of the Senior Finance Documents):  (i) create new Secured Obligations or extend, accelerate, rescind any acceleration, increase, decrease, continue, restructure or otherwise modify the Secured Obligations or any of their terms; (ii) amend, supplement, waive or otherwise modify any provision of, or give any agreement, approval or consent with respect to, the Senior Finance Documents or any of the Secured Obligations; (iii) accept new or additional instruments, documents or agreements in exchange for or relative to any of the Senior Finance Documents, the Security Documents or the Secured Obligations or any part thereof; (iv) except as may be required by applicable law, accept and apply as the Beneficiaries may see fit payments on the Secured Obligations or proceeds of Collateral (as defined below); (v) receive and hold additional collateral or guarantees for the Secured Obligations or any part thereof (all collateral and guarantees for the Secured Obligations or any part thereof being referred to in this Section 13 as “Collateral” and “Guarantees,” respectively); (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any Collateral or Guarantees, apply any such Collateral and direct the order or manner of sale or other enforcement thereof; (vii) alter, impair, suspend or terminate the remedies or rights of the Beneficiaries against the Partnership, any guarantor of the Secured Obligations or any part thereof (a “Guarantor”) or any other person in respect of any of the Secured Obligations or suffer any of the foregoing to occur; (viii) refund at any time, at the Beneficiaries’ sole discretion, any payment received by the

 

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Beneficiaries in respect of the Secured Obligations; and (ix) otherwise deal with ACLP, any Collateral or any Guarantor as the Beneficiaries may elect in their sole discretion.

 

(b)                                 The Pledgors acknowledge that the security interests hereunder, and the enforcement hereof are not subject to any conditions not expressly stated herein.  Upon the occurrence and during the continuance of an Event of Default, the Security Trustee may enforce this Pledge Agreement independently from any other of the Security Documents and independently of any other remedy, Collateral or Guaranty that any Beneficiary at any time may have or hold in connection with the Secured Obligations, and it shall not be necessary for the Security Trustee to marshal assets in favor of the Pledgors or any other person or to proceed upon or against or exhaust any other remedy, Collateral or Guaranty before proceeding to enforce this Pledge Agreement.  The Pledgors expressly agree that the Security Trustee may proceed against ACLP, any Pledgor, any other Guarantor, or the Collateral in such order and in such manner as it shall determine in its sole and absolute discretion.  The Security Trustee may file a separate action or actions with respect to the Pledged Collateral whether action is brought or prosecuted with respect to any other Collateral or against any other person, or whether any other person is joined in any such action or actions.  The Pledgors agree that the Beneficiaries, ACLP and any other Guarantor may deal with each other in connection with the Secured Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between or among any of them, in any manner whatsoever, all without in any way altering or affecting the security of this Pledge Agreement.  The Pledgors expressly waive the benefit of any statute(s) of limitations affecting the enforcement of the Secured Obligations or the security interest hereunder.  Any payment by or on behalf of ACLP or other circumstance that operates to toll any statute of limitations applicable to such partnership shall also operate to toll the statute of limitations applicable to Pledgors.

 

(c)                                  The Pledgors expressly waive any and all defenses or counterclaims (other than by reason of the full payment and performance of all the Secured Obligations) now or hereafter arising or asserted by reason of (i) any disability, set-off or other defense or counterclaim of ACLP or any Guarantor with respect to the Secured Obligations, the Senior Finance Documents or any of the Security Documents; (ii) the failure of priority or validity of security interest in any Collateral; (iii) the cessation from any cause whatsoever of the liability of ACLP or any Guarantor or other person with respect to the Secured Obligations; (iv) the disallowance of, or any failure of any Beneficiary to file or enforce, a claim in any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding (a “Bankruptcy Proceeding”) with respect to ACLP or any other person; (v) the modification, discharge, extension or avoidance in or as a result of any Bankruptcy Proceeding commenced by or against ACLP or any other person of all or any of the Secured Obligations, any Guaranty, collateral or lien; (vi) any use of cash or other Collateral in any Bankruptcy Proceeding; (vii) any agreement or stipulation as to adequate protection in any Bankruptcy Proceeding; (viii) any amendment, modification, stay or cure of the

 

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Beneficiaries’ rights that may occur in any Bankruptcy Proceeding; (ix) any election of remedies by the Beneficiaries, whether or not such election destroys or affects any subrogation, reimbursement, contribution, indemnity or similar rights the Pledgors may have (notwithstanding subsection (d) below) against ACLP, including, without limitation, any loss of rights the Pledgors may suffer by reason of any rights, powers or remedies of ACLP in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging the Secured Obligations; (x) any election by the Beneficiaries under Section 1111(b)(2) of the Bankruptcy Code; (xi) any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code; or (xii) any action taken by any Beneficiary that is authorized by this Section or any other provision of any of the Security Documents or any other Senior Finance Documents.

 

(d)                                 The Pledgors hereby waive any and all rights of subrogation, reimbursement, contribution, indemnity, setoffs or counterclaims and any and all similar rights that the Pledgors may otherwise have against ACLP at any time under any applicable law, until the Secured Obligations shall have been indefeasibly paid and performed in full.  The Pledgors further expressly waive any right to enforce any remedy that the Beneficiaries now or hereafter may have against ACLP or any other person and waive the benefit of, or any right to participate in, any Collateral now or hereafter held by the Beneficiaries, until the Secured Obligations shall then have been indefeasibly paid and performed in full.

 

(e)                                  The Pledgors expressly waive (i) all presentments, protests, notices of default or dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations, including notice of any action against ACLP or any Guarantor or the assertion or enforcement of any right of the Beneficiaries hereunder or any other of the Security Documents; (ii) all notices of acceptance of this Pledge Agreement or of the existence, creation, renewal or incurring of new or additional Secured Obligations; and (iii) to the extent permitted by applicable law, the benefit of all valuation, appraisal, redemption and exemption laws.  The Pledgors expressly agree that they shall be bound by each and every ruling, order and judgment obtained by any Beneficiary against ACLP, in respect of the Secured Obligations, whether or not the Pledgors are parties to, or have received notice of, the action or proceeding in which such ruling, order or judgment is issued and rendered.

 

(f)                                    The Pledgors represent and warrant that they have established adequate means of obtaining from ACLP, on a continuing basis, financial and other information pertaining to the business, operations and condition (financial and otherwise) of such entity, and now are and hereafter will be completely familiar with such business, operations, condition and properties.

 

(g)                                 The Pledgors hereby acknowledge and warrant that they are familiar with the terms of this Pledge Agreement, the Senior Finance Documents, all other Security Documents and all other agreements evidencing the Secured Obligations and that they have derived or expect to derive a financial advantage from each Series of Senior Liabilities or other extension of credit and from each and every renewal, extension, release of Collateral, or other relinquishment of legal rights made or granted or to be made or granted by the

 

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Beneficiaries to the Borrowers, ACLP or any of the other Obligors in connection with the Secured Obligations.

 

(h)                                 The Pledgors warrant and agree that each of the waivers set forth in this Pledge Agreement is made with full knowledge of its significance and consequences and that, under the circumstances, all such waivers are reasonable and not contrary to public policy or applicable law.  If any such waiver is determined to be contrary to any public policy or applicable law, such waiver shall be effective to the maximum extent permitted by such public policy or applicable law.

 

(i)                                     Notwithstanding anything to the contrary contained herein or in any other agreement or instrument relating to the Secured Obligations, the Pledgors shall not be personally liable to the Security Trustee or the Beneficiaries for the satisfaction of the Secured Obligations, and the Security Trustee, on behalf of the Beneficiaries, shall look solely to the Pledged Collateral with respect to such satisfaction from Pledgors; provided that the foregoing shall not (i) constitute a waiver, release or discharge of any of the indebtedness evidenced by any Senior Finance Document, but the same shall continue until fully paid, discharged, observed or performed or (ii) in any way limit or restrict any right of the Security Trustee or the Beneficiaries to foreclose the liens and security interests of the Security Documents or otherwise realize upon any collateral assigned or pledged to the Security Trustee or the Beneficiaries in connection with the transactions contemplated hereby or thereby or (iii) constitute a waiver or limitation by the Security Trustee or the Beneficiaries of any claim against Pledgors for any claim in the nature of fraud or deceit or willful misconduct arising under or in connection with this Pledge Agreement.

 

14.                               INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Security Trustee and its respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and an collectively, the “Indemnities”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Pledge Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Security Document (but excluding any obligation, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or wilful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Security Trustee hereunder be liable, in the absence of gross negligence or wilful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), of or any matter or thing in connection with this Pledge Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligation of any Pledgor under this

 

15



 

Section 14 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.  The indemnity obligations of each Pledgor contained in this Section 14 shall continue in full force and effect notwithstanding the full payment and fulfilment of all the obligations under the Senior Finance Documents and notwithstanding the discharge thereof.

 

15.                               ROLE OF SECURITY TRUSTEE

 

Each Pledgor and the Security Trustee hereby acknowledge that the covenants of each Pledgor contained in this Pledge Agreement and the security and other rights, titles and interests constituted by this Pledge Agreement and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Pledge Agreement are held by the Security Trustee subject to and on the terms of the trusts declared by the Security Trust Agreement.

 

16.                               SEVERABILITY

 

Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.                               CONTINUED EFFECTIVENESS

 

Any release, discharge or settlement between one or more of the Pledgors and the Security Trustee or any of the other Beneficiaries shall be conditional upon no security, disposition or payment to the Security Trustee or any of the other Beneficiaries by any of the Obligors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Security Trustee and the other Beneficiaries shall be entitled to enforce this Pledge Agreement subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain this security after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the other Beneficiaries from any of the Obligors for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

18.                               CUMULATIVE REMEDIES

 

The rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies provided by law.

 

16



 

19.                               WAIVERS, AMENDMENTS

 

None of the terms or provisions of this Pledge Agreement may be altered, modified or amended except by an instrument in writing, duly executed by the Security Trustee and the Pledgors.  No waiver of any provision hereof or consent to any departure from the terms hereof shall be effective unless the same shall be in writing and duly executed by the Security Trustee.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  A waiver by the Security Trustee of any right or remedy hereunder on any occasion shall not be construed as a bar to any right or remedy which the Security Trustee would otherwise have on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Security Trustee, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

20.                               WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

The Pledgors hereby represent that they constitute all of the partners of the Partnership.  The Pledgors, constituting all of the partners of the Partnership, each hereby waives the application of the provisions of Section 15 of the ACLP Partnership Agreement that otherwise would apply to, and hereby consents to, the assignment, transfer or pledge of any Pledgor’s Partnership Interest in the Partnership to the Security Trustee, for the benefit of the Beneficiaries, now or in the future, pursuant to the provisions of this Pledge Agreement. Further, each of the Pledgors hereby ratifies and approves any similar assignments, transfers or pledges of the Partnership Interests of the other Pledgors occurring prior to the date hereof.

 

21.                               SUCCESSORS AND ASSIGNS

 

(a)                                  Subject to the restrictions on transfers by the Pledgors hereunder, this Pledge Agreement and all obligations of the Pledgors hereunder shall be binding upon the successors and assigns of the Pledgors, and shall inure to the benefit of the Security Trustee, the Beneficiaries and their respective successors and assigns.

 

(b)                                 It is hereby understood and agreed that any party required to become a party to this Pledge Agreement after the date hereof pursuant to the requirements of the Senior Finance Documents, shall become a Pledgor hereunder by

 

(i)            executing a Partnership Interest Accession Agreement in the form attached hereto as Schedule 13,

 

(ii)           delivering supplements to the schedules attached hereto as are necessary to cause such schedules to be complete and accurate with respect to each additional Pledgor on such date; and

 

(iii)          taking all actions specified in this Pledge Agreement as would have been taken by such Pledgor had it been an original party to the Pledge Agreement, in each case with all documents required above to be delivered to the Pledge and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledge.

 

17



 

22.                               GOVERNING LAW

 

This Pledge Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Colorado applicable to agreements made and to be performed entirely within such State.  The Pledgors hereby irrevocably consent to the jurisdiction of any of the courts designated in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) in connection with any action or proceeding arising out of or relating to this Pledge Agreement.  In any such action or proceeding, each Pledgor waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by personal delivery or by certified or registered mail directed to each Pledgor at its address set forth herein.  Nothing in this section shall affect the right of the Security Trustee or the Beneficiaries to serve legal process in any other manner by law or affect the right of the Security Trustee or the Beneficiaries to bring any action or proceeding against any Pledgor or his or its property in the courts of any other jurisdiction.  The Pledgors irrevocably waive any objection they may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement), or that any action or proceeding in any such court or jurisdiction has been brought in an inconvenient forum.

 

23.                               NOTICES

 

All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be personally served or sent by registered, certified or overnight mail, postage prepaid, or by telegraph, telecopy or telex and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when received (with such receipt acknowledged by the recipient, in the case of a telecopy).  All such notices shall be addressed as follows, or to such other address as may be hereafter notified in writing to the respective parties hereto:

 

If to the Security Trustee:

 

Winchester House

1 Great Winchester Street

London EC2N 2DB

England

 

Attention:

Syndicated Loans TSS / Nicola Dawes / Rajeer Thakeeria

Telephone:

0207 547 5905

Facsimile:

0207 547 6419

 

 

If to a Pledgor, addressed to such Pledgor at:

 

c/o Virgin Media Investment Holdings Limited

160 Great Portland St

London W1W 5QA

 

18



 

England

 

Attention:

Group Legal Director

Facsimile:

020 7299 6000

 

 

With a copy to:

 

 

Attention:

Group General Counsel

Facsimile:

020 7299 5495

 

24.                               TERMINATION

 

This Pledge Agreement, and the pledges, assignments, and encumbrances created or granted hereby, shall terminate when (a) all of the Secured Obligations shall have been fully paid, satisfied and performed, and (b) the Commitments have terminated, at which time the Security Trustee shall execute appropriate releases, acknowledgments, assignments or other documents necessary to secure the release and reassignment of such of the Pledged Collateral as shall not have been sold or otherwise applied by the Security Trustee pursuant to the terms hereof, and deliver to the Pledgors (or their respective designees) all Pledged Collateral and related documents then in the custody or possession of the Security Trustee.  Any such reassignment shall be without recourse upon, or warranty whatsoever by, the Security Trustee, and at the cost and expense of the Pledgors.

 

25.                               COUNTERPARTS

 

This Pledge Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

26.                               AUTHORIZATION TO FILE

 

With respect to the foregoing in this Pledge Agreement and the grant of the security interest hereunder, each Pledgor hereby authorizes the Security Trustee to file one or more financing statements or continuation statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of any Pledgor where permitted by law.  Each Pledgor agrees to furnish the Security Trustee, promptly upon reasonable request by the Security Trustee, with any information that is required by the Security Trustee in order to complete such financing statements or continuation statements, or amendments thereto.

 

27.                               GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

Each Pledgor hereby represents and warrants to the Security Trustee that:

 

(a)                                  Schedule 27(a) attached hereto sets forth an accurate and complete list identifying the following: (i) the full legal name of each Pledgor as it appears in official filings in the state or jurisdiction of its incorporation, organization or formation, as the case may be; (ii) the type of entity of such Pledgor; (iii) such Pledgor’s state of incorporation, organization or formation, as the case may be; (iv) the organizational identification number issued by such Pledgor’s

 

19



 

state of incorporation, organization or formation, or a statement that no such number has been issued; (v) the location of such Pledgor’s chief executive office ; and (vi) the jurisdiction(s) of such Pledgor’s place(s) of business.  Each Pledgor has only one state of incorporation, organization or formation, as the case may be;

 

(b)                                 it has not done in the last five (5) years, and does not do, business under any other name (including any trade name or fictitious business name) except for its respective legal name as set forth on Schedule 27(a);

 

(c)                                  it has not changed its name, jurisdiction of incorporation, organization or formation, the location of its chief executive office or place(s) of business, or its corporate or partnership structure in any way (e.g., by merger, consolidation, change in corporate or partnership form or otherwise), in each case within the past five (5) years;

 

(d)                                 it is the legal, beneficial and record owner of, and has good and marketable title to all of the Pledged Collateral upon which it purports to grant a lien hereunder, free and clear of any lien except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral is on file in any recording office, except as set forth on Schedule 27(d) or such as may have been filed in favor of the Security Trustee relating to this Pledge Agreement and with respect to the Permitted Liens.  Such liens set forth on Schedule 27(d) will be terminated as of the date of this Pledge Agreement;

 

(e)                                  it has full power, authority and legal right to pledge all the Pledged Collateral pledged by it pursuant to this Pledge Agreement;

 

(f)                                    this Pledge Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(g)                                 except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Pledge Agreement by such Pledgor, (b) the validity or enforceability of this Pledge Agreement against such Pledgor (except as set forth in clause (a) above), (c) the perfection or enforceability of the Security Trustee’s security interest in such Pledgor’s Pledged Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Security Trustee of any of its rights or remedies provided herein;

 

20


 

(h)                                 neither the execution, delivery or performance by such Pledgor of this Pledge Agreement or any other Senior Finance Document, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of partnership or partnership agreement, (or equivalent organizational documents), as the case may be, of such Pledgor;

 

(i)                                     as of the date hereof, after giving effect to the transactions contemplated by the Senior Finance Documents, such Pledgor is Solvent, and will not cease to be Solvent as a result of the obligations and transactions undertaken by such Pledgor pursuant to, or as contemplated by, the Senior Finance Documents.  As of the date hereof, there is no proceeding pending, or to the knowledge of the undersigned, threatened, challenging the Solvency of such Pledgor or seeking to dissolve or liquidate such Pledgor.

 

For the purposes of the foregoing, “Solvent” or “Solvency” means, with respect to any person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such person is (y) greater than the total amount of liabilities (including contingent liabilities) of such person and (z) not less than the amount that will be required to pay the probable liabilities on such person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such person; (ii) such person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (B) such person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For the purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

21



 

IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement to be executed and delivered as of the day and year first above written.

 

 

TCI/US WEST CABLE COMMUNICATIONS GROUP,

 

a Colorado general partnership

 

 

 

 

By Its General Partners:

 

 

 

 

 

THESEUS NO. 1 LIMITED

 

 

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

 

Robert Gale, Director

 

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

 

Robert Gale, Director

 

22



 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH,

 

as Security Trustee

 

 

 

 

 

 

 

By:

/s/ N. DAWES

 

 

Title:  V.P.

 

 

 

 

 

By:

/s/ V. MAYELL

 

 

Title:  A.V.P.

 

23



 

SCHEDULE 4(b)


EXISTING PLEDGED COLLATERAL

 

None.

 

1



 

SCHEDULE 5(a)
PARTNERSHIP INTERESTS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE
OF BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

Avon Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

1



 

SCHEDULE 5(b)
OTHER PARTNERSHIP INTERESTS

 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Cotswolds Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Estuaries Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

TCI/US WEST Cable Communications Group

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

50% - Theseus No. 1 Limited
50% - Theseus No. 2 Limited

 

Colorado General

 

1



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Tyneside Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Telewest Communications (North East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Tyneside Cable Limited Partnership
0.9% - Telewest Communications (North East) Limited
0.1% - Telewest Communications (Tyneside) Limited

 

English General

Telewest Communications (South East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Estuaries Cable Limited Partnership
0.5% - Telewest Communications (South East) Limited
0.5% - Telewest Communications (South Thames Estuary) Limited

 

English General

 

2



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

United Cable (London South) Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

3



 

SCHEDULE 13

 

PARTNERSHIP INTEREST ACCESSION AGREEMENT

 

(Avon Cable Limited Partnership)

 

The undersigned, desiring to become a partner of Avon Cable Limited Partnership, a Colorado limited partnership (the “Partnership”) formed pursuant to the Limited Partnership Agreement dated 30 April 1992, as amended by First Amendment dated 21 November 1994 (the “Partnership Agreement”) hereby agrees to, and by its execution hereof does, become a party to (i) the Partnership Agreement, as a [general/limited] partner thereunder, and (ii) that certain Amended and Restated Pledge and Security Agreement (as amended from time to time, the “Pledge Agreement”), dated                          , 20    , initially entered into among TCI/US WEST CABLE COMMUNICATIONS GROUP, THESEUS NO. 1 LIMITED, THESEUS NO. 2 LIMITED, and Deutsche Bank AG, London Branch as Security Trustee for the benefit of the Beneficiaries described therein.  Capitalized terms used herein shall have the respective meanings set forth in the Pledge Agreement.  By its execution hereof, the undersigned agrees that, from and after the date hereof, the undersigned shall be, and be considered for all purposes, (i) a “[General/Limited] Partner” under the Partnership Agreement and (ii) a “Pledgor” under the Pledge Agreement, as if referred to directly therein as such as a party thereto, entitled to all of the rights and subject to all of the liabilities and obligations of a Partner or Pledgor, respectively, thereunder.

 

As a Pledgor under the Pledge Agreement, the undersigned, as security and collateral for the due and punctual payment and performance of the Secured Obligations (as defined in the Pledge Agreement), hereby assigns, transfers and pledges to the Security Trustee, for the benefit of the Beneficiaries, a lien on and security interest in and to the undersigned’s right, title and interest to the Pledged Collateral (as defined in the Pledge Agreement).  As a Pledgor under the Pledge Agreement, the undersigned represents and warrants that the Pledged Collateral is free and clear of all liens other than the Permitted Liens (as defined in the Pledge Agreement).

 

This instrument, when executed by the undersigned, shall further constitute the undersigned’s counterpart signature page to the Partnership Agreement and the Pledge Agreement.

 

Dated this              day of                     ,             .

 

 

[Name of Transferee]

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

Address for Notice:

 

1



 

SCHEDULE 27(a)

 

Full Legal Name

 

Type of Entity

 

State of
Incorporation,
Organization or
Formation

 

Organizational
Identification
Number

 

Location of Chief
Executive Office

 

Jurisdiction(s) of
place(s) of business

TCI/US WEST Cable Communications Group

 

General Partnership

 

Colorado

 

None

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

Colorado

Theseus No. 1 Limited

 

Private Limited Company

 

England & Wales

 

02994027

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

Theseus No. 2 Limited

 

Private Limited Company

 

England & Wales

 

02994061

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

 

1



 

SCHEDULE 27(d)
CURRENT UCC FILINGS

 

None.

 

1




Exhibit 4.38

 

 

 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

(Re: Interests in Cotswolds Cable Limited Partnership)

 

 

Dated January 19, 2010

 

 

between

 

TCI/US WEST CABLE COMMUNICATIONS GROUP

 

THESEUS NO. 1 LIMITED

 

and

 

THESEUS NO. 2 LIMITED

 

as Pledgors

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINED TERMS

2

 

 

 

2.

SECURITY AGREEMENT

4

 

 

 

3.

SECURED OBLIGATIONS

6

 

 

 

4.

DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

6

 

 

 

5.

CERTAIN COVENANTS; REPRESENTATIONS

7

 

 

 

6.

VOTING RIGHTS; DIVIDENDS; ETC.

8

 

 

 

7.

REASONABLE CARE; PLEDGOR REMAINS LIABLE

9

 

 

 

8.

SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

9

 

 

 

9.

SECURITY TRUSTEE MAY PERFORM

10

 

 

 

10.

EVENTS OF DEFAULT

10

 

 

 

11.

REMEDIES

10

 

 

 

12.

EXPENSES

12

 

 

 

13.

RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

12

 

 

 

14.

INDEMNITY

15

 

 

 

15.

ROLE OF SECURITY TRUSTEE

16

 

 

 

16.

SEVERABILITY

16

 

 

 

17.

CONTINUED EFFECTIVENESS

16

 

 

 

18.

CUMULATIVE REMEDIES

16

 

 

 

19.

WAIVERS, AMENDMENTS

17

 

 

 

20.

WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

17

 

 

 

21.

SUCCESSORS AND ASSIGNS

17

 

 

 

22.

GOVERNING LAW

18

 

 

 

23.

NOTICES

18

 

 

 

24.

TERMINATION

19

 

 

 

25.

COUNTERPARTS

19

 

 

 

26.

AUTHORIZATION TO FILE

19

 

 

 

27.

GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

19

 

Schedules

Schedule 4(b)

Schedule 5(a)

Schedule 5(b)

Schedule 13

Schedule 27(a)

Schedule 27(d)

 

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AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”), is made and entered into as of January 19, 2010 by and among TCI/US WEST CABLE COMMUNICATIONS GROUP, a Colorado general partnership, THESEUS NO. 1 LIMITED, a limited company incorporated in England and Wales and THESEUS NO. 2 LIMITED, a limited company incorporated in England and Wales (each of foregoing being referred to individually as a “Pledgor” and collectively as the “Pledgors”), and Deutsche Bank AG, London Branch, in its capacity as Security Trustee for the Beneficiaries (the “Security Trustee” which expression includes any person which is for the time being the Security Trustee for the Beneficiaries).

 

W I T N E S S E T H

 

WHEREAS, the Pledgors constitute all of the partners of Cotswolds Cable Limited Partnership, a Colorado limited partnership (“CCLP” or the “Partnership”).

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited and VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Original Guarantors as defined therein, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms are defined therein), the intergroup creditors and intergroup debtors listed therein, certain banks financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”), in respect of the $1,000,000,000 6.5% senior secured notes due 2018 and the £875,000,000 7.00% senior secured notes due 2018 (“Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), made among Virgin Media Inc., Virgin

 



 

Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time, Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes.

 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge and security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Partnership and the other collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                      CONSTRUCTION; DEFINED TERMS

 

This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless otherwise defined herein or the context otherwise expressly requires, capitalized terms used herein shall have the respective meanings set forth in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement (including by reference to other agreements).

 

Bankruptcy Code” Title 11 of the United States Code entitled “Bankruptcy as now or hereafter in effect.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Pledgor of the occurrence of that Event of Default, or takes,

 

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under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Defaultmeans each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 2.

 

Existing Pledged Collateral” means the existing security pledged by the Partnership under the relevant (i) July 2004 Pledge Agreements and the (ii) March 2001 Pledge Agreements, as such documents are set forth on Schedule 4(b) hereto.

 

Existing Security Trustee” means Barclays Bank PLC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

SEC” means the United States Securities and Exchange Commission.

 

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Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

2.                                      SECURITY AGREEMENT

 

As security and collateral for the due and punctual payment and performance by the Obligors of their respective joint and several obligations described in Section 3 below, each of the Pledgors hereby assigns, transfers, and pledges to the Security Trustee, and grants to the Security Trustee for the benefit of the Beneficiaries, a lien on and security interest in and to such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)                                  such Pledgor’s partnership interest in the Partnership owned by such Pledgor at any time and from time to time (each, a “Partnership Interest” and collectively, the “Partnership Interests”) and any certificates, instruments or other documents representing each such Partnership Interest, all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or otherwise distributed in respect of or in exchange for all or any part of each such Partnership Interest and all proceeds thereof; and

 

(b)                                 all partnership interests (general or limited) or securities convertible into or exchangeable for such interests issued by the Partnership, or any successor thereto, from time to time and acquired by such Pledgor in substitution for or in addition to any of the foregoing, all certificates and instruments representing such interests or securities, and all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or

 

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otherwise distributed in respect of or in exchange for any or all of such interests or securities and all proceeds thereof;

 

provided, that, notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Pledge Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt:

 

(i)                                     all Pledged Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Pledge Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain pledged under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations pursuant to this Pledge Agreement.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation.  If the circumstances described in this paragraph apply, this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply,

 

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this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.                                      SECURED OBLIGATIONS

 

The security interest in the Pledged Collateral granted pursuant hereto shall secure the due and punctual payment and performance of the Secured Obligations provided that before any demand for any Secured Obligation is made on a Restricted Guarantor pursuant to this Pledge Agreement, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.  It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include: (a) all Liabilities under the Senior Facilities Agreement; and (b) all Liabilities under the Senior Secured Notes Documents.

 

4.                                      DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

(a)                                  All certificates, instruments or documents, if any, representing or evidencing each and every of the Partnership Interests shall be delivered to the Security Trustee by the Pledgors on the date hereof, and shall be held by the Security Trustee pursuant hereto at all times hereafter until termination hereof pursuant to Section 24, and all certificates, instruments or documents representing or evidencing interests or securities in or issued by the Partnership and acquired by any Pledgor after the date hereof and constituting Pledged Collateral hereunder shall be delivered to the Security Trustee immediately upon, and held by the Security Trustee at all times after, acquisition thereof by such Pledgor.  All such certificates, instruments or documents, if any, shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Security Trustee.  To the extent that any certificates, instruments of transfer or other documents of title relating to any of the Pledged Collateral which are required to be delivered to the Security Trustee hereunder have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Pledged Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 4(a) shall be deemed satisfied.

 

(b)                                 Except as otherwise permitted in the Senior Finance Documents, each Pledgor agrees that it shall take all actions available to such Pledgor to cause the Partnership and, in the event of a merger or consolidation of the Partnership with any other entity, such other entity, not to issue any interests or other securities whether in addition to, by dividend or other distribution upon, or in substitution or exchange for, any of the Partnership Interests or otherwise, other than such interests or other securities issued to the Pledgors and promptly delivered to the Security Trustee pursuant to Section 4(a) hereof in which the Security Trustee, as agent and representative for the Beneficiaries, has a valid and perfected security interest free and clear of all liens and with respect to which no other party has any interest, except for the Existing

 

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Pledged Collateral and the liens created in favor of the Security Trustee pursuant to this Pledge Agreement (collectively, the “Permitted Liens”).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder, the Security Trustee shall have the right, at any time in its discretion, to transfer to or to register in the name of the Security Trustee or any of its nominees any or all of the Pledged Collateral (with, in the discretion of the Security Trustee, such transfer or registration expressly empowering the Security Trustee to vote any voting interests included in the Pledged Collateral), subject only to each Pledgor’s revocable rights specified in Section 6(a).

 

(d)                                 Each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the Colorado, the District of Columbia or any other relevant states (a “State”), covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Security Trustee), to be filed in the relevant filing offices so that at all times the Security Trustee’s security interest in all Pledged Collateral which can be perfected by the filing of such financing statement (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant State), is so perfected.

 

5.                                      CERTAIN COVENANTS; REPRESENTATIONS

 

(a)                                  Each of the Pledgors covenant and agree that: (i) save to the extent expressly permitted or not restricted under any Senior Finance Document without the prior written consent of the Security Trustee, no Pledgor will grant any option with respect to any of the Pledged Collateral; (ii) the Pledgors will defend the Pledged Collateral against the claims and demands of all persons other than the Security Trustee and the Beneficiaries, and will take any and all such action as is reasonably necessary to remove any competing or conflicting lien and will advise the Security Trustee promptly of the existence thereof; and (iii) at any time and from time to time upon the written request of the Security Trustee, the Pledgors will execute and deliver such further documents and do such further acts and things as the Security Trustee may reasonably request in order to effect the purposes of this Pledge Agreement.

 

(b)                                 Each of the Pledgors represent and warrant that:  (i) their choice of Colorado law to govern this Pledge Agreement is valid and binding subject to the Reservations; (ii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Schedule 5(a) hereto; (iii) each Partnership Interest referenced in sub-clause (ii) of this paragraph constitutes that percentage or position of the entire Partnership Interest of the Partnership as set forth in Schedule 5(a) hereto; (iv) it has complied with the respective procedure set forth in Clause 4(a) hereof with respect to each item of Pledged Collateral described in Schedule 5(a); and (v) such Pledgor owns no other Partnership Interests except as set forth in Schedule 5(b) hereto.

 

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6.                                      VOTING RIGHTS; DIVIDENDS; ETC.

 

(a)                                  So long as no Event of Default hereunder shall have occurred and be continuing:  (i) each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral belonging to such Pledgor pursuant to the limited partnership agreement creating and governing CCLP (the “CCLP Partnership Agreement”), for any purpose not prohibited by the terms of this Pledge Agreement or the Senior Finance Documents; and (ii) except as otherwise provided in Section 6(c) hereof and except for distributions prohibited by the Senior Finance Documents, each Pledgor shall be entitled to receive, retain and distribute, free and clear of the security interest granted hereunder, any dividends, distributions, cash and other property from time to time paid, payable or otherwise distributed in respect of the Pledged Collateral belonging to such Pledgor.

 

(b)                                 Pledgor hereby irrevocably appoints the Security Trustee as Pledgor’s proxyholder with respect to the Partnership Interests of Pledgor and any other voting interests or other securities belonging to Pledgor and forming a part of the Pledged Collateral with full power and authority, in the discretion of the Security Trustee, to vote such Partnership Interests and other voting interests or securities and otherwise to act with respect to such Partnership Interests or other voting interests or securities on behalf of Pledgor; provided that this proxy shall only be operative upon the occurrence of an Event of Default and so long as such Event of Default continues.  This proxy shall be irrevocable for so long as any of the Secured Obligations remain in existence.  Pledgor shall execute and deliver (or cause to be executed and delivered) to the Security Trustee all proxies and other instruments as the Security Trustee may reasonably request for the purpose of enabling the Security Trustee to exercise the voting and other rights which it is entitled to exercise pursuant to this Section 6(b).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder or as otherwise permitted or not restricted pursuant to the provisions of each of the Senior Finance Documents, all rights of the Pledgor to receive and retain dividends, distributions, cash and other property, which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii), shall cease and all such rights shall thereupon be vested in the Security Trustee, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, distributions, cash and other property; provided, that until the Enforcement Date, without prejudice to the Senior Finance Documents, the Security Trustee will hold all dividends, distributions, cash and other property paid on and received by it in respect of any Partnership Interest which are transferred to it for the account of each Pledgor and will, subject to any right of set-off, pay such dividends, interest and other moneys to such Pledgor upon request.  All cash and other property received by a Pledgor contrary to the provisions of this Section 6(c) shall be received in trust for the benefit of the Security Trustee, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Security Trustee as Pledged Collateral in the same form as so received (with any necessary transfer documents or endorsements).

 

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7.                                      REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

(a)                                  The Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Security Trustee accords its own property, it being understood that neither the Security Trustee nor any Beneficiary shall have responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain possession of the Pledged Collateral) to preserve rights against any parties with respect to any Pledged Collateral; provided that the Security Trustee agrees to notify the Pledgors if it has actual knowledge of the necessity of taking any such steps in respect of any Pledged Collateral and to cooperate with the Pledgors in connection therewith.

 

(b)                                 Anything herein to the contrary notwithstanding, (i) the Pledgors shall remain liable under the CCLP Partnership Agreement to the extent set forth therein to perform the duties and obligations thereunder to the same extent as if this Pledge Agreement had not been executed, (ii) the exercise by the Security Trustee of any of its rights hereunder shall not release any Pledgor from any of the duties or obligations under the CCLP Partnership Agreement, and (iii) the Security Trustee and the other Beneficiaries shall not have any obligation or liability under the CCLP Partnership Agreement by reason of this Pledge Agreement, nor shall the Security Trustee or the other Beneficiaries be obligated to perform any of the obligations or duties of any Pledgor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by any Pledgor or the sufficiency of any performance by any party under the CCLP Partnership Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  Except to the extent required by general partnership law, the Security Trustee and the other Beneficiaries shall not by reason of this Pledge Agreement or the exercise of any remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of CCLP or any of the liabilities of the Pledgors (or their permitted successors or assigns).

 

8.                                      SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

(a)                                  Each Pledgor hereby irrevocably appoints (which appointment is coupled with an interest) the Security Trustee (acting through its employees, attorneys, and/or agents) as such Pledgor’s attorney-in-fact, with full power of substitution and with full authority in the place and stead of Pledgor and in its name or otherwise, from time to time in the Security Trustee’s discretion, to sign, execute, seal and deliver and otherwise perfect any further security document or notice reasonably required to secure the Secured Obligations or to perfect the security intended to be created hereunder over the Pledged Collateral or any part thereof or, on or after the Enforcement Date, to take any action and to execute any instrument which the Security Trustee may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement; provided, that the Security Trustee shall be under no obligation to take any action hereunder and, absent gross negligence and wilful misconduct, the Security Trustee shall have no liability or responsibility for any action taken or omission with respect thereto.

 

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(b)                                 Each Pledgor hereby consents, acknowledges and agrees, as of the date hereof,  that the Security Trustee shall be appointed to succeed the Existing Security Trustee in relation to the Existing Pledged Collateral.

 

9.                                      SECURITY TRUSTEE MAY PERFORM

 

Upon the occurrence and during the continuance of an Event of Default hereunder (including an Event of Default resulting from a failure to perform any agreement contained herein), if any Pledgor fails to perform any agreement contained herein, the Security Trustee may itself perform, or cause performance of, such agreement, and the expenses of the Security Trustee incurred in connection therewith shall be payable by such Pledgor under Section 12 hereof.

 

10.                               EVENTS OF DEFAULT

 

The occurrence of an Event of Default shall constitute an Event of Default hereunder.

 

11.                               REMEDIES

 

At any time on or after the Enforcement Date, in addition to and without limiting any and all other remedies available under principles of law or equity:

 

(a)                                  The Security Trustee may execute, acknowledge, deliver, file and record on behalf of any or all the Pledgors and in their respective names financing statements, continuation statements, security agreements, mortgages, assignments, certificates of title, reports, notices, schedules of account, and all other documents, instruments or agreements that the Security Trustee may, in its sole and absolute discretion, deem advisable in order to obtain, perfect and maintain the Security Trustee’s security interests in the Pledged Collateral granted pursuant hereto and in order to fully consummate, implement and enforce all of the transactions contemplated and security interests granted under this Pledge Agreement.

 

(b)                                 The Security Trustee may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party after default under the Uniform Commercial Code in effect in the State of Colorado (the “Colorado UCC”) at that time or other applicable law.

 

(c)                                  The Security Trustee may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, over the counter or at any of the Security Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable or otherwise in such manner as necessary to comply with applicable federal and state securities laws.  The Pledgors agree that the Security Trustee shall not be required to register or qualify any of the Pledged Collateral under applicable state or federal securities laws in connection with any such sale if the sale is effected in a manner that complies with all applicable federal and state securities laws (to the extent applicable).  The Security Trustee shall be authorized at any such sale (if it deems it advisable to

 

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do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are “accredited investors” or “qualified institutional buyers” under applicable law and are purchasing the Pledged Collateral for their own account, for investment and not with a view to the distribution thereof.  Upon consummation of any such sale the Security Trustee shall have the right to assign, transfer and deliver the Pledged Collateral to the purchaser or purchasers at any such sale, and such purchasers shall hold the property sold absolutely free from any claim or right on the part of the Pledgors, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it now has or may at any time in the future have under applicable law now existing or hereafter enacted.

 

(d)                                 The Security Trustee shall give to each Pledgor notice in writing of the time and place of any public sale or of the time on or after which any private sale or intended disposition is to be made.  Such notice need not be given more than five (5) Business Days (or such longer period as shall be specified by applicable law) before the date fixed for any such disposition, which notice the Pledgors agree shall constitute commercially reasonable notification.  At any such sale or other disposition, the Security Trustee, to the extent permitted by applicable law, may bid, which bid may be, in whole or in part, in the form of cancellation of the Secured Obligations in proportion to the share of the Secured Obligations of each Beneficiary, and purchase for the account of the Beneficiaries the whole or any portion of the Pledged Collateral, to the further extent permitted by applicable law, free of any right of redemption, which right is hereby waived and released to the extent permitted by applicable law.  The Security Trustee shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, and the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(e)                                  If a sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take delivery of and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  The Pledgors agree that any sale of the Pledged Collateral conducted by the Security Trustee in accordance with the foregoing provisions of this Section shall be deemed to be a commercially reasonable sale under Article 9 of the Colorado UCC.

 

(f)                                    As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by a suit or suits at law or in equity to foreclose the security interests and to sell the Pledged Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction.

 

(g)                                 Subject to provisions of applicable law any cash held by the Security Trustee as Pledged Collateral and all cash proceeds received by the Security Trustee in respect of any sale of, collection from, or other realization upon all or any part

 

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of the Pledged Collateral shall be applied as set forth in the Group Intercreditor Deed and the Security Trust Agreement.

 

12.                               EXPENSES

 

Pledgors agree to pay, upon demand, to the Security Trustee (together with interest thereon from the date falling 30 days after the date of demand by the Security Trustee until the date of payment at the default interest rate as in effect from time to time under clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) (a) the amount of any and all actual fees and expenses, including without limitation the fees and expenses of its counsel and of any experts and agents, which the Security Trustee may properly incur in connection with (i) the custody or preservation of the Pledged Collateral, (ii) the exercise or enforcement of any rights of the Security Trustee hereunder or (iii) the failure by any Pledgor to perform or observe any of the provisions hereof and (b) the amount of any and all actual and fees and expenses of the Security Trustee’s counsel and outside experts and agents incurred in connection with the administration and enforcement of this Pledge Agreement.

 

13.                               RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

(a)                                  Each Pledgor acknowledges that the security interests granted hereunder will secure obligations of persons other than such Pledgor, and, in full recognition of such fact, each Pledgor hereby agrees that, at any time and from time to time the Beneficiaries may, in their sole and absolute discretion, without the necessity of any reservation of rights against, notice to or further assent by any Pledgor, and without affecting the validity, legality or enforceability hereof or the security interests hereunder (but subject to the terms of the Senior Finance Documents):  (i) create new Secured Obligations or extend, accelerate, rescind any acceleration, increase, decrease, continue, restructure or otherwise modify the Secured Obligations or any of their terms; (ii) amend, supplement, waive or otherwise modify any provision of, or give any agreement, approval or consent with respect to, the Senior Finance Documents or any of the Secured Obligations; (iii) accept new or additional instruments, documents or agreements in exchange for or relative to any of the Senior Finance Documents, the Security Documents or the Secured Obligations or any part thereof; (iv) except as may be required by applicable law, accept and apply as the Beneficiaries may see fit payments on the Secured Obligations or proceeds of Collateral (as defined below); (v) receive and hold additional collateral or guarantees for the Secured Obligations or any part thereof (all collateral and guarantees for the Secured Obligations or any part thereof being referred to in this Section 13 as “Collateral” and “Guarantees,” respectively); (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any Collateral or Guarantees, apply any such Collateral and direct the order or manner of sale or other enforcement thereof; (vii) alter, impair, suspend or terminate the remedies or rights of the Beneficiaries against the Partnership, any guarantor of the Secured Obligations or any part thereof (a “Guarantor”) or any other person in respect of any of the Secured Obligations or suffer any of the foregoing to occur; (viii) refund at any time, at the Beneficiaries’ sole discretion, any payment received by the

 

12



 

Beneficiaries in respect of the Secured Obligations; and (ix) otherwise deal with CCLP, any Collateral or any Guarantor as the Beneficiaries may elect in their sole discretion.

 

(b)                                 The Pledgors acknowledge that the security interests hereunder, and the enforcement hereof are not subject to any conditions not expressly stated herein.  Upon the occurrence and during the continuance of an Event of Default, the Security Trustee may enforce this Pledge Agreement independently from any other of the Security Documents and independently of any other remedy, Collateral or Guaranty that any Beneficiary at any time may have or hold in connection with the Secured Obligations, and it shall not be necessary for the Security Trustee to marshal assets in favor of the Pledgors or any other person or to proceed upon or against or exhaust any other remedy, Collateral or Guaranty before proceeding to enforce this Pledge Agreement.  The Pledgors expressly agree that the Security Trustee may proceed against CCLP, any Pledgor, any other Guarantor, or the Collateral in such order and in such manner as it shall determine in its sole and absolute discretion.  The Security Trustee may file a separate action or actions with respect to the Pledged Collateral whether action is brought or prosecuted with respect to any other Collateral or against any other person, or whether any other person is joined in any such action or actions.  The Pledgors agree that the Beneficiaries, CCLP and any other Guarantor may deal with each other in connection with the Secured Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between or among any of them, in any manner whatsoever, all without in any way altering or affecting the security of this Pledge Agreement.  The Pledgors expressly waive the benefit of any statute(s) of limitations affecting the enforcement of the Secured Obligations or the security interest hereunder.  Any payment by or on behalf of CCLP or other circumstance that operates to toll any statute of limitations applicable to such partnership shall also operate to toll the statute of limitations applicable to Pledgors.

 

(c)                                  The Pledgors expressly waive any and all defenses or counterclaims (other than by reason of the full payment and performance of all the Secured Obligations) now or hereafter arising or asserted by reason of (i) any disability, set-off or other defense or counterclaim of CCLP or any Guarantor with respect to the Secured Obligations, the Senior Finance Documents or any of the Security Documents; (ii) the failure of priority or validity of security interest in any Collateral; (iii) the cessation from any cause whatsoever of the liability of CCLP or any Guarantor or other person with respect to the Secured Obligations; (iv) the disallowance of, or any failure of any Beneficiary to file or enforce, a claim in any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding (a “Bankruptcy Proceeding”) with respect to CCLP or any other person; (v) the modification, discharge, extension or avoidance in or as a result of any Bankruptcy Proceeding commenced by or against CCLP or any other person of all or any of the Secured Obligations, any Guaranty, collateral or lien; (vi) any use of cash or other Collateral in any Bankruptcy Proceeding; (vii) any agreement or stipulation as to adequate protection in any Bankruptcy Proceeding; (viii) any amendment, modification, stay or cure of the

 

13



 

Beneficiaries’ rights that may occur in any Bankruptcy Proceeding; (ix) any election of remedies by the Beneficiaries, whether or not such election destroys or affects any subrogation, reimbursement, contribution, indemnity or similar rights the Pledgors may have (notwithstanding subsection (d) below) against CCLP, including, without limitation, any loss of rights the Pledgors may suffer by reason of any rights, powers or remedies of CCLP in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging the Secured Obligations; (x) any election by the Beneficiaries under Section 1111(b)(2) of the Bankruptcy Code; (xi) any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code; or (xii) any action taken by any Beneficiary that is authorized by this Section or any other provision of any of the Security Documents or any other Senior Finance Documents.

 

(d)                                 The Pledgors hereby waive any and all rights of subrogation, reimbursement, contribution, indemnity, setoffs or counterclaims and any and all similar rights that the Pledgors may otherwise have against CCLP at any time under any applicable law, until the Secured Obligations shall have been indefeasibly paid and performed in full.  The Pledgors further expressly waive any right to enforce any remedy that the Beneficiaries now or hereafter may have against CCLP or any other person and waive the benefit of, or any right to participate in, any Collateral now or hereafter held by the Beneficiaries, until the Secured Obligations shall then have been indefeasibly paid and performed in full.

 

(e)                                  The Pledgors expressly waive (i) all presentments, protests, notices of default or dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations, including notice of any action against CCLP or any Guarantor or the assertion or enforcement of any right of the Beneficiaries hereunder or any other of the Security Documents; (ii) all notices of acceptance of this Pledge Agreement or of the existence, creation, renewal or incurring of new or additional Secured Obligations; and (iii) to the extent permitted by applicable law, the benefit of all valuation, appraisal, redemption and exemption laws.  The Pledgors expressly agree that they shall be bound by each and every ruling, order and judgment obtained by any Beneficiary against CCLP, in respect of the Secured Obligations, whether or not the Pledgors are parties to, or have received notice of, the action or proceeding in which such ruling, order or judgment is issued and rendered.

 

(f)                                    The Pledgors represent and warrant that they have established adequate means of obtaining from CCLP, on a continuing basis, financial and other information pertaining to the business, operations and condition (financial and otherwise) of such entity, and now are and hereafter will be completely familiar with such business, operations, condition and properties.

 

(g)                                 The Pledgors hereby acknowledge and warrant that they are familiar with the terms of this Pledge Agreement, the Senior Finance Documents, all other Security Documents and all other agreements evidencing the Secured Obligations and that they have derived or expect to derive a financial advantage from each Series of Senior Liabilities or other extension of credit and from each and every renewal, extension, release of Collateral, or other relinquishment of legal rights made or granted or to be made or granted by the

 

14



 

Beneficiaries to the Borrowers, CCLP or any of the other Obligors in connection with the Secured Obligations.

 

(h)                                 The Pledgors warrant and agree that each of the waivers set forth in this Pledge Agreement is made with full knowledge of its significance and consequences and that, under the circumstances, all such waivers are reasonable and not contrary to public policy or applicable law.  If any such waiver is determined to be contrary to any public policy or applicable law, such waiver shall be effective to the maximum extent permitted by such public policy or applicable law.

 

(i)                                     Notwithstanding anything to the contrary contained herein or in any other agreement or instrument relating to the Secured Obligations, the Pledgors shall not be personally liable to the Security Trustee or the Beneficiaries for the satisfaction of the Secured Obligations, and the Security Trustee, on behalf of the Beneficiaries, shall look solely to the Pledged Collateral with respect to such satisfaction from Pledgors; provided that the foregoing shall not (i) constitute a waiver, release or discharge of any of the indebtedness evidenced by any Senior Finance Document, but the same shall continue until fully paid, discharged, observed or performed or (ii) in any way limit or restrict any right of the Security Trustee or the Beneficiaries to foreclose the liens and security interests of the Security Documents or otherwise realize upon any collateral assigned or pledged to the Security Trustee or the Beneficiaries in connection with the transactions contemplated hereby or thereby or (iii) constitute a waiver or limitation by the Security Trustee or the Beneficiaries of any claim against Pledgors for any claim in the nature of fraud or deceit or willful misconduct arising under or in connection with this Pledge Agreement.

 

14.                               INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Security Trustee and its respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and an collectively, the “Indemnities”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Pledge Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Security Document (but excluding any obligation, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or wilful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Security Trustee hereunder be liable, in the absence of gross negligence or wilful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), of or any matter or thing in connection with this Pledge Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligation of any Pledgor under this

 

15



 

Section 14 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.  The indemnity obligations of each Pledgor contained in this Section 14 shall continue in full force and effect notwithstanding the full payment and fulfilment of all the obligations under the Senior Finance Documents and notwithstanding the discharge thereof.

 

15.                               ROLE OF SECURITY TRUSTEE

 

Each Pledgor and the Security Trustee hereby acknowledge that the covenants of each Pledgor contained in this Pledge Agreement and the security and other rights, titles and interests constituted by this Pledge Agreement and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Pledge Agreement are held by the Security Trustee subject to and on the terms of the trusts declared by the Security Trust Agreement.

 

16.                               SEVERABILITY

 

Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.                               CONTINUED EFFECTIVENESS

 

Any release, discharge or settlement between one or more of the Pledgors and the Security Trustee or any of the other Beneficiaries shall be conditional upon no security, disposition or payment to the Security Trustee or any of the other Beneficiaries by any of the Obligors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Security Trustee and the other Beneficiaries shall be entitled to enforce this Pledge Agreement subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain this security after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the other Beneficiaries from any of the Obligors for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

18.                               CUMULATIVE REMEDIES

 

The rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies provided by law.

 

16



 

19.                               WAIVERS, AMENDMENTS

 

None of the terms or provisions of this Pledge Agreement may be altered, modified or amended except by an instrument in writing, duly executed by the Security Trustee and the Pledgors.  No waiver of any provision hereof or consent to any departure from the terms hereof shall be effective unless the same shall be in writing and duly executed by the Security Trustee.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  A waiver by the Security Trustee of any right or remedy hereunder on any occasion shall not be construed as a bar to any right or remedy which the Security Trustee would otherwise have on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Security Trustee, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

20.                               WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

The Pledgors hereby represent that they constitute all of the partners of the Partnership.  The Pledgors, constituting all of the partners of the Partnership, each hereby waives the application of the provisions of Section 15 of the CCLP Partnership Agreement that otherwise would apply to, and hereby consents to, the assignment, transfer or pledge of any Pledgor’s Partnership Interest in the Partnership to the Security Trustee, for the benefit of the Beneficiaries, now or in the future, pursuant to the provisions of this Pledge Agreement.  Further, each of the Pledgors hereby ratifies and approves any similar assignments, transfers or pledges of the Partnership Interests of the other Pledgors occurring prior to the date hereof.

 

21.                               SUCCESSORS AND ASSIGNS

 

(a)                                  Subject to the restrictions on transfers by the Pledgors hereunder, this Pledge Agreement and all obligations of the Pledgors hereunder shall be binding upon the successors and assigns of the Pledgors, and shall inure to the benefit of the Security Trustee, the Beneficiaries and their respective successors and assigns.

 

(b)                                 It is hereby understood and agreed that any party required to become a party to this Pledge Agreement after the date hereof pursuant to the requirements of the Senior Finance Documents, shall become a Pledgor hereunder by

 

(i)                                     executing a Partnership Interest Accession Agreement in the form attached hereto as Schedule 13,

 

(ii)                                  delivering supplements to the schedules attached hereto as are necessary to cause such schedules to be complete and accurate with respect to each additional Pledgor on such date; and

 

(iii)                               taking all actions specified in this Pledge Agreement as would have been taken by such Pledgor had it been an original party to the Pledge Agreement, in each case with all documents required above to be delivered to the Pledge and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledge.

 

17



 

22.                               GOVERNING LAW

 

This Pledge Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Colorado applicable to agreements made and to be performed entirely within such State.  The Pledgors hereby irrevocably consent to the jurisdiction of any of the courts designated in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) in connection with any action or proceeding arising out of or relating to this Pledge Agreement.  In any such action or proceeding, each Pledgor waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by personal delivery or by certified or registered mail directed to each Pledgor at its address set forth herein.  Nothing in this section shall affect the right of the Security Trustee or the Beneficiaries to serve legal process in any other manner by law or affect the right of the Security Trustee or the Beneficiaries to bring any action or proceeding against any Pledgor or his or its property in the courts of any other jurisdiction.  The Pledgors irrevocably waive any objection they may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement), or that any action or proceeding in any such court or jurisdiction has been brought in an inconvenient forum.

 

23.                               NOTICES

 

All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be personally served or sent by registered, certified or overnight mail, postage prepaid, or by telegraph, telecopy or telex and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when received (with such receipt acknowledged by the recipient, in the case of a telecopy).  All such notices shall be addressed as follows, or to such other address as may be hereafter notified in writing to the respective parties hereto:

 

If to the Security Trustee:

 

Winchester House

1 Great Winchester Street

London EC2N 2DB

England

 

Attention:

 

Syndicated Loans TSS / Nicola Dawes / Rajeer Thakeeria

Telephone:

 

0207 547 5905

Facsimile:

 

0207 547 6419

 

If to a Pledgor, addressed to such Pledgor at:

 

c/o Virgin Media Investment Holdings Limited

160 Great Portland St

London W1W 5QA

 

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England

 

Attention:

 

Group Legal Director

Facsimile:

 

020 7299 6000

 

With a copy to:

 

Attention:

 

Group General Counsel

Facsimile:

 

020 7299 5495

 

24.                               TERMINATION

 

This Pledge Agreement, and the pledges, assignments, and encumbrances created or granted hereby, shall terminate when (a) all of the Secured Obligations shall have been fully paid, satisfied and performed, and (b) the Commitments have terminated, at which time the Security Trustee shall execute appropriate releases, acknowledgments, assignments or other documents necessary to secure the release and reassignment of such of the Pledged Collateral as shall not have been sold or otherwise applied by the Security Trustee pursuant to the terms hereof, and deliver to the Pledgors (or their respective designees) all Pledged Collateral and related documents then in the custody or possession of the Security Trustee.  Any such reassignment shall be without recourse upon, or warranty whatsoever by, the Security Trustee, and at the cost and expense of the Pledgors.

 

25.                               COUNTERPARTS

 

This Pledge Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

26.                               AUTHORIZATION TO FILE

 

With respect to the foregoing in this Pledge Agreement and the grant of the security interest hereunder, each Pledgor hereby authorizes the Security Trustee to file one or more financing statements or continuation statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of any Pledgor where permitted by law.  Each Pledgor agrees to furnish the Security Trustee, promptly upon reasonable request by the Security Trustee, with any information that is required by the Security Trustee in order to complete such financing statements or continuation statements, or amendments thereto.

 

27.                               GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

Each Pledgor hereby represents and warrants to the Security Trustee that:

 

(a)                                  Schedule 27(a) attached hereto sets forth an accurate and complete list identifying the following: (i) the full legal name of each Pledgor as it appears in official filings in the state or jurisdiction of its incorporation, organization or formation, as the case may be; (ii) the type of entity of such Pledgor; (iii) such Pledgor’s state of incorporation, organization or formation, as the case may be; (iv) the organizational identification number issued by such

 

19



 

Pledgor’s state of incorporation, organization or formation, or a statement that no such number has been issued; (v) the location of such Pledgor’s chief executive office ; and (vi) the jurisdiction(s) of such Pledgor’s place(s) of business.  Each Pledgor has only one state of incorporation, organization or formation, as the case may be;

 

(b)                                 it has not done in the last five (5) years, and does not do, business under any other name (including any trade name or fictitious business name) except for its respective legal name as set forth on Schedule 27(a);

 

(c)                                  it has not changed its name, jurisdiction of incorporation, organization or formation, the location of its chief executive office or place(s) of business, or its corporate or partnership structure in any way (e.g., by merger, consolidation, change in corporate or partnership form or otherwise), in each case within the past five (5) years;

 

(d)                                 it is the legal, beneficial and record owner of, and has good and marketable title to all of the Pledged Collateral upon which it purports to grant a lien hereunder, free and clear of any lien except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral is on file in any recording office, except as set forth on Schedule 27(d) or such as may have been filed in favor of the Security Trustee relating to this Pledge Agreement and with respect to the Permitted Liens.  Such liens set forth on Schedule 27(d) will be terminated as of the date of this Pledge Agreement;

 

(e)                                  it has full power, authority and legal right to pledge all the Pledged Collateral pledged by it pursuant to this Pledge Agreement;

 

(f)                                    this Pledge Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(g)                                 except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Pledge Agreement by such Pledgor, (b) the validity or enforceability of this Pledge Agreement against such Pledgor (except as set forth in clause (a) above), (c) the perfection or enforceability of the Security Trustee’s security interest in such Pledgor’s Pledged Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Security Trustee of any of its rights or remedies provided herein;

 

20


 

(h)                                 neither the execution, delivery or performance by such Pledgor of this Pledge Agreement or any other Senior Finance Document, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of partnership or partnership agreement, (or equivalent organizational documents), as the case may be, of such Pledgor;

 

(i)                                     as of the date hereof, after giving effect to the transactions contemplated by the Senior Finance Documents, such Pledgor is Solvent, and will not cease to be Solvent as a result of the obligations and transactions undertaken by such Pledgor pursuant to, or as contemplated by, the Senior Finance Documents.  As of the date hereof, there is no proceeding pending, or to the knowledge of the undersigned, threatened, challenging the Solvency of such Pledgor or seeking to dissolve or liquidate such Pledgor.

 

For the purposes of the foregoing, “Solvent” or “Solvency” means, with respect to any person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such person is (y) greater than the total amount of liabilities (including contingent liabilities) of such person and (z) not less than the amount that will be required to pay the probable liabilities on such person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such person; (ii) such person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (B) such person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For the purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

21



 

IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement to be executed and delivered as of the day and year first above written.

 

 

TCI/US WEST CABLE COMMUNICATIONS GROUP,

 

a Colorado general partnership

 

 

 

By Its General Partners:

 

 

 

 

THESEUS NO. 1 LIMITED

 

 

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

22



 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH,

 

as Security Trustee

 

 

 

 

 

By:

/s/ N. DAWES

 

 

Title:

V.P.

 

 

 

 

 

By:

/s/ V. MAYELL

 

 

Title:

 A.V.P.

 

23



 

SCHEDULE 4(b)

 

EXISTING PLEDGED COLLATERAL

 

None.

 

1



 

SCHEDULE 5(a)
PARTNERSHIP INTERESTS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE
OF BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

Cotswolds Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

1



 

SCHEDULE 5(b)
OTHER PARTNERSHIP INTERESTS

 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Estuaries Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

TCI/US WEST Cable Communications Group

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

50% - Theseus No.1 Limited
50% - Theseus No.2 Limited

 

Colorado General

Tyneside Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Telewest Communications (North East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Tyneside Cable Limited Partnership
0.9% - Telewest Communications (North East) Limited
0.1% - Telewest Communications (
Tyneside) Limited

 

English General

 

1



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Telewest Communications (South East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Estuaries Cable Limited Partnership
0.5% - Telewest Communications (South East) Limited
0.5% - Telewest Communications (South Thames Estuary) Limited

 

English General

Avon Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

2



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

United Cable (London South) Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No.1 Limited
0.5% - General - Theseus No.2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

3



 

SCHEDULE 13

 

PARTNERSHIP INTEREST ACCESSION AGREEMENT

 

(Cotswolds Cable Limited Partnership)

 

The undersigned, desiring to become a partner of Cotswolds Cable Limited Partnership, a Colorado limited partnership (the “Partnership”) formed pursuant to the Limited Partnership Agreement dated 30 April 1992, as amended by First Amendment dated 21 November 1994 (the “Partnership Agreement”) hereby agrees to, and by its execution hereof does, become a party to (i) the Partnership Agreement, as a [general/limited] partner thereunder, and (ii) that certain Amended and Restated Pledge and Security Agreement (as amended from time to time, the “Pledge Agreement”), dated                          , 20    , initially entered into among TCI/US WEST CABLE COMMUNICATIONS GROUP, THESEUS NO. 1 LIMITED, THESEUS NO. 2 LIMITED, and Deutsche Bank AG, London Branch as Security Trustee for the benefit of the Beneficiaries described therein.  Capitalized terms used herein shall have the respective meanings set forth in the Pledge Agreement.  By its execution hereof, the undersigned agrees that, from and after the date hereof, the undersigned shall be, and be considered for all purposes, (i) a “[General/Limited] Partner” under the Partnership Agreement and (ii) a “Pledgor” under the Pledge Agreement, as if referred to directly therein as such as a party thereto, entitled to all of the rights and subject to all of the liabilities and obligations of a Partner or Pledgor, respectively, thereunder.

 

As a Pledgor under the Pledge Agreement, the undersigned, as security and collateral for the due and punctual payment and performance of the Secured Obligations (as defined in the Pledge Agreement), hereby assigns, transfers and pledges to the Security Trustee, for the benefit of the Beneficiaries, a lien on and security interest in and to the undersigned’s right, title and interest to the Pledged Collateral (as defined in the Pledge Agreement).  As a Pledgor under the Pledge Agreement, the undersigned represents and warrants that the Pledged Collateral is free and clear of all liens other than the Permitted Liens (as defined in the Pledge Agreement).

 

This instrument, when executed by the undersigned, shall further constitute the undersigned’s counterpart signature page to the Partnership Agreement and the Pledge Agreement.

 

Dated this              day of                     ,             .

 

 

[Name of Transferee]

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

Address for Notice:

 

1



 

SCHEDULE 27(a)

 

Full Legal Name

 

Type of Entity

 

State of
Incorporation,
Organization or
Formation

 

Organizational
Identification
Number

 

Location of Chief
Executive Office

 

Jurisdiction(s) of
place(s) of business

TCI/US WEST Cable Communications Group

 

General Partnership

 

Colorado

 

None

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

Colorado

Theseus No. 1 Limited

 

Private Limited Company

 

England & Wales

 

02994027

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

Theseus No. 2 Limited

 

Private Limited Company

 

England & Wales

 

02994061

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

 

1



 

SCHEDULE 27(d)
CURRENT UCC FILINGS

 

None.

 

1




Exhibit 4.39

 

 

 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

(Re: Interests in Edinburgh Cable Limited Partnership)

 

 

Dated January 19, 2010

 

 

between

 

TCI/US WEST CABLE COMMUNICATIONS GROUP

 

THESEUS NO. 1 LIMITED

 

and

 

THESEUS NO. 2 LIMITED

 

as Pledgors

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINED TERMS

2

 

 

 

2.

SECURITY AGREEMENT

4

 

 

 

3.

SECURED OBLIGATIONS

6

 

 

 

4.

DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

6

 

 

 

5.

CERTAIN COVENANTS; REPRESENTATIONS

7

 

 

 

6.

VOTING RIGHTS; DIVIDENDS; ETC.

8

 

 

 

7.

REASONABLE CARE; PLEDGOR REMAINS LIABLE

9

 

 

 

8.

SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

9

 

 

 

9.

SECURITY TRUSTEE MAY PERFORM

10

 

 

 

10.

EVENTS OF DEFAULT

10

 

 

 

11.

REMEDIES

10

 

 

 

12.

EXPENSES

12

 

 

 

13.

RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

12

 

 

 

14.

INDEMNITY

15

 

 

 

15.

ROLE OF SECURITY TRUSTEE

16

 

 

 

16.

SEVERABILITY

16

 

 

 

17.

CONTINUED EFFECTIVENESS

16

 

 

 

18.

CUMULATIVE REMEDIES

16

 

 

 

19.

WAIVERS, AMENDMENTS

17

 

 

 

20.

WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

17

 

 

 

21.

SUCCESSORS AND ASSIGNS

17

 

 

 

22.

GOVERNING LAW

18

 

 

 

23.

NOTICES

18

 

 

 

24.

TERMINATION

19

 

 

 

25.

COUNTERPARTS

19

 

 

 

26.

AUTHORIZATION TO FILE

19

 

 

 

27.

GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

19

 

Schedules

Schedule 4(b)

Schedule 5(a)

Schedule 5(b)

Schedule 13

Schedule 27(a)

Schedule 27(d)

 

i



 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”), is made and entered into as of January 19, 2010 by and among TCI/US WEST CABLE COMMUNICATIONS GROUP, a Colorado general partnership, THESEUS NO. 1 LIMITED, a limited company incorporated in England and Wales and THESEUS NO. 2 LIMITED, a limited company incorporated in England and Wales (each of foregoing being referred to individually as a “Pledgor” and collectively as the “Pledgors”), and Deutsche Bank AG, London Branch, in its capacity as Security Trustee for the Beneficiaries (the “Security Trustee” which expression includes any person which is for the time being the Security Trustee for the Beneficiaries).

 

W I T N E S S E T H

 

WHEREAS, the Pledgors constitute all of the partners of Edinburgh Cable Limited Partnership, a Colorado limited partnership (“EDCLP” or the “Partnership”).

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited and VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Original Guarantors as defined therein, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms are defined therein), the intergroup creditors and intergroup debtors listed therein, certain banks financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”), in respect of the $1,000,000,000 6.5% senior secured notes due 2018 and the £875,000,000 7.00% senior secured notes due 2018 (“Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), made among Virgin Media Inc., Virgin

 



 

Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time, Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes.

 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge and security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Partnership and the other collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                      CONSTRUCTION; DEFINED TERMS

 

This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless otherwise defined herein or the context otherwise expressly requires, capitalized terms used herein shall have the respective meanings set forth in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement (including by reference to other agreements).

 

Bankruptcy Code” Title 11 of the United States Code entitled “Bankruptcy as now or hereafter in effect.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Pledgor of the occurrence of that Event of Default, or takes,

 

2



 

under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Defaultmeans each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 2.

 

Existing Pledged Collateral” means the existing security pledged by the Partnership under the relevant (i) July 2004 Pledge Agreements and the (ii) March 2001 Pledge Agreements, as such documents are set forth on Schedule 4(b) hereto.

 

Existing Security Trustee” means Barclays Bank PLC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

SEC” means the United States Securities and Exchange Commission.

 

3



 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

2.                                      SECURITY AGREEMENT

 

As security and collateral for the due and punctual payment and performance by the Obligors of their respective joint and several obligations described in Section 3 below, each of the Pledgors hereby assigns, transfers, and pledges to the Security Trustee, and grants to the Security Trustee for the benefit of the Beneficiaries, a lien on and security interest in and to such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)                                  such Pledgor’s partnership interest in the Partnership owned by such Pledgor at any time and from time to time (each, a “Partnership Interest” and collectively, the “Partnership Interests”) and any certificates, instruments or other documents representing each such Partnership Interest, all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or otherwise distributed in respect of or in exchange for all or any part of each such Partnership Interest and all proceeds thereof; and

 

(b)                                 all partnership interests (general or limited) or securities convertible into or exchangeable for such interests issued by the Partnership, or any successor thereto, from time to time and acquired by such Pledgor in substitution for or in addition to any of the foregoing, all certificates and instruments representing such interests or securities, and all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or

 

4



 

otherwise distributed in respect of or in exchange for any or all of such interests or securities and all proceeds thereof;

 

provided, that, notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Pledge Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt:

 

(i)                                     all Pledged Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Pledge Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain pledged under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations pursuant to this Pledge Agreement.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation.  If the circumstances described in this paragraph apply, this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply,

 

5



 

this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.                                      SECURED OBLIGATIONS

 

The security interest in the Pledged Collateral granted pursuant hereto shall secure the due and punctual payment and performance of the Secured Obligations provided that before any demand for any Secured Obligation is made on a Restricted Guarantor pursuant to this Pledge Agreement, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.  It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include: (a) all Liabilities under the Senior Facilities Agreement; and (b) all Liabilities under the Senior Secured Notes Documents.

 

4.                                      DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

(a)                                  All certificates, instruments or documents, if any, representing or evidencing each and every of the Partnership Interests shall be delivered to the Security Trustee by the Pledgors on the date hereof, and shall be held by the Security Trustee pursuant hereto at all times hereafter until termination hereof pursuant to Section 24, and all certificates, instruments or documents representing or evidencing interests or securities in or issued by the Partnership and acquired by any Pledgor after the date hereof and constituting Pledged Collateral hereunder shall be delivered to the Security Trustee immediately upon, and held by the Security Trustee at all times after, acquisition thereof by such Pledgor.  All such certificates, instruments or documents, if any, shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Security Trustee.  To the extent that any certificates, instruments of transfer or other documents of title relating to any of the Pledged Collateral which are required to be delivered to the Security Trustee hereunder have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Pledged Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 4(a) shall be deemed satisfied.

 

(b)                                 Except as otherwise permitted in the Senior Finance Documents, each Pledgor agrees that it shall take all actions available to such Pledgor to cause the Partnership and, in the event of a merger or consolidation of the Partnership with any other entity, such other entity, not to issue any interests or other securities whether in addition to, by dividend or other distribution upon, or in substitution or exchange for, any of the Partnership Interests or otherwise, other than such interests or other securities issued to the Pledgors and promptly delivered to the Security Trustee pursuant to Section 4(a) hereof in which the Security Trustee, as agent and representative for the Beneficiaries, has a valid and perfected security interest free and clear of all liens and with respect to which no other party has any interest, except for the Existing

 

6



 

Pledged Collateral and the liens created in favor of the Security Trustee pursuant to this Pledge Agreement (collectively, the “Permitted Liens”).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder, the Security Trustee shall have the right, at any time in its discretion, to transfer to or to register in the name of the Security Trustee or any of its nominees any or all of the Pledged Collateral (with, in the discretion of the Security Trustee, such transfer or registration expressly empowering the Security Trustee to vote any voting interests included in the Pledged Collateral), subject only to each Pledgor’s revocable rights specified in Section 6(a).

 

(d)                                 Each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the Colorado, the District of Columbia or any other relevant states (a “State”), covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Security Trustee), to be filed in the relevant filing offices so that at all times the Security Trustee’s security interest in all Pledged Collateral which can be perfected by the filing of such financing statement (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant State), is so perfected.

 

5.                                      CERTAIN COVENANTS; REPRESENTATIONS

 

(a)                                  Each of the Pledgors covenant and agree that: (i) save to the extent expressly permitted or not restricted under any Senior Finance Document, without the prior written consent of the Security Trustee, no Pledgor will grant any option with respect to any of the Pledged Collateral; (ii) the Pledgors will defend the Pledged Collateral against the claims and demands of all persons other than the Security Trustee and the Beneficiaries, and will take any and all such action as is reasonably necessary to remove any competing or conflicting lien and will advise the Security Trustee promptly of the existence thereof; and (iii) at any time and from time to time upon the written request of the Security Trustee, the Pledgors will execute and deliver such further documents and do such further acts and things as the Security Trustee may reasonably request in order to effect the purposes of this Pledge Agreement.

 

(b)                                 Each of the Pledgors represent and warrant that:  (i) their choice of Colorado law to govern this Pledge Agreement is valid and binding subject to the Reservations; (ii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Schedule 5(a) hereto; (iii) each Partnership Interest referenced in sub-clause (ii) of this paragraph constitutes that percentage or position of the entire Partnership Interest of the Partnership as set forth in Schedule 5(a) hereto; (iv) it has complied with the respective procedure set forth in Clause 4(a) hereof with respect to each item of Pledged Collateral described in Schedule 5(a); and (v) such Pledgor owns no other Partnership Interests except as set forth in Schedule 5(b) hereto.

 

7



 

6.                                      VOTING RIGHTS; DIVIDENDS; ETC.

 

(a)                                  So long as no Event of Default hereunder shall have occurred and be continuing:  (i) each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral belonging to such Pledgor pursuant to the limited partnership agreement creating and governing EDCLP (the “EDCLP Partnership Agreement”), for any purpose not prohibited by the terms of this Pledge Agreement or the Senior Finance Documents; and (ii) except as otherwise provided in Section 6(c) hereof and except for distributions prohibited by the Senior Finance Documents, each Pledgor shall be entitled to receive, retain and distribute, free and clear of the security interest granted hereunder, any dividends, distributions, cash and other property from time to time paid, payable or otherwise distributed in respect of the Pledged Collateral belonging to such Pledgor.

 

(b)                                 Pledgor hereby irrevocably appoints the Security Trustee as Pledgor’s proxyholder with respect to the Partnership Interests of Pledgor and any other voting interests or other securities belonging to Pledgor and forming a part of the Pledged Collateral with full power and authority, in the discretion of the Security Trustee, to vote such Partnership Interests and other voting interests or securities and otherwise to act with respect to such Partnership Interests or other voting interests or securities on behalf of Pledgor; provided that this proxy shall only be operative upon the occurrence of an Event of Default and so long as such Event of Default continues.  This proxy shall be irrevocable for so long as any of the Secured Obligations remain in existence.  Pledgor shall execute and deliver (or cause to be executed and delivered) to the Security Trustee all proxies and other instruments as the Security Trustee may reasonably request for the purpose of enabling the Security Trustee to exercise the voting and other rights which it is entitled to exercise pursuant to this Section 6(b).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder or as otherwise permitted or not restricted pursuant to the provisions of each of the Senior Finance Documents, all rights of the Pledgor to receive and retain dividends, distributions, cash and other property, which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii), shall cease and all such rights shall thereupon be vested in the Security Trustee, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, distributions, cash and other property; provided, that until the Enforcement Date, without prejudice to the Senior Finance Documents, the Security Trustee will hold all dividends, distributions, cash and other property paid on and received by it in respect of any Partnership Interest which are transferred to it for the account of each Pledgor and will, subject to any right of set-off, pay such dividends, interest and other moneys to such Pledgor upon request.  All cash and other property received by a Pledgor contrary to the provisions of this Section 6(c) shall be received in trust for the benefit of the Security Trustee, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Security Trustee as Pledged Collateral in the same form as so received (with any necessary transfer documents or endorsements).

 

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7.                                      REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

(a)                                  The Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Security Trustee accords its own property, it being understood that neither the Security Trustee nor any Beneficiary shall have responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain possession of the Pledged Collateral) to preserve rights against any parties with respect to any Pledged Collateral; provided that the Security Trustee agrees to notify the Pledgors if it has actual knowledge of the necessity of taking any such steps in respect of any Pledged Collateral and to cooperate with the Pledgors in connection therewith.

 

(b)                                 Anything herein to the contrary notwithstanding, (i) the Pledgors shall remain liable under the EDCLP Partnership Agreement to the extent set forth therein to perform the duties and obligations thereunder to the same extent as if this Pledge Agreement had not been executed, (ii) the exercise by the Security Trustee of any of its rights hereunder shall not release any Pledgor from any of the duties or obligations under the EDCLP Partnership Agreement, and (iii) the Security Trustee and the other Beneficiaries shall not have any obligation or liability under the EDCLP Partnership Agreement by reason of this Pledge Agreement, nor shall the Security Trustee or the other Beneficiaries be obligated to perform any of the obligations or duties of any Pledgor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by any Pledgor or the sufficiency of any performance by any party under the EDCLP Partnership Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  Except to the extent required by general partnership law, the Security Trustee and the other Beneficiaries shall not by reason of this Pledge Agreement or the exercise of any remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of EDCLP or any of the liabilities of the Pledgors (or their permitted successors or assigns).

 

8.                                      SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

(a)                                  Each Pledgor hereby irrevocably appoints (which appointment is coupled with an interest) the Security Trustee (acting through its employees, attorneys, and/or agents) as such Pledgor’s attorney-in-fact, with full power of substitution and with full authority in the place and stead of Pledgor and in its name or otherwise, from time to time in the Security Trustee’s discretion, to sign, execute, seal and deliver and otherwise perfect any further security document or notice reasonably required to secure the Secured Obligations or to perfect the security intended to be created hereunder over the Pledged Collateral or any part thereof or, on or after the Enforcement Date, to take any action and to execute any instrument which the Security Trustee may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement; provided, that the Security Trustee shall be under no obligation to take any action hereunder and, absent gross negligence and wilful misconduct,

 

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the Security Trustee shall have no liability or responsibility for any action taken or omission with respect thereto.

 

(b)                                 Each Pledgor hereby consents, acknowledges and agrees, as of the date hereof,  that the Security Trustee shall be appointed to succeed the Existing Security Trustee in relation to the Existing Pledged Collateral.

 

9.                                      SECURITY TRUSTEE MAY PERFORM

 

Upon the occurrence and during the continuance of an Event of Default hereunder (including an Event of Default resulting from a failure to perform any agreement contained herein), if any Pledgor fails to perform any agreement contained herein, the Security Trustee may itself perform, or cause performance of, such agreement, and the expenses of the Security Trustee incurred in connection therewith shall be payable by such Pledgor under Section 12 hereof.

 

10.                               EVENTS OF DEFAULT

 

The occurrence of an Event of Default shall constitute an Event of Default hereunder.

 

11.                               REMEDIES

 

At any time on or after the Enforcement Date, in addition to and without limiting any and all other remedies available under principles of law or equity:

 

(a)                                  The Security Trustee may execute, acknowledge, deliver, file and record on behalf of any or all the Pledgors and in their respective names financing statements, continuation statements, security agreements, mortgages, assignments, certificates of title, reports, notices, schedules of account, and all other documents, instruments or agreements that the Security Trustee may, in its sole and absolute discretion, deem advisable in order to obtain, perfect and maintain the Security Trustee’s security interests in the Pledged Collateral granted pursuant hereto and in order to fully consummate, implement and enforce all of the transactions contemplated and security interests granted under this Pledge Agreement.

 

(b)                                 The Security Trustee may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party after default under the Uniform Commercial Code in effect in the State of Colorado (the “Colorado UCC”) at that time or other applicable law.

 

(c)                                  The Security Trustee may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, over the counter or at any of the Security Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable or otherwise in such manner as necessary to comply with applicable federal and state securities laws.  The Pledgors agree that the Security Trustee shall not be required to register or qualify any of the Pledged Collateral under applicable state or federal securities laws in connection with

 

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any such sale if the sale is effected in a manner that complies with all applicable federal and state securities laws (to the extent applicable).  The Security Trustee shall be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are “accredited investors” or “qualified institutional buyers” under applicable law and are purchasing the Pledged Collateral for their own account, for investment and not with a view to the distribution thereof.  Upon consummation of any such sale the Security Trustee shall have the right to assign, transfer and deliver the Pledged Collateral to the purchaser or purchasers at any such sale, and such purchasers shall hold the property sold absolutely free from any claim or right on the part of the Pledgors, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it now has or may at any time in the future have under applicable law now existing or hereafter enacted.

 

(d)                                 The Security Trustee shall give to each Pledgor notice in writing of the time and place of any public sale or of the time on or after which any private sale or intended disposition is to be made.  Such notice need not be given more than five (5) Business Days (or such longer period as shall be specified by applicable law) before the date fixed for any such disposition, which notice the Pledgors agree shall constitute commercially reasonable notification.  At any such sale or other disposition, the Security Trustee, to the extent permitted by applicable law, may bid, which bid may be, in whole or in part, in the form of cancellation of the Secured Obligations in proportion to the share of the Secured Obligations of each Beneficiary, and purchase for the account of the Beneficiaries the whole or any portion of the Pledged Collateral, to the further extent permitted by applicable law, free of any right of redemption, which right is hereby waived and released to the extent permitted by applicable law.  The Security Trustee shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, and the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(e)                                  If a sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take delivery of and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  The Pledgors agree that any sale of the Pledged Collateral conducted by the Security Trustee in accordance with the foregoing provisions of this Section shall be deemed to be a commercially reasonable sale under Article 9 of the Colorado UCC.

 

(f)                                    As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by a suit or suits at law or in equity to foreclose the security interests and to sell the Pledged Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction.

 

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(g)                                 Subject to provisions of applicable law any cash held by the Security Trustee as Pledged Collateral and all cash proceeds received by the Security Trustee in respect of any sale of, collection from, or other realization upon all or any part of the Pledged Collateral shall be applied as set forth in the Group Intercreditor Deed and the Security Trust Agreement.

 

12.                               EXPENSES

 

Pledgors agree to pay, upon demand, to the Security Trustee (together with interest thereon from the date falling 30 days after the date of demand by the Security Trustee until the date of payment at the default interest rate as in effect from time to time under clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) (a) the amount of any and all actual fees and expenses, including without limitation the fees and expenses of its counsel and of any experts and agents, which the Security Trustee may properly incur in connection with (i) the custody or preservation of the Pledged Collateral, (ii) the exercise or enforcement of any rights of the Security Trustee hereunder or (iii) the failure by any Pledgor to perform or observe any of the provisions hereof and (b) the amount of any and all actual and fees and expenses of the Security Trustee’s counsel and outside experts and agents incurred in connection with the administration and enforcement of this Pledge Agreement.

 

13.                               RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

(a)                                  Each Pledgor acknowledges that the security interests granted hereunder will secure obligations of persons other than such Pledgor, and, in full recognition of such fact, each Pledgor hereby agrees that, at any time and from time to time the Beneficiaries may, in their sole and absolute discretion, without the necessity of any reservation of rights against, notice to or further assent by any Pledgor, and without affecting the validity, legality or enforceability hereof or the security interests hereunder (but subject to the terms of the Senior Finance Documents):  (i) create new Secured Obligations or extend, accelerate, rescind any acceleration, increase, decrease, continue, restructure or otherwise modify the Secured Obligations or any of their terms; (ii) amend, supplement, waive or otherwise modify any provision of, or give any agreement, approval or consent with respect to, the Senior Finance Documents or any of the Secured Obligations; (iii) accept new or additional instruments, documents or agreements in exchange for or relative to any of the Senior Finance Documents, the Security Documents or the Secured Obligations or any part thereof; (iv) except as may be required by applicable law, accept and apply as the Beneficiaries may see fit payments on the Secured Obligations or proceeds of Collateral (as defined below); (v) receive and hold additional collateral or guarantees for the Secured Obligations or any part thereof (all collateral and guarantees for the Secured Obligations or any part thereof being referred to in this Section 13 as “Collateral” and “Guarantees,” respectively); (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any Collateral or Guarantees, apply any such Collateral and direct the order or manner of sale or other enforcement thereof; (vii) alter, impair, suspend or terminate the remedies or rights of the Beneficiaries against the Partnership, any guarantor of the Secured Obligations

 

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or any part thereof (a “Guarantor”) or any other person in respect of any of the Secured Obligations or suffer any of the foregoing to occur; (viii) refund at any time, at the Beneficiaries’ sole discretion, any payment received by the Beneficiaries in respect of the Secured Obligations; and (ix) otherwise deal with EDCLP, any Collateral or any Guarantor as the Beneficiaries may elect in their sole discretion.

 

(b)                                 The Pledgors acknowledge that the security interests hereunder, and the enforcement hereof are not subject to any conditions not expressly stated herein.  Upon the occurrence and during the continuance of an Event of Default, the Security Trustee may enforce this Pledge Agreement independently from any other of the Security Documents and independently of any other remedy, Collateral or Guaranty that any Beneficiary at any time may have or hold in connection with the Secured Obligations, and it shall not be necessary for the Security Trustee to marshal assets in favor of the Pledgors or any other person or to proceed upon or against or exhaust any other remedy, Collateral or Guaranty before proceeding to enforce this Pledge Agreement.  The Pledgors expressly agree that the Security Trustee may proceed against EDCLP, any Pledgor, any other Guarantor, or the Collateral in such order and in such manner as it shall determine in its sole and absolute discretion.  The Security Trustee may file a separate action or actions with respect to the Pledged Collateral whether action is brought or prosecuted with respect to any other Collateral or against any other person, or whether any other person is joined in any such action or actions.  The Pledgors agree that the Beneficiaries, EDCLP and any other Guarantor may deal with each other in connection with the Secured Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between or among any of them, in any manner whatsoever, all without in any way altering or affecting the security of this Pledge Agreement.  The Pledgors expressly waive the benefit of any statute(s) of limitations affecting the enforcement of the Secured Obligations or the security interest hereunder.  Any payment by or on behalf of EDCLP or other circumstance that operates to toll any statute of limitations applicable to such partnership shall also operate to toll the statute of limitations applicable to Pledgors.

 

(c)                                  The Pledgors expressly waive any and all defenses or counterclaims (other than by reason of the full payment and performance of all the Secured Obligations) now or hereafter arising or asserted by reason of (i) any disability, set-off or other defense or counterclaim of EDCLP or any Guarantor with respect to the Secured Obligations, the Senior Finance Documents or any of the Security Documents; (ii) the failure of priority or validity of security interest in any Collateral; (iii) the cessation from any cause whatsoever of the liability of EDCLP or any Guarantor or other person with respect to the Secured Obligations; (iv) the disallowance of, or any failure of any Beneficiary to file or enforce, a claim in any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding (a “Bankruptcy Proceeding”) with respect to EDCLP or any other person; (v) the modification, discharge, extension or avoidance in or as a result of any Bankruptcy Proceeding commenced by or against EDCLP or any other person of all or any of the Secured Obligations, any Guaranty, collateral

 

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or lien; (vi) any use of cash or other Collateral in any Bankruptcy Proceeding; (vii) any agreement or stipulation as to adequate protection in any Bankruptcy Proceeding; (viii) any amendment, modification, stay or cure of the Beneficiaries’ rights that may occur in any Bankruptcy Proceeding; (ix) any election of remedies by the Beneficiaries, whether or not such election destroys or affects any subrogation, reimbursement, contribution, indemnity or similar rights the Pledgors may have (notwithstanding subsection (d) below) against EDCLP, including, without limitation, any loss of rights the Pledgors may suffer by reason of any rights, powers or remedies of EDCLP in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging the Secured Obligations; (x) any election by the Beneficiaries under Section 1111(b)(2) of the Bankruptcy Code; (xi) any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code; or (xii) any action taken by any Beneficiary that is authorized by this Section or any other provision of any of the Security Documents or any other Senior Finance Documents.

 

(d)                                 The Pledgors hereby waive any and all rights of subrogation, reimbursement, contribution, indemnity, setoffs or counterclaims and any and all similar rights that the Pledgors may otherwise have against EDCLP at any time under any applicable law, until the Secured Obligations shall have been indefeasibly paid and performed in full.  The Pledgors further expressly waive any right to enforce any remedy that the Beneficiaries now or hereafter may have against EDCLP or any other person and waive the benefit of, or any right to participate in, any Collateral now or hereafter held by the Beneficiaries, until the Secured Obligations shall then have been indefeasibly paid and performed in full.

 

(e)                                  The Pledgors expressly waive (i) all presentments, protests, notices of default or dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations, including notice of any action against EDCLP or any Guarantor or the assertion or enforcement of any right of the Beneficiaries hereunder or any other of the Security Documents; (ii) all notices of acceptance of this Pledge Agreement or of the existence, creation, renewal or incurring of new or additional Secured Obligations; and (iii) to the extent permitted by applicable law, the benefit of all valuation, appraisal, redemption and exemption laws.  The Pledgors expressly agree that they shall be bound by each and every ruling, order and judgment obtained by any Beneficiary against EDCLP, in respect of the Secured Obligations, whether or not the Pledgors are parties to, or have received notice of, the action or proceeding in which such ruling, order or judgment is issued and rendered.

 

(f)                                    The Pledgors represent and warrant that they have established adequate means of obtaining from EDCLP, on a continuing basis, financial and other information pertaining to the business, operations and condition (financial and otherwise) of such entity, and now are and hereafter will be completely familiar with such business, operations, condition and properties.

 

(g)                                 The Pledgors hereby acknowledge and warrant that they are familiar with the terms of this Pledge Agreement, the Senior Finance Documents, all other Security Documents and all other agreements evidencing the Secured

 

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Obligations and that they have derived or expect to derive a financial advantage from each Series of Senior Liabilities or other extension of credit and from each and every renewal, extension, release of Collateral, or other relinquishment of legal rights made or granted or to be made or granted by the Beneficiaries to the Borrowers, EDCLP or any of the other Obligors in connection with the Secured Obligations.

 

(h)                                 The Pledgors warrant and agree that each of the waivers set forth in this Pledge Agreement is made with full knowledge of its significance and consequences and that, under the circumstances, all such waivers are reasonable and not contrary to public policy or applicable law.  If any such waiver is determined to be contrary to any public policy or applicable law, such waiver shall be effective to the maximum extent permitted by such public policy or applicable law.

 

(i)                                     Notwithstanding anything to the contrary contained herein or in any other agreement or instrument relating to the Secured Obligations, the Pledgors shall not be personally liable to the Security Trustee or the Beneficiaries for the satisfaction of the Secured Obligations, and the Security Trustee, on behalf of the Beneficiaries, shall look solely to the Pledged Collateral with respect to such satisfaction from Pledgors; provided that the foregoing shall not (i) constitute a waiver, release or discharge of any of the indebtedness evidenced by any Senior Finance Document, but the same shall continue until fully paid, discharged, observed or performed or (ii) in any way limit or restrict any right of the Security Trustee or the Beneficiaries to foreclose the liens and security interests of the Security Documents or otherwise realize upon any collateral assigned or pledged to the Security Trustee or the Beneficiaries in connection with the transactions contemplated hereby or thereby or (iii) constitute a waiver or limitation by the Security Trustee or the Beneficiaries of any claim against Pledgors for any claim in the nature of fraud or deceit or willful misconduct arising under or in connection with this Pledge Agreement.

 

14.                               INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Security Trustee and its respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and an collectively, the “Indemnities”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Pledge Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Security Document (but excluding any obligation, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or wilful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Security Trustee hereunder be liable, in the absence of gross negligence or wilful misconduct on its

 

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part (as determined by a court of competent jurisdiction in a final and non-appealable decision), of or any matter or thing in connection with this Pledge Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligation of any Pledgor under this Section 14 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.  The indemnity obligations of each Pledgor contained in this Section 14 shall continue in full force and effect notwithstanding the full payment and fulfilment of all the obligations under the Senior Finance Documents and notwithstanding the discharge thereof.

 

15.                               ROLE OF SECURITY TRUSTEE

 

Each Pledgor and the Security Trustee hereby acknowledge that the covenants of each Pledgor contained in this Pledge Agreement and the security and other rights, titles and interests constituted by this Pledge Agreement and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Pledge Agreement are held by the Security Trustee subject to and on the terms of the trusts declared by the Security Trust Agreement.

 

16.                               SEVERABILITY

 

Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.                               CONTINUED EFFECTIVENESS

 

Any release, discharge or settlement between one or more of the Pledgors and the Security Trustee or any of the other Beneficiaries shall be conditional upon no security, disposition or payment to the Security Trustee or any of the other Beneficiaries by any of the Obligors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Security Trustee and the other Beneficiaries shall be entitled to enforce this Pledge Agreement subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain this security after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the other Beneficiaries from any of the Obligors for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

18.                               CUMULATIVE REMEDIES

 

The rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies provided by law.

 

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19.                               WAIVERS, AMENDMENTS

 

None of the terms or provisions of this Pledge Agreement may be altered, modified or amended except by an instrument in writing, duly executed by the Security Trustee and the Pledgors.  No waiver of any provision hereof or consent to any departure from the terms hereof shall be effective unless the same shall be in writing and duly executed by the Security Trustee.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  A waiver by the Security Trustee of any right or remedy hereunder on any occasion shall not be construed as a bar to any right or remedy which the Security Trustee would otherwise have on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Security Trustee, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

20.                               WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

The Pledgors hereby represent that they constitute all of the partners of the Partnership.  The Pledgors, constituting all of the partners of the Partnership, each hereby waives the application of the provisions of Section 15 of the EDCLP Partnership Agreement that otherwise would apply to, and hereby consents to, the assignment, transfer or pledge of any Pledgor’s Partnership Interest in the Partnership to the Security Trustee, for the benefit of the Beneficiaries, now or in the future, pursuant to the provisions of this Pledge Agreement.  Further, each of the Pledgors hereby ratifies and approves any similar assignments, transfers or pledges of the Partnership Interests of the other Pledgors occurring prior to the date hereof.

 

21.                               SUCCESSORS AND ASSIGNS

 

(a)                                  Subject to the restrictions on transfers by the Pledgors hereunder, this Pledge Agreement and all obligations of the Pledgors hereunder shall be binding upon the successors and assigns of the Pledgors, and shall inure to the benefit of the Security Trustee, the Beneficiaries and their respective successors and assigns.

 

(b)                                 It is hereby understood and agreed that any party required to become a party to this Pledge Agreement after the date hereof pursuant to the requirements of the Senior Finance Documents, shall become a Pledgor hereunder by

 

(i)                                     executing a Partnership Interest Accession Agreement in the form attached hereto as Schedule 13,

 

(ii)                                  delivering supplements to the schedules attached hereto as are necessary to cause such schedules to be complete and accurate with respect to each additional Pledgor on such date; and

 

(iii)                               taking all actions specified in this Pledge Agreement as would have been taken by such Pledgor had it been an original party to the Pledge Agreement, in each case with all documents required above to be delivered to the Pledge and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledge.

 

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22.                               GOVERNING LAW

 

This Pledge Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Colorado applicable to agreements made and to be performed entirely within such State.  The Pledgors hereby irrevocably consent to the jurisdiction of any of the courts designated in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) in connection with any action or proceeding arising out of or relating to this Pledge Agreement.  In any such action or proceeding, each Pledgor waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by personal delivery or by certified or registered mail directed to each Pledgor at its address set forth herein.  Nothing in this section shall affect the right of the Security Trustee or the Beneficiaries to serve legal process in any other manner by law or affect the right of the Security Trustee or the Beneficiaries to bring any action or proceeding against any Pledgor or his or its property in the courts of any other jurisdiction.  The Pledgors irrevocably waive any objection they may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement), or that any action or proceeding in any such court or jurisdiction has been brought in an inconvenient forum.

 

23.                               NOTICES

 

All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be personally served or sent by registered, certified or overnight mail, postage prepaid, or by telegraph, telecopy or telex and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when received (with such receipt acknowledged by the recipient, in the case of a telecopy).  All such notices shall be addressed as follows, or to such other address as may be hereafter notified in writing to the respective parties hereto:

 

If to the Security Trustee:

 

Winchester House

1 Great Winchester Street

London EC2N 2DB

England

 

Attention:

 

Syndicated Loans TSS / Nicola Dawes / Rajeer Thakeeria

Telephone:

 

0207 547 5905

Facsimile:

 

0207 547 6419

 

If to a Pledgor, addressed to such Pledgor at:

 

c/o Virgin Media Investment Holdings Limited

160 Great Portland St

London W1W 5QA

 

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England

 

Attention:

 

Group Legal Director

Facsimile:

 

020 7299 6000

 

With a copy to:

 

Attention:

 

Group General Counsel

Facsimile:

 

020 7299 5495

 

24.                               TERMINATION

 

This Pledge Agreement, and the pledges, assignments, and encumbrances created or granted hereby, shall terminate when (a) all of the Secured Obligations shall have been fully paid, satisfied and performed, and (b) the Commitments have terminated, at which time the Security Trustee shall execute appropriate releases, acknowledgments, assignments or other documents necessary to secure the release and reassignment of such of the Pledged Collateral as shall not have been sold or otherwise applied by the Security Trustee pursuant to the terms hereof, and deliver to the Pledgors (or their respective designees) all Pledged Collateral and related documents then in the custody or possession of the Security Trustee.  Any such reassignment shall be without recourse upon, or warranty whatsoever by, the Security Trustee, and at the cost and expense of the Pledgors.

 

25.                               COUNTERPARTS

 

This Pledge Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

26.                               AUTHORIZATION TO FILE

 

With respect to the foregoing in this Pledge Agreement and the grant of the security interest hereunder, each Pledgor hereby authorizes the Security Trustee to file one or more financing statements or continuation statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of any Pledgor where permitted by law.  Each Pledgor agrees to furnish the Security Trustee, promptly upon reasonable request by the Security Trustee, with any information that is required by the Security Trustee in order to complete such financing statements or continuation statements, or amendments thereto.

 

27.                               GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

Each Pledgor hereby represents and warrants to the Security Trustee that:

 

(a)                                  Schedule 27(a) attached hereto sets forth an accurate and complete list identifying the following: (i) the full legal name of each Pledgor as it appears in official filings in the state or jurisdiction of its incorporation, organization or formation, as the case may be; (ii) the type of entity of such Pledgor; (iii) such Pledgor’s state of incorporation, organization or formation, as the case may be; (iv) the organizational identification number issued by such

 

19


 

Pledgor’s state of incorporation, organization or formation, or a statement that no such number has been issued; (v) the location of such Pledgor’s chief executive office ; and (vi) the jurisdiction(s) of such Pledgor’s place(s) of business.  Each Pledgor has only one state of incorporation, organization or formation, as the case may be;

 

(b)                                 it has not done in the last five (5) years, and does not do, business under any other name (including any trade name or fictitious business name) except for its respective legal name as set forth on Schedule 27(a);

 

(c)                                  it has not changed its name, jurisdiction of incorporation, organization or formation, the location of its chief executive office or place(s) of business, or its corporate or partnership structure in any way (e.g., by merger, consolidation, change in corporate or partnership form or otherwise), in each case within the past five (5) years;

 

(d)                                 it is the legal, beneficial and record owner of, and has good and marketable title to all of the Pledged Collateral upon which it purports to grant a lien hereunder, free and clear of any lien except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral is on file in any recording office, except as set forth on Schedule 27(d) or such as may have been filed in favor of the Security Trustee relating to this Pledge Agreement and with respect to the Permitted Liens.  Such liens set forth on Schedule 27(d) will be terminated as of the date of this Pledge Agreement;

 

(e)                                  it has full power, authority and legal right to pledge all the Pledged Collateral pledged by it pursuant to this Pledge Agreement;

 

(f)                                    this Pledge Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(g)                                 except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Pledge Agreement by such Pledgor, (b) the validity or enforceability of this Pledge Agreement against such Pledgor (except as set forth in clause (a) above), (c) the perfection or enforceability of the Security Trustee’s security interest in such Pledgor’s Pledged Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Security Trustee of any of its rights or remedies provided herein;

 

20



 

(h)                                 neither the execution, delivery or performance by such Pledgor of this Pledge Agreement or any other Senior Finance Document, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of partnership or partnership agreement, (or equivalent organizational documents), as the case may be, of such Pledgor;

 

(i)                                     as of the date hereof, after giving effect to the transactions contemplated by the Senior Finance Documents, such Pledgor is Solvent, and will not cease to be Solvent as a result of the obligations and transactions undertaken by such Pledgor pursuant to, or as contemplated by, the Senior Finance Documents.  As of the date hereof, there is no proceeding pending, or to the knowledge of the undersigned, threatened, challenging the Solvency of such Pledgor or seeking to dissolve or liquidate such Pledgor.

 

For the purposes of the foregoing, “Solvent” or “Solvency” means, with respect to any person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such person is (y) greater than the total amount of liabilities (including contingent liabilities) of such person and (z) not less than the amount that will be required to pay the probable liabilities on such person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such person; (ii) such person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (B) such person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For the purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

21



 

IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement to be executed and delivered as of the day and year first above written.

 

 

TCI/US WEST CABLE COMMUNICATIONS GROUP,

 

a Colorado general partnership

 

 

 

 

By Its General Partners:

 

 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

22



 

 

 

THESEUS NO. 1 LIMITED

 

 

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

 

Robert Gale, Director

 

 

 

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

 

 

 

 

By Its Directors:

 

 

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

 

Robert Gale, Director

 

 

 

 

 

 

 

 

 

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH,

 

 

as Security Trustee

 

 

 

 

 

 

 

 

By:

/s/ N. DAWES

 

 

 

Title:  V.P.

 

 

 

 

 

 

 

 

 

 

By:

/s/ V. MAYELL

 

 

 

Title:  A.V.P

 

23



 

SCHEDULE 4(b)

 

EXISTING PLEDGED COLLATERAL

 

None.

 

1



 

SCHEDULE 5(a)
PARTNERSHIP INTERESTS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE
OF BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

1



 

SCHEDULE 5(b)
OTHER PARTNERSHIP INTERESTS

 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Cotswolds Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Estuaries Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

TCI/US WEST Cable Communications Group

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

50% - Theseus No. 1 Limited
50% - Theseus No. 2 Limited

 

Colorado General

 

1



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Tyneside Cable
Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Telewest Communications (North East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Tyneside Cable Limited Partnership
0.9% - Telewest Communications (North East) Limited
0.1% - Telewest Communications (Tyneside) Limited

 

English General

Telewest Communications (South East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Estuaries Cable Limited Partnership
0.5% - Telewest Communications (South East) Limited
0.5% - Telewest Communications (South Thames Estuary) Limited

 

English General

 

2



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

United Cable (London South) Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

3



 

SCHEDULE 13

 

PARTNERSHIP INTEREST ACCESSION AGREEMENT

 

(Edinburgh Cable Limited Partnership)

 

The undersigned, desiring to become a partner of Edinburgh Cable Limited Partnership, a Colorado limited partnership (the “Partnership”) formed pursuant to the Limited Partnership Agreement dated 30 April 1992, as amended by First Amendment dated 21 November 1994 (the “Partnership Agreement”) hereby agrees to, and by its execution hereof does, become a party to (i) the Partnership Agreement, as a [general/limited] partner thereunder, and (ii) that certain Amended and Restated Pledge and Security Agreement (as amended from time to time, the “Pledge Agreement”), dated                          , 20    , initially entered into among TCI/US WEST CABLE COMMUNICATIONS GROUP, THESEUS NO. 1 LIMITED, THESEUS NO. 2 LIMITED, and Deutsche Bank AG, London Branch as Security Trustee for the benefit of the Beneficiaries described therein.  Capitalized terms used herein shall have the respective meanings set forth in the Pledge Agreement.  By its execution hereof, the undersigned agrees that, from and after the date hereof, the undersigned shall be, and be considered for all purposes, (i) a “[General/Limited] Partner” under the Partnership Agreement and (ii) a “Pledgor” under the Pledge Agreement, as if referred to directly therein as such as a party thereto, entitled to all of the rights and subject to all of the liabilities and obligations of a Partner or Pledgor, respectively, thereunder.

 

As a Pledgor under the Pledge Agreement, the undersigned, as security and collateral for the due and punctual payment and performance of the Secured Obligations (as defined in the Pledge Agreement), hereby assigns, transfers and pledges to the Security Trustee, for the benefit of the Beneficiaries, a lien on and security interest in and to the undersigned’s right, title and interest to the Pledged Collateral (as defined in the Pledge Agreement).  As a Pledgor under the Pledge Agreement, the undersigned represents and warrants that the Pledged Collateral is free and clear of all liens other than the Permitted Liens (as defined in the Pledge Agreement).

 

This instrument, when executed by the undersigned, shall further constitute the undersigned’s counterpart signature page to the Partnership Agreement and the Pledge Agreement.

 

Dated this              day of                     ,             .

 

 

[Name of Transferee]

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

Address for Notice:

 

1



 

SCHEDULE 27(a)

 

Full Legal Name

 

Type of Entity

 

State of
Incorporation,
Organization or
Formation

 

Organizational
Identification
Number

 

Location of Chief
Executive Office

 

Jurisdiction(s) of
place(s) of business

TCI/US WEST Cable Communications Group

 

General Partnership

 

Colorado

 

None

 

2930 East Third
Avenue
Denver, Colorado
80206
USA

 

Colorado

Theseus No. 1 Limited

 

Private Limited Company

 

England & Wales

 

02994027

 

160 Great Portland
Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

Theseus No. 2 Limited

 

Private Limited Company

 

England & Wales

 

02994061

 

160 Great Portland
Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

 

1



 

SCHEDULE 27(d)
CURRENT UCC FILINGS

 

None.

 

1


 



Exhibit 4.40

 

 

 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

(Re: Interests in Estuaries Cable Limited Partnership)

 

 

Dated January 19, 2010

 

 

between

 

TCI/US WEST CABLE COMMUNICATIONS GROUP

 

THESEUS NO. 1 LIMITED

 

and

 

THESEUS NO. 2 LIMITED

 

as Pledgors

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINED TERMS

2

 

 

 

2.

SECURITY AGREEMENT

4

 

 

 

3.

SECURED OBLIGATIONS

6

 

 

 

4.

DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

6

 

 

 

5.

CERTAIN COVENANTS; REPRESENTATIONS

7

 

 

 

6.

VOTING RIGHTS; DIVIDENDS; ETC.

8

 

 

 

7.

REASONABLE CARE; PLEDGOR REMAINS LIABLE

9

 

 

 

8.

SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

9

 

 

 

9.

SECURITY TRUSTEE MAY PERFORM

10

 

 

 

10.

EVENTS OF DEFAULT

10

 

 

 

11.

REMEDIES

10

 

 

 

12.

EXPENSES

12

 

 

 

13.

RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

12

 

 

 

14.

INDEMNITY

15

 

 

 

15.

ROLE OF SECURITY TRUSTEE

16

 

 

 

16.

SEVERABILITY

16

 

 

 

17.

CONTINUED EFFECTIVENESS

16

 

 

 

18.

CUMULATIVE REMEDIES

16

 

 

 

19.

WAIVERS, AMENDMENTS

17

 

 

 

20.

WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

17

 

 

 

21.

SUCCESSORS AND ASSIGNS

17

 

 

 

22.

GOVERNING LAW

18

 

 

 

23.

NOTICES

18

 

 

 

24.

TERMINATION

19

 

 

 

25.

COUNTERPARTS

19

 

 

 

26.

AUTHORIZATION TO FILE

19

 

 

 

27.

GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

19

 

 

 

Schedules

Schedule 4(b)

Schedule 5(a)

Schedule 5(b)

Schedule 13

Schedule 27(a)

Schedule 27(d)

 

i



 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”), is made and entered into as of January 19, 2010 by and among TCI/US WEST CABLE COMMUNICATIONS GROUP, a Colorado general partnership, THESEUS NO. 1 LIMITED, a limited company incorporated in England and Wales and THESEUS NO. 2 LIMITED, a limited company incorporated in England and Wales (each of foregoing being referred to individually as a “Pledgor” and collectively as the “Pledgors”), and Deutsche Bank AG, London Branch, in its capacity as Security Trustee for the Beneficiaries (the “Security Trustee” which expression includes any person which is for the time being the Security Trustee for the Beneficiaries).

 

W I T N E S S E T H

 

WHEREAS, the Pledgors constitute all of the partners of Estuaries Cable Limited Partnership, a Colorado limited partnership (“ESCLP” or the “Partnership”).

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited and VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Original Guarantors as defined therein, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms are defined therein), the intergroup creditors and intergroup debtors listed therein, certain banks financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”), in respect of the $1,000,000,000 6.5% senior secured notes due 2018 and the £875,000,000 7.00% senior secured notes due 2018 (“Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), made among Virgin Media Inc., Virgin

 



 

Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time, Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes.

 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge and security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Partnership and the other collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                      CONSTRUCTION; DEFINED TERMS

 

This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless otherwise defined herein or the context otherwise expressly requires, capitalized terms used herein shall have the respective meanings set forth in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement (including by reference to other agreements).

 

Bankruptcy Code” Title 11 of the United States Code entitled “Bankruptcy as now or hereafter in effect.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Pledgor of the occurrence of that Event of Default, or takes,

 

2



 

under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Defaultmeans each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 2.

 

Existing Pledged Collateral” means the existing security pledged by the Partnership under the relevant (i) July 2004 Pledge Agreements and the (ii) March 2001 Pledge Agreements, as such documents are set forth on Schedule 4(b) hereto.

 

Existing Security Trustee” means Barclays Bank PLC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

SEC” means the United States Securities and Exchange Commission.

 

3



 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

2.                                      SECURITY AGREEMENT

 

As security and collateral for the due and punctual payment and performance by the Obligors of their respective joint and several obligations described in Section 3 below, each of the Pledgors hereby assigns, transfers, and pledges to the Security Trustee, and grants to the Security Trustee for the benefit of the Beneficiaries, a lien on and security interest in and to such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)                                  such Pledgor’s partnership interest in the Partnership owned by such Pledgor at any time and from time to time (each, a “Partnership Interest” and collectively, the “Partnership Interests”) and any certificates, instruments or other documents representing each such Partnership Interest, all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or otherwise distributed in respect of or in exchange for all or any part of each such Partnership Interest and all proceeds thereof; and

 

(b)                                 all partnership interests (general or limited) or securities convertible into or exchangeable for such interests issued by the Partnership, or any successor thereto, from time to time and acquired by such Pledgor in substitution for or in addition to any of the foregoing, all certificates and instruments representing such interests or securities, and all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or

 

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otherwise distributed in respect of or in exchange for any or all of such interests or securities and all proceeds thereof;

 

provided, that, notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Pledge Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt:

 

(i)                                     all Pledged Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Pledge Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain pledged under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations pursuant to this Pledge Agreement.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation.  If the circumstances described in this paragraph apply, this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply,

 

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this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.                                      SECURED OBLIGATIONS

 

The security interest in the Pledged Collateral granted pursuant hereto shall secure the due and punctual payment and performance of the Secured Obligations provided that before any demand for any Secured Obligation is made on a Restricted Guarantor pursuant to this Pledge Agreement, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.  It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include: (a) all Liabilities under the Senior Facilities Agreement; and (b) all Liabilities under the Senior Secured Notes Documents.

 

4.                                      DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

(a)                                  All certificates, instruments or documents, if any, representing or evidencing each and every of the Partnership Interests shall be delivered to the Security Trustee by the Pledgors on the date hereof, and shall be held by the Security Trustee pursuant hereto at all times hereafter until termination hereof pursuant to Section 24, and all certificates, instruments or documents representing or evidencing interests or securities in or issued by the Partnership and acquired by any Pledgor after the date hereof and constituting Pledged Collateral hereunder shall be delivered to the Security Trustee immediately upon, and held by the Security Trustee at all times after, acquisition thereof by such Pledgor.  All such certificates, instruments or documents, if any, shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Security Trustee.  To the extent that any certificates, instruments of transfer or other documents of title relating to any of the Pledged Collateral which are required to be delivered to the Security Trustee hereunder have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Pledged Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 4(a) shall be deemed satisfied.

 

(b)                                 Except as otherwise permitted in the Senior Finance Documents, each Pledgor agrees that it shall take all actions available to such Pledgor to cause the Partnership and, in the event of a merger or consolidation of the Partnership with any other entity, such other entity, not to issue any interests or other securities whether in addition to, by dividend or other distribution upon, or in substitution or exchange for, any of the Partnership Interests or otherwise, other than such interests or other securities issued to the Pledgors and promptly delivered to the Security Trustee pursuant to Section 4(a) hereof in which the Security Trustee, as agent and representative for the Beneficiaries, has a valid and perfected security interest free and clear of all liens and with respect to which no other party has any interest, except for the Existing

 

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Pledged Collateral and the liens created in favor of the Security Trustee pursuant to this Pledge Agreement (collectively, the “Permitted Liens”).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder, the Security Trustee shall have the right, at any time in its discretion, to transfer to or to register in the name of the Security Trustee or any of its nominees any or all of the Pledged Collateral (with, in the discretion of the Security Trustee, such transfer or registration expressly empowering the Security Trustee to vote any voting interests included in the Pledged Collateral), subject only to each Pledgor’s revocable rights specified in Section 6(a).

 

(d)                                 Each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the Colorado, the District of Columbia or any other relevant states (a “State”), covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Security Trustee), to be filed in the relevant filing offices so that at all times the Security Trustee’s security interest in all Pledged Collateral which can be perfected by the filing of such financing statement (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant State), is so perfected.

 

5.                                      CERTAIN COVENANTS; REPRESENTATIONS

 

(a)                                  Each of the Pledgors covenant and agree that: (i) save to the extent expressly permitted or not restricted under any Senior Finance Document, without the prior written consent of the Security Trustee, no Pledgor will grant any option with respect to any of the Pledged Collateral; (ii) the Pledgors will defend the Pledged Collateral against the claims and demands of all persons other than the Security Trustee and the Beneficiaries, and will take any and all such action as is reasonably necessary to remove any competing or conflicting lien and will advise the Security Trustee promptly of the existence thereof; and (iii) at any time and from time to time upon the written request of the Security Trustee, the Pledgors will execute and deliver such further documents and do such further acts and things as the Security Trustee may reasonably request in order to effect the purposes of this Pledge Agreement.

 

(b)                                 Each of the Pledgors represent and warrant that:  (i) their choice of Colorado law to govern this Pledge Agreement is valid and binding subject to the Reservations; (ii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Schedule 5(a) hereto; (iii) each Partnership Interest referenced in sub-clause (ii) of this paragraph constitutes that percentage or position of the entire Partnership Interest of the Partnership as set forth in Schedule 5(a) hereto; (iv) it has complied with the respective procedure set forth in Clause 4(a) hereof with respect to each item of Pledged Collateral described in Schedule 5(a); and (v) such Pledgor owns no other Partnership Interests except as set forth in Schedule 5(b) hereto.

 

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6.                                      VOTING RIGHTS; DIVIDENDS; ETC.

 

(a)                                  So long as no Event of Default hereunder shall have occurred and be continuing:  (i) each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral belonging to such Pledgor pursuant to the limited partnership agreement creating and governing ESCLP (the “ESCLP Partnership Agreement”), for any purpose not prohibited by the terms of this Pledge Agreement or the Senior Finance Documents; and (ii) except as otherwise provided in Section 6(c) hereof and except for distributions prohibited by the Senior Finance Documents, each Pledgor shall be entitled to receive, retain and distribute, free and clear of the security interest granted hereunder, any dividends, distributions, cash and other property from time to time paid, payable or otherwise distributed in respect of the Pledged Collateral belonging to such Pledgor.

 

(b)                                 Pledgor hereby irrevocably appoints the Security Trustee as Pledgor’s proxyholder with respect to the Partnership Interests of Pledgor and any other voting interests or other securities belonging to Pledgor and forming a part of the Pledged Collateral with full power and authority, in the discretion of the Security Trustee, to vote such Partnership Interests and other voting interests or securities and otherwise to act with respect to such Partnership Interests or other voting interests or securities on behalf of Pledgor; provided that this proxy shall only be operative upon the occurrence of an Event of Default and so long as such Event of Default continues.  This proxy shall be irrevocable for so long as any of the Secured Obligations remain in existence.  Pledgor shall execute and deliver (or cause to be executed and delivered) to the Security Trustee all proxies and other instruments as the Security Trustee may reasonably request for the purpose of enabling the Security Trustee to exercise the voting and other rights which it is entitled to exercise pursuant to this Section 6(b).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder or as otherwise permitted or not restricted pursuant to the provisions of each of the Senior Finance Documents, all rights of the Pledgor to receive and retain dividends, distributions, cash and other property, which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii), shall cease and all such rights shall thereupon be vested in the Security Trustee, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, distributions, cash and other property; provided, that until the Enforcement Date, without prejudice to the Senior Finance Documents, the Security Trustee will hold all dividends, distributions, cash and other property paid on and received by it in respect of any Partnership Interest which are transferred to it for the account of each Pledgor and will, subject to any right of set-off, pay such dividends, interest and other moneys to such Pledgor upon request.  All cash and other property received by a Pledgor contrary to the provisions of this Section 6(c) shall be received in trust for the benefit of the Security Trustee, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Security Trustee as Pledged Collateral in the same form as so received (with any necessary transfer documents or endorsements).

 

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7.                                      REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

(a)                                  The Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Security Trustee accords its own property, it being understood that neither the Security Trustee nor any Beneficiary shall have responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain possession of the Pledged Collateral) to preserve rights against any parties with respect to any Pledged Collateral; provided that the Security Trustee agrees to notify the Pledgors if it has actual knowledge of the necessity of taking any such steps in respect of any Pledged Collateral and to cooperate with the Pledgors in connection therewith.

 

(b)                                 Anything herein to the contrary notwithstanding, (i) the Pledgors shall remain liable under the ESCLP Partnership Agreement to the extent set forth therein to perform the duties and obligations thereunder to the same extent as if this Pledge Agreement had not been executed, (ii) the exercise by the Security Trustee of any of its rights hereunder shall not release any Pledgor from any of the duties or obligations under the ESCLP Partnership Agreement, and (iii) the Security Trustee and the other Beneficiaries shall not have any obligation or liability under the ESCLP Partnership Agreement by reason of this Pledge Agreement, nor shall the Security Trustee or the other Beneficiaries be obligated to perform any of the obligations or duties of any Pledgor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by any Pledgor or the sufficiency of any performance by any party under the ESCLP Partnership Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  Except to the extent required by general partnership law, the Security Trustee and the other Beneficiaries shall not by reason of this Pledge Agreement or the exercise of any remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of ESCLP or any of the liabilities of the Pledgors (or their permitted successors or assigns).

 

8.                                      SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

(a)                                  Each Pledgor hereby irrevocably appoints (which appointment is coupled with an interest) the Security Trustee (acting through its employees, attorneys, and/or agents) as such Pledgor’s attorney-in-fact, with full power of substitution and with full authority in the place and stead of Pledgor and in its name or otherwise, from time to time in the Security Trustee’s discretion, to sign, execute, seal and deliver and otherwise perfect any further security document or notice reasonably required to secure the Secured Obligations or to perfect the security intended to be created hereunder over the Pledged Collateral or any part thereof or, on or after the Enforcement Date, to take any action and to execute any instrument which the Security Trustee may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement; provided, that the Security Trustee shall be under no obligation to take any action hereunder and, absent gross negligence and wilful misconduct, the Security Trustee shall have no liability or responsibility for any action taken or omission with respect thereto.

 

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(b)           Each Pledgor hereby consents, acknowledges and agrees, as of the date hereof,  that the Security Trustee shall be appointed to succeed the Existing Security Trustee in relation to the Existing Pledged Collateral.

 

9.             SECURITY TRUSTEE MAY PERFORM

 

Upon the occurrence and during the continuance of an Event of Default hereunder (including an Event of Default resulting from a failure to perform any agreement contained herein), if any Pledgor fails to perform any agreement contained herein, the Security Trustee may itself perform, or cause performance of, such agreement, and the expenses of the Security Trustee incurred in connection therewith shall be payable by such Pledgor under Section 12 hereof.

 

10.          EVENTS OF DEFAULT

 

The occurrence of an Event of Default shall constitute an Event of Default hereunder.

 

11.          REMEDIES

 

At any time on or after the Enforcement Date, in addition to and without limiting any and all other remedies available under principles of law or equity:

 

(a)           The Security Trustee may execute, acknowledge, deliver, file and record on behalf of any or all the Pledgors and in their respective names financing statements, continuation statements, security agreements, mortgages, assignments, certificates of title, reports, notices, schedules of account, and all other documents, instruments or agreements that the Security Trustee may, in its sole and absolute discretion, deem advisable in order to obtain, perfect and maintain the Security Trustee’s security interests in the Pledged Collateral granted pursuant hereto and in order to fully consummate, implement and enforce all of the transactions contemplated and security interests granted under this Pledge Agreement.

 

(b)           The Security Trustee may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party after default under the Uniform Commercial Code in effect in the State of Colorado (the “Colorado UCC”) at that time or other applicable law.

 

(c)           The Security Trustee may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, over the counter or at any of the Security Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable or otherwise in such manner as necessary to comply with applicable federal and state securities laws.  The Pledgors agree that the Security Trustee shall not be required to register or qualify any of the Pledged Collateral under applicable state or federal securities laws in connection with any such sale if the sale is effected in a manner that complies with all applicable federal and state securities laws (to the extent applicable).  The Security Trustee shall be authorized at any such sale (if it deems it advisable to

 

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do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are “accredited investors” or “qualified institutional buyers” under applicable law and are purchasing the Pledged Collateral for their own account, for investment and not with a view to the distribution thereof.  Upon consummation of any such sale the Security Trustee shall have the right to assign, transfer and deliver the Pledged Collateral to the purchaser or purchasers at any such sale, and such purchasers shall hold the property sold absolutely free from any claim or right on the part of the Pledgors, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it now has or may at any time in the future have under applicable law now existing or hereafter enacted.

 

(d)           The Security Trustee shall give to each Pledgor notice in writing of the time and place of any public sale or of the time on or after which any private sale or intended disposition is to be made.  Such notice need not be given more than five (5) Business Days (or such longer period as shall be specified by applicable law) before the date fixed for any such disposition, which notice the Pledgors agree shall constitute commercially reasonable notification.  At any such sale or other disposition, the Security Trustee, to the extent permitted by applicable law, may bid, which bid may be, in whole or in part, in the form of cancellation of the Secured Obligations in proportion to the share of the Secured Obligations of each Beneficiary, and purchase for the account of the Beneficiaries the whole or any portion of the Pledged Collateral, to the further extent permitted by applicable law, free of any right of redemption, which right is hereby waived and released to the extent permitted by applicable law.  The Security Trustee shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, and the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(e)           If a sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take delivery of and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  The Pledgors agree that any sale of the Pledged Collateral conducted by the Security Trustee in accordance with the foregoing provisions of this Section shall be deemed to be a commercially reasonable sale under Article 9 of the Colorado UCC.

 

(f)            As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by a suit or suits at law or in equity to foreclose the security interests and to sell the Pledged Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction.

 

(g)           Subject to provisions of applicable law any cash held by the Security Trustee as Pledged Collateral and all cash proceeds received by the Security Trustee in respect of any sale of, collection from, or other realization upon all or any part

 

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of the Pledged Collateral shall be applied as set forth in the Group Intercreditor Deed and the Security Trust Agreement.

 

12.          EXPENSES

 

Pledgors agree to pay, upon demand, to the Security Trustee (together with interest thereon from the date falling 30 days after the date of demand by the Security Trustee until the date of payment at the default interest rate as in effect from time to time under clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) (a) the amount of any and all actual fees and expenses, including without limitation the fees and expenses of its counsel and of any experts and agents, which the Security Trustee may properly incur in connection with (i) the custody or preservation of the Pledged Collateral, (ii) the exercise or enforcement of any rights of the Security Trustee hereunder or (iii) the failure by any Pledgor to perform or observe any of the provisions hereof and (b) the amount of any and all actual and fees and expenses of the Security Trustee’s counsel and outside experts and agents incurred in connection with the administration and enforcement of this Pledge Agreement.

 

13.          RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

(a)           Each Pledgor acknowledges that the security interests granted hereunder will secure obligations of persons other than such Pledgor, and, in full recognition of such fact, each Pledgor hereby agrees that, at any time and from time to time the Beneficiaries may, in their sole and absolute discretion, without the necessity of any reservation of rights against, notice to or further assent by any Pledgor, and without affecting the validity, legality or enforceability hereof or the security interests hereunder (but subject to the terms of the Senior Finance Documents):  (i) create new Secured Obligations or extend, accelerate, rescind any acceleration, increase, decrease, continue, restructure or otherwise modify the Secured Obligations or any of their terms; (ii) amend, supplement, waive or otherwise modify any provision of, or give any agreement, approval or consent with respect to, the Senior Finance Documents or any of the Secured Obligations; (iii) accept new or additional instruments, documents or agreements in exchange for or relative to any of the Senior Finance Documents, the Security Documents or the Secured Obligations or any part thereof; (iv) except as may be required by applicable law, accept and apply as the Beneficiaries may see fit payments on the Secured Obligations or proceeds of Collateral (as defined below); (v) receive and hold additional collateral or guarantees for the Secured Obligations or any part thereof (all collateral and guarantees for the Secured Obligations or any part thereof being referred to in this Section 13 as “Collateral” and “Guarantees,” respectively); (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any Collateral or Guarantees, apply any such Collateral and direct the order or manner of sale or other enforcement thereof; (vii) alter, impair, suspend or terminate the remedies or rights of the Beneficiaries against the Partnership, any guarantor of the Secured Obligations or any part thereof (a “Guarantor”) or any other person in respect of any of the Secured Obligations or suffer any of the foregoing to occur; (viii) refund at any time, at the Beneficiaries’ sole discretion, any payment received by the

 

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Beneficiaries in respect of the Secured Obligations; and (ix) otherwise deal with ESCLP, any Collateral or any Guarantor as the Beneficiaries may elect in their sole discretion.

 

(b)           The Pledgors acknowledge that the security interests hereunder, and the enforcement hereof are not subject to any conditions not expressly stated herein.  Upon the occurrence and during the continuance of an Event of Default, the Security Trustee may enforce this Pledge Agreement independently from any other of the Security Documents and independently of any other remedy, Collateral or Guaranty that any Beneficiary at any time may have or hold in connection with the Secured Obligations, and it shall not be necessary for the Security Trustee to marshal assets in favor of the Pledgors or any other person or to proceed upon or against or exhaust any other remedy, Collateral or Guaranty before proceeding to enforce this Pledge Agreement.  The Pledgors expressly agree that the Security Trustee may proceed against ESCLP, any Pledgor, any other Guarantor, or the Collateral in such order and in such manner as it shall determine in its sole and absolute discretion.  The Security Trustee may file a separate action or actions with respect to the Pledged Collateral whether action is brought or prosecuted with respect to any other Collateral or against any other person, or whether any other person is joined in any such action or actions.  The Pledgors agree that the Beneficiaries, ESCLP and any other Guarantor may deal with each other in connection with the Secured Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between or among any of them, in any manner whatsoever, all without in any way altering or affecting the security of this Pledge Agreement.  The Pledgors expressly waive the benefit of any statute(s) of limitations affecting the enforcement of the Secured Obligations or the security interest hereunder.  Any payment by or on behalf of ESCLP or other circumstance that operates to toll any statute of limitations applicable to such partnership shall also operate to toll the statute of limitations applicable to Pledgors.

 

(c)           The Pledgors expressly waive any and all defenses or counterclaims (other than by reason of the full payment and performance of all the Secured Obligations) now or hereafter arising or asserted by reason of (i) any disability, set-off or other defense or counterclaim of ESCLP or any Guarantor with respect to the Secured Obligations, the Senior Finance Documents or any of the Security Documents; (ii) the failure of priority or validity of security interest in any Collateral; (iii) the cessation from any cause whatsoever of the liability of ESCLP or any Guarantor or other person with respect to the Secured Obligations; (iv) the disallowance of, or any failure of any Beneficiary to file or enforce, a claim in any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding (a “Bankruptcy Proceeding”) with respect to ESCLP or any other person; (v) the modification, discharge, extension or avoidance in or as a result of any Bankruptcy Proceeding commenced by or against ESCLP or any other person of all or any of the Secured Obligations, any Guaranty, collateral or lien; (vi) any use of cash or other Collateral in any Bankruptcy Proceeding; (vii) any agreement or stipulation as to adequate protection in any Bankruptcy Proceeding; (viii) any amendment, modification, stay or cure of the

 

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Beneficiaries’ rights that may occur in any Bankruptcy Proceeding; (ix) any election of remedies by the Beneficiaries, whether or not such election destroys or affects any subrogation, reimbursement, contribution, indemnity or similar rights the Pledgors may have (notwithstanding subsection (d) below) against ESCLP, including, without limitation, any loss of rights the Pledgors may suffer by reason of any rights, powers or remedies of ESCLP in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging the Secured Obligations; (x) any election by the Beneficiaries under Section 1111(b)(2) of the Bankruptcy Code; (xi) any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code; or (xii) any action taken by any Beneficiary that is authorized by this Section or any other provision of any of the Security Documents or any other Senior Finance Documents.

 

(d)           The Pledgors hereby waive any and all rights of subrogation, reimbursement, contribution, indemnity, setoffs or counterclaims and any and all similar rights that the Pledgors may otherwise have against ESCLP at any time under any applicable law, until the Secured Obligations shall have been indefeasibly paid and performed in full.  The Pledgors further expressly waive any right to enforce any remedy that the Beneficiaries now or hereafter may have against ESCLP or any other person and waive the benefit of, or any right to participate in, any Collateral now or hereafter held by the Beneficiaries, until the Secured Obligations shall then have been indefeasibly paid and performed in full.

 

(e)           The Pledgors expressly waive (i) all presentments, protests, notices of default or dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations, including notice of any action against ESCLP or any Guarantor or the assertion or enforcement of any right of the Beneficiaries hereunder or any other of the Security Documents; (ii) all notices of acceptance of this Pledge Agreement or of the existence, creation, renewal or incurring of new or additional Secured Obligations; and (iii) to the extent permitted by applicable law, the benefit of all valuation, appraisal, redemption and exemption laws.  The Pledgors expressly agree that they shall be bound by each and every ruling, order and judgment obtained by any Beneficiary against ESCLP, in respect of the Secured Obligations, whether or not the Pledgors are parties to, or have received notice of, the action or proceeding in which such ruling, order or judgment is issued and rendered.

 

(f)            The Pledgors represent and warrant that they have established adequate means of obtaining from ESCLP, on a continuing basis, financial and other information pertaining to the business, operations and condition (financial and otherwise) of such entity, and now are and hereafter will be completely familiar with such business, operations, condition and properties.

 

(g)           The Pledgors hereby acknowledge and warrant that they are familiar with the terms of this Pledge Agreement, the Senior Finance Documents, all other Security Documents and all other agreements evidencing the Secured Obligations and that they have derived or expect to derive a financial advantage from each Series of Senior Liabilities or other extension of credit and from each and every renewal, extension, release of Collateral, or other relinquishment of legal rights made or granted or to be made or granted by the

 

14



 

Beneficiaries to the Borrowers, ESCLP or any of the other Obligors in connection with the Secured Obligations.

 

(h)           The Pledgors warrant and agree that each of the waivers set forth in this Pledge Agreement is made with full knowledge of its significance and consequences and that, under the circumstances, all such waivers are reasonable and not contrary to public policy or applicable law.  If any such waiver is determined to be contrary to any public policy or applicable law, such waiver shall be effective to the maximum extent permitted by such public policy or applicable law.

 

(i)            Notwithstanding anything to the contrary contained herein or in any other agreement or instrument relating to the Secured Obligations, the Pledgors shall not be personally liable to the Security Trustee or the Beneficiaries for the satisfaction of the Secured Obligations, and the Security Trustee, on behalf of the Beneficiaries, shall look solely to the Pledged Collateral with respect to such satisfaction from Pledgors; provided that the foregoing shall not (i) constitute a waiver, release or discharge of any of the indebtedness evidenced by any Senior Finance Document, but the same shall continue until fully paid, discharged, observed or performed or (ii) in any way limit or restrict any right of the Security Trustee or the Beneficiaries to foreclose the liens and security interests of the Security Documents or otherwise realize upon any collateral assigned or pledged to the Security Trustee or the Beneficiaries in connection with the transactions contemplated hereby or thereby or (iii) constitute a waiver or limitation by the Security Trustee or the Beneficiaries of any claim against Pledgors for any claim in the nature of fraud or deceit or wilful misconduct arising under or in connection with this Pledge Agreement.

 

14.          INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Security Trustee and its respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and an collectively, the “Indemnities”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Pledge Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Security Document (but excluding any obligation, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or wilful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Security Trustee hereunder be liable, in the absence of gross negligence or wilful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), of or any matter or thing in connection with this Pledge Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligation of any Pledgor under this

 

15



 

Section 14 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.  The indemnity obligations of each Pledgor contained in this Section 14 shall continue in full force and effect notwithstanding the full payment and fulfillment of all the obligations under the Senior Finance Documents and notwithstanding the discharge thereof.

 

15.          ROLE OF SECURITY TRUSTEE

 

Each Pledgor and the Security Trustee hereby acknowledge that the covenants of each Pledgor contained in this Pledge Agreement and the security and other rights, titles and interests constituted by this Pledge Agreement and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Pledge Agreement are held by the Security Trustee subject to and on the terms of the trusts declared by the Security Trust Agreement.

 

16.          SEVERABILITY

 

Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.          CONTINUED EFFECTIVENESS

 

Any release, discharge or settlement between one or more of the Pledgors and the Security Trustee or any of the other Beneficiaries shall be conditional upon no security, disposition or payment to the Security Trustee or any of the other Beneficiaries by any of the Obligors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Security Trustee and the other Beneficiaries shall be entitled to enforce this Pledge Agreement subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain this security after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the other Beneficiaries from any of the Obligors for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

18.          CUMULATIVE REMEDIES

 

The rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies provided by law.

 

16



 

19.          WAIVERS, AMENDMENTS

 

None of the terms or provisions of this Pledge Agreement may be altered, modified or amended except by an instrument in writing, duly executed by the Security Trustee and the Pledgors.  No waiver of any provision hereof or consent to any departure from the terms hereof shall be effective unless the same shall be in writing and duly executed by the Security Trustee.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  A waiver by the Security Trustee of any right or remedy hereunder on any occasion shall not be construed as a bar to any right or remedy which the Security Trustee would otherwise have on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Security Trustee, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

20.          WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

The Pledgors hereby represent that they constitute all of the partners of the Partnership.  The Pledgors, constituting all of the partners of the Partnership, each hereby waives the application of the provisions of Section 15 of the ESCLP Partnership Agreement that otherwise would apply to, and hereby consents to, the assignment, transfer or pledge of any Pledgor’s Partnership Interest in the Partnership to the Security Trustee, for the benefit of the Beneficiaries, now or in the future, pursuant to the provisions of this Pledge Agreement.  Further, each of the Pledgors hereby ratifies and approves any similar assignments, transfers or pledges of the Partnership Interests of the other Pledgors occurring prior to the date hereof.

 

21.          SUCCESSORS AND ASSIGNS

 

(a)           Subject to the restrictions on transfers by the Pledgors hereunder, this Pledge Agreement and all obligations of the Pledgors hereunder shall be binding upon the successors and assigns of the Pledgors, and shall inure to the benefit of the Security Trustee, the Beneficiaries and their respective successors and assigns.

 

(b)           It is hereby understood and agreed that any party required to become a party to this Pledge Agreement after the date hereof pursuant to the requirements of the Senior Finance Documents, shall become a Pledgor hereunder by

 

(i)            executing a Partnership Interest Accession Agreement in the form attached hereto as Schedule 13,

 

(ii)           delivering supplements to the schedules attached hereto as are necessary to cause such schedules to be complete and accurate with respect to each additional Pledgor on such date; and

 

(iii)          taking all actions specified in this Pledge Agreement as would have been taken by such Pledgor had it been an original party to the Pledge Agreement, in each case with all documents required above to be delivered to the Pledge and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledge.

 

17



 

22.          GOVERNING LAW

 

This Pledge Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Colorado applicable to agreements made and to be performed entirely within such State.  The Pledgors hereby irrevocably consent to the jurisdiction of any of the courts designated in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) in connection with any action or proceeding arising out of or relating to this Pledge Agreement.  In any such action or proceeding, each Pledgor waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by personal delivery or by certified or registered mail directed to each Pledgor at its address set forth herein.  Nothing in this section shall affect the right of the Security Trustee or the Beneficiaries to serve legal process in any other manner by law or affect the right of the Security Trustee or the Beneficiaries to bring any action or proceeding against any Pledgor or his or its property in the courts of any other jurisdiction.  The Pledgors irrevocably waive any objection they may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement), or that any action or proceeding in any such court or jurisdiction has been brought in an inconvenient forum.

 

23.          NOTICES

 

All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be personally served or sent by registered, certified or overnight mail, postage prepaid, or by telegraph, telecopy or telex and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when received (with such receipt acknowledged by the recipient, in the case of a telecopy).  All such notices shall be addressed as follows, or to such other address as may be hereafter notified in writing to the respective parties hereto:

 

If to the Security Trustee:

 

Winchester House

1 Great Winchester Street

London EC2N 2DB

England

 

 

Attention:

Syndicated Loans TSS / Nicola Dawes / Rajeer Thakeeria

Telephone:

0207 547 5905

Facsimile:

0207 547 6419

 

If to a Pledgor, addressed to such Pledgor at:

 

c/o Virgin Media Investment Holdings Limited

160 Great Portland St

London W1W 5QA

 

18



 

England

 

 

 

Attention:

Group Legal Director

Facsimile:

020 7299 6000

 

 

With a copy to:

 

 

Attention:

Group General Counsel

Facsimile:

020 7299 5495

 

24.          TERMINATION

 

This Pledge Agreement, and the pledges, assignments, and encumbrances created or granted hereby, shall terminate when (a) all of the Secured Obligations shall have been fully paid, satisfied and performed, and (b) the Commitments have terminated, at which time the Security Trustee shall execute appropriate releases, acknowledgments, assignments or other documents necessary to secure the release and reassignment of such of the Pledged Collateral as shall not have been sold or otherwise applied by the Security Trustee pursuant to the terms hereof, and deliver to the Pledgors (or their respective designees) all Pledged Collateral and related documents then in the custody or possession of the Security Trustee.  Any such reassignment shall be without recourse upon, or warranty whatsoever by, the Security Trustee, and at the cost and expense of the Pledgors.

 

25.          COUNTERPARTS

 

This Pledge Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

26.          AUTHORIZATION TO FILE

 

With respect to the foregoing in this Pledge Agreement and the grant of the security interest hereunder, each Pledgor hereby authorizes the Security Trustee to file one or more financing statements or continuation statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of any Pledgor where permitted by law.  Each Pledgor agrees to furnish the Security Trustee, promptly upon reasonable request by the Security Trustee, with any information that is required by the Security Trustee in order to complete such financing statements or continuation statements, or amendments thereto.

 

27.          GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

Each Pledgor hereby represents and warrants to the Security Trustee that:

 

(a)           Schedule 27(a) attached hereto sets forth an accurate and complete list identifying the following: (i) the full legal name of each Pledgor as it appears in official filings in the state or jurisdiction of its incorporation, organization or formation, as the case may be; (ii) the type of entity of such Pledgor; (iii) such Pledgor’s state of incorporation, organization or formation, as the case may be; (iv) the organizational identification number issued by such Pledgor’s

 

19



 

state of incorporation, organization or formation, or a statement that no such number has been issued; (v) the location of such Pledgor’s chief executive office ; and (vi) the jurisdiction(s) of such Pledgor’s place(s) of business.  Each Pledgor has only one state of incorporation, organization or formation, as the case may be;

 

(b)           it has not done in the last five (5) years, and does not do, business under any other name (including any trade name or fictitious business name) except for its respective legal name as set forth on Schedule 27(a);

 

(c)           it has not changed its name, jurisdiction of incorporation, organization or formation, the location of its chief executive office or place(s) of business, or its corporate or partnership structure in any way (e.g., by merger, consolidation, change in corporate or partnership form or otherwise), in each case within the past five (5) years;

 

(d)           it is the legal, beneficial and record owner of, and has good and marketable title to all of the Pledged Collateral upon which it purports to grant a lien hereunder, free and clear of any lien except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral is on file in any recording office, except as set forth on Schedule 27(d) or such as may have been filed in favor of the Security Trustee relating to this Pledge Agreement and with respect to the Permitted Liens.  Such liens set forth on Schedule 27(d) will be terminated as of the date of this Pledge Agreement;

 

(e)           it has full power, authority and legal right to pledge all the Pledged Collateral pledged by it pursuant to this Pledge Agreement;

 

(f)            this Pledge Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(g)           except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Pledge Agreement by such Pledgor, (b) the validity or enforceability of this Pledge Agreement against such Pledgor (except as set forth in clause (a) above), (c) the perfection or enforceability of the Security Trustee’s security interest in such Pledgor’s Pledged Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Security Trustee of any of its rights or remedies provided herein;

 

20


 

 

(h)                                 neither the execution, delivery or performance by such Pledgor of this Pledge Agreement or any other Senior Finance Document, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of partnership or partnership agreement, (or equivalent organizational documents), as the case may be, of such Pledgor;

 

(i)                                     as of the date hereof, after giving effect to the transactions contemplated by the Senior Finance Documents, such Pledgor is Solvent, and will not cease to be Solvent as a result of the obligations and transactions undertaken by such Pledgor pursuant to, or as contemplated by, the Senior Finance Documents.  As of the date hereof, there is no proceeding pending, or to the knowledge of the undersigned, threatened, challenging the Solvency of such Pledgor or seeking to dissolve or liquidate such Pledgor.

 

For the purposes of the foregoing, “Solvent” or “Solvency” means, with respect to any person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such person is (y) greater than the total amount of liabilities (including contingent liabilities) of such person and (z) not less than the amount that will be required to pay the probable liabilities on such person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such person; (ii) such person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (B) such person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For the purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

21



 

IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement to be executed and delivered as of the day and year first above written.

 

 

TCI/US WEST CABLE COMMUNICATIONS GROUP,

 

a Colorado general partnership

 

 

 

By Its General Partners:

 

 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

22



 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

 

 

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH,

 

as Security Trustee

 

 

 

 

 

 

By:

N. DAWES

 

 

Title:   V.P.

 

 

 

 

 

 

 

By:

V. MAYELL

 

 

Title:   A.V.P.

 

23



 

SCHEDULE 4(b)

 

EXISTING PLEDGED COLLATERAL

 

None.

 

1



 

SCHEDULE 5(a)
PARTNERSHIP INTERESTS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE
OF BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

Estuaries Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

1



 

SCHEDULE 5(b)
OTHER PARTNERSHIP INTERESTS

 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Cotswolds Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

TCI/US WEST Cable Communications Group

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

50% - Theseus No. 1 Limited
50% - Theseus No. 2 Limited

 

Colorado General

Tyneside Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Telewest Communications (North East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Tyneside Cable Limited Partnership
0.9% - Telewest Communications (North East) Limited
0.1% - Telewest Communications (Tyneside) Limited

 

English General

 

1



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Telewest Communications (South East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Estuaries Cable Limited Partnership
0.5% - Telewest Communications (South East) Limited
0.5% - Telewest Communications (South Thames Estuary) Limited

 

English General

Avon Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

2



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

United Cable (London South) Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

3



 

SCHEDULE 13

 

PARTNERSHIP INTEREST ACCESSION AGREEMENT

 

(Estuaries Cable Limited Partnership)

 

The undersigned, desiring to become a partner of Estuaries Cable Limited Partnership, a Colorado limited partnership (the “Partnership”) formed pursuant to a Limited Partnership Agreement dated 21 April 1992, as amended by First Amendment dated 21 November 1994 (the “Partnership Agreement”) hereby agrees to, and by its execution hereof does, become a party to (i) the Partnership Agreement, as a [general/limited] partner thereunder, and (ii) that certain Pledge and Security Agreement (as amended from time to time, the “Pledge Agreement”), dated                          , 20    , initially entered into among TCI/US WEST CABLE COMMUNICATIONS GROUP, THESEUS NO. 1 LIMITED, THESEUS NO. 2 LIMITED, and Deutsche Bank AG, London Branch as Security Trustee for the benefit of the Beneficiaries described therein.  Capitalized terms used herein shall have the respective meanings set forth in the Pledge Agreement.  By its execution hereof, the undersigned agrees that, from and after the date hereof, the undersigned shall be, and be considered for all purposes, (i) a “[General/Limited] Partner” under the Partnership Agreement and (ii) a “Pledgor” under the Pledge Agreement, as if referred to directly therein as such as a party thereto, entitled to all of the rights and subject to all of the liabilities and obligations of a Partner or Pledgor, respectively, thereunder.

 

As a Pledgor under the Pledge Agreement, the undersigned, as security and collateral for the due and punctual payment and performance of the Secured Obligations (as defined in the Pledge Agreement), hereby assigns, transfers and pledges to the Security Trustee, for the benefit of the Beneficiaries, a lien on and security interest in and to the undersigned’s right, title and interest to the Pledged Collateral (as defined in the Pledge Agreement).  As a Pledgor under the Pledge Agreement, the undersigned represents and warrants that the Pledged Collateral is free and clear of all liens other than the Permitted Liens (as defined in the Pledge Agreement).

 

This instrument, when executed by the undersigned, shall further constitute the undersigned’s counterpart signature page to the Partnership Agreement and the Pledge Agreement.

 

 

Dated this              day of                     ,             .

 

 

[Name of Transferee]

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

Address for Notice:

 

1



 

SCHEDULE 27(a)

 

Full Legal Name

 

Type of Entity

 

State of
Incorporation,
Organization or
Formation

 

Organizational
Identification
Number

 

Location of Chief
Executive Office

 

Jurisdiction(s) of
place(s) of business

TCI/US WEST Cable Communications Group

 

General Partnership

 

Colorado

 

None

 

2930 East Third
Avenue
Denver, Colorado
80206
USA

 

Colorado

Theseus No. 1 Limited

 

Private Limited Company

 

England & Wales

 

02994027

 

160 Great Portland
Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

Theseus No. 2 Limited

 

Private Limited Company

 

England & Wales

 

02994061

 

160 Great Portland
Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

 

1



 

SCHEDULE 27(d)
CURRENT UCC FILINGS

 

None.

 

1


 



Exhibit 4.41

 

 

 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

(Re: Interests in Tyneside Cable Limited Partnership)

 

 

Dated January 19, 2010

 

 

between

 

TCI/US WEST CABLE COMMUNICATIONS GROUP

 

THESEUS NO. 1 LIMITED

 

and

 

THESEUS NO. 2 LIMITED

 

as Pledgors

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINED TERMS

2

 

 

 

2.

SECURITY AGREEMENT

4

 

 

 

3.

SECURED OBLIGATIONS

6

 

 

 

4.

DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

6

 

 

 

5.

CERTAIN COVENANTS; REPRESENTATIONS

7

 

 

 

6.

VOTING RIGHTS; DIVIDENDS; ETC.

8

 

 

 

7.

REASONABLE CARE; PLEDGOR REMAINS LIABLE

9

 

 

 

8.

SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

9

 

 

 

9.

SECURITY TRUSTEE MAY PERFORM

10

 

 

 

10.

EVENTS OF DEFAULT

10

 

 

 

11.

REMEDIES

10

 

 

 

12.

EXPENSES

12

 

 

 

13.

RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

12

 

 

 

14.

INDEMNITY

15

 

 

 

15.

ROLE OF SECURITY TRUSTEE

16

 

 

 

16.

SEVERABILITY

16

 

 

 

17.

CONTINUED EFFECTIVENESS

16

 

 

 

18.

CUMULATIVE REMEDIES

16

 

 

 

19.

WAIVERS, AMENDMENTS

17

 

 

 

20.

WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

17

 

 

 

21.

SUCCESSORS AND ASSIGNS

17

 

 

 

22.

GOVERNING LAW

18

 

 

 

23.

NOTICES

18

 

 

 

24.

TERMINATION

19

 

 

 

25.

COUNTERPARTS

19

 

 

 

26.

AUTHORIZATION TO FILE

19

 

 

 

27.

GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

19

 

Schedules

Schedule 4(b)

Schedule 5(a)

Schedule 5(b)

Schedule 13

Schedule 27(a)

Schedule 27(d)

 

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AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”), is made and entered into as of January 19, 2010 by and among TCI/US WEST CABLE COMMUNICATIONS GROUP, a Colorado general partnership, THESEUS NO. 1 LIMITED, a limited company incorporated in England and Wales and THESEUS NO. 2 LIMITED, a limited company incorporated in England and Wales (each of foregoing being referred to individually as a “Pledgor” and collectively as the “Pledgors”), and Deutsche Bank AG, London Branch, in its capacity as Security Trustee for the Beneficiaries (the “Security Trustee” which expression includes any person which is for the time being the Security Trustee for the Beneficiaries).

 

W I T N E S S E T H

 

WHEREAS, the Pledgors constitute all of the partners of Tyneside Cable Limited Partnership, a Colorado limited partnership (“TCLP” or the “Partnership”).

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited and VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Original Guarantors as defined therein, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms are defined therein), the intergroup creditors and intergroup debtors listed therein, certain banks financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”), in respect of the $1,000,000,000 6.5% senior secured notes due 2018 and the £875,000,000 7.00% senior secured notes due 2018 (“Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), made among Virgin Media Inc., Virgin

 



 

Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time, Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes.

 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge and security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Partnership and the other collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                      CONSTRUCTION; DEFINED TERMS

 

This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless otherwise defined herein or the context otherwise expressly requires, capitalized terms used herein shall have the respective meanings set forth in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement (including by reference to other agreements).

 

Bankruptcy Code” Title 11 of the United States Code entitled “Bankruptcy as now or hereafter in effect.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Pledgor of the occurrence of that Event of Default, or takes,

 

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under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Defaultmeans each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 2.

 

Existing Pledged Collateral” means the existing security pledged by the Partnership under the relevant (i) July 2004 Pledge Agreements and the (ii) March 2001 Pledge Agreements, as such documents are set forth on Schedule 4(b) hereto.

 

Existing Security Trustee” means Barclays Bank PLC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

SEC” means the United States Securities and Exchange Commission.

 

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Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

2.                                      SECURITY AGREEMENT

 

As security and collateral for the due and punctual payment and performance by the Obligors of their respective joint and several obligations described in Section 3 below, each of the Pledgors hereby assigns, transfers, and pledges to the Security Trustee, and grants to the Security Trustee for the benefit of the Beneficiaries, a lien on and security interest in and to such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)                                  such Pledgor’s partnership interest in the Partnership owned by such Pledgor at any time and from time to time (each, a “Partnership Interest” and collectively, the “Partnership Interests”) and any certificates, instruments or other documents representing each such Partnership Interest, all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or otherwise distributed in respect of or in exchange for all or any part of each such Partnership Interest and all proceeds thereof; and

 

(b)                                 all partnership interests (general or limited) or securities convertible into or exchangeable for such interests issued by the Partnership, or any successor thereto, from time to time and acquired by such Pledgor in substitution for or in addition to any of the foregoing, all certificates and instruments representing such interests or securities, and all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or

 

4



 

otherwise distributed in respect of or in exchange for any or all of such interests or securities and all proceeds thereof;

 

provided, that, notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Pledge Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt:

 

(i)            all Pledged Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Pledge Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)           such Excluded Charged Assets remain pledged under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations pursuant to this Pledge Agreement.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation.  If the circumstances described in this paragraph apply, this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply,

 

5



 

this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.                                      SECURED OBLIGATIONS

 

The security interest in the Pledged Collateral granted pursuant hereto shall secure the due and punctual payment and performance of the Secured Obligations provided that before any demand for any Secured Obligation is made on a Restricted Guarantor pursuant to this Pledge Agreement, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.  It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include: (a) all Liabilities under the Senior Facilities Agreement; and (b) all Liabilities under the Senior Secured Notes Documents.

 

4.                                      DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

(a)                                  All certificates, instruments or documents, if any, representing or evidencing each and every of the Partnership Interests shall be delivered to the Security Trustee by the Pledgors on the date hereof, and shall be held by the Security Trustee pursuant hereto at all times hereafter until termination hereof pursuant to Section 24, and all certificates, instruments or documents representing or evidencing interests or securities in or issued by the Partnership and acquired by any Pledgor after the date hereof and constituting Pledged Collateral hereunder shall be delivered to the Security Trustee immediately upon, and held by the Security Trustee at all times after, acquisition thereof by such Pledgor.  All such certificates, instruments or documents, if any, shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Security Trustee.  To the extent that any certificates, instruments of transfer or other documents of title relating to any of the Pledged Collateral which are required to be delivered to the Security Trustee hereunder have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Pledged Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 4(a) shall be deemed satisfied.

 

(b)                                 Except as otherwise permitted in the Senior Finance Documents, each Pledgor agrees that it shall take all actions available to such Pledgor to cause the Partnership and, in the event of a merger or consolidation of the Partnership with any other entity, such other entity, not to issue any interests or other securities whether in addition to, by dividend or other distribution upon, or in substitution or exchange for, any of the Partnership Interests or otherwise, other than such interests or other securities issued to the Pledgors and promptly delivered to the Security Trustee pursuant to Section 4(a) hereof in which the Security Trustee, as agent and representative for the Beneficiaries, has a valid and perfected security interest free and clear of all liens and with respect to which no other party has any interest, except for the Existing

 

6



 

Pledged Collateral and the liens created in favor of the Security Trustee pursuant to this Pledge Agreement (collectively, the “Permitted Liens”).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder, the Security Trustee shall have the right, at any time in its discretion, to transfer to or to register in the name of the Security Trustee or any of its nominees any or all of the Pledged Collateral (with, in the discretion of the Security Trustee, such transfer or registration expressly empowering the Security Trustee to vote any voting interests included in the Pledged Collateral), subject only to each Pledgor’s revocable rights specified in Section 6(a).

 

(d)                                 Each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the Colorado, the District of Columbia or any other relevant states (a “State”), covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Security Trustee), to be filed in the relevant filing offices so that at all times the Security Trustee’s security interest in all Pledged Collateral which can be perfected by the filing of such financing statement (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant State), is so perfected.

 

5.                                      CERTAIN COVENANTS; REPRESENTATIONS

 

(a)                                  Each of the Pledgors covenant and agree that: (i) save to the extent expressly permitted or not restricted under any Senior Finance Document, without the prior written consent of the Security Trustee, no Pledgor will grant any option with respect to any of the Pledged Collateral; (ii) the Pledgors will defend the Pledged Collateral against the claims and demands of all persons other than the Security Trustee and the Beneficiaries, and will take any and all such action as is reasonably necessary to remove any competing or conflicting lien and will advise the Security Trustee promptly of the existence thereof; and (iii) at any time and from time to time upon the written request of the Security Trustee, the Pledgors will execute and deliver such further documents and do such further acts and things as the Security Trustee may reasonably request in order to effect the purposes of this Pledge Agreement.

 

(b)                                 Each of the Pledgors represent and warrant that:  (i) their choice of Colorado law to govern this Pledge Agreement is valid and binding subject to the Reservations; (ii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Schedule 5(a) hereto; (iii) each Partnership Interest referenced in sub-clause (ii) of this paragraph constitutes that percentage or position of the entire Partnership Interest of the Partnership as set forth in Schedule 5(a) hereto; (iv) it has complied with the respective procedure set forth in Clause 4(a) hereof with respect to each item of Pledged Collateral described in Schedule 5(a); and (v) such Pledgor owns no other Partnership Interests except as set forth in Schedule 5(b) hereto.

 

7



 

6.                                      VOTING RIGHTS; DIVIDENDS; ETC.

 

(a)                                  So long as no Event of Default hereunder shall have occurred and be continuing:  (i) each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral belonging to such Pledgor pursuant to the limited partnership agreement creating and governing TCLP (the “TCLP Partnership Agreement”), for any purpose not prohibited by the terms of this Pledge Agreement or the Senior Finance Documents; and (ii) except as otherwise provided in Section 6(c) hereof and except for distributions prohibited by the Senior Finance Documents, each Pledgor shall be entitled to receive, retain and distribute, free and clear of the security interest granted hereunder, any dividends, distributions, cash and other property from time to time paid, payable or otherwise distributed in respect of the Pledged Collateral belonging to such Pledgor.

 

(b)                                 Pledgor hereby irrevocably appoints the Security Trustee as Pledgor’s proxyholder with respect to the Partnership Interests of Pledgor and any other voting interests or other securities belonging to Pledgor and forming a part of the Pledged Collateral with full power and authority, in the discretion of the Security Trustee, to vote such Partnership Interests and other voting interests or securities and otherwise to act with respect to such Partnership Interests or other voting interests or securities on behalf of Pledgor; provided that this proxy shall only be operative upon the occurrence of an Event of Default and so long as such Event of Default continues.  This proxy shall be irrevocable for so long as any of the Secured Obligations remain in existence.  Pledgor shall execute and deliver (or cause to be executed and delivered) to the Security Trustee all proxies and other instruments as the Security Trustee may reasonably request for the purpose of enabling the Security Trustee to exercise the voting and other rights which it is entitled to exercise pursuant to this Section 6(b).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder or as otherwise permitted or not restricted pursuant to the provisions of each of the Senior Finance Documents, all rights of the Pledgor to receive and retain dividends, distributions, cash and other property, which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii), shall cease and all such rights shall thereupon be vested in the Security Trustee, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, distributions, cash and other property; provided, that until the Enforcement Date, without prejudice to the Senior Finance Documents, the Security Trustee will hold all dividends, distributions, cash and other property paid on and received by it in respect of any Partnership Interest which are transferred to it for the account of each Pledgor and will, subject to any right of set-off, pay such dividends, interest and other moneys to such Pledgor upon request.  All cash and other property received by a Pledgor contrary to the provisions of this Section 6(c) shall be received in trust for the benefit of the Security Trustee, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Security Trustee as Pledged Collateral in the same form as so received (with any necessary transfer documents or endorsements).

 

8



 

7.                                      REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

(a)                                  The Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Security Trustee accords its own property, it being understood that neither the Security Trustee nor any Beneficiary shall have responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain possession of the Pledged Collateral) to preserve rights against any parties with respect to any Pledged Collateral; provided that the Security Trustee agrees to notify the Pledgors if it has actual knowledge of the necessity of taking any such steps in respect of any Pledged Collateral and to cooperate with the Pledgors in connection therewith.

 

(b)                                 Anything herein to the contrary notwithstanding, (i) the Pledgors shall remain liable under the TCLP Partnership Agreement to the extent set forth therein to perform the duties and obligations thereunder to the same extent as if this Pledge Agreement had not been executed, (ii) the exercise by the Security Trustee of any of its rights hereunder shall not release any Pledgor from any of the duties or obligations under the TCLP Partnership Agreement, and (iii) the Security Trustee and the other Beneficiaries shall not have any obligation or liability under the TCLP Partnership Agreement by reason of this Pledge Agreement, nor shall the Security Trustee or the other Beneficiaries be obligated to perform any of the obligations or duties of any Pledgor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by any Pledgor or the sufficiency of any performance by any party under the TCLP Partnership Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  Except to the extent required by general partnership law, the Security Trustee and the other Beneficiaries shall not by reason of this Pledge Agreement or the exercise of any remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of TCLP or any of the liabilities of the Pledgors (or their permitted successors or assigns).

 

8.                                      SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

(a)                                  Each Pledgor hereby irrevocably appoints (which appointment is coupled with an interest) the Security Trustee (acting through its employees, attorneys, and/or agents) as such Pledgor’s attorney-in-fact, with full power of substitution and with full authority in the place and stead of Pledgor and in its name or otherwise, from time to time in the Security Trustee’s discretion, to sign, execute, seal and deliver and otherwise perfect any further security document or notice reasonably required to secure the Secured Obligations or to perfect the security intended to be created hereunder over the Pledged Collateral or any part thereof or, on or after the Enforcement Date, to take any action and to execute any instrument which the Security Trustee may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement; provided, that the Security Trustee shall be under no obligation to take any action hereunder and, absent gross negligence and wilful misconduct, the Security Trustee shall have no liability or responsibility for any action taken or omission with respect thereto.

 

9


 

(b)           Each Pledgor hereby consents, acknowledges and agrees, as of the date hereof, that the Security Trustee shall be appointed to succeed the Existing Security Trustee in relation to the Existing Pledged Collateral.

 

9.             SECURITY TRUSTEE MAY PERFORM

 

Upon the occurrence and during the continuance of an Event of Default hereunder (including an Event of Default resulting from a failure to perform any agreement contained herein), if any Pledgor fails to perform any agreement contained herein, the Security Trustee may itself perform, or cause performance of, such agreement, and the expenses of the Security Trustee incurred in connection therewith shall be payable by such Pledgor under Section 12 hereof.

 

10.          EVENTS OF DEFAULT

 

The occurrence of an Event of Default shall constitute an Event of Default hereunder.

 

11.          REMEDIES

 

At any time on or after the Enforcement Date, in addition to and without limiting any and all other remedies available under principles of law or equity:

 

(a)           The Security Trustee may execute, acknowledge, deliver, file and record on behalf of any or all the Pledgors and in their respective names financing statements, continuation statements, security agreements, mortgages, assignments, certificates of title, reports, notices, schedules of account, and all other documents, instruments or agreements that the Security Trustee may, in its sole and absolute discretion, deem advisable in order to obtain, perfect and maintain the Security Trustee’s security interests in the Pledged Collateral granted pursuant hereto and in order to fully consummate, implement and enforce all of the transactions contemplated and security interests granted under this Pledge Agreement.

 

(b)           The Security Trustee may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party after default under the Uniform Commercial Code in effect in the State of Colorado (the “Colorado UCC”) at that time or other applicable law.

 

(c)           The Security Trustee may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, over the counter or at any of the Security Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable or otherwise in such manner as necessary to comply with applicable federal and state securities laws.  The Pledgors agree that the Security Trustee shall not be required to register or qualify any of the Pledged Collateral under applicable state or federal securities laws in connection with any such sale if the sale is effected in a manner that complies with all applicable federal and state securities laws (to the extent applicable).  The Security Trustee shall be authorized at any such sale (if it deems it advisable to

 

10



 

do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are “accredited investors” or “qualified institutional buyers” under applicable law and are purchasing the Pledged Collateral for their own account, for investment and not with a view to the distribution thereof.  Upon consummation of any such sale the Security Trustee shall have the right to assign, transfer and deliver the Pledged Collateral to the purchaser or purchasers at any such sale, and such purchasers shall hold the property sold absolutely free from any claim or right on the part of the Pledgors, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it now has or may at any time in the future have under applicable law now existing or hereafter enacted.

 

(d)           The Security Trustee shall give to each Pledgor notice in writing of the time and place of any public sale or of the time on or after which any private sale or intended disposition is to be made.  Such notice need not be given more than five (5) Business Days (or such longer period as shall be specified by applicable law) before the date fixed for any such disposition, which notice the Pledgors agree shall constitute commercially reasonable notification.  At any such sale or other disposition, the Security Trustee, to the extent permitted by applicable law, may bid, which bid may be, in whole or in part, in the form of cancellation of the Secured Obligations in proportion to the share of the Secured Obligations of each Beneficiary, and purchase for the account of the Beneficiaries the whole or any portion of the Pledged Collateral, to the further extent permitted by applicable law, free of any right of redemption, which right is hereby waived and released to the extent permitted by applicable law.  The Security Trustee shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, and the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(e)           If a sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take delivery of and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  The Pledgors agree that any sale of the Pledged Collateral conducted by the Security Trustee in accordance with the foregoing provisions of this Section shall be deemed to be a commercially reasonable sale under Article 9 of the Colorado UCC.

 

(f)            As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by a suit or suits at law or in equity to foreclose the security interests and to sell the Pledged Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction.

 

(g)           Subject to provisions of applicable law any cash held by the Security Trustee as Pledged Collateral and all cash proceeds received by the Security Trustee in respect of any sale of, collection from, or other realization upon all or any part

 

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of the Pledged Collateral shall be applied as set forth in the Group Intercreditor Deed and the Security Trust Agreement.

 

12.          EXPENSES

 

Pledgors agree to pay, upon demand, to the Security Trustee (together with interest thereon from the date falling 30 days after the date of demand by the Security Trustee until the date of payment at the default interest rate as in effect from time to time under clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) (a) the amount of any and all actual fees and expenses, including without limitation the fees and expenses of its counsel and of any experts and agents, which the Security Trustee may properly incur in connection with (i) the custody or preservation of the Pledged Collateral, (ii) the exercise or enforcement of any rights of the Security Trustee hereunder or (iii) the failure by any Pledgor to perform or observe any of the provisions hereof and (b) the amount of any and all actual and fees and expenses of the Security Trustee’s counsel and outside experts and agents incurred in connection with the administration and enforcement of this Pledge Agreement.

 

13.          RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

(a)           Each Pledgor acknowledges that the security interests granted hereunder will secure obligations of persons other than such Pledgor, and, in full recognition of such fact, each Pledgor hereby agrees that, at any time and from time to time the Beneficiaries may, in their sole and absolute discretion, without the necessity of any reservation of rights against, notice to or further assent by any Pledgor, and without affecting the validity, legality or enforceability hereof or the security interests hereunder (but subject to the terms of the Senior Finance Documents):  (i) create new Secured Obligations or extend, accelerate, rescind any acceleration, increase, decrease, continue, restructure or otherwise modify the Secured Obligations or any of their terms; (ii) amend, supplement, waive or otherwise modify any provision of, or give any agreement, approval or consent with respect to, the Senior Finance Documents or any of the Secured Obligations; (iii) accept new or additional instruments, documents or agreements in exchange for or relative to any of the Senior Finance Documents, the Security Documents or the Secured Obligations or any part thereof; (iv) except as may be required by applicable law, accept and apply as the Beneficiaries may see fit payments on the Secured Obligations or proceeds of Collateral (as defined below); (v) receive and hold additional collateral or guarantees for the Secured Obligations or any part thereof (all collateral and guarantees for the Secured Obligations or any part thereof being referred to in this Section 13 as “Collateral” and “Guarantees,” respectively); (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any Collateral or Guarantees, apply any such Collateral and direct the order or manner of sale or other enforcement thereof; (vii) alter, impair, suspend or terminate the remedies or rights of the Beneficiaries against the Partnership, any guarantor of the Secured Obligations or any part thereof (a “Guarantor”) or any other person in respect of any of the Secured Obligations or suffer any of the foregoing to occur; (viii) refund at any time, at the Beneficiaries’ sole discretion, any payment received by the

 

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Beneficiaries in respect of the Secured Obligations; and (ix) otherwise deal with TCLP, any Collateral or any Guarantor as the Beneficiaries may elect in their sole discretion.

 

(b)           The Pledgors acknowledge that the security interests hereunder, and the enforcement hereof are not subject to any conditions not expressly stated herein.  Upon the occurrence and during the continuance of an Event of Default, the Security Trustee may enforce this Pledge Agreement independently from any other of the Security Documents and independently of any other remedy, Collateral or Guaranty that any Beneficiary at any time may have or hold in connection with the Secured Obligations, and it shall not be necessary for the Security Trustee to marshal assets in favor of the Pledgors or any other person or to proceed upon or against or exhaust any other remedy, Collateral or Guaranty before proceeding to enforce this Pledge Agreement.  The Pledgors expressly agree that the Security Trustee may proceed against TCLP, any Pledgor, any other Guarantor, or the Collateral in such order and in such manner as it shall determine in its sole and absolute discretion.  The Security Trustee may file a separate action or actions with respect to the Pledged Collateral whether action is brought or prosecuted with respect to any other Collateral or against any other person, or whether any other person is joined in any such action or actions.  The Pledgors agree that the Beneficiaries, TCLP and any other Guarantor may deal with each other in connection with the Secured Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between or among any of them, in any manner whatsoever, all without in any way altering or affecting the security of this Pledge Agreement.  The Pledgors expressly waive the benefit of any statute(s) of limitations affecting the enforcement of the Secured Obligations or the security interest hereunder.  Any payment by or on behalf of TCLP or other circumstance that operates to toll any statute of limitations applicable to such partnership shall also operate to toll the statute of limitations applicable to Pledgors.

 

(c)           The Pledgors expressly waive any and all defenses or counterclaims (other than by reason of the full payment and performance of all the Secured Obligations) now or hereafter arising or asserted by reason of (i) any disability, set-off or other defense or counterclaim of TCLP or any Guarantor with respect to the Secured Obligations, the Senior Finance Documents or any of the Security Documents; (ii) the failure of priority or validity of security interest in any Collateral; (iii) the cessation from any cause whatsoever of the liability of TCLP or any Guarantor or other person with respect to the Secured Obligations; (iv) the disallowance of, or any failure of any Beneficiary to file or enforce, a claim in any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding (a “Bankruptcy Proceeding”) with respect to TCLP or any other person; (v) the modification, discharge, extension or avoidance in or as a result of any Bankruptcy Proceeding commenced by or against TCLP or any other person of all or any of the Secured Obligations, any Guaranty, collateral or lien; (vi) any use of cash or other Collateral in any Bankruptcy Proceeding; (vii) any agreement or stipulation as to adequate protection in any Bankruptcy Proceeding; (viii) any amendment, modification, stay or cure of the

 

13



 

Beneficiaries’ rights that may occur in any Bankruptcy Proceeding; (ix) any election of remedies by the Beneficiaries, whether or not such election destroys or affects any subrogation, reimbursement, contribution, indemnity or similar rights the Pledgors may have (notwithstanding subsection (d) below) against TCLP, including, without limitation, any loss of rights the Pledgors may suffer by reason of any rights, powers or remedies of TCLP in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging the Secured Obligations; (x) any election by the Beneficiaries under Section 1111(b)(2) of the Bankruptcy Code; (xi) any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code; or (xii) any action taken by any Beneficiary that is authorized by this Section or any other provision of any of the Security Documents or any other Senior Finance Documents.

 

(d)           The Pledgors hereby waive any and all rights of subrogation, reimbursement, contribution, indemnity, setoffs or counterclaims and any and all similar rights that the Pledgors may otherwise have against TCLP at any time under any applicable law, until the Secured Obligations shall have been indefeasibly paid and performed in full.  The Pledgors further expressly waive any right to enforce any remedy that the Beneficiaries now or hereafter may have against TCLP or any other person and waive the benefit of, or any right to participate in, any Collateral now or hereafter held by the Beneficiaries, until the Secured Obligations shall then have been indefeasibly paid and performed in full.

 

(e)           The Pledgors expressly waive (i) all presentments, protests, notices of default or dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations, including notice of any action against TCLP or any Guarantor or the assertion or enforcement of any right of the Beneficiaries hereunder or any other of the Security Documents; (ii) all notices of acceptance of this Pledge Agreement or of the existence, creation, renewal or incurring of new or additional Secured Obligations; and (iii) to the extent permitted by applicable law, the benefit of all valuation, appraisal, redemption and exemption laws.  The Pledgors expressly agree that they shall be bound by each and every ruling, order and judgment obtained by any Beneficiary against TCLP, in respect of the Secured Obligations, whether or not the Pledgors are parties to, or have received notice of, the action or proceeding in which such ruling, order or judgment is issued and rendered.

 

(f)            The Pledgors represent and warrant that they have established adequate means of obtaining from TCLP, on a continuing basis, financial and other information pertaining to the business, operations and condition (financial and otherwise) of such entity, and now are and hereafter will be completely familiar with such business, operations, condition and properties.

 

(g)           The Pledgors hereby acknowledge and warrant that they are familiar with the terms of this Pledge Agreement, the Senior Finance Documents, all other Security Documents and all other agreements evidencing the Secured Obligations and that they have derived or expect to derive a financial advantage from each Series of Senior Liabilities or other extension of credit and from each and every renewal, extension, release of Collateral, or other relinquishment of legal rights made or granted or to be made or granted by the

 

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Beneficiaries to the Borrowers, TCLP or any of the other Obligors in connection with the Secured Obligations.

 

(h)           The Pledgors warrant and agree that each of the waivers set forth in this Pledge Agreement is made with full knowledge of its significance and consequences and that, under the circumstances, all such waivers are reasonable and not contrary to public policy or applicable law.  If any such waiver is determined to be contrary to any public policy or applicable law, such waiver shall be effective to the maximum extent permitted by such public policy or applicable law.

 

(i)            Notwithstanding anything to the contrary contained herein or in any other agreement or instrument relating to the Secured Obligations, the Pledgors shall not be personally liable to the Security Trustee or the Beneficiaries for the satisfaction of the Secured Obligations, and the Security Trustee, on behalf of the Beneficiaries, shall look solely to the Pledged Collateral with respect to such satisfaction from Pledgors; provided that the foregoing shall not (i) constitute a waiver, release or discharge of any of the indebtedness evidenced by any Senior Finance Document, but the same shall continue until fully paid, discharged, observed or performed or (ii) in any way limit or restrict any right of the Security Trustee or the Beneficiaries to foreclose the liens and security interests of the Security Documents or otherwise realize upon any collateral assigned or pledged to the Security Trustee or the Beneficiaries in connection with the transactions contemplated hereby or thereby or (iii) constitute a waiver or limitation by the Security Trustee or the Beneficiaries of any claim against Pledgors for any claim in the nature of fraud or deceit or wilful misconduct arising under or in connection with this Pledge Agreement.

 

14.          INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Security Trustee and its respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and an collectively, the “Indemnities”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Pledge Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Security Document (but excluding any obligation, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or wilful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Security Trustee hereunder be liable, in the absence of gross negligence or wilful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), of or any matter or thing in connection with this Pledge Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligation of any Pledgor under this

 

15



 

Section 14 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.  The indemnity obligations of each Pledgor contained in this Section 14 shall continue in full force and effect notwithstanding the full payment and fulfillment of all the obligations under the Senior Finance Documents and notwithstanding the discharge thereof.

 

15.          ROLE OF SECURITY TRUSTEE

 

Each Pledgor and the Security Trustee hereby acknowledge that the covenants of each Pledgor contained in this Pledge Agreement and the security and other rights, titles and interests constituted by this Pledge Agreement and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Pledge Agreement are held by the Security Trustee subject to and on the terms of the trusts declared by the Security Trust Agreement.

 

16.          SEVERABILITY

 

Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.          CONTINUED EFFECTIVENESS

 

Any release, discharge or settlement between one or more of the Pledgors and the Security Trustee or any of the other Beneficiaries shall be conditional upon no security, disposition or payment to the Security Trustee or any of the other Beneficiaries by any of the Obligors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Security Trustee and the other Beneficiaries shall be entitled to enforce this Pledge Agreement subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain this security after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the other Beneficiaries from any of the Obligors for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

18.          CUMULATIVE REMEDIES

 

The rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies provided by law.

 

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19.          WAIVERS, AMENDMENTS

 

None of the terms or provisions of this Pledge Agreement may be altered, modified or amended except by an instrument in writing, duly executed by the Security Trustee and the Pledgors.  No waiver of any provision hereof or consent to any departure from the terms hereof shall be effective unless the same shall be in writing and duly executed by the Security Trustee.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  A waiver by the Security Trustee of any right or remedy hereunder on any occasion shall not be construed as a bar to any right or remedy which the Security Trustee would otherwise have on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Security Trustee, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

20.          WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

The Pledgors hereby represent that they constitute all of the partners of the Partnership.  The Pledgors, constituting all of the partners of the Partnership, each hereby waives the application of the provisions of Section 15 of the TCLP Partnership Agreement that otherwise would apply to, and hereby consents to, the assignment, transfer or pledge of any Pledgor’s Partnership Interest in the Partnership to the Security Trustee, for the benefit of the Beneficiaries, now or in the future, pursuant to the provisions of this Pledge Agreement.  Further, each of the Pledgors hereby ratifies and approves any similar assignments, transfers or pledges of the Partnership Interests of the other Pledgors occurring prior to the date hereof.

 

21.          SUCCESSORS AND ASSIGNS

 

(a)           Subject to the restrictions on transfers by the Pledgors hereunder, this Pledge Agreement and all obligations of the Pledgors hereunder shall be binding upon the successors and assigns of the Pledgors, and shall inure to the benefit of the Security Trustee, the Beneficiaries and their respective successors and assigns.

 

(b)           It is hereby understood and agreed that any party required to become a party to this Pledge Agreement after the date hereof pursuant to the requirements of the Senior Finance Documents, shall become a Pledgor hereunder by

 

(i)            executing a Partnership Interest Accession Agreement in the form attached hereto as Schedule 13,

 

(ii)           delivering supplements to the schedules attached hereto as are necessary to cause such schedules to be complete and accurate with respect to each additional Pledgor on such date; and

 

(iii)          taking all actions specified in this Pledge Agreement as would have been taken by such Pledgor had it been an original party to the Pledge Agreement, in each case with all documents required above to be delivered to the Pledge and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledge.

 

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22.          GOVERNING LAW

 

This Pledge Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Colorado applicable to agreements made and to be performed entirely within such State.  The Pledgors hereby irrevocably consent to the jurisdiction of any of the courts designated in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) in connection with any action or proceeding arising out of or relating to this Pledge Agreement.  In any such action or proceeding, each Pledgor waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by personal delivery or by certified or registered mail directed to each Pledgor at its address set forth herein.  Nothing in this section shall affect the right of the Security Trustee or the Beneficiaries to serve legal process in any other manner by law or affect the right of the Security Trustee or the Beneficiaries to bring any action or proceeding against any Pledgor or his or its property in the courts of any other jurisdiction.  The Pledgors irrevocably waive any objection they may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement), or that any action or proceeding in any such court or jurisdiction has been brought in an inconvenient forum.

 

23.          NOTICES

 

All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be personally served or sent by registered, certified or overnight mail, postage prepaid, or by telegraph, telecopy or telex and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when received (with such receipt acknowledged by the recipient, in the case of a telecopy).  All such notices shall be addressed as follows, or to such other address as may be hereafter notified in writing to the respective parties hereto:

 

If to the Security Trustee:

 

Winchester House

1 Great Winchester Street

London EC2N 2DB

England

 

Attention:              Syndicated Loans TSS / Nicola Dawes / Rajeer Thakeeria

Telephone:            0207 547 5905

Facsimile:              0207 547 6419

 

If to a Pledgor, addressed to such Pledgor at:

 

c/o Virgin Media Investment Holdings Limited

160 Great Portland St

London W1W 5QA

 

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England

 

Attention:              Group Legal Director

Facsimile:              020 7299 6000

 

With a copy to:

 

Attention:              Group General Counsel

Facsimile:              020 7299 5495

 

24.          TERMINATION

 

This Pledge Agreement, and the pledges, assignments, and encumbrances created or granted hereby, shall terminate when (a) all of the Secured Obligations shall have been fully paid, satisfied and performed, and (b) the Commitments have terminated, at which time the Security Trustee shall execute appropriate releases, acknowledgments, assignments or other documents necessary to secure the release and reassignment of such of the Pledged Collateral as shall not have been sold or otherwise applied by the Security Trustee pursuant to the terms hereof, and deliver to the Pledgors (or their respective designees) all Pledged Collateral and related documents then in the custody or possession of the Security Trustee.  Any such reassignment shall be without recourse upon, or warranty whatsoever by, the Security Trustee, and at the cost and expense of the Pledgors.

 

25.          COUNTERPARTS

 

This Pledge Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

26.          AUTHORIZATION TO FILE

 

With respect to the foregoing in this Pledge Agreement and the grant of the security interest hereunder, each Pledgor hereby authorizes the Security Trustee to file one or more financing statements or continuation statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of any Pledgor where permitted by law.  Each Pledgor agrees to furnish the Security Trustee, promptly upon reasonable request by the Security Trustee, with any information that is required by the Security Trustee in order to complete such financing statements or continuation statements, or amendments thereto.

 

27.          GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

Each Pledgor hereby represents and warrants to the Security Trustee that:

 

(a)           Schedule 27(a) attached hereto sets forth an accurate and complete list identifying the following: (i) the full legal name of each Pledgor as it appears in official filings in the state or jurisdiction of its incorporation, organization or formation, as the case may be; (ii) the type of entity of such Pledgor; (iii) such Pledgor’s state of incorporation, organization or formation, as the case may be; (iv) the organizational identification number issued by such Pledgor’s

 

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state of incorporation, organization or formation, or a statement that no such number has been issued; (v) the location of such Pledgor’s chief executive office ; and (vi) the jurisdiction(s) of such Pledgor’s place(s) of business.  Each Pledgor has only one state of incorporation, organization or formation, as the case may be;

 

(b)           it has not done in the last five (5) years, and does not do, business under any other name (including any trade name or fictitious business name) except for its respective legal name as set forth on Schedule 27(a);

 

(c)           it has not changed its name, jurisdiction of incorporation, organization or formation, the location of its chief executive office or place(s) of business, or its corporate or partnership structure in any way (e.g., by merger, consolidation, change in corporate or partnership form or otherwise), in each case within the past five (5) years;

 

(d)           it is the legal, beneficial and record owner of, and has good and marketable title to all of the Pledged Collateral upon which it purports to grant a lien hereunder, free and clear of any lien except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral is on file in any recording office, except as set forth on Schedule 27(d) or such as may have been filed in favor of the Security Trustee relating to this Pledge Agreement and with respect to the Permitted Liens.  Such liens set forth on Schedule 27(d) will be terminated as of the date of this Pledge Agreement;

 

(e)           it has full power, authority and legal right to pledge all the Pledged Collateral pledged by it pursuant to this Pledge Agreement;

 

(f)            this Pledge Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(g)           except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Pledge Agreement by such Pledgor, (b) the validity or enforceability of this Pledge Agreement against such Pledgor (except as set forth in clause (a) above), (c) the perfection or enforceability of the Security Trustee’s security interest in such Pledgor’s Pledged Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Security Trustee of any of its rights or remedies provided herein;

 

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(h)           neither the execution, delivery or performance by such Pledgor of this Pledge Agreement or any other Senior Finance Document, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of partnership or partnership agreement, (or equivalent organizational documents), as the case may be, of such Pledgor;

 

(i)            as of the date hereof, after giving effect to the transactions contemplated by the Senior Finance Documents, such Pledgor is Solvent, and will not cease to be Solvent as a result of the obligations and transactions undertaken by such Pledgor pursuant to, or as contemplated by, the Senior Finance Documents.  As of the date hereof, there is no proceeding pending, or to the knowledge of the undersigned, threatened, challenging the Solvency of such Pledgor or seeking to dissolve or liquidate such Pledgor.

 

For the purposes of the foregoing, “Solvent” or “Solvency” means, with respect to any person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such person is (y) greater than the total amount of liabilities (including contingent liabilities) of such person and (z) not less than the amount that will be required to pay the probable liabilities on such person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such person; (ii) such person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (B) such person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For the purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

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IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement to be executed and delivered as of the day and year first above written.

 

 

TCI/US WEST CABLE COMMUNICATIONS GROUP,

 

a Colorado general partnership

 

 

 

By Its General Partners:

 

 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Robert Mackenzie, Director

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

Robert Gale, Director

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Robert Mackenzie, Director

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

Robert Gale, Director

 

22



 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Robert Mackenzie, Director

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

Robert Gale, Director

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Robert Mackenzie, Director

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

Robert Gale, Director

 

 

 

 

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH,

 

as Security Trustee

 

 

 

 

 

By:

N. DAWES

 

 

Title:

V.P.

 

 

 

 

 

By:

V. MAYELL

 

 

Title:

A.V.P.

 

23



 

SCHEDULE 4(b)

EXISTING PLEDGED COLLATERAL

 

None.

 

1



 

SCHEDULE 5(a)
PARTNERSHIP INTERESTS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE
OF BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

Tyneside Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

1



 

SCHEDULE 5(b)
OTHER PARTNERSHIP INTERESTS

 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Cotswolds Cable Limited Partnership

 

2930 East Third Avenue

Denver, Colorado

80206

USA

 

0.5% - General - Theseus No. 1 Limited

0.5% - General - Theseus No. 2 Limited

99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Estuaries Cable Limited Partnership

 

2930 East Third Avenue

Denver, Colorado

80206

USA

 

0.5% - General - Theseus No. 1 Limited

0.5% - General - Theseus No. 2 Limited

99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

TCI/US WEST Cable Communications Group

 

2930 East Third Avenue

Denver, Colorado

80206

USA

 

50% - Theseus No. 1 Limited

50% - Theseus No. 2 Limited

 

Colorado General

Telewest Communications (North East) Partnership

 

160 Great Portland Street

LONDON

W1W 5QA

UNITED KINGDOM

 

99% - Tyneside Cable Limited Partnership

0.9% - Telewest Communications (North East) Limited

0.1% - Telewest Communications (Tyneside) Limited

 

English General

 

1



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Telewest Communications (South East) Partnership

 

160 Great Portland Street

LONDON

W1W 5QA

UNITED KINGDOM

 

99% - Estuaries Cable Limited Partnership

0.5% - Telewest Communications (South East) Limited

0.5% - Telewest Communications (South Thames Estuary) Limited

 

English General

Avon Cable Limited Partnership

 

2930 East Third Avenue

Denver, Colorado

80206

USA

 

0.5% - General - Theseus No. 1 Limited

0.5% - General - Theseus No. 2 Limited

99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue

Denver, Colorado

80206

USA

 

0.5% - General - Theseus No. 1 Limited

0.5% - General - Theseus No. 2 Limited

99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

2



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

United Cable (London South) Limited Partnership

 

2930 East Third Avenue

Denver, Colorado

80206

USA

 

0.5% - General - Theseus No. 1 Limited

0.5% - General - Theseus No. 2 Limited

99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

3



 

SCHEDULE 13

 

PARTNERSHIP INTEREST ACCESSION AGREEMENT

 

(Tyneside Cable Limited Partnership)

 

The undersigned, desiring to become a partner of Tyneside Cable Limited Partnership, a Colorado limited partnership (the “Partnership”) formed pursuant to a Limited Partnership Agreement dated 30 April 1992, as amended by First Amendment dated 21 November 1994 (the “Partnership Agreement”) hereby agrees to, and by its execution hereof does, become a party to (i) the Partnership Agreement, as a [general/limited] partner thereunder, and (ii) that certain Pledge and Security Agreement (as amended from time to time, the “Pledge Agreement”), dated                          , 20    , initially entered into among TCI/US WEST CABLE COMMUNICATIONS GROUP, THESEUS NO. 1 LIMITED, THESEUS NO. 2 LIMITED, and Deutsche Bank AG, London Branch as Security Trustee for the benefit of the Beneficiaries described therein.  Capitalized terms used herein shall have the respective meanings set forth in the Pledge Agreement.  By its execution hereof, the undersigned agrees that, from and after the date hereof, the undersigned shall be, and be considered for all purposes, (i) a “[General/Limited] Partner” under the Partnership Agreement and (ii) a “Pledgor” under the Pledge Agreement, as if referred to directly therein as such as a party thereto, entitled to all of the rights and subject to all of the liabilities and obligations of a Partner or Pledgor, respectively, thereunder.

 

As a Pledgor under the Pledge Agreement, the undersigned, as security and collateral for the due and punctual payment and performance of the Secured Obligations (as defined in the Pledge Agreement), hereby assigns, transfers and pledges to the Security Trustee, for the benefit of the Beneficiaries, a lien on and security interest in and to the undersigned’s right, title and interest to the Pledged Collateral (as defined in the Pledge Agreement).  As a Pledgor under the Pledge Agreement, the undersigned represents and warrants that the Pledged Collateral is free and clear of all liens other than the Permitted Liens (as defined in the Pledge Agreement).

 

This instrument, when executed by the undersigned, shall further constitute the undersigned’s counterpart signature page to the Partnership Agreement and the Pledge Agreement.

 

 

Dated this              day of                     ,             .

 

 

[Name of Transferee]

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

Address for Notice:

 

1



 

SCHEDULE 27(a)

 

Full Legal Name

 

Type of Entity

 

State of
Incorporation,
Organization or
Formation

 

Organizational
Identification
Number

 

Location of Chief
Executive Office

 

Jurisdiction(s) of
place(s) of business

TCI/US WEST Cable Communications Group

 

General Partnership

 

Colorado

 

None

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

Colorado

Theseus No. 1 Limited

 

Private Limited Company

 

England & Wales

 

02994027

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

Theseus No. 2 Limited

 

Private Limited Company

 

England & Wales

 

02994061

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

 

1



 

SCHEDULE 27(d)
CURRENT UCC FILINGS

 

None.

 

1




Exhibit 4.42

 

 

 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

(Re: Interests in United Cable (London South) Limited Partnership)

 

 

Dated January 19, 2010

 

 

between

 

TCI/US WEST CABLE COMMUNICATIONS GROUP

 

THESEUS NO. 1 LIMITED

 

and

 

THESEUS NO. 2 LIMITED

 

as Pledgors

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINED TERMS

2

 

 

 

2.

SECURITY AGREEMENT

4

 

 

 

3.

SECURED OBLIGATIONS

6

 

 

 

4.

DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

6

 

 

 

5.

CERTAIN COVENANTS; REPRESENTATIONS

7

 

 

 

6.

VOTING RIGHTS; DIVIDENDS; ETC.

8

 

 

 

7.

REASONABLE CARE; PLEDGOR REMAINS LIABLE

9

 

 

 

8.

SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

9

 

 

 

9.

SECURITY TRUSTEE MAY PERFORM

10

 

 

 

10.

EVENTS OF DEFAULT

10

 

 

 

11.

REMEDIES

10

 

 

 

12.

EXPENSES

12

 

 

 

13.

RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

12

 

 

 

14.

INDEMNITY

15

 

 

 

15.

ROLE OF SECURITY TRUSTEE

16

 

 

 

16.

SEVERABILITY

16

 

 

 

17.

CONTINUED EFFECTIVENESS

16

 

 

 

18.

CUMULATIVE REMEDIES

17

 

 

 

19.

WAIVERS, AMENDMENTS

17

 

 

 

20.

WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

17

 

 

 

21.

SUCCESSORS AND ASSIGNS

17

 

 

 

22.

GOVERNING LAW

18

 

 

 

23.

NOTICES

18

 

 

 

24.

TERMINATION

19

 

 

 

25.

COUNTERPARTS

19

 

 

 

26.

AUTHORIZATION TO FILE

19

 

 

 

27.

GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

19

 

 

 

Schedules

 

Schedule 4(b)

Schedule 5(a)

Schedule 5(b)

Schedule 13

Schedule 27(a)

Schedule 27(d)

 

i



 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”), is made and entered into as of January 19, 2010 by and among TCI/US WEST CABLE COMMUNICATIONS GROUP, a Colorado general partnership, THESEUS NO. 1 LIMITED, a limited company incorporated in England and Wales and THESEUS NO. 2 LIMITED, a limited company incorporated in England and Wales (each of foregoing being referred to individually as a “Pledgor” and collectively as the “Pledgors”), and Deutsche Bank AG, London Branch, in its capacity as Security Trustee for the Beneficiaries (the “Security Trustee” which expression includes any person which is for the time being the Security Trustee for the Beneficiaries).

 

W I T N E S S E T H

 

WHEREAS, the Pledgors constitute all of the partners of United Cable (London South) Limited Partnership, a Colorado limited partnership (“UCLSLP” or the “Partnership”).

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited and VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Original Guarantors as defined therein, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms are defined therein), the intergroup creditors and intergroup debtors listed therein, certain banks, financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”), in respect of the $1,000,000,000 6.5% senior secured notes due 2018 and the £875,000,000 7.00% senior secured notes due 2018 (“Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out

 



 

therein, the “Senior Secured Notes Documents”), made among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time, Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes.

 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge and security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Partnership and the other collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                      CONSTRUCTION; DEFINED TERMS

 

This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless otherwise defined herein or the context otherwise expressly requires, capitalized terms used herein shall have the respective meanings set forth in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement (including by reference to other agreements).

 

Bankruptcy Code” Title 11 of the United States Code entitled “Bankruptcy as now or hereafter in effect.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee

 

2



 

notifies the relevant Pledgor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Defaultmeans each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 2.

 

Existing Pledged Collateral” means the existing security pledged by the Partnership under the relevant (i) July 2004 Pledge Agreements and the (ii) March 2001 Pledge Agreements, as such documents are set forth on Schedule 4(b) hereto.

 

Existing Security Trustee” means Barclays Bank PLC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

SEC” means the United States Securities and Exchange Commission.

 

3



 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

2.                                      SECURITY AGREEMENT

 

As security and collateral for the due and punctual payment and performance by the Obligors of their respective joint and several obligations described in Section 3 below, each of the Pledgors hereby assigns, transfers, and pledges to the Security Trustee, and grants to the Security Trustee for the benefit of the Beneficiaries, a lien on and security interest in and to such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)                                  such Pledgor’s partnership interest in the Partnership owned by such Pledgor at any time and from time to time (each, a “Partnership Interest” and collectively, the “Partnership Interests”) and any certificates, instruments or other documents representing each such Partnership Interest, all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or otherwise distributed in respect of or in exchange for all or any part of each such Partnership Interest and all proceeds thereof; and

 

(b)                                 all partnership interests (general or limited) or securities convertible into or exchangeable for such interests issued by the Partnership, or any successor thereto, from time to time and acquired by such Pledgor in substitution for or in addition to any of the foregoing, all certificates and instruments representing such interests or securities, and all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or

 

4



 

otherwise distributed in respect of or in exchange for any or all of such interests or securities and all proceeds thereof;

 

provided, that, notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Pledge Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt:

 

(i)            all Pledged Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Pledge Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)           such Excluded Charged Assets remain pledged under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations pursuant to this Pledge Agreement.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation.  If the circumstances described in this paragraph apply, this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply,

 

5



 

this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.                                      SECURED OBLIGATIONS

 

The security interest in the Pledged Collateral granted pursuant hereto shall secure the due and punctual payment and performance of the Secured Obligations provided that before any demand for any Secured Obligation is made on a Restricted Guarantor pursuant to this Pledge Agreement, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.  It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include: (a) all Liabilities under the Senior Facilities Agreement; and (b) all Liabilities under the Senior Secured Notes Documents.

 

4.                                      DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

(a)                                  All certificates, instruments or documents, if any, representing or evidencing each and every of the Partnership Interests shall be delivered to the Security Trustee by the Pledgors on the date hereof, and shall be held by the Security Trustee pursuant hereto at all times hereafter until termination hereof pursuant to Section 24, and all certificates, instruments or documents representing or evidencing interests or securities in or issued by the Partnership and acquired by any Pledgor after the date hereof and constituting Pledged Collateral hereunder shall be delivered to the Security Trustee immediately upon, and held by the Security Trustee at all times after, acquisition thereof by such Pledgor.  All such certificates, instruments or documents, if any, shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Security Trustee.  To the extent that any certificates, instruments of transfer or other documents of title relating to any of the Pledged Collateral which are required to be delivered to the Security Trustee hereunder have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Pledged Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 4(a) shall be deemed satisfied.

 

(b)                                 Except as otherwise permitted in the Senior Finance Documents, each Pledgor agrees that it shall take all actions available to such Pledgor to cause the Partnership and, in the event of a merger or consolidation of the Partnership with any other entity, such other entity, not to issue any interests or other securities whether in addition to, by dividend or other distribution upon, or in substitution or exchange for, any of the Partnership Interests or otherwise, other than such interests or other securities issued to the Pledgors and promptly delivered to the Security Trustee pursuant to Section 4(a) hereof in which the Security Trustee, as agent and representative for the Beneficiaries, has a valid and perfected security interest free and clear of all liens and with respect to which no other party has any interest, except for the Existing

 

6



 

Pledged Collateral and the liens created in favor of the Security Trustee pursuant to this Pledge Agreement (collectively, the “Permitted Liens”)

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder, the Security Trustee shall have the right, at any time in its discretion, to transfer to or to register in the name of the Security Trustee or any of its nominees any or all of the Pledged Collateral (with, in the discretion of the Security Trustee, such transfer or registration expressly empowering the Security Trustee to vote any voting interests included in the Pledged Collateral), subject only to each Pledgor’s revocable rights specified in Section 6(a).

 

(d)                                 Each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the Colorado, the District of Columbia or any other relevant states (a “State”), covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Security Trustee), to be filed in the relevant filing offices so that at all times the Security Trustee’s security interest in all Pledged Collateral which can be perfected by the filing of such financing statement (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant State), is so perfected.

 

5.                                      CERTAIN COVENANTS; REPRESENTATIONS

 

(a)                                  Each of the Pledgors covenant and agree that: (i) save to the extent expressly permitted or not restricted under any Senior Finance Document without the prior written consent of the Security Trustee, no Pledgor will grant any option with respect to any of the Pledged Collateral; (ii) the Pledgors will defend the Pledged Collateral against the claims and demands of all persons other than the Security Trustee and the Beneficiaries, and will take any and all such action as is reasonably necessary to remove any competing or conflicting lien and will advise the Security Trustee promptly of the existence thereof; and (iii) at any time and from time to time upon the written request of the Security Trustee, the Pledgors will execute and deliver such further documents and do such further acts and things as the Security Trustee may reasonably request in order to effect the purposes of this Pledge Agreement.

 

(b)                                 Each of the Pledgors represent and warrant that:  (i) their choice of Colorado law to govern this Pledge Agreement is valid and binding subject to the Reservations; (ii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Schedule 5(a) hereto; (iii) each Partnership Interest referenced in sub-clause (ii) of this paragraph constitutes that percentage or position of the entire Partnership Interest of the Partnership as set forth in Schedule 5(a) hereto; (iv) it has complied with the respective procedure set forth in Clause 4(a) hereof with respect to each item of Pledged Collateral described in Schedule 5(a); and (v) such Pledgor owns no other Partnership Interests except as set forth in Schedule 5(b) hereto.

 

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6.                                      VOTING RIGHTS; DIVIDENDS; ETC.

 

(a)                                  So long as no Event of Default hereunder shall have occurred and be continuing:  (i) each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral belonging to such Pledgor pursuant to the limited partnership agreement creating and governing UCLSLP (the “UCLSLP Partnership Agreement”), for any purpose not prohibited by the terms of this Pledge Agreement or the Senior Finance Documents; and (ii) except as otherwise provided in Section 6(c) hereof and except for distributions prohibited by the Senior Finance Documents, each Pledgor shall be entitled to receive, retain and distribute, free and clear of the security interest granted hereunder, any dividends, distributions, cash and other property from time to time paid, payable or otherwise distributed in respect of the Pledged Collateral belonging to such Pledgor.

 

(b)                                 Pledgor hereby irrevocably appoints the Security Trustee as Pledgor’s proxyholder with respect to the Partnership Interests of Pledgor and any other voting interests or other securities belonging to Pledgor and forming a part of the Pledged Collateral with full power and authority, in the discretion of the Security Trustee, to vote such Partnership Interests and other voting interests or securities and otherwise to act with respect to such Partnership Interests or other voting interests or securities on behalf of Pledgor; provided that this proxy shall only be operative upon the occurrence of an Event of Default and so long as such Event of Default continues.  This proxy shall be irrevocable for so long as any of the Secured Obligations remain in existence.  Pledgor shall execute and deliver (or cause to be executed and delivered) to the Security Trustee all proxies and other instruments as the Security Trustee may reasonably request for the purpose of enabling the Security Trustee to exercise the voting and other rights which it is entitled to exercise pursuant to this Section 6(b).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder or as otherwise permitted or not restricted pursuant to the provisions of each of the Senior Finance Documents, all rights of the Pledgor to receive and retain dividends, distributions, cash and other property, which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii), shall cease and all such rights shall thereupon be vested in the Security Trustee, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, distributions, cash and other property; provided, that until the Enforcement Date, without prejudice to the Senior Finance Documents, the Security Trustee will hold all dividends, distributions, cash and other property paid on and received by it in respect of any Partnership Interest which are transferred to it for the account of each Pledgor and will, subject to any right of set-off, pay such dividends, interest and other moneys to such Pledgor upon request.  All cash and other property received by a Pledgor contrary to the provisions of this Section 6(c) shall be received in trust for the benefit of the Security Trustee, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Security

 

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Trustee as Pledged Collateral in the same form as so received (with any necessary transfer documents or endorsements).

 

7.                                      REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

(a)                                  The Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Security Trustee accords its own property, it being understood that neither the Security Trustee nor any Beneficiary shall have responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain possession of the Pledged Collateral) to preserve rights against any parties with respect to any Pledged Collateral; provided that the Security Trustee agrees to notify the Pledgors if it has actual knowledge of the necessity of taking any such steps in respect of any Pledged Collateral and to cooperate with the Pledgors in connection therewith.

 

(b)                                 Anything herein to the contrary notwithstanding, (i) the Pledgors shall remain liable under the UCLSLP Partnership Agreement to the extent set forth therein to perform the duties and obligations thereunder to the same extent as if this Pledge Agreement had not been executed, (ii) the exercise by the Security Trustee of any of its rights hereunder shall not release any Pledgor from any of the duties or obligations under the UCLSLP Partnership Agreement, and (iii) the Security Trustee and the other Beneficiaries shall not have any obligation or liability under the UCLSLP Partnership Agreement by reason of this Pledge Agreement, nor shall the Security Trustee or the other Beneficiaries be obligated to perform any of the obligations or duties of any Pledgor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by any Pledgor or the sufficiency of any performance by any party under the UCLSLP Partnership Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  Except to the extent required by general partnership law, the Security Trustee and the other Beneficiaries shall not by reason of this Pledge Agreement or the exercise of any remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of UCLSLP or any of the liabilities of the Pledgors (or their permitted successors or assigns).

 

8.                                      SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

(a)                                  Each Pledgor hereby irrevocably appoints (which appointment is coupled with an interest) the Security Trustee (acting through its employees, attorneys, and/or agents) as such Pledgor’s attorney-in-fact, with full power of substitution and with full authority in the place and stead of Pledgor and in its name or otherwise, from time to time in the Security Trustee’s discretion, to sign, execute, seal and deliver and otherwise perfect any further security document or notice reasonably required to secure the Secured Obligations or to perfect the security intended to be created hereunder over the Pledged Collateral or any part thereof or, on or after the Enforcement Date, to take any action and to execute any instrument which the Security Trustee may deem reasonably necessary or advisable to accomplish the purposes of this Pledge

 

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Agreement; provided, that the Security Trustee shall be under no obligation to take any action hereunder and, absent gross negligence and wilful misconduct, the Security Trustee shall have no liability or responsibility for any action taken or omission with respect thereto.

 

(b)           Each Pledgor hereby consents, acknowledges and agrees, as of the date hereof, that the Security Trustee shall be appointed to succeed the Existing Security Trustee in relation to the Existing Pledged Collateral.

 

9.             SECURITY TRUSTEE MAY PERFORM

 

Upon the occurrence and during the continuance of an Event of Default hereunder (including an Event of Default resulting from a failure to perform any agreement contained herein), if any Pledgor fails to perform any agreement contained herein, the Security Trustee may itself perform, or cause performance of, such agreement, and the expenses of the Security Trustee incurred in connection therewith shall be payable by such Pledgor under Section 12 hereof.

 

10.          EVENTS OF DEFAULT

 

The occurrence of an Event of Default shall constitute an Event of Default hereunder.

 

11.          REMEDIES

 

At any time on or after the Enforcement Date, in addition to and without limiting any and all other remedies available under principles of law or equity:

 

(a)           The Security Trustee may execute, acknowledge, deliver, file and record on behalf of any or all the Pledgors and in their respective names financing statements, continuation statements, security agreements, mortgages, assignments, certificates of title, reports, notices, schedules of account, and all other documents, instruments or agreements that the Security Trustee may, in its sole and absolute discretion, deem advisable in order to obtain, perfect and maintain the Security Trustee’s security interests in the Pledged Collateral granted pursuant hereto and in order to fully consummate, implement and enforce all of the transactions contemplated and security interests granted under this Pledge Agreement.

 

(b)           The Security Trustee may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party after default under the Uniform Commercial Code in effect in the State of Colorado (the “Colorado UCC”) at that time or other applicable law.

 

(c)           The Security Trustee may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, over the counter or at any of the Security Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable or otherwise in such manner as necessary to comply with applicable federal and state securities laws.  The Pledgors agree that the

 

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Security Trustee shall not be required to register or qualify any of the Pledged Collateral under applicable state or federal securities laws in connection with any such sale if the sale is effected in a manner that complies with all applicable federal and state securities laws (to the extent applicable).  The Security Trustee shall be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are “accredited investors” or “qualified institutional buyers” under applicable law and are purchasing the Pledged Collateral for their own account, for investment and not with a view to the distribution thereof.  Upon consummation of any such sale the Security Trustee shall have the right to assign, transfer and deliver the Pledged Collateral to the purchaser or purchasers at any such sale, and such purchasers shall hold the property sold absolutely free from any claim or right on the part of the Pledgors, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it now has or may at any time in the future have under applicable law now existing or hereafter enacted.

 

(d)           The Security Trustee shall give to each Pledgor notice in writing of the time and place of any public sale or of the time on or after which any private sale or intended disposition is to be made.  Such notice need not be given more than five (5) Business Days (or such longer period as shall be specified by applicable law) before the date fixed for any such disposition, which notice the Pledgors agree shall constitute commercially reasonable notification.  At any such sale or other disposition, the Security Trustee, to the extent permitted by applicable law, may bid, which bid may be, in whole or in part, in the form of cancellation of the Secured Obligations in proportion to the share of the Secured Obligations of each Beneficiary, and purchase for the account of the Beneficiaries the whole or any portion of the Pledged Collateral, to the further extent permitted by applicable law, free of any right of redemption, which right is hereby waived and released to the extent permitted by applicable law.  The Security Trustee shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, and the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(e)           If a sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take delivery of and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  The Pledgors agree that any sale of the Pledged Collateral conducted by the Security Trustee in accordance with the foregoing provisions of this Section shall be deemed to be a commercially reasonable sale under Article 9 of the Colorado UCC.

 

(f)            As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by a suit or suits at law or in equity to foreclose

 

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the security interests and to sell the Pledged Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction.

 

(g)           Subject to provisions of applicable law any cash held by the Security Trustee as Pledged Collateral and all cash proceeds received by the Security Trustee in respect of any sale of, collection from, or other realization upon all or any part of the Pledged Collateral shall be applied as set forth in the Group Intercreditor Deed and the Security Trust Agreement.

 

12.          EXPENSES

 

Pledgors agree to pay, upon demand, to the Security Trustee (together with interest thereon from the date falling 30 days after the date of demand by the Security Trustee until the date of payment at the default interest rate as in effect from time to time under clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) (a) the amount of any and all actual fees and expenses, including without limitation the fees and expenses of its counsel and of any experts and agents, which the Security Trustee may properly incur in connection with (i) the custody or preservation of the Pledged Collateral, (ii) the exercise or enforcement of any rights of the Security Trustee hereunder or (iii) the failure by any Pledgor to perform or observe any of the provisions hereof and (b) the amount of any and all actual and fees and expenses of the Security Trustee’s counsel and outside experts and agents incurred in connection with the administration and enforcement of this Pledge Agreement.

 

13.          RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

(a)           Each Pledgor acknowledges that the security interests granted hereunder will secure obligations of persons other than such Pledgor, and, in full recognition of such fact, each Pledgor hereby agrees that, at any time and from time to time the Beneficiaries may, in their sole and absolute discretion, without the necessity of any reservation of rights against, notice to or further assent by any Pledgor, and without affecting the validity, legality or enforceability hereof or the security interests hereunder (but subject to the terms of the Senior Finance Documents):  (i) create new Secured Obligations or extend, accelerate, rescind any acceleration, increase, decrease, continue, restructure or otherwise modify the Secured Obligations or any of their terms; (ii) amend, supplement, waive or otherwise modify any provision of, or give any agreement, approval or consent with respect to, the Senior Finance Documents or any of the Secured Obligations; (iii) accept new or additional instruments, documents or agreements in exchange for or relative to any of the Senior Finance Documents, the Security Documents or the Secured Obligations or any part thereof; (iv) except as may be required by applicable law, accept and apply as the Beneficiaries may see fit payments on the Secured Obligations or proceeds of Collateral (as defined below); (v) receive and hold additional collateral or guarantees for the Secured Obligations or any part thereof (all collateral and guarantees for the Secured Obligations or any part thereof being referred to in this Section 13 as “Collateral” and “Guarantees,” respectively); (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any Collateral or Guarantees, apply any such

 

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Collateral and direct the order or manner of sale or other enforcement thereof; (vii) alter, impair, suspend or terminate the remedies or rights of the Beneficiaries against the Partnership, any guarantor of the Secured Obligations or any part thereof (a “Guarantor”) or any other person in respect of any of the Secured Obligations or suffer any of the foregoing to occur; (viii) refund at any time, at the Beneficiaries’ sole discretion, any payment received by the Beneficiaries in respect of the Secured Obligations; and (ix) otherwise deal with UCLSLP, any Collateral or any Guarantor as the Beneficiaries may elect in their sole discretion.

 

(b)           The Pledgors acknowledge that the security interests hereunder, and the enforcement hereof are not subject to any conditions not expressly stated herein.  Upon the occurrence and during the continuance of an Event of Default, the Security Trustee may enforce this Pledge Agreement independently from any other of the Security Documents and independently of any other remedy, Collateral or Guaranty that any Beneficiary at any time may have or hold in connection with the Secured Obligations, and it shall not be necessary for the Security Trustee to marshal assets in favor of the Pledgors or any other person or to proceed upon or against or exhaust any other remedy, Collateral or Guaranty before proceeding to enforce this Pledge Agreement.  The Pledgors expressly agree that the Security Trustee may proceed against UCLSLP, any Pledgor, any other Guarantor, or the Collateral in such order and in such manner as it shall determine in its sole and absolute discretion.  The Security Trustee may file a separate action or actions with respect to the Pledged Collateral whether action is brought or prosecuted with respect to any other Collateral or against any other person, or whether any other person is joined in any such action or actions.  The Pledgors agree that the Beneficiaries, UCLSLP and any other Guarantor may deal with each other in connection with the Secured Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between or among any of them, in any manner whatsoever, all without in any way altering or affecting the security of this Pledge Agreement.  The Pledgors expressly waive the benefit of any statute(s) of limitations affecting the enforcement of the Secured Obligations or the security interest hereunder.  Any payment by or on behalf of UCLSLP or other circumstance that operates to toll any statute of limitations applicable to such partnership shall also operate to toll the statute of limitations applicable to Pledgors.

 

(c)           The Pledgors expressly waive any and all defenses or counterclaims (other than by reason of the full payment and performance of all the Secured Obligations) now or hereafter arising or asserted by reason of (i) any disability, set-off or other defense or counterclaim of UCLSLP or any Guarantor with respect to the Secured Obligations, the Senior Finance Documents or any of the Security Documents; (ii) the failure of priority or validity of security interest in any Collateral; (iii) the cessation from any cause whatsoever of the liability of UCLSLP or any Guarantor or other person with respect to the Secured Obligations; (iv) the disallowance of, or any failure of any Beneficiary to file or enforce, a claim in any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding (a “Bankruptcy Proceeding”) with respect to UCLSLP or any

 

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other person; (v) the modification, discharge, extension or avoidance in or as a result of any Bankruptcy Proceeding commenced by or against UCLSLP or any other person of all or any of the Secured Obligations, any Guaranty, collateral or lien; (vi) any use of cash or other Collateral in any Bankruptcy Proceeding; (vii) any agreement or stipulation as to adequate protection in any Bankruptcy Proceeding; (viii) any amendment, modification, stay or cure of the Beneficiaries’ rights that may occur in any Bankruptcy Proceeding; (ix) any election of remedies by the Beneficiaries, whether or not such election destroys or affects any subrogation, reimbursement, contribution, indemnity or similar rights the Pledgors may have (notwithstanding subsection (d) below) against UCLSLP, including, without limitation, any loss of rights the Pledgors may suffer by reason of any rights, powers or remedies of UCLSLP in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging the Secured Obligations; (x) any election by the Beneficiaries under Section 1111(b)(2) of the Bankruptcy Code; (xi) any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code; or (xii) any action taken by any Beneficiary that is authorized by this Section or any other provision of any of the Security Documents or any other Senior Finance Documents.

 

(d)           The Pledgors hereby waive any and all rights of subrogation, reimbursement, contribution, indemnity, setoffs or counterclaims and any and all similar rights that the Pledgors may otherwise have against UCLSLP at any time under any applicable law, until the Secured Obligations shall have been indefeasibly paid and performed in full.  The Pledgors further expressly waive any right to enforce any remedy that the Beneficiaries now or hereafter may have against UCLSLP or any other person and waive the benefit of, or any right to participate in, any Collateral now or hereafter held by the Beneficiaries, until the Secured Obligations shall then have been indefeasibly paid and performed in full.

 

(e)           The Pledgors expressly waive (i) all presentments, protests, notices of default or dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations, including notice of any action against UCLSLP or any Guarantor or the assertion or enforcement of any right of the Beneficiaries hereunder or any other of the Security Documents; (ii) all notices of acceptance of this Pledge Agreement or of the existence, creation, renewal or incurring of new or additional Secured Obligations; and (iii) to the extent permitted by applicable law, the benefit of all valuation, appraisal, redemption and exemption laws.  The Pledgors expressly agree that they shall be bound by each and every ruling, order and judgment obtained by any Beneficiary against UCLSLP, in respect of the Secured Obligations, whether or not the Pledgors are parties to, or have received notice of, the action or proceeding in which such ruling, order or judgment is issued and rendered.

 

(f)            The Pledgors represent and warrant that they have established adequate means of obtaining from UCLSLP, on a continuing basis, financial and other information pertaining to the business, operations and condition (financial and otherwise) of such entity, and now are and hereafter will be completely familiar with such business, operations, condition and properties.

 

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(g)           The Pledgors hereby acknowledge and warrant that they are familiar with the terms of this Pledge Agreement, the Senior Finance Documents, all other Security Documents and all other agreements evidencing the Secured Obligations and that they have derived or expect to derive a financial advantage from each Series of Senior Liabilities or other extension of credit and from each and every renewal, extension, release of Collateral, or other relinquishment of legal rights made or granted or to be made or granted by the Beneficiaries to the Borrowers, UCLSLP or any of the other Obligors in connection with the Secured Obligations.

 

(h)           The Pledgors warrant and agree that each of the waivers set forth in this Pledge Agreement is made with full knowledge of its significance and consequences and that, under the circumstances, all such waivers are reasonable and not contrary to public policy or applicable law.  If any such waiver is determined to be contrary to any public policy or applicable law, such waiver shall be effective to the maximum extent permitted by such public policy or applicable law.

 

(i)            Notwithstanding anything to the contrary contained herein or in any other agreement or instrument relating to the Secured Obligations, the Pledgors shall not be personally liable to the Security Trustee or the Beneficiaries for the satisfaction of the Secured Obligations, and the Security Trustee, on behalf of the Beneficiaries, shall look solely to the Pledged Collateral with respect to such satisfaction from Pledgors; provided that the foregoing shall not (i) constitute a waiver, release or discharge of any of the indebtedness evidenced by any Senior Finance Document, but the same shall continue until fully paid, discharged, observed or performed or (ii) in any way limit or restrict any right of the Security Trustee or the Beneficiaries to foreclose the liens and security interests of the Security Documents or otherwise realize upon any collateral assigned or pledged to the Security Trustee or the Beneficiaries in connection with the transactions contemplated hereby or thereby or (iii) constitute a waiver or limitation by the Security Trustee or the Beneficiaries of any claim against Pledgors for any claim in the nature of fraud or deceit or willful misconduct arising under or in connection with this Pledge Agreement.

 

14.          INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Security Trustee and its respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and an collectively, the “Indemnities”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Pledge Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Security Document (but excluding any obligation, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or wilful

 

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misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Security Trustee hereunder be liable, in the absence of gross negligence or wilful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), of or any matter or thing in connection with this Pledge Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligation of any Pledgor under this Section 14 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.  The indemnity obligations of each Pledgor contained in this Section 14 shall continue in full force and effect notwithstanding the full payment and fulfilment of all the obligations under the Senior Finance Documents and notwithstanding the discharge thereof.

 

15.          ROLE OF SECURITY TRUSTEE

 

Each Pledgor and the Security Trustee hereby acknowledge that the covenants of each Pledgor contained in this Pledge Agreement and the security and other rights, titles and interests constituted by this Pledge Agreement and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Pledge Agreement are held by the Security Trustee subject to and on the terms of the trusts declared by the Security Trust Agreement.

 

16.          SEVERABILITY

 

Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.          CONTINUED EFFECTIVENESS

 

Any release, discharge or settlement between one or more of the Pledgors and the Security Trustee or any of the other Beneficiaries shall be conditional upon no security, disposition or payment to the Security Trustee or any of the other Beneficiaries by any of the Obligors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Security Trustee and the other Beneficiaries shall be entitled to enforce this Pledge Agreement subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain this security after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the other Beneficiaries from any of the Obligors for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

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18.          CUMULATIVE REMEDIES

 

The rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies provided by law.

 

19.          WAIVERS, AMENDMENTS

 

None of the terms or provisions of this Pledge Agreement may be altered, modified or amended except by an instrument in writing, duly executed by the Security Trustee and the Pledgors.  No waiver of any provision hereof or consent to any departure from the terms hereof shall be effective unless the same shall be in writing and duly executed by the Security Trustee.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  A waiver by the Security Trustee of any right or remedy hereunder on any occasion shall not be construed as a bar to any right or remedy which the Security Trustee would otherwise have on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Security Trustee, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

20.          WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

The Pledgors hereby represent that they constitute all of the partners of the Partnership.  The Pledgors, constituting all of the partners of the Partnership, each hereby waives the application of the provisions of Section 15 of the UCLSLP Partnership Agreement that otherwise would apply to, and hereby consents to, the assignment, transfer or pledge of any Pledgor’s Partnership Interest in the Partnership to the Security Trustee, for the benefit of the Beneficiaries, now or in the future, pursuant to the provisions of this Pledge Agreement. Further, each of the Pledgors hereby ratifies and approves any similar assignments, transfers or pledges of the Partnership Interests of the other Pledgors occurring prior to the date hereof.

 

21.          SUCCESSORS AND ASSIGNS

 

(a)           Subject to the restrictions on transfers by the Pledgors hereunder, this Pledge Agreement and all obligations of the Pledgors hereunder shall be binding upon the successors and assigns of the Pledgors, and shall inure to the benefit of the Security Trustee, the Beneficiaries and their respective successors and assigns.

 

(b)           It is hereby understood and agreed that any party required to become a party to this Pledge Agreement after the date hereof pursuant to the requirements of the Senior Finance Documents, shall become a Pledgor hereunder by

 

(i)            executing a Partnership Interest Accession Agreement in the form attached hereto as Schedule 13,

 

(ii)           delivering supplements to the schedules attached hereto as are necessary to cause such schedules to be complete and accurate with respect to each additional Pledgor on such date; and

 

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(iii)          taking all actions specified in this Pledge Agreement as would have been taken by such Pledgor had it been an original party to the Pledge Agreement, in each case with all documents required above to be delivered to the Pledge and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledge.

 

22.          GOVERNING LAW

 

This Pledge Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Colorado applicable to agreements made and to be performed entirely within such State.  The Pledgors hereby irrevocably consent to the jurisdiction of any of the courts designated in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) in connection with any action or proceeding arising out of or relating to this Pledge Agreement.  In any such action or proceeding, each Pledgor waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by personal delivery or by certified or registered mail directed to each Pledgor at its address set forth herein.  Nothing in this section shall affect the right of the Security Trustee or the Beneficiaries to serve legal process in any other manner by law or affect the right of the Security Trustee or the Beneficiaries to bring any action or proceeding against any Pledgor or his or its property in the courts of any other jurisdiction.  The Pledgors irrevocably waive any objection they may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement), or that any action or proceeding in any such court or jurisdiction has been brought in an inconvenient forum.

 

23.          NOTICES

 

All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be personally served or sent by registered, certified or overnight mail, postage prepaid, or by telegraph, telecopy or telex and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when received (with such receipt acknowledged by the recipient, in the case of a telecopy).  All such notices shall be addressed as follows, or to such other address as may be hereafter notified in writing to the respective parties hereto:

 

If to the Security Trustee:

 

Winchester House

1 Great Winchester Street

London EC2N 2DB

England

 

Attention:              Syndicated Loans TSS / Nicola Dawes / Rajeer Thakeeria

Telephone:            0207 547 5905

Facsimile:              0207 547 6419

 

18



 

If to a Pledgor, addressed to such Pledgor at:

 

c/o Virgin Media Investment Holdings Limited

160 Great Portland St

London W1W 5QA

England

 

Attention:              Group Legal Director

Facsimile:              020 7299 6000

 

With a copy to:

 

Attention:              Group General Counsel

Facsimile:              020 7299 5495

 

24.          TERMINATION

 

This Pledge Agreement, and the pledges, assignments, and encumbrances created or granted hereby, shall terminate when (a) all of the Secured Obligations shall have been fully paid, satisfied and performed, and (b) the Commitments have terminated, at which time the Security Trustee shall execute appropriate releases, acknowledgments, assignments or other documents necessary to secure the release and reassignment of such of the Pledged Collateral as shall not have been sold or otherwise applied by the Security Trustee pursuant to the terms hereof, and deliver to the Pledgors (or their respective designees) all Pledged Collateral and related documents then in the custody or possession of the Security Trustee.  Any such reassignment shall be without recourse upon, or warranty whatsoever by, the Security Trustee, and at the cost and expense of the Pledgors.

 

25.          COUNTERPARTS

 

This Pledge Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

26.          AUTHORIZATION TO FILE

 

With respect to the foregoing in this Pledge Agreement and the grant of the security interest hereunder, each Pledgor hereby authorizes the Security Trustee to file one or more financing statements or continuation statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of any Pledgor where permitted by law.  Each Pledgor agrees to furnish the Security Trustee, promptly upon reasonable request by the Security Trustee, with any information that is required by the Security Trustee in order to complete such financing statements or continuation statements, or amendments thereto.

 

27.          GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

Each Pledgor hereby represents and warrants to the Security Trustee that:

 

19



 

(a)           Schedule 27(a) attached hereto sets forth an accurate and complete list identifying the following: (i) the full legal name of each Pledgor as it appears in official filings in the state or jurisdiction of its incorporation, organization or formation, as the case may be; (ii) the type of entity of such Pledgor; (iii) such Pledgor’s state of incorporation, organization or formation, as the case may be; (iv) the organizational identification number issued by such Pledgor’s state of incorporation, organization or formation, or a statement that no such number has been issued; (v) the location of such Pledgor’s chief executive office ; and (vi) the jurisdiction(s) of such Pledgor’s place(s) of business.  Each Pledgor has only one state of incorporation, organization or formation, as the case may be;

 

(b)           it has not done in the last five (5) years, and does not do, business under any other name (including any trade name or fictitious business name) except for its respective legal name as set forth on Schedule 27(a);

 

(c)           it has not changed its name, jurisdiction of incorporation, organization or formation, the location of its chief executive office or place(s) of business, or its corporate or partnership structure in any way (e.g., by merger, consolidation, change in corporate or partnership form or otherwise), in each case within the past five (5) years;

 

(d)           it is the legal, beneficial and record owner of, and has good and marketable title to all of the Pledged Collateral upon which it purports to grant a lien hereunder, free and clear of any lien except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral is on file in any recording office, except as set forth on Schedule 27(d) or such as may have been filed in favor of the Security Trustee relating to this Pledge Agreement and with respect to the Permitted Liens.  Such liens set forth on Schedule 27(d) will be terminated as of the date of this Pledge Agreement;

 

(e)           it has full power, authority and legal right to pledge all the Pledged Collateral pledged by it pursuant to this Pledge Agreement;

 

(f)            this Pledge Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(g)           except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Pledge Agreement by such Pledgor, (b) the validity or enforceability of this Pledge Agreement against such Pledgor (except as set forth in clause (a) above), (c) 

 

20



 

the perfection or enforceability of the Security Trustee’s security interest in such Pledgor’s Pledged Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Security Trustee of any of its rights or remedies provided herein;

 

(h)           neither the execution, delivery or performance by such Pledgor of this Pledge Agreement or any other Senior Finance Document, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of partnership or partnership agreement, (or equivalent organizational documents), as the case may be, of such Pledgor;

 

(i)            as of the date hereof, after giving effect to the transactions contemplated by the Senior Finance Documents, such Pledgor is Solvent, and will not cease to be Solvent as a result of the obligations and transactions undertaken by such Pledgor pursuant to, or as contemplated by, the Senior Finance Documents.  As of the date hereof, there is no proceeding pending, or to the knowledge of the undersigned, threatened, challenging the Solvency of such Pledgor or seeking to dissolve or liquidate such Pledgor.

 

For the purposes of the foregoing, “Solvent” or “Solvency” means, with respect to any person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such person is (y) greater than the total amount of liabilities (including contingent liabilities) of such person and (z) not less than the amount that will be required to pay the probable liabilities on such person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such person; (ii) such person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (B) such person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For the purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

21


 

IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement to be executed and delivered as of the day and year first above written.

 

 

TCI/US WEST CABLE COMMUNICATIONS GROUP,

 

a Colorado general partnership

 

 

 

By Its General Partners:

 

 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Robert Mackenzie, Director

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

Robert Gale, Director

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Robert Mackenzie, Director

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

Robert Gale, Director

 

22



 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Robert Mackenzie, Director

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

Robert Gale, Director

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

By Its Directors:

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

Robert Mackenzie, Director

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

Robert Gale, Director

 

 

 

 

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH,

 

as Security Trustee

 

 

 

 

 

By:

N. DAWES

 

 

Title:

V.P.

 

 

 

 

 

By:

V. MAYELL

 

 

Title:

A.V.P.

 

23



 

SCHEDULE 4(b)
EXISTING PLEDGED COLLATERAL

 

None.

 

1



 

SCHEDULE 5(a)
PARTNERSHIP INTERESTS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE
OF BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

United Cable (London South) Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

1



 

SCHEDULE 5(b)
OTHER PARTNERSHIP INTERESTS

 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Cotswolds Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Estuaries Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

TCI/US WEST Cable Communications Group

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

50% - Theseus No. 1 Limited
50% - Theseus No. 2 Limited

 

Colorado General

 

1



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Tyneside Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Telewest Communications (North East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Tyneside Cable Limited Partnership
0.9% - Telewest Communications (North East) Limited
0.1% - Telewest Communications (Tyneside) Limited

 

English General

Telewest Communications (South East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Estuaries Cable Limited Partnership
0.5% - Telewest Communications (South East) Limited
0.5% - Telewest Communications (South Thames Estuary) Limited

 

English General

 

2



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Avon Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited
99% - Limited - TCI/US WEST Cable Communications Group

 

Colorado Limited

 

3



 

SCHEDULE 13

 

PARTNERSHIP INTEREST ACCESSION AGREEMENT

 

(United Cable (London South) Limited Partnership)

 

The undersigned, desiring to become a partner of United Cable (London South) Limited Partnership, a Colorado limited partnership (the “Partnership”) formed pursuant to a Third Restatement of Limited Partnership Agreement dated 30 April 1992, as amended by First Amendment dated 21 November 1994 (the “Partnership Agreement”) hereby agrees to, and by its execution hereof does, become a party to (i) the Partnership Agreement, as a [general/limited] partner thereunder, and (ii) that certain Amended and Restated Pledge and Security Agreement (as amended from time to time, the “Pledge Agreement”), dated                          , 20    , initially entered into among TCI/US WEST CABLE COMMUNICATIONS GROUP, THESEUS NO. 1 LIMITED, THESEUS NO. 2 LIMITED, and Deutsche Bank AG, London Branch as Security Trustee for the benefit of the Beneficiaries described therein.  Capitalized terms used herein shall have the respective meanings set forth in the Pledge Agreement.  By its execution hereof, the undersigned agrees that, from and after the date hereof, the undersigned shall be, and be considered for all purposes, (i) a “[General/Limited] Partner” under the Partnership Agreement and (ii) a “Pledgor” under the Pledge Agreement, as if referred to directly therein as such as a party thereto, entitled to all of the rights and subject to all of the liabilities and obligations of a Partner or Pledgor, respectively, thereunder.

 

As a Pledgor under the Pledge Agreement, the undersigned, as security and collateral for the due and punctual payment and performance of the Secured Obligations (as defined in the Pledge Agreement), hereby assigns, transfers and pledges to the Security Trustee, for the benefit of the Beneficiaries, a lien on and security interest in and to the undersigned’s right, title and interest to the Pledged Collateral (as defined in the Pledge Agreement).  As a Pledgor under the Pledge Agreement, the undersigned represents and warrants that the Pledged Collateral is free and clear of all liens other than the Permitted Liens (as defined in the Pledge Agreement).

 

This instrument, when executed by the undersigned, shall further constitute the undersigned’s counterpart signature page to the Partnership Agreement and the Pledge Agreement.

 

 

Dated this              day of                     ,             .

 

 

[Name of Transferee]

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

Address for Notice:

 

1



 

SCHEDULE 27(a)

 

Full Legal Name

 

Type of Entity

 

State of
Incorporation,
Organization or
Formation

 

Organizational
Identification
Number

 

Location of Chief
Executive Office

 

Jurisdiction(s) of
place(s) of business

TCI/US WEST Cable Communications Group

 

General Partnership

 

Colorado

 

None

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

Colorado

Theseus No. 1 Limited

 

Private Limited Company

 

England & Wales

 

02994027

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

Theseus No. 2 Limited

 

Private Limited Company

 

England & Wales

 

02994061

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

 

1



 

SCHEDULE 27(d)
CURRENT UCC FILINGS

 

None.

 

1




Exhibit 4.43

 

 

 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

(Re: Interests in TCI/US WEST Cable Communications Group)

 

 

Dated January 19, 2010

 

 

between

 

THESEUS NO. 1 LIMITED

 

and

 

THESEUS NO. 2 LIMITED

 

as Pledgors

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINED TERMS

2

 

 

 

2.

SECURITY AGREEMENT

4

 

 

 

3.

SECURED OBLIGATIONS

6

 

 

 

4.

DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

6

 

 

 

5.

CERTAIN COVENANTS; REPRESENTATIONS

7

 

 

 

6.

VOTING RIGHTS; DIVIDENDS; ETC.

8

 

 

 

7.

REASONABLE CARE; PLEDGOR REMAINS LIABLE

9

 

 

 

8.

SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

9

 

 

 

9.

SECURITY TRUSTEE MAY PERFORM

10

 

 

 

10.

EVENTS OF DEFAULT

10

 

 

 

11.

REMEDIES

10

 

 

 

12.

EXPENSES

12

 

 

 

13.

RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

12

 

 

 

14.

INDEMNITY

15

 

 

 

15.

ROLE OF SECURITY TRUSTEE

16

 

 

 

16.

SEVERABILITY

16

 

 

 

17.

CONTINUED EFFECTIVENESS

16

 

 

 

18.

CUMULATIVE REMEDIES

16

 

 

 

19.

WAIVERS, AMENDMENTS

17

 

 

 

20.

WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

17

 

 

 

21.

SUCCESSORS AND ASSIGNS

17

 

 

 

22.

GOVERNING LAW

18

 

 

 

23.

NOTICES

18

 

 

 

24.

TERMINATION

19

 

 

 

25.

COUNTERPARTS

19

 

 

 

26.

AUTHORIZATION TO FILE

19

 

 

 

27.

GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

19

 

Schedules

Schedule 4(b)

Schedule 5(a)

Schedule 5(b)

Schedule 13

Schedule 27(a)

Schedule 27(d)

 

i



 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”), is made and entered into as of January 19, 2010 by and among THESEUS NO. 1 LIMITED, a limited company incorporated in England and Wales and THESEUS NO. 2 LIMITED, a limited company incorporated in England and Wales (each of foregoing being referred to individually as a “Pledgor” and collectively as the “Pledgors”), and Deutsche Bank AG, London Branch, in its capacity as Security Trustee for the Beneficiaries (the “Security Trustee” which expression includes any person which is for the time being the Security Trustee for the Beneficiaries).

 

W I T N E S S E T H

 

WHEREAS, the Pledgors constitute all of the partners of TCI/US WEST Cable Communications Group, a Colorado general partnership (“TUCCG” or the “Partnership”).

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited and VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Original Guarantors as defined therein, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms are defined therein), the intergroup creditors and intergroup debtors listed therein, certain banks financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”), in respect of the $1,000,000,000 6.5% senior secured notes due 2018 and the £875,000,000 7.00% senior secured notes due 2018 (“Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), made among Virgin Media Inc., Virgin

 



 

Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time, Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes.

 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge and security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Partnership and the other collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                      CONSTRUCTION; DEFINED TERMS

 

This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless otherwise defined herein or the context otherwise expressly requires, capitalized terms used herein shall have the respective meanings set forth in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement (including by reference to other agreements).

 

Bankruptcy Code” Title 11 of the United States Code entitled “Bankruptcy as now or hereafter in effect.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Pledgor of the occurrence of that Event of Default, or takes,

 

2



 

under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Defaultmeans each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 2.

 

Existing Pledged Collateral” means the existing security pledged by the Partnership under the relevant (i) July 2004 Pledge Agreements and the (ii) March 2001 Pledge Agreements, as such documents are set forth on Schedule 4(b) hereto.

 

Existing Security Trustee” means Barclays Bank PLC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

SEC” means the United States Securities and Exchange Commission.

 

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Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

2.                                      SECURITY AGREEMENT

 

As security and collateral for the due and punctual payment and performance by the Obligors of their respective joint and several obligations described in Section 3 below, each of the Pledgors hereby assigns, transfers, and pledges to the Security Trustee, and grants to the Security Trustee for the benefit of the Beneficiaries, a lien on and security interest in and to such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)                                  such Pledgor’s partnership interest in the Partnership owned by such Pledgor at any time and from time to time (each, a “Partnership Interest” and collectively, the “Partnership Interests”) and any certificates, instruments or other documents representing each such Partnership Interest, all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or otherwise distributed in respect of or in exchange for all or any part of each such Partnership Interest and all proceeds thereof; and

 

(b)                                 all partnership interests (general or limited) or securities convertible into or exchangeable for such interests issued by the Partnership, or any successor thereto, from time to time and acquired by such Pledgor in substitution for or in addition to any of the foregoing, all certificates and instruments representing such interests or securities, and all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or

 

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otherwise distributed in respect of or in exchange for any or all of such interests or securities and all proceeds thereof;

 

provided, that, notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Pledge Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt:

 

(i)            all Pledged Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Pledge Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)           such Excluded Charged Assets remain pledged under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations pursuant to this Pledge Agreement.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation.  If the circumstances described in this paragraph apply, this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply,

 

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this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.                                      SECURED OBLIGATIONS

 

The security interest in the Pledged Collateral granted pursuant hereto shall secure the due and punctual payment and performance of the Secured Obligations provided that before any demand for any Secured Obligation is made on a Restricted Guarantor pursuant to this Pledge Agreement, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.  It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include: (a) all Liabilities under the Senior Facilities Agreement; and (b) all Liabilities under the Senior Secured Notes Documents.

 

4.                                      DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

(a)                                  All certificates, instruments or documents, if any, representing or evidencing each and every of the Partnership Interests shall be delivered to the Security Trustee by the Pledgors on the date hereof, and shall be held by the Security Trustee pursuant hereto at all times hereafter until termination hereof pursuant to Section 24, and all certificates, instruments or documents representing or evidencing interests or securities in or issued by the Partnership and acquired by any Pledgor after the date hereof and constituting Pledged Collateral hereunder shall be delivered to the Security Trustee immediately upon, and held by the Security Trustee at all times after, acquisition thereof by such Pledgor.  All such certificates, instruments or documents, if any, shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Security Trustee.  To the extent that any certificates, instruments of transfer or other documents of title relating to any of the Pledged Collateral which are required to be delivered to the Security Trustee hereunder have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Pledged Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 4(a) shall be deemed satisfied.

 

(b)                                 Except as otherwise permitted in the Senior Finance Documents, each Pledgor agrees that it shall take all actions available to such Pledgor to cause the Partnership and, in the event of a merger or consolidation of the Partnership with any other entity, such other entity, not to issue any interests or other securities whether in addition to, by dividend or other distribution upon, or in substitution or exchange for, any of the Partnership Interests or otherwise, other than such interests or other securities issued to the Pledgors and promptly delivered to the Security Trustee pursuant to Section 4(a) hereof in which the Security Trustee, as agent and representative for the Beneficiaries, has a valid and perfected security interest free and clear of all liens and with respect to which no other party has any interest, except for the Existing

 

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Pledged Collateral and the liens created in favor of the Security Trustee pursuant to this Pledge Agreement (collectively, the “Permitted Liens”).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder, the Security Trustee shall have the right, at any time in its discretion, to transfer to or to register in the name of the Security Trustee or any of its nominees any or all of the Pledged Collateral (with, in the discretion of the Security Trustee, such transfer or registration expressly empowering the Security Trustee to vote any voting interests included in the Pledged Collateral), subject only to each Pledgor’s revocable rights specified in Section 6(a).

 

(d)                                 Each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the Colorado, the District of Columbia or any other relevant states (a “State”), covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Security Trustee), to be filed in the relevant filing offices so that at all times the Security Trustee’s security interest in all Pledged Collateral which can be perfected by the filing of such financing statement (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant State), is so perfected.

 

5.                                      CERTAIN COVENANTS; REPRESENTATIONS

 

(a)                                  Each of the Pledgors covenant and agree that: (i) save to the extent expressly permitted or not restricted under any Senior Finance Document, without the prior written consent of the Security Trustee, no Pledgor will grant any option with respect to any of the Pledged Collateral; (ii) the Pledgors will defend the Pledged Collateral against the claims and demands of all persons other than the Security Trustee and the Beneficiaries, and will take any and all such action as is reasonably necessary to remove any competing or conflicting lien and will advise the Security Trustee promptly of the existence thereof; and (iii) at any time and from time to time upon the written request of the Security Trustee, the Pledgors will execute and deliver such further documents and do such further acts and things as the Security Trustee may reasonably request in order to effect the purposes of this Pledge Agreement.

 

(b)                                 Each of the Pledgors represent and warrant that:  (i) their choice of Colorado law to govern this Pledge Agreement is valid and binding subject to the Reservations; (ii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Schedule 5(a) hereto; (iii) each Partnership Interest referenced in sub-clause (ii) of this paragraph constitutes that percentage or position of the entire Partnership Interest of the Partnership as set forth in Schedule 5(a) hereto; (iv) it has complied with the respective procedure set forth in Clause 4(a) hereof with respect to each item of Pledged Collateral described in Schedule 5(a); and (v) such Pledgor owns no other Partnership Interests except as set forth in Schedule 5(b) hereto.

 

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6.                                      VOTING RIGHTS; DIVIDENDS; ETC.

 

(a)                                  So long as no Event of Default hereunder shall have occurred and be continuing:  (i) each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral belonging to such Pledgor pursuant to the joint venture agreement creating and governing TUCCG (the “TUCCG Joint Venture Agreement”), for any purpose not prohibited by the terms of this Pledge Agreement or the Senior Finance Documents; and (ii) except as otherwise provided in Section 6(c) hereof and except for distributions prohibited by the Senior Finance Documents, each Pledgor shall be entitled to receive, retain and distribute, free and clear of the security interest granted hereunder, any dividends, distributions, cash and other property from time to time paid, payable or otherwise distributed in respect of the Pledged Collateral belonging to such Pledgor.

 

(b)                                 Pledgor hereby irrevocably appoints the Security Trustee as Pledgor’s proxyholder with respect to the Partnership Interests of Pledgor and any other voting interests or other securities belonging to Pledgor and forming a part of the Pledged Collateral with full power and authority, in the discretion of the Security Trustee, to vote such Partnership Interests and other voting interests or securities and otherwise to act with respect to such Partnership Interests or other voting interests or securities on behalf of Pledgor; provided that this proxy shall only be operative upon the occurrence of an Event of Default and so long as such Event of Default continues.  This proxy shall be irrevocable for so long as any of the Secured Obligations remain in existence.  Pledgor shall execute and deliver (or cause to be executed and delivered) to the Security Trustee all proxies and other instruments as the Security Trustee may reasonably request for the purpose of enabling the Security Trustee to exercise the voting and other rights which it is entitled to exercise pursuant to this Section 6(b).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder or as otherwise permitted or not restricted pursuant to the provisions of each of the Senior Finance Documents, all rights of the Pledgor to receive and retain dividends, distributions, cash and other property, which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii), shall cease and all such rights shall thereupon be vested in the Security Trustee, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, distributions, cash and other property; provided, that until the Enforcement Date, without prejudice to the Senior Finance Documents, the Security Trustee will hold all dividends, distributions, cash and other property paid on and received by it in respect of any Partnership Interest which are transferred to it for the account of each Pledgor and will, subject to any right of set-off, pay such dividends, interest and other moneys to such Pledgor upon request.  All cash and other property received by a Pledgor contrary to the provisions of this Section 6(c) shall be received in trust for the benefit of the Security Trustee, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Security Trustee as Pledged Collateral in the same form as so received (with any necessary transfer documents or endorsements).

 

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7.                                      REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

(a)                                  The Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Security Trustee accords its own property, it being understood that neither the Security Trustee nor any Beneficiary shall have responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain possession of the Pledged Collateral) to preserve rights against any parties with respect to any Pledged Collateral; provided that the Security Trustee agrees to notify the Pledgors if it has actual knowledge of the necessity of taking any such steps in respect of any Pledged Collateral and to cooperate with the Pledgors in connection therewith.

 

(b)                                 Anything herein to the contrary notwithstanding, (i) the Pledgors shall remain liable under the TUCCG Joint Venture Agreement to the extent set forth therein to perform the duties and obligations thereunder to the same extent as if this Pledge Agreement had not been executed, (ii) the exercise by the Security Trustee of any of its rights hereunder shall not release any Pledgor from any of the duties or obligations under the TUCCG Joint Venture  Agreement, and (iii) the Security Trustee and the other Beneficiaries shall not have any obligation or liability under the TUCCG Joint Venture Agreement by reason of this Pledge Agreement, nor shall the Security Trustee or the other Beneficiaries be obligated to perform any of the obligations or duties of any Pledgor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by any Pledgor or the sufficiency of any performance by any party under the TUCCG Joint Venture Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  Except to the extent required by general partnership law, the Security Trustee and the other Beneficiaries shall not by reason of this Pledge Agreement or the exercise of any remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of TUCCG or any of the liabilities of the Pledgors (or their permitted successors or assigns).

 

8.                                      SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

(a)                                  Each Pledgor hereby irrevocably appoints (which appointment is coupled with an interest) the Security Trustee (acting through its employees, attorneys, and/or agents) as such Pledgor’s attorney-in-fact, with full power of substitution and with full authority in the place and stead of Pledgor and in its name or otherwise, from time to time in the Security Trustee’s discretion, to sign, execute, seal and deliver and otherwise perfect any further security document or notice reasonably required to secure the Secured Obligations or to perfect the security intended to be created hereunder over the Pledged Collateral or any part thereof or, on or after the Enforcement Date, to take any action and to execute any instrument which the Security Trustee may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement; provided, that the Security Trustee shall be under no obligation to take any action hereunder and, absent gross negligence and wilful misconduct,

 

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the Security Trustee shall have no liability or responsibility for any action taken or omission with respect thereto.

 

(b)           Each Pledgor hereby consents, acknowledges and agrees, as of the date hereof,  that the Security Trustee shall be appointed to succeed the Existing Security Trustee in relation to the Existing Pledged Collateral.

 

9.                                      SECURITY TRUSTEE MAY PERFORM

 

Upon the occurrence and during the continuance of an Event of Default hereunder (including an Event of Default resulting from a failure to perform any agreement contained herein), if any Pledgor fails to perform any agreement contained herein, the Security Trustee may itself perform, or cause performance of, such agreement, and the expenses of the Security Trustee incurred in connection therewith shall be payable by such Pledgor under Section 12 hereof.

 

10.                               EVENTS OF DEFAULT

 

The occurrence of an Event of Default shall constitute an Event of Default hereunder.

 

11.                               REMEDIES

 

At any time on or after the Enforcement Date, in addition to and without limiting any and all other remedies available under principles of law or equity:

 

(a)           The Security Trustee may execute, acknowledge, deliver, file and record on behalf of any or all the Pledgors and in their respective names financing statements, continuation statements, security agreements, mortgages, assignments, certificates of title, reports, notices, schedules of account, and all other documents, instruments or agreements that the Security Trustee may, in its sole and absolute discretion, deem advisable in order to obtain, perfect and maintain the Security Trustee’s security interests in the Pledged Collateral granted pursuant hereto and in order to fully consummate, implement and enforce all of the transactions contemplated and security interests granted under this Pledge Agreement.

 

(b)           The Security Trustee may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party after default under the Uniform Commercial Code in effect in the State of Colorado (the “Colorado UCC”) at that time or other applicable law.

 

(c)           The Security Trustee may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, over the counter or at any of the Security Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable or otherwise in such manner as necessary to comply with applicable federal and state securities laws.  The Pledgors agree that the Security Trustee shall not be required to register or qualify any of the Pledged Collateral under applicable state or federal securities laws in connection with

 

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any such sale if the sale is effected in a manner that complies with all applicable federal and state securities laws (to the extent applicable).  The Security Trustee shall be authorized at any such sale (if it deems it advisable to do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are “accredited investors” or “qualified institutional buyers” under applicable law and are purchasing the Pledged Collateral for their own account, for investment and not with a view to the distribution thereof.  Upon consummation of any such sale the Security Trustee shall have the right to assign, transfer and deliver the Pledged Collateral to the purchaser or purchasers at any such sale, and such purchasers shall hold the property sold absolutely free from any claim or right on the part of the Pledgors, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it now has or may at any time in the future have under applicable law now existing or hereafter enacted.

 

(d)           The Security Trustee shall give to each Pledgor notice in writing of the time and place of any public sale or of the time on or after which any private sale or intended disposition is to be made.  Such notice need not be given more than five (5) Business Days (or such longer period as shall be specified by applicable law) before the date fixed for any such disposition, which notice the Pledgors agree shall constitute commercially reasonable notification.  At any such sale or other disposition, the Security Trustee, to the extent permitted by applicable law, may bid, which bid may be, in whole or in part, in the form of cancellation of the Secured Obligations in proportion to the share of the Secured Obligations of each Beneficiary, and purchase for the account of the Beneficiaries the whole or any portion of the Pledged Collateral, to the further extent permitted by applicable law, free of any right of redemption, which right is hereby waived and released to the extent permitted by applicable law.  The Security Trustee shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, and the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(e)           If a sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take delivery of and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  The Pledgors agree that any sale of the Pledged Collateral conducted by the Security Trustee in accordance with the foregoing provisions of this Section shall be deemed to be a commercially reasonable sale under Article 9 of the Colorado UCC.

 

(f)            As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by a suit or suits at law or in equity to foreclose the security interests and to sell the Pledged Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction.

 

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(g)           Subject to provisions of applicable law any cash held by the Security Trustee as Pledged Collateral and all cash proceeds received by the Security Trustee in respect of any sale of, collection from, or other realization upon all or any part of the Pledged Collateral shall be applied as set forth in the Group Intercreditor Deed and the Security Trust Agreement.

 

12.                               EXPENSES

 

Pledgors agree to pay, upon demand, to the Security Trustee (together with interest thereon from the date falling 30 days after the date of demand by the Security Trustee until the date of payment at the default interest rate as in effect from time to time under clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) (a) the amount of any and all actual fees and expenses, including without limitation the fees and expenses of its counsel and of any experts and agents, which the Security Trustee may properly incur in connection with (i) the custody or preservation of the Pledged Collateral, (ii) the exercise or enforcement of any rights of the Security Trustee hereunder or (iii) the failure by any Pledgor to perform or observe any of the provisions hereof and (b) the amount of any and all actual and fees and expenses of the Security Trustee’s counsel and outside experts and agents incurred in connection with the administration and enforcement of this Pledge Agreement.

 

13.                               RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

(a)           Each Pledgor acknowledges that the security interests granted hereunder will secure obligations of persons other than such Pledgor, and, in full recognition of such fact, each Pledgor hereby agrees that, at any time and from time to time the Beneficiaries may, in their sole and absolute discretion, without the necessity of any reservation of rights against, notice to or further assent by any Pledgor, and without affecting the validity, legality or enforceability hereof or the security interests hereunder (but subject to the terms of the Senior Finance Documents):  (i) create new Secured Obligations or extend, accelerate, rescind any acceleration, increase, decrease, continue, restructure or otherwise modify the Secured Obligations or any of their terms; (ii) amend, supplement, waive or otherwise modify any provision of, or give any agreement, approval or consent with respect to, the Senior Finance Documents or any of the Secured Obligations; (iii) accept new or additional instruments, documents or agreements in exchange for or relative to any of the Senior Finance Documents, the Security Documents or the Secured Obligations or any part thereof; (iv) except as may be required by applicable law, accept and apply as the Beneficiaries may see fit payments on the Secured Obligations or proceeds of Collateral (as defined below); (v) receive and hold additional collateral or guarantees for the Secured Obligations or any part thereof (all collateral and guarantees for the Secured Obligations or any part thereof being referred to in this Section 13 as “Collateral” and “Guarantees,” respectively); (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any Collateral or Guarantees, apply any such Collateral and direct the order or manner of sale or other enforcement thereof; (vii) alter, impair, suspend or terminate the remedies or rights of the Beneficiaries against the Partnership, any guarantor of the Secured Obligations

 

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or any part thereof (a “Guarantor”) or any other person in respect of any of the Secured Obligations or suffer any of the foregoing to occur; (viii) refund at any time, at the Beneficiaries’ sole discretion, any payment received by the Beneficiaries in respect of the Secured Obligations; and (ix) otherwise deal with TUCCG, any Collateral or any Guarantor as the Beneficiaries may elect in their sole discretion.

 

(b)           The Pledgors acknowledge that the security interests hereunder, and the enforcement hereof are not subject to any conditions not expressly stated herein.  Upon the occurrence and during the continuance of an Event of Default, the Security Trustee may enforce this Pledge Agreement independently from any other of the Security Documents and independently of any other remedy, Collateral or Guaranty that any Beneficiary at any time may have or hold in connection with the Secured Obligations, and it shall not be necessary for the Security Trustee to marshal assets in favor of the Pledgors or any other person or to proceed upon or against or exhaust any other remedy, Collateral or Guaranty before proceeding to enforce this Pledge Agreement.  The Pledgors expressly agree that the Security Trustee may proceed against TUCCG, any Pledgor, any other Guarantor, or the Collateral in such order and in such manner as it shall determine in its sole and absolute discretion.  The Security Trustee may file a separate action or actions with respect to the Pledged Collateral whether action is brought or prosecuted with respect to any other Collateral or against any other person, or whether any other person is joined in any such action or actions.  The Pledgors agree that the Beneficiaries, TUCCG and any other Guarantor may deal with each other in connection with the Secured Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between or among any of them, in any manner whatsoever, all without in any way altering or affecting the security of this Pledge Agreement.  The Pledgors expressly waive the benefit of any statute(s) of limitations affecting the enforcement of the Secured Obligations or the security interest hereunder.  Any payment by or on behalf of TUCCG or other circumstance that operates to toll any statute of limitations applicable to such partnership shall also operate to toll the statute of limitations applicable to Pledgors.

 

(c)           The Pledgors expressly waive any and all defenses or counterclaims (other than by reason of the full payment and performance of all the Secured Obligations) now or hereafter arising or asserted by reason of (i) any disability, set-off or other defense or counterclaim of TUCCG or any Guarantor with respect to the Secured Obligations, the Senior Finance Documents or any of the Security Documents; (ii) the failure of priority or validity of security interest in any Collateral; (iii) the cessation from any cause whatsoever of the liability of TUCCG or any Guarantor or other person with respect to the Secured Obligations; (iv) the disallowance of, or any failure of any Beneficiary to file or enforce, a claim in any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding (a “Bankruptcy Proceeding”) with respect to TUCCG or any other person; (v) the modification, discharge, extension or avoidance in or as a result of any Bankruptcy Proceeding commenced by or against TUCCG or any other person of all or any of the Secured Obligations, any Guaranty, collateral

 

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or lien; (vi) any use of cash or other Collateral in any Bankruptcy Proceeding; (vii) any agreement or stipulation as to adequate protection in any Bankruptcy Proceeding; (viii) any amendment, modification, stay or cure of the Beneficiaries’ rights that may occur in any Bankruptcy Proceeding; (ix) any election of remedies by the Beneficiaries, whether or not such election destroys or affects any subrogation, reimbursement, contribution, indemnity or similar rights the Pledgors may have (notwithstanding subsection (d) below) against TUCCG, including, without limitation, any loss of rights the Pledgors may suffer by reason of any rights, powers or remedies of TUCCG in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging the Secured Obligations; (x) any election by the Beneficiaries under Section 1111(b)(2) of the Bankruptcy Code; (xi) any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code; or (xii) any action taken by any Beneficiary that is authorized by this Section or any other provision of any of the Security Documents or any other Senior Finance Documents.

 

(d)           The Pledgors hereby waive any and all rights of subrogation, reimbursement, contribution, indemnity, setoffs or counterclaims and any and all similar rights that the Pledgors may otherwise have against TUCCG at any time under any applicable law, until the Secured Obligations shall have been indefeasibly paid and performed in full.  The Pledgors further expressly waive any right to enforce any remedy that the Beneficiaries now or hereafter may have against TUCCG or any other person and waive the benefit of, or any right to participate in, any Collateral now or hereafter held by the Beneficiaries, until the Secured Obligations shall then have been indefeasibly paid and performed in full.

 

(e)           The Pledgors expressly waive (i) all presentments, protests, notices of default or dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations, including notice of any action against TUCCG or any Guarantor or the assertion or enforcement of any right of the Beneficiaries hereunder or any other of the Security Documents; (ii) all notices of acceptance of this Pledge Agreement or of the existence, creation, renewal or incurring of new or additional Secured Obligations; and (iii) to the extent permitted by applicable law, the benefit of all valuation, appraisal, redemption and exemption laws.  The Pledgors expressly agree that they shall be bound by each and every ruling, order and judgment obtained by any Beneficiary against TUCCG, in respect of the Secured Obligations, whether or not the Pledgors are parties to, or have received notice of, the action or proceeding in which such ruling, order or judgment is issued and rendered.

 

(f)            The Pledgors represent and warrant that they have established adequate means of obtaining from TUCCG, on a continuing basis, financial and other information pertaining to the business, operations and condition (financial and otherwise) of such entity, and now are and hereafter will be completely familiar with such business, operations, condition and properties.

 

(g)           The Pledgors hereby acknowledge and warrant that they are familiar with the terms of this Pledge Agreement, the Senior Finance Documents, all other Security Documents and all other agreements evidencing the Secured

 

14



 

Obligations and that they have derived or expect to derive a financial advantage from each Series of Senior Liabilities or other extension of credit and from each and every renewal, extension, release of Collateral, or other relinquishment of legal rights made or granted or to be made or granted by the Beneficiaries to the Borrowers, TUCCG or any of the other Obligors in connection with the Secured Obligations.

 

(h)           The Pledgors warrant and agree that each of the waivers set forth in this Pledge Agreement is made with full knowledge of its significance and consequences and that, under the circumstances, all such waivers are reasonable and not contrary to public policy or applicable law.  If any such waiver is determined to be contrary to any public policy or applicable law, such waiver shall be effective to the maximum extent permitted by such public policy or applicable law.

 

(i)            Notwithstanding anything to the contrary contained herein or in any other agreement or instrument relating to the Secured Obligations, the Pledgors shall not be personally liable to the Security Trustee or the Beneficiaries for the satisfaction of the Secured Obligations, and the Security Trustee, on behalf of the Beneficiaries, shall look solely to the Pledged Collateral with respect to such satisfaction from Pledgors; provided that the foregoing shall not (i) constitute a waiver, release or discharge of any of the indebtedness evidenced by any Senior Finance Document, but the same shall continue until fully paid, discharged, observed or performed or (ii) in any way limit or restrict any right of the Security Trustee or the Beneficiaries to foreclose the liens and security interests of the Security Documents or otherwise realize upon any collateral assigned or pledged to the Security Trustee or the Beneficiaries in connection with the transactions contemplated hereby or thereby or (iii) constitute a waiver or limitation by the Security Trustee or the Beneficiaries of any claim against Pledgors for any claim in the nature of fraud or deceit or wilful misconduct arising under or in connection with this Pledge Agreement.

 

14.                               INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Security Trustee and its respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and an collectively, the “Indemnities”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Pledge Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Security Document (but excluding any obligation, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or wilful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Security Trustee hereunder be liable, in the absence of gross negligence or wilful misconduct on its

 

15



 

part (as determined by a court of competent jurisdiction in a final and non-appealable decision), of or any matter or thing in connection with this Pledge Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligation of any Pledgor under this Section 14 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.  The indemnity obligations of each Pledgor contained in this Section 14 shall continue in full force and effect notwithstanding the full payment and fulfillment of all the obligations under the Senior Finance Documents and notwithstanding the discharge thereof.

 

15.                               ROLE OF SECURITY TRUSTEE

 

Each Pledgor and the Security Trustee hereby acknowledge that the covenants of each Pledgor contained in this Pledge Agreement and the security and other rights, titles and interests constituted by this Pledge Agreement and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Pledge Agreement are held by the Security Trustee subject to and on the terms of the trusts declared by the Security Trust Agreement.

 

16.                               SEVERABILITY

 

Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.                               CONTINUED EFFECTIVENESS

 

Any release, discharge or settlement between one or more of the Pledgors and the Security Trustee or any of the other Beneficiaries shall be conditional upon no security, disposition or payment to the Security Trustee or any of the other Beneficiaries by any of the Obligors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Security Trustee and the other Beneficiaries shall be entitled to enforce this Pledge Agreement subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain this security after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the other Beneficiaries from any of the Obligors for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

18.                               CUMULATIVE REMEDIES

 

The rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies provided by law.

 

16



 

19.                               WAIVERS, AMENDMENTS

 

None of the terms or provisions of this Pledge Agreement may be altered, modified or amended except by an instrument in writing, duly executed by the Security Trustee and the Pledgors.  No waiver of any provision hereof or consent to any departure from the terms hereof shall be effective unless the same shall be in writing and duly executed by the Security Trustee.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  A waiver by the Security Trustee of any right or remedy hereunder on any occasion shall not be construed as a bar to any right or remedy which the Security Trustee would otherwise have on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Security Trustee, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

20.                               WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

The Pledgors hereby represent that they constitute all of the partners of the Partnership.  The Pledgors, constituting all of the partners of the Partnership, each hereby waives the application of the provisions of Section 10 of the TUCCG Joint Venture Agreement that otherwise would apply to, and hereby consents to, the assignment, transfer or pledge of any Pledgor’s Partnership Interest in the Partnership to the Security Trustee, for the benefit of the Beneficiaries, now or in the future, pursuant to the provisions of this Pledge Agreement.  Further, each of the Pledgors hereby ratifies and approves any similar assignments, transfers or pledges of the Partnership Interests of the other Pledgors occurring prior to the date hereof.

 

21.                               SUCCESSORS AND ASSIGNS

 

(a)                                  Subject to the restrictions on transfers by the Pledgors hereunder, this Pledge Agreement and all obligations of the Pledgors hereunder shall be binding upon the successors and assigns of the Pledgors, and shall inure to the benefit of the Security Trustee, the Beneficiaries and their respective successors and assigns.

 

(b)                                 It is hereby understood and agreed that any party required to become a party to this Pledge Agreement after the date hereof pursuant to the requirements of the Senior Finance Documents, shall become a Pledgor hereunder by

 

(i)            executing a Partnership Interest Accession Agreement in the form attached hereto as Schedule 13,

 

(ii)           delivering supplements to the schedules attached hereto as are necessary to cause such schedules to be complete and accurate with respect to each additional Pledgor on such date; and

 

(iii)          taking all actions specified in this Pledge Agreement as would have been taken by such Pledgor had it been an original party to the Pledge Agreement, in each case with all documents required above to be delivered to the Pledge and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledge.

 

17



 

22.                               GOVERNING LAW

 

This Pledge Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Colorado applicable to agreements made and to be performed entirely within such State.  The Pledgors hereby irrevocably consent to the jurisdiction of any of the courts designated in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) in connection with any action or proceeding arising out of or relating to this Pledge Agreement.  In any such action or proceeding, each Pledgor waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by personal delivery or by certified or registered mail directed to each Pledgor at its address set forth herein.  Nothing in this section shall affect the right of the Security Trustee or the Beneficiaries to serve legal process in any other manner by law or affect the right of the Security Trustee or the Beneficiaries to bring any action or proceeding against any Pledgor or his or its property in the courts of any other jurisdiction.  The Pledgors irrevocably waive any objection they may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement), or that any action or proceeding in any such court or jurisdiction has been brought in an inconvenient forum.

 

23.                               NOTICES

 

All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be personally served or sent by registered, certified or overnight mail, postage prepaid, or by telegraph, telecopy or telex and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when received (with such receipt acknowledged by the recipient, in the case of a telecopy).  All such notices shall be addressed as follows, or to such other address as may be hereafter notified in writing to the respective parties hereto:

 

If to the Security Trustee:

 

Winchester House

1 Great Winchester Street

London EC2N 2DB

England

 

Attention:

Syndicated Loans TSS / Nicola Dawes / Rajeer Thakeeria

Telephone:

0207 547 5905

Facsimile:

0207 547 6419

 

If to a Pledgor, addressed to such Pledgor at:

 

c/o Virgin Media Investment Holdings Limited

160 Great Portland St

London W1W 5QA

 

18



 

England

 

Attention:

Group Legal Director

Facsimile:

020 7299 6000

 

 

With a copy to:

 

Attention:

Group General Counsel

Facsimile:

020 7299 5495

 

24.                               TERMINATION

 

This Pledge Agreement, and the pledges, assignments, and encumbrances created or granted hereby, shall terminate when (a) all of the Secured Obligations shall have been fully paid, satisfied and performed, and (b) the Commitments have terminated, at which time the Security Trustee shall execute appropriate releases, acknowledgments, assignments or other documents necessary to secure the release and reassignment of such of the Pledged Collateral as shall not have been sold or otherwise applied by the Security Trustee pursuant to the terms hereof, and deliver to the Pledgors (or their respective designees) all Pledged Collateral and related documents then in the custody or possession of the Security Trustee.  Any such reassignment shall be without recourse upon, or warranty whatsoever by, the Security Trustee, and at the cost and expense of the Pledgors.

 

25.                               COUNTERPARTS

 

This Pledge Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

26.                               AUTHORIZATION TO FILE

 

With respect to the foregoing in this Pledge Agreement and the grant of the security interest hereunder, each Pledgor hereby authorizes the Security Trustee to file one or more financing statements or continuation statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of any Pledgor where permitted by law.  Each Pledgor agrees to furnish the Security Trustee, promptly upon reasonable request by the Security Trustee, with any information that is required by the Security Trustee in order to complete such financing statements or continuation statements, or amendments thereto.

 

27.                               GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

Each Pledgor hereby represents and warrants to the Security Trustee that:

 

(a)                                  Schedule 27(a) attached hereto sets forth an accurate and complete list identifying the following: (i) the full legal name of each Pledgor as it appears in official filings in the state or jurisdiction of its incorporation, organization or formation, as the case may be; (ii) the type of entity of such Pledgor; (iii) such Pledgor’s state of incorporation, organization or formation, as the case may be; (iv) the organizational identification number issued by such Pledgor’s

 

19



 

state of incorporation, organization or formation, or a statement that no such number has been issued; (v) the location of such Pledgor’s chief executive office ; and (vi) the jurisdiction(s) of such Pledgor’s place(s) of business.  Each Pledgor has only one state of incorporation, organization or formation, as the case may be;

 

(b)                                 it has not done in the last five (5) years, and does not do, business under any other name (including any trade name or fictitious business name) except for its respective legal name as set forth on Schedule 27(a);

 

(c)                                  it has not changed its name, jurisdiction of incorporation, organization or formation, the location of its chief executive office or place(s) of business, or its corporate or partnership structure in any way (e.g., by merger, consolidation, change in corporate or partnership form or otherwise), in each case within the past five (5) years;

 

(d)                                 it is the legal, beneficial and record owner of, and has good and marketable title to all of the Pledged Collateral upon which it purports to grant a lien hereunder, free and clear of any lien except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral is on file in any recording office, except as set forth on Schedule 27(d) or such as may have been filed in favor of the Security Trustee relating to this Pledge Agreement and with respect to the Permitted Liens.  Such liens set forth on Schedule 27(d) will be terminated as of the date of this Pledge Agreement;

 

(e)                                  it has full power, authority and legal right to pledge all the Pledged Collateral pledged by it pursuant to this Pledge Agreement;

 

(f)                                    this Pledge Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(g)                                 except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Pledge Agreement by such Pledgor, (b) the validity or enforceability of this Pledge Agreement against such Pledgor (except as set forth in clause (a) above), (c) the perfection or enforceability of the Security Trustee’s security interest in such Pledgor’s Pledged Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Security Trustee of any of its rights or remedies provided herein;

 

20



 

(h)                                 neither the execution, delivery or performance by such Pledgor of this Pledge Agreement or any other Senior Finance Document, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of partnership or partnership agreement, (or equivalent organizational documents), as the case may be, of such Pledgor;

 

(i)                                     as of the date hereof, after giving effect to the transactions contemplated by the Senior Finance Documents, such Pledgor is Solvent, and will not cease to be Solvent as a result of the obligations and transactions undertaken by such Pledgor pursuant to, or as contemplated by, the Senior Finance Documents.  As of the date hereof, there is no proceeding pending, or to the knowledge of the undersigned, threatened, challenging the Solvency of such Pledgor or seeking to dissolve or liquidate such Pledgor.

 

For the purposes of the foregoing, “Solvent” or “Solvency” means, with respect to any person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such person is (y) greater than the total amount of liabilities (including contingent liabilities) of such person and (z) not less than the amount that will be required to pay the probable liabilities on such person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such person; (ii) such person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (B) such person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For the purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

21


 

IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement to be executed and delivered as of the day and year first above written.

 

 

THESEUS NO. 1 LIMITED

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

 

By Its Directors:

 

 

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

 

 

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH,

 

as Security Trustee

 

 

 

 

 

 

 

 

 

By:

/s/ N. DAWES

 

 

Title:

V.P.

 

 

 

 

 

 

 

 

 

By:

/s/ V. MAYELL

 

 

Title:

A.V.P.

 

22



 

SCHEDULE 4(b)

 

EXISTING PLEDGED COLLATERAL

 

None.

 

1



 

SCHEDULE 5(a)
PARTNERSHIP INTERESTS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE
OF BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

TCI/US WEST Cable Communications Group

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

50% - Theseus No. 1 Limited
50% - Theseus No. 2 Limited

 

Colorado General

 

1



 

SCHEDULE 5(b)
OTHER PARTNERSHIP INTERESTS

 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Cotswolds Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited

 

Colorado Limited

Estuaries Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited

 

Colorado Limited

Tyneside Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited

 

Colorado Limited

Telewest Communications (North East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Tyneside Cable Limited Partnership

 

English General

Telewest Communications (South East) Partnership

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

99% - Estuaries Cable Limited Partnership

 

English General

 

1



 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

Avon Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited

 

Colorado Limited

Edinburgh Cable Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited

 

Colorado Limited

United Cable (London South) Limited Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

0.5% - General - Theseus No. 1 Limited
0.5% - General - Theseus No. 2 Limited

 

Colorado Limited

 

2



 

SCHEDULE 13

 

PARTNERSHIP INTEREST ACCESSION AGREEMENT

 

(TCI/US WEST Cable Communications Group)

 

The undersigned, desiring to become a venturer of TCI/US WEST Cable Communications Group, a Colorado general partnership (the “Partnership”) formed pursuant to a Joint Venture Agreement dated as of 18 December 1991, as amended by First Restatement dated 30 April 1992, Second Amendment dated 1 January 1994 and Third Amendment dated 21 November 1994 (the “JV Agreement”) hereby agrees to, and by its execution hereof does, become a party to (i) the JV Agreement, as a venturer thereunder, and (ii) that certain Pledge and Security Agreement (as amended from time to time, the “Pledge Agreement”), dated                          , 20    , initially entered into among THESEUS NO. 1 LIMITED and THESEUS NO. 2 LIMITED, and Deutsche Bank AG, London Branch as Security Trustee for the benefit of the Beneficiaries described therein.  Capitalized terms used herein shall have the respective meanings set forth in the Pledge Agreement.  By its execution hereof, the undersigned agrees that, from and after the date hereof, the undersigned shall be, and be considered for all purposes, (i) a “Venturer” under the JV Agreement and (ii) a “Pledgor” under the Pledge Agreement, as if referred to directly therein as such as a party thereto, entitled to all of the rights and subject to all of the liabilities and obligations of a Venturer or Pledgor, respectively, thereunder.

 

As a Pledgor under the Pledge Agreement, the undersigned, as security and collateral for the due and punctual payment and performance of the Secured Obligations (as defined in the Pledge Agreement), hereby assigns, transfers and pledges to the Security Trustee, for the benefit of the Beneficiaries, a lien on and security interest in and to the undersigned’s right, title and interest to the Pledged Collateral (as defined in the Pledge Agreement).  As a Pledgor under the Pledge Agreement, the undersigned represents and warrants that the Pledged Collateral is free and clear of all liens other than the Permitted Liens (as defined in the Pledge Agreement).

 

This instrument, when executed by the undersigned, shall further constitute the undersigned’s counterpart signature page to the JV Agreement and the Pledge Agreement.

 

 

Dated this              day of                     ,             .

 

 

[Name of Transferee]

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

Address for Notice:

 

1



 

SCHEDULE 27(a)

 

Full Legal Name

 

Type of Entity

 

State of
Incorporation,
Organization or
Formation

 

Organizational
Identification
Number

 

Location of Chief
Executive Office

 

Jurisdiction(s) of
place(s) of business

Theseus No. 1 Limited

 

Private Limited Company

 

England & Wales

 

02994027

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

Theseus No. 2 Limited

 

Private Limited Company

 

England & Wales

 

02994061

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

 

1



 

SCHEDULE 27(d)
CURRENT UCC FILINGS

 

None,

 

1




Exhibit 4.44

 

 

 

AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

(Re: Interests in London South Cable Partnership)

 

 

Dated January 19, 2010

 

 

between

 

UNITED CABLE (LONDON SOUTH) LIMITED PARTNERSHIP

 

and

 

CRYSTAL PALACE RADIO LIMITED

 

as Pledgors

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH

 

as Security Trustee

 

 

 



 

TABLE OF CONTENTS

 

 

 

Page

 

 

 

1.

CONSTRUCTION; DEFINED TERMS

2

 

 

 

2.

SECURITY AGREEMENT

4

 

 

 

3.

SECURED OBLIGATIONS

6

 

 

 

4.

DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

6

 

 

 

5.

CERTAIN COVENANTS; REPRESENTATIONS

7

 

 

 

6.

VOTING RIGHTS; DIVIDENDS; ETC.

8

 

 

 

7.

REASONABLE CARE; PLEDGOR REMAINS LIABLE

9

 

 

 

8.

SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

9

 

 

 

9.

SECURITY TRUSTEE MAY PERFORM

10

 

 

 

10.

EVENTS OF DEFAULT

10

 

 

 

11.

REMEDIES

10

 

 

 

12.

EXPENSES

12

 

 

 

13.

RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

12

 

 

 

14.

INDEMNITY

15

 

 

 

15.

ROLE OF SECURITY TRUSTEE

16

 

 

 

16.

SEVERABILITY

16

 

 

 

17.

CONTINUED EFFECTIVENESS

16

 

 

 

18.

CUMULATIVE REMEDIES

16

 

 

 

19.

WAIVERS, AMENDMENTS

17

 

 

 

20.

WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

17

 

 

 

21.

SUCCESSORS AND ASSIGNS

17

 

 

 

22.

GOVERNING LAW

18

 

 

 

23.

NOTICES

18

 

 

 

24.

TERMINATION

19

 

 

 

25.

COUNTERPARTS

19

 

 

 

26.

AUTHORIZATION TO FILE

19

 

 

 

27.

GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

19

 

Schedules

 

Schedule 4(b)

Schedule 5(a)

Schedule 5(b)

Schedule 13

Schedule 27(a)

Schedule 27(d)

 

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AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

 

This AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT (as amended, restated, supplemented or otherwise modified from time to time, this “Pledge Agreement”), is made and entered into as of January 19, 2010 by and among UNITED CABLE (LONDON SOUTH) LIMITED PARTNERSHIP, a Colorado general partnership and CRYSTAL PALACE RADIO LIMITED, a limited company incorporated in England and Wales (each of foregoing being referred to individually as a “Pledgor” and collectively as the “Pledgors”), and Deutsche Bank AG, London Branch, in its capacity as Security Trustee for the Beneficiaries (the “Security Trustee” which expression includes any person which is for the time being the Security Trustee for the Beneficiaries).

 

W I T N E S S E T H

 

WHEREAS, the Pledgors constitute all of the partners of London South Cable Partnership, a Colorado general partnership (“LSCP” or the “Partnership”).

 

WHEREAS, pursuant to the Senior Facilities Agreement, dated March 3, 2006 as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Senior Facilities Agreement”), among Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited and VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers (the “UK Borrowers”), Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower (the “US Borrower” and together with the UK Borrowers, the “Borrowers”), Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent (the “Facility Agent”) and Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Original Guarantors as defined therein, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders (the “Lenders”), the Lenders have made available to the Borrowers certain credit facilities pursuant to the terms and subject to the conditions provided therein.

 

WHEREAS, by an intercreditor deed dated March 3, 2006 as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 (as further amended, restated, supplemented and/or otherwise modified from time to time, the “Group Intercreditor Deed”) among the Original Senior Borrowers, the Original Facility Agent, the Original Security Trustee, the Senior Lenders, the Original Senior Guarantors, the Hedge Counterparties (as each of those terms are defined therein), the intergroup creditors and intergroup debtors listed therein, certain banks, financial institutions and other entities have agreed to regulate their relationship as creditors on the terms set out therein.

 

WHEREAS, pursuant to the indenture dated on or about the date hereof (the “Senior Secured Notes Indenture”), in respect of the $1,000,000,000 6.5% senior secured notes due 2018 and the £875,000,000 7.00% senior secured notes due 2018 (“Senior Secured Notes” and, together with the Senior Secured Notes Indenture and the guarantees set out therein, the “Senior Secured Notes Documents”), made among Virgin Media Inc., Virgin

 



 

Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from time to time, Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes.

 

WHEREAS, in connection with the Senior Facilities Agreement and the Group Intercreditor Deed, the Pledgors and Security Trustee entered into a pledge and security agreement dated March 3, 2006 and amended on December 23, 2009 (the “Original Pledge Agreement”), pursuant to which the Pledgors granted in favor of the Security Trustee, for the benefit of the Beneficiaries, a security interest in and lien on their respective partnership interests in the Partnership and the other collateral described therein as security and collateral for the due and punctual payment and performance by the Borrowers of their respective obligations described therein.

 

WHEREAS, Pledgors and Security Trustee desire to amend and restate the Original Pledge Agreement.

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

 

1.                                      CONSTRUCTION; DEFINED TERMS

 

This Pledge Agreement should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Pledge Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.  Unless otherwise defined herein or the context otherwise expressly requires, capitalized terms used herein shall have the respective meanings set forth in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement (including by reference to other agreements).

 

Bankruptcy Code” Title 11 of the United States Code entitled “Bankruptcy as now or hereafter in effect.

 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Designated Secured Obligations” means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from the Company to the Security Trustee, which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (“Rule 3-16”) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Date” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the relevant Pledgor of the occurrence of that Event of Default, or takes,

 

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under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Defaultmeans each of:

 

(a)                                  a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets” in relation to any Designated Secured Obligations means any shares, membership interests, partnership interests, equity participations or other equivalent (however designated) ownership interests (the “Ownership Interests”) in, or other securities of, a Subsidiary of Virgin Media Inc. (excluding the Ownership Interests in or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganization or other restructuring effecting it) that are owned by the Pledgor to the extent that pledging such Ownership Interests or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no Ownership Interests or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganization, merger or other restructuring, a principal purpose of which is to provide for the limitation of the pledge of any Ownership Interests or other securities pursuant to the proviso in Section 2.

 

Existing Pledged Collateral” means the existing security pledged by the Partnership under the relevant (i) July 2004 Pledge Agreements and the (ii) March 2001 Pledge Agreements, as such documents are set forth on Schedule 4(b) hereto.

 

Existing Security Trustee” means Barclays Bank PLC.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

SEC” means the United States Securities and Exchange Commission.

 

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Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Securities Act” shall mean the Securities Act of 1933, as amended, as in effect from time to time.

 

Security Trust Agreement” means the security trust agreement dated March 3, 2006 and amended and restated on or about the date hereof between Security Trustee, Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), and the companies named therein as Original Obligors.

 

2.                                      SECURITY AGREEMENT

 

As security and collateral for the due and punctual payment and performance by the Obligors of their respective joint and several obligations described in Section 3 below, each of the Pledgors hereby assigns, transfers, and pledges to the Security Trustee, and grants to the Security Trustee for the benefit of the Beneficiaries, a lien on and security interest in and to such Pledgor’s right, title and interest in and to the following (collectively, the “Pledged Collateral”):

 

(a)                                  such Pledgor’s partnership interest in the Partnership owned by such Pledgor at any time and from time to time (each, a “Partnership Interest” and collectively, the “Partnership Interests”) and any certificates, instruments or other documents representing each such Partnership Interest, all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or otherwise distributed in respect of or in exchange for all or any part of each such Partnership Interest and all proceeds thereof; and

 

(b)                                 all partnership interests (general or limited) or securities convertible into or exchangeable for such interests issued by the Partnership, or any successor thereto, from time to time and acquired by such Pledgor in substitution for or in addition to any of the foregoing, all certificates and instruments representing such interests or securities, and all dividends, distributions, cash, securities, instruments and other property from time to time paid, payable or

 

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otherwise distributed in respect of or in exchange for any or all of such interests or securities and all proceeds thereof;

 

provided, that, notwithstanding the foregoing, in no event shall the Pledgor be required to pledge any Excluded Charged Assets to the Security Trustee under this Pledge Agreement to secure the Designated Secured Obligations.  For the avoidance of doubt:

 

(i)            all Pledged Collateral that does not constitute Excluded Charged Assets remains pledged pursuant to this Pledge Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)           such Excluded Charged Assets remain pledged under this Section 2 to secure any Secured Obligations that are not Designated Secured Obligations pursuant to this Pledge Agreement.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Ownership Interests or other securities secure any Designated Secured Obligations, then such Ownership Interests or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary, and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation.  If the circumstances described in this paragraph apply, this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the pledge securing the Secured Obligations referred to in clause (ii) of the preceding paragraph) in favor of the Security Trustee on the relevant Ownership Interests and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would permit) such Subsidiary’s Ownership Interests and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Ownership Interests or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph apply,

 

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this Pledge Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to pledge in favor of the Security Trustee such additional Ownership Interests or other securities that were deemed to constitute Excluded Charged Assets.

 

3.                                      SECURED OBLIGATIONS

 

The security interest in the Pledged Collateral granted pursuant hereto shall secure the due and punctual payment and performance of the Secured Obligations provided that before any demand for any Secured Obligation is made on a Restricted Guarantor pursuant to this Pledge Agreement, demand for payment of the relevant Secured Obligation shall first have been made on the Borrower from which such unpaid Secured Obligation is due.  It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include: (a) all Liabilities under the Senior Facilities Agreement; and (b) all Liabilities under the Senior Secured Notes Documents.

 

4.                                      DELIVERY OF COLLATERAL; ISSUANCE OF ADDITIONAL INTERESTS

 

(a)                                  All certificates, instruments or documents, if any, representing or evidencing each and every of the Partnership Interests shall be delivered to the Security Trustee by the Pledgors on the date hereof, and shall be held by the Security Trustee pursuant hereto at all times hereafter until termination hereof pursuant to Section 24, and all certificates, instruments or documents representing or evidencing interests or securities in or issued by the Partnership and acquired by any Pledgor after the date hereof and constituting Pledged Collateral hereunder shall be delivered to the Security Trustee immediately upon, and held by the Security Trustee at all times after, acquisition thereof by such Pledgor.  All such certificates, instruments or documents, if any, shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Security Trustee.  To the extent that any certificates, instruments of transfer or other documents of title relating to any of the Pledged Collateral which are required to be delivered to the Security Trustee hereunder have already been delivered to Deutsche Bank AG, London Branch in its capacity as security trustee under and for the purposes of the security interests over such Pledged Collateral pursuant to the Original Pledge Agreement, the requirements of this Section 4(a) shall be deemed satisfied.

 

(b)                                 Except as otherwise permitted in the Senior Finance Documents, each Pledgor agrees that it shall take all actions available to such Pledgor to cause the Partnership and, in the event of a merger or consolidation of the Partnership with any other entity, such other entity, not to issue any interests or other securities whether in addition to, by dividend or other distribution upon, or in substitution or exchange for, any of the Partnership Interests or otherwise, other than such interests or other securities issued to the Pledgors and promptly delivered to the Security Trustee pursuant to Section 4(a) hereof in which the Security Trustee, as agent and representative for the Beneficiaries, has a valid and perfected security interest free and clear of all liens and with respect to which no other party has any interest, except for the Existing

 

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Pledged Collateral and the liens created in favor of the Security Trustee pursuant to this Pledge Agreement (collectively, the “Permitted Liens”)

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder, the Security Trustee shall have the right, at any time in its discretion, to transfer to or to register in the name of the Security Trustee or any of its nominees any or all of the Pledged Collateral (with, in the discretion of the Security Trustee, such transfer or registration expressly empowering the Security Trustee to vote any voting interests included in the Pledged Collateral), subject only to each Pledgor’s revocable rights specified in Section 6(a).

 

(d)                                 Each Pledgor shall from time to time cause appropriate financing statements (on appropriate forms) under the Uniform Commercial Code as in effect in the Colorado, the District of Columbia or any other relevant states (a “State”), covering all Collateral hereunder (with the form of such financing statements to be satisfactory to the Security Trustee), to be filed in the relevant filing offices so that at all times the Security Trustee’s security interest in all Pledged Collateral which can be perfected by the filing of such financing statement (in each case to the maximum extent perfection by filing may be obtained under the laws of the relevant State), is so perfected.

 

5.                                      CERTAIN COVENANTS; REPRESENTATIONS

 

(a)                                  Each of the Pledgors covenant and agree that: (i) save to the extent expressly permitted or not restricted under any Senior Finance Document without the prior written consent of the Security Trustee, no Pledgor will grant any option with respect to any of the Pledged Collateral; (ii) the Pledgors will defend the Pledged Collateral against the claims and demands of all persons other than the Security Trustee and the Beneficiaries, and will take any and all such action as is reasonably necessary to remove any competing or conflicting lien and will advise the Security Trustee promptly of the existence thereof; and (iii) at any time and from time to time upon the written request of the Security Trustee, the Pledgors will execute and deliver such further documents and do such further acts and things as the Security Trustee may reasonably request in order to effect the purposes of this Pledge Agreement.

 

(b)                                 Each of the Pledgors represent and warrant that:  (i) their choice of Colorado law to govern this Pledge Agreement is valid and binding subject to the Reservations; (ii) the Partnership Interests held by such Pledgor consist of the number and type of interests of the persons described in Schedule 5(a) hereto; (iii) each Partnership Interest referenced in sub-clause (ii) of this paragraph constitutes that percentage or position of the entire Partnership Interest of the Partnership as set forth in Schedule 5(a) hereto; (iv) it has complied with the respective procedure set forth in Clause 4(a) hereof with respect to each item of Pledged Collateral described in Schedule 5(a); and (v) such Pledgor owns no other Partnership Interests except as set forth in Schedule 5(b) hereto.

 

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6.                                      VOTING RIGHTS; DIVIDENDS; ETC.

 

(a)                                  So long as no Event of Default hereunder shall have occurred and be continuing:  (i) each Pledgor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Pledged Collateral belonging to such Pledgor pursuant to the partnership agreement creating and governing LSCP (the “LSCP Partnership Agreement”), for any purpose not prohibited by the terms of this Pledge Agreement or the Senior Finance Documents; and (ii) except as otherwise provided in Section 6(c) hereof and except for distributions prohibited by the Senior Finance Documents, each Pledgor shall be entitled to receive, retain and distribute, free and clear of the security interest granted hereunder, any dividends, distributions, cash and other property from time to time paid, payable or otherwise distributed in respect of the Pledged Collateral belonging to such Pledgor.

 

(b)                                 Pledgor hereby irrevocably appoints the Security Trustee as Pledgor’s proxyholder with respect to the Partnership Interests of Pledgor and any other voting interests or other securities belonging to Pledgor and forming a part of the Pledged Collateral with full power and authority, in the discretion of the Security Trustee, to vote such Partnership Interests and other voting interests or securities and otherwise to act with respect to such Partnership Interests or other voting interests or securities on behalf of Pledgor; provided that this proxy shall only be operative upon the occurrence of an Event of Default and so long as such Event of Default continues.  This proxy shall be irrevocable for so long as any of the Secured Obligations remain in existence.  Pledgor shall execute and deliver (or cause to be executed and delivered) to the Security Trustee all proxies and other instruments as the Security Trustee may reasonably request for the purpose of enabling the Security Trustee to exercise the voting and other rights which it is entitled to exercise pursuant to this Section 6(b).

 

(c)                                  Upon the occurrence and during the continuance of an Event of Default hereunder or as otherwise permitted or not restricted pursuant to the provisions of each of the Senior Finance Documents, all rights of the Pledgor to receive and retain dividends, distributions, cash and other property, which it would otherwise be authorized to receive and retain pursuant to Section 6(a)(ii), shall cease and all such rights shall thereupon be vested in the Security Trustee, who shall thereupon have the sole right to receive and hold as Pledged Collateral such dividends, distributions, cash and other property; provided, that until the Enforcement Date, without prejudice to the Senior Finance Documents, the Security Trustee will hold all dividends, distributions, cash and other property paid on and received by it in respect of any Partnership Interest which are transferred to it for the account of each Pledgor and will, subject to any right of set-off, pay such dividends, interest and other moneys to such Pledgor upon request.  All cash and other property received by a Pledgor contrary to the provisions of this Section 6(c) shall be received in trust for the benefit of the Security Trustee, shall be segregated from other property or funds of such Pledgor and shall be forthwith delivered to the Security Trustee as Pledged Collateral in the same form as so received (with any necessary transfer documents or endorsements).

 

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7.                                      REASONABLE CARE; PLEDGOR REMAINS LIABLE

 

(a)                                  The Security Trustee shall be deemed to have exercised reasonable care in the custody and preservation of the Pledged Collateral in its possession if the Pledged Collateral is accorded treatment substantially equal to that which the Security Trustee accords its own property, it being understood that neither the Security Trustee nor any Beneficiary shall have responsibility for taking any necessary steps (other than steps taken in accordance with the standard of care set forth above to maintain possession of the Pledged Collateral) to preserve rights against any parties with respect to any Pledged Collateral; provided that the Security Trustee agrees to notify the Pledgors if it has actual knowledge of the necessity of taking any such steps in respect of any Pledged Collateral and to cooperate with the Pledgors in connection therewith.

 

(b)                                 Anything herein to the contrary notwithstanding, (i) the Pledgors shall remain liable under the LSCP Partnership Agreement to the extent set forth therein to perform the duties and obligations thereunder to the same extent as if this Pledge Agreement had not been executed, (ii) the exercise by the Security Trustee of any of its rights hereunder shall not release any Pledgor from any of the duties or obligations under the LSCP Partnership Agreement, and (iii) the Security Trustee and the other Beneficiaries shall not have any obligation or liability under the LSCP Partnership Agreement by reason of this Pledge Agreement, nor shall the Security Trustee or the other Beneficiaries be obligated to perform any of the obligations or duties of any Pledgor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by any Pledgor or the sufficiency of any performance by any party under the LSCP Partnership Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  Except to the extent required by general partnership law, the Security Trustee and the other Beneficiaries shall not by reason of this Pledge Agreement or the exercise of any remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of LSCP or any of the liabilities of the Pledgors (or their permitted successors or assigns).

 

8.                                      SECURITY TRUSTEE APPOINTED ATTORNEY-IN-FACT

 

(a)                                  Each Pledgor hereby irrevocably appoints (which appointment is coupled with an interest) the Security Trustee (acting through its employees, attorneys, and/or agents) as such Pledgor’s attorney-in-fact, with full power of substitution and with full authority in the place and stead of Pledgor and in its name or otherwise, from time to time in the Security Trustee’s discretion, to sign, execute, seal and deliver and otherwise perfect any further security document or notice reasonably required to secure the Secured Obligations or to perfect the security intended to be created hereunder over the Pledged Collateral or any part thereof or, on or after the Enforcement Date, to take any action and to execute any instrument which the Security Trustee may deem reasonably necessary or advisable to accomplish the purposes of this Pledge Agreement; provided, that the Security Trustee shall be under no obligation to take any action hereunder and, absent gross negligence and wilful misconduct, the Security Trustee shall have no liability or responsibility for any action taken or omission with respect thereto.

 

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(b)           Each Pledgor hereby consents, acknowledges and agrees, as of the date hereof,  that the Security Trustee shall be appointed to succeed the Existing Security Trustee in relation to the Existing Pledged Collateral.

 

9.             SECURITY TRUSTEE MAY PERFORM

 

Upon the occurrence and during the continuance of an Event of Default hereunder (including an Event of Default resulting from a failure to perform any agreement contained herein), if any Pledgor fails to perform any agreement contained herein, the Security Trustee may itself perform, or cause performance of, such agreement, and the expenses of the Security Trustee incurred in connection therewith shall be payable by such Pledgor under Section 12 hereof.

 

10.          EVENTS OF DEFAULT

 

The occurrence of an Event of Default shall constitute an Event of Default hereunder.

 

11.          REMEDIES

 

At any time on or after the Enforcement Date, in addition to and without limiting any and all other remedies available under principles of law or equity:

 

(a)           The Security Trustee may execute, acknowledge, deliver, file and record on behalf of any or all the Pledgors and in their respective names financing statements, continuation statements, security agreements, mortgages, assignments, certificates of title, reports, notices, schedules of account, and all other documents, instruments or agreements that the Security Trustee may, in its sole and absolute discretion, deem advisable in order to obtain, perfect and maintain the Security Trustee’s security interests in the Pledged Collateral granted pursuant hereto and in order to fully consummate, implement and enforce all of the transactions contemplated and security interests granted under this Pledge Agreement.

 

(b)           The Security Trustee may exercise in respect of the Pledged Collateral, in addition to other rights and remedies provided for herein or otherwise available to it, all the rights and remedies of a secured party after default under the Uniform Commercial Code in effect in the State of Colorado (the “Colorado UCC”) at that time or other applicable law.

 

(c)           The Security Trustee may, without notice except as specified below, sell the Pledged Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, over the counter or at any of the Security Trustee’s offices or elsewhere, for cash, on credit or for future delivery, and at such price or prices and upon such other terms as may be commercially reasonable or otherwise in such manner as necessary to comply with applicable federal and state securities laws.  The Pledgors agree that the Security Trustee shall not be required to register or qualify any of the Pledged Collateral under applicable state or federal securities laws in connection with any such sale if the sale is effected in a manner that complies with all applicable federal and state securities laws (to the extent applicable).  The Security Trustee shall be authorized at any such sale (if it deems it advisable to

 

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do so) to restrict the prospective bidders or purchasers to persons who will represent and agree that they are “accredited investors” or “qualified institutional buyers” under applicable law and are purchasing the Pledged Collateral for their own account, for investment and not with a view to the distribution thereof.  Upon consummation of any such sale the Security Trustee shall have the right to assign, transfer and deliver the Pledged Collateral to the purchaser or purchasers at any such sale, and such purchasers shall hold the property sold absolutely free from any claim or right on the part of the Pledgors, and each Pledgor hereby waives (to the extent permitted by law) all rights of redemption, stay or appraisal which it now has or may at any time in the future have under applicable law now existing or hereafter enacted.

 

(d)           The Security Trustee shall give to each Pledgor notice in writing of the time and place of any public sale or of the time on or after which any private sale or intended disposition is to be made.  Such notice need not be given more than five (5) Business Days (or such longer period as shall be specified by applicable law) before the date fixed for any such disposition, which notice the Pledgors agree shall constitute commercially reasonable notification.  At any such sale or other disposition, the Security Trustee, to the extent permitted by applicable law, may bid, which bid may be, in whole or in part, in the form of cancellation of the Secured Obligations in proportion to the share of the Secured Obligations of each Beneficiary, and purchase for the account of the Beneficiaries the whole or any portion of the Pledged Collateral, to the further extent permitted by applicable law, free of any right of redemption, which right is hereby waived and released to the extent permitted by applicable law.  The Security Trustee shall not be obligated to make any sale of Pledged Collateral regardless of notice of sale having been given, and the Security Trustee may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned.

 

(e)           If a sale of all or any part of the Pledged Collateral is made on credit or for future delivery, the Pledged Collateral so sold may be retained by the Security Trustee until the sale price is paid by the purchaser or purchasers thereof, but the Security Trustee shall not incur any liability in case any such purchaser or purchasers shall fail to take delivery of and pay for the Pledged Collateral so sold and, in case of any such failure, such Pledged Collateral may be sold again upon like notice.  The Pledgors agree that any sale of the Pledged Collateral conducted by the Security Trustee in accordance with the foregoing provisions of this Section shall be deemed to be a commercially reasonable sale under Article 9 of the Colorado UCC.

 

(f)            As an alternative to exercising the power of sale herein conferred upon it, the Security Trustee may proceed by a suit or suits at law or in equity to foreclose the security interests and to sell the Pledged Collateral, or any portion thereof, pursuant to a judgment or decree of a court or courts of competent jurisdiction.

 

(g)           Subject to provisions of applicable law any cash held by the Security Trustee as Pledged Collateral and all cash proceeds received by the Security Trustee in respect of any sale of, collection from, or other realization upon all or any part

 

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of the Pledged Collateral shall be applied as set forth in the Group Intercreditor Deed and the Security Trust Agreement.

 

12.          EXPENSES

 

Pledgors agree to pay, upon demand, to the Security Trustee (together with interest thereon from the date falling 30 days after the date of demand by the Security Trustee until the date of payment at the default interest rate as in effect from time to time under clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) (a) the amount of any and all actual fees and expenses, including without limitation the fees and expenses of its counsel and of any experts and agents, which the Security Trustee may properly incur in connection with (i) the custody or preservation of the Pledged Collateral, (ii) the exercise or enforcement of any rights of the Security Trustee hereunder or (iii) the failure by any Pledgor to perform or observe any of the provisions hereof and (b) the amount of any and all actual and fees and expenses of the Security Trustee’s counsel and outside experts and agents incurred in connection with the administration and enforcement of this Pledge Agreement.

 

13.          RIGHTS OF SECURITY TRUSTEE; CERTAIN WAIVERS

 

(a)           Each Pledgor acknowledges that the security interests granted hereunder will secure obligations of persons other than such Pledgor, and, in full recognition of such fact, each Pledgor hereby agrees that, at any time and from time to time the Beneficiaries may, in their sole and absolute discretion, without the necessity of any reservation of rights against, notice to or further assent by any Pledgor, and without affecting the validity, legality or enforceability hereof or the security interests hereunder (but subject to the terms of the Senior Finance Documents):  (i) create new Secured Obligations or extend, accelerate, rescind any acceleration, increase, decrease, continue, restructure or otherwise modify the Secured Obligations or any of their terms; (ii) amend, supplement, waive or otherwise modify any provision of, or give any agreement, approval or consent with respect to, the Senior Finance Documents or any of the Secured Obligations; (iii) accept new or additional instruments, documents or agreements in exchange for or relative to any of the Senior Finance Documents, the Security Documents or the Secured Obligations or any part thereof; (iv) except as may be required by applicable law, accept and apply as the Beneficiaries may see fit payments on the Secured Obligations or proceeds of Collateral (as defined below); (v) receive and hold additional collateral or guarantees for the Secured Obligations or any part thereof (all collateral and guarantees for the Secured Obligations or any part thereof being referred to in this Section 13 as “Collateral” and “Guarantees,” respectively); (vi) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any Collateral or Guarantees, apply any such Collateral and direct the order or manner of sale or other enforcement thereof; (vii) alter, impair, suspend or terminate the remedies or rights of the Beneficiaries against the Partnership, any guarantor of the Secured Obligations or any part thereof (a “Guarantor”) or any other person in respect of any of the Secured Obligations or suffer any of the foregoing to occur; (viii) refund at any time, at the Beneficiaries’ sole discretion, any payment received by the

 

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Beneficiaries in respect of the Secured Obligations; and (ix) otherwise deal with LSCP, any Collateral or any Guarantor as the Beneficiaries may elect in their sole discretion.

 

(b)           The Pledgors acknowledge that the security interests hereunder, and the enforcement hereof are not subject to any conditions not expressly stated herein.  Upon the occurrence and during the continuance of an Event of Default, the Security Trustee may enforce this Pledge Agreement independently from any other of the Security Documents and independently of any other remedy, Collateral or Guaranty that any Beneficiary at any time may have or hold in connection with the Secured Obligations, and it shall not be necessary for the Security Trustee to marshal assets in favor of the Pledgors or any other person or to proceed upon or against or exhaust any other remedy, Collateral or Guaranty before proceeding to enforce this Pledge Agreement.  The Pledgors expressly agree that the Security Trustee may proceed against LSCP, any Pledgor, any other Guarantor, or the Collateral in such order and in such manner as it shall determine in its sole and absolute discretion.  The Security Trustee may file a separate action or actions with respect to the Pledged Collateral whether action is brought or prosecuted with respect to any other Collateral or against any other person, or whether any other person is joined in any such action or actions.  The Pledgors agree that the Beneficiaries, LSCP and any other Guarantor may deal with each other in connection with the Secured Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between or among any of them, in any manner whatsoever, all without in any way altering or affecting the security of this Pledge Agreement.  The Pledgors expressly waive the benefit of any statute(s) of limitations affecting the enforcement of the Secured Obligations or the security interest hereunder.  Any payment by or on behalf of LSCP or other circumstance that operates to toll any statute of limitations applicable to such partnership shall also operate to toll the statute of limitations applicable to Pledgors.

 

(c)           The Pledgors expressly waive any and all defenses or counterclaims (other than by reason of the full payment and performance of all the Secured Obligations) now or hereafter arising or asserted by reason of (i) any disability, set-off or other defense or counterclaim of LSCP or any Guarantor with respect to the Secured Obligations, the Senior Finance Documents or any of the Security Documents; (ii) the failure of priority or validity of security interest in any Collateral; (iii) the cessation from any cause whatsoever of the liability of LSCP or any Guarantor or other person with respect to the Secured Obligations; (iv) the disallowance of, or any failure of any Beneficiary to file or enforce, a claim in any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding (a “Bankruptcy Proceeding”) with respect to LSCP or any other person; (v) the modification, discharge, extension or avoidance in or as a result of any Bankruptcy Proceeding commenced by or against LSCP or any other person of all or any of the Secured Obligations, any Guaranty, collateral or lien; (vi) any use of cash or other Collateral in any Bankruptcy Proceeding; (vii) any agreement or stipulation as to adequate protection in any Bankruptcy Proceeding; (viii) any amendment, modification, stay or cure of the

 

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Beneficiaries’ rights that may occur in any Bankruptcy Proceeding; (ix) any election of remedies by the Beneficiaries, whether or not such election destroys or affects any subrogation, reimbursement, contribution, indemnity or similar rights the Pledgors may have (notwithstanding subsection (d) below) against LSCP, including, without limitation, any loss of rights the Pledgors may suffer by reason of any rights, powers or remedies of LSCP in connection with any anti-deficiency laws or any other laws limiting, qualifying or discharging the Secured Obligations; (x) any election by the Beneficiaries under Section 1111(b)(2) of the Bankruptcy Code; (xi) any borrowing or grant of a security interest under Section 364 of the Bankruptcy Code; or (xii) any action taken by any Beneficiary that is authorized by this Section or any other provision of any of the Security Documents or any other Senior Finance Documents.

 

(d)           The Pledgors hereby waive any and all rights of subrogation, reimbursement, contribution, indemnity, setoffs or counterclaims and any and all similar rights that the Pledgors may otherwise have against LSCP at any time under any applicable law, until the Secured Obligations shall have been indefeasibly paid and performed in full.  The Pledgors further expressly waive any right to enforce any remedy that the Beneficiaries now or hereafter may have against LSCP or any other person and waive the benefit of, or any right to participate in, any Collateral now or hereafter held by the Beneficiaries, until the Secured Obligations shall then have been indefeasibly paid and performed in full.

 

(e)           The Pledgors expressly waive (i) all presentments, protests, notices of default or dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations, including notice of any action against LSCP or any Guarantor or the assertion or enforcement of any right of the Beneficiaries hereunder or any other of the Security Documents; (ii) all notices of acceptance of this Pledge Agreement or of the existence, creation, renewal or incurring of new or additional Secured Obligations; and (iii) to the extent permitted by applicable law, the benefit of all valuation, appraisal, redemption and exemption laws.  The Pledgors expressly agree that they shall be bound by each and every ruling, order and judgment obtained by any Beneficiary against LSCP, in respect of the Secured Obligations, whether or not the Pledgors are parties to, or have received notice of, the action or proceeding in which such ruling, order or judgment is issued and rendered.

 

(f)            The Pledgors represent and warrant that they have established adequate means of obtaining from LSCP, on a continuing basis, financial and other information pertaining to the business, operations and condition (financial and otherwise) of such entity, and now are and hereafter will be completely familiar with such business, operations, condition and properties.

 

(g)           The Pledgors hereby acknowledge and warrant that they are familiar with the terms of this Pledge Agreement, the Senior Finance Documents, all other Security Documents and all other agreements evidencing the Secured Obligations and that they have derived or expect to derive a financial advantage from each Series of Senior Liabilities or other extension of credit and from each and every renewal, extension, release of Collateral, or other relinquishment of legal rights made or granted or to be made or granted by the

 

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Beneficiaries to the Borrowers, LSCP or any of the other Obligors in connection with the Secured Obligations.

 

(h)           The Pledgors warrant and agree that each of the waivers set forth in this Pledge Agreement is made with full knowledge of its significance and consequences and that, under the circumstances, all such waivers are reasonable and not contrary to public policy or applicable law.  If any such waiver is determined to be contrary to any public policy or applicable law, such waiver shall be effective to the maximum extent permitted by such public policy or applicable law.

 

(i)            Notwithstanding anything to the contrary contained herein or in any other agreement or instrument relating to the Secured Obligations, the Pledgors shall not be personally liable to the Security Trustee or the Beneficiaries for the satisfaction of the Secured Obligations, and the Security Trustee, on behalf of the Beneficiaries, shall look solely to the Pledged Collateral with respect to such satisfaction from Pledgors; provided that the foregoing shall not (i) constitute a waiver, release or discharge of any of the indebtedness evidenced by any Senior Finance Document, but the same shall continue until fully paid, discharged, observed or performed or (ii) in any way limit or restrict any right of the Security Trustee or the Beneficiaries to foreclose the liens and security interests of the Security Documents or otherwise realize upon any collateral assigned or pledged to the Security Trustee or the Beneficiaries in connection with the transactions contemplated hereby or thereby or (iii) constitute a waiver or limitation by the Security Trustee or the Beneficiaries of any claim against Pledgors for any claim in the nature of fraud or deceit or willful misconduct arising under or in connection with this Pledge Agreement.

 

14.          INDEMNITY

 

Each Pledgor jointly and severally agrees (i) to indemnify, reimburse and hold harmless the Security Trustee and its respective successors, assigns, employees, agents and affiliates (individually an “Indemnitee”, and an collectively, the “Indemnities”) from and against any and all obligations, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation liabilities for penalties) of whatsoever kind or nature, and (ii) to reimburse each Indemnitee for all reasonable costs, expenses and disbursements, including reasonable attorneys’ fees and expenses, in each case arising out of or resulting from this Pledge Agreement or the exercise by any Indemnitee of any right or remedy granted to it hereunder or under any other Security Document (but excluding any obligation, damages, injuries, penalties, claims, demands, losses, judgments and liabilities (including, without limitation, liabilities for penalties) or expenses of whatsoever kind or nature to the extent incurred or arising by reason of gross negligence or wilful misconduct of such Indemnitee (as determined by a court of competent jurisdiction in a final and non-appealable decision)).  In no event shall the Security Trustee hereunder be liable, in the absence of gross negligence or wilful misconduct on its part (as determined by a court of competent jurisdiction in a final and non-appealable decision), of or any matter or thing in connection with this Pledge Agreement other than to account for monies or other property actually received by it in accordance with the terms hereof.  If and to the extent that the obligation of any Pledgor under this

 

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Section 14 are unenforceable for any reason, such Pledgor hereby agrees to make the maximum contribution to the payment and satisfaction of such obligations which is permissible under applicable law.  The indemnity obligations of each Pledgor contained in this Section 14 shall continue in full force and effect notwithstanding the full payment and fulfillment of all the obligations under the Senior Finance Documents and notwithstanding the discharge thereof.

 

15.          ROLE OF SECURITY TRUSTEE

 

Each Pledgor and the Security Trustee hereby acknowledge that the covenants of each Pledgor contained in this Pledge Agreement and the security and other rights, titles and interests constituted by this Pledge Agreement and all other moneys, property and assets paid to the Security Trustee or held by the Security Trustee or received or recovered by the Security Trustee pursuant to or in connection with this Pledge Agreement are held by the Security Trustee subject to and on the terms of the trusts declared by the Security Trust Agreement.

 

16.          SEVERABILITY

 

Any provision of this Pledge Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

17.          CONTINUED EFFECTIVENESS

 

Any release, discharge or settlement between one or more of the Pledgors and the Security Trustee or any of the other Beneficiaries shall be conditional upon no security, disposition or payment to the Security Trustee or any of the other Beneficiaries by any of the Obligors or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled, the Security Trustee and the other Beneficiaries shall be entitled to enforce this Pledge Agreement subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.  The Security Trustee shall be entitled to retain this security after as well as before the payment, discharge or satisfaction of all moneys, obligations and liabilities that are or may become due, owing or incurred to the Security Trustee and the other Beneficiaries from any of the Obligors for such period as the Security Trustee may reasonably determine being not longer than 13 months following the date of payment, discharge or satisfaction of the Secured Obligations in full.

 

18.          CUMULATIVE REMEDIES

 

The rights and remedies herein provided are cumulative and may be exercised singly or concurrently, and are not exclusive of any rights or remedies provided by law.

 

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19.          WAIVERS, AMENDMENTS

 

None of the terms or provisions of this Pledge Agreement may be altered, modified or amended except by an instrument in writing, duly executed by the Security Trustee and the Pledgors.  No waiver of any provision hereof or consent to any departure from the terms hereof shall be effective unless the same shall be in writing and duly executed by the Security Trustee.  Any such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.  A waiver by the Security Trustee of any right or remedy hereunder on any occasion shall not be construed as a bar to any right or remedy which the Security Trustee would otherwise have on any future occasion.  No failure to exercise nor any delay in exercising on the part of the Security Trustee, any right, power or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

20.          WAIVER AND CONSENT UNDER PARTNERSHIP AGREEMENT

 

The Pledgors hereby represent that they constitute all of the partners of the Partnership.  The Pledgors, constituting all of the partners of the Partnership, each hereby waives the application of the provisions of Section 10 of the LSCP Partnership Agreement that otherwise would apply to, and hereby consents to, the assignment, transfer or pledge of any Pledgor’s Partnership Interest in the Partnership to the Security Trustee, for the benefit of the Beneficiaries, now or in the future, pursuant to the provisions of this Pledge Agreement. Further, each of the Pledgors hereby ratifies and approves any similar assignments, transfers or pledges of the Partnership Interests of the other Pledgors occurring prior to the date hereof.

 

21.          SUCCESSORS AND ASSIGNS

 

(a)           Subject to the restrictions on transfers by the Pledgors hereunder, this Pledge Agreement and all obligations of the Pledgors hereunder shall be binding upon the successors and assigns of the Pledgors, and shall inure to the benefit of the Security Trustee, the Beneficiaries and their respective successors and assigns.

 

(b)           It is hereby understood and agreed that any party required to become a party to this Pledge Agreement after the date hereof pursuant to the requirements of the Senior Finance Documents, shall become a Pledgor hereunder by

 

(i)            executing a Partnership Interest Accession Agreement in the form attached hereto as Schedule 13,

 

(ii)           delivering supplements to the schedules attached hereto as are necessary to cause such schedules to be complete and accurate with respect to each additional Pledgor on such date; and

 

(iii)          taking all actions specified in this Pledge Agreement as would have been taken by such Pledgor had it been an original party to the Pledge Agreement, in each case with all documents required above to be delivered to the Pledge and with all documents and actions required above to be taken to the reasonable satisfaction of the Pledge.

 

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22.          GOVERNING LAW

 

This Pledge Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the State of Colorado applicable to agreements made and to be performed entirely within such State.  The Pledgors hereby irrevocably consent to the jurisdiction of any of the courts designated in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement) in connection with any action or proceeding arising out of or relating to this Pledge Agreement.  In any such action or proceeding, each Pledgor waives personal service of any summons, complaint or other process and agrees that the service thereof may be made by personal delivery or by certified or registered mail directed to each Pledgor at its address set forth herein.  Nothing in this section shall affect the right of the Security Trustee or the Beneficiaries to serve legal process in any other manner by law or affect the right of the Security Trustee or the Beneficiaries to bring any action or proceeding against any Pledgor or his or its property in the courts of any other jurisdiction.  The Pledgors irrevocably waive any objection they may have now or hereafter to the laying of venue of any action or proceeding in any court or jurisdiction referred to in clause 48.1 of the Senior Facilities Agreement (or, upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement), or that any action or proceeding in any such court or jurisdiction has been brought in an inconvenient forum.

 

23.          NOTICES

 

All notices, requests, demands and other communications required or permitted to be given hereunder shall be in writing and shall be personally served or sent by registered, certified or overnight mail, postage prepaid, or by telegraph, telecopy or telex and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made when received (with such receipt acknowledged by the recipient, in the case of a telecopy).  All such notices shall be addressed as follows, or to such other address as may be hereafter notified in writing to the respective parties hereto:

 

If to the Security Trustee:

 

Winchester House

1 Great Winchester Street

London EC2N 2DB

England

 

Attention:

Syndicated Loans TSS / Nicola Dawes / Rajeer Thakeeria

Telephone:

0207 547 5905

Facsimile:

0207 547 6419

 

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If to a Pledgor, addressed to such Pledgor at:

 

c/o Virgin Media Investment Holdings Limited

160 Great Portland St

London W1W 5QA

England

 

Attention:

Group Legal Director

Facsimile:

020 7299 6000

 

With a copy to:

 

Attention:

Group General Counsel

Facsimile:

020 7299 5495

 

24.          TERMINATION

 

This Pledge Agreement, and the pledges, assignments, and encumbrances created or granted hereby, shall terminate when (a) all of the Secured Obligations shall have been fully paid, satisfied and performed, and (b) the Commitments have terminated, at which time the Security Trustee shall execute appropriate releases, acknowledgments, assignments or other documents necessary to secure the release and reassignment of such of the Pledged Collateral as shall not have been sold or otherwise applied by the Security Trustee pursuant to the terms hereof, and deliver to the Pledgors (or their respective designees) all Pledged Collateral and related documents then in the custody or possession of the Security Trustee.  Any such reassignment shall be without recourse upon, or warranty whatsoever by, the Security Trustee, and at the cost and expense of the Pledgors.

 

25.          COUNTERPARTS

 

This Pledge Agreement may be executed in two or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

26.          AUTHORIZATION TO FILE

 

With respect to the foregoing in this Pledge Agreement and the grant of the security interest hereunder, each Pledgor hereby authorizes the Security Trustee to file one or more financing statements or continuation statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of any Pledgor where permitted by law.  Each Pledgor agrees to furnish the Security Trustee, promptly upon reasonable request by the Security Trustee, with any information that is required by the Security Trustee in order to complete such financing statements or continuation statements, or amendments thereto.

 

27.          GENERAL REPRESENTATIONS AND WARRANTIES BY EACH PLEDGOR

 

Each Pledgor hereby represents and warrants to the Security Trustee that:

 

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(a)           Schedule 27(a) attached hereto sets forth an accurate and complete list identifying the following: (i) the full legal name of each Pledgor as it appears in official filings in the state or jurisdiction of its incorporation, organization or formation, as the case may be; (ii) the type of entity of such Pledgor; (iii) such Pledgor’s state of incorporation, organization or formation, as the case may be; (iv) the organizational identification number issued by such Pledgor’s state of incorporation, organization or formation, or a statement that no such number has been issued; (v) the location of such Pledgor’s chief executive office ; and (vi) the jurisdiction(s) of such Pledgor’s place(s) of business.  Each Pledgor has only one state of incorporation, organization or formation, as the case may be;

 

(b)           it has not done in the last five (5) years, and does not do, business under any other name (including any trade name or fictitious business name) except for its respective legal name as set forth on Schedule 27(a);

 

(c)           it has not changed its name, jurisdiction of incorporation, organization or formation, the location of its chief executive office or place(s) of business, or its corporate or partnership structure in any way (e.g., by merger, consolidation, change in corporate or partnership form or otherwise), in each case within the past five (5) years;

 

(d)           it is the legal, beneficial and record owner of, and has good and marketable title to all of the Pledged Collateral upon which it purports to grant a lien hereunder, free and clear of any lien except for the Permitted Liens.  No effective financing statement or other instrument similar in effect covering all or any part of the Pledged Collateral is on file in any recording office, except as set forth on Schedule 27(d) or such as may have been filed in favor of the Security Trustee relating to this Pledge Agreement and with respect to the Permitted Liens.  Such liens set forth on Schedule 27(d) will be terminated as of the date of this Pledge Agreement;

 

(e)           it has full power, authority and legal right to pledge all the Pledged Collateral pledged by it pursuant to this Pledge Agreement;

 

(f)            this Pledge Agreement has been duly authorized, executed and delivered by such Pledgor and constitutes a legal, valid and binding obligation of such Pledgor enforceable against such Pledgor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and by general equitable principles (regardless of whether enforcement is sought in equity or at law);

 

(g)           except to the extent already obtained or made, no consent of any other party (including, without limitation, any stockholder, partner, member or creditor of such Pledgor) and no consent, license, permit, approval or authorization of, exemption by, notice or report to, or registration, filing or declaration with, any governmental authority is required to be obtained by such Pledgor in connection with (a) the execution, delivery or performance of this Pledge Agreement by such Pledgor, (b) the validity or enforceability of this Pledge Agreement against such Pledgor (except as set forth in clause (a) above), (c) 

 

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the perfection or enforceability of the Security Trustee’s security interest in such Pledgor’s Pledged Collateral or (d) except for compliance with or as may be required by applicable securities laws, the exercise by the Security Trustee of any of its rights or remedies provided herein;

 

(h)           neither the execution, delivery or performance by such Pledgor of this Pledge Agreement or any other Senior Finance Document, nor compliance by it with the terms and provisions hereof and thereof nor the consummation of the transactions contemplated therein: (i) will contravene any provision of any applicable law, statute, rule or regulation, or any applicable order, writ, injunction or decree of any court, arbitrator or governmental instrumentality, domestic or foreign, applicable to such Pledgor; (ii) will conflict or be inconsistent with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any lien (except pursuant to the Security Documents) upon any of the properties or assets of such Pledgor pursuant to the terms of any indenture, lease, mortgage, deed of trust, credit agreement, loan agreement or any other material agreement, contract or other instrument to which such Pledgor is a party or is otherwise bound, or by which it or any of its properties or assets is bound or to which it may be subject; or (iii) will violate any provision of the certificate of partnership or partnership agreement, (or equivalent organizational documents), as the case may be, of such Pledgor;

 

(i)            as of the date hereof, after giving effect to the transactions contemplated by the Senior Finance Documents, such Pledgor is Solvent, and will not cease to be Solvent as a result of the obligations and transactions undertaken by such Pledgor pursuant to, or as contemplated by, the Senior Finance Documents.  As of the date hereof, there is no proceeding pending, or to the knowledge of the undersigned, threatened, challenging the Solvency of such Pledgor or seeking to dissolve or liquidate such Pledgor.

 

For the purposes of the foregoing, “Solvent” or “Solvency” means, with respect to any person, that as of the date of determination both (A) (i) the then fair saleable value of the property of such person is (y) greater than the total amount of liabilities (including contingent liabilities) of such person and (z) not less than the amount that will be required to pay the probable liabilities on such person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such person; (ii) such person’s capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due; and (B) such person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For the purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

 

21



 

IN WITNESS WHEREOF, the undersigned have caused this Pledge Agreement to be executed and delivered as of the day and year first above written.

 

 

UNITED CABLE (LONDON SOUTH) LIMITED PARTNERSHIP, a Colorado general partnership

 

 

 

By Its General Partners:

 

 

 

 

THESEUS NO. 1 LIMITED

 

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

 

THESEUS NO. 2 LIMITED

 

 

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

22



 

 

CRYSTAL PALACE RADIO LIMITED

 

 

 

 

 

By Its Directors:

 

 

 

 

VIRGIN MEDIA DIRECTORS LIMITED

 

 

 

 

 

 

By:

/s/ ROBERT MACKENZIE

 

 

 

Robert Mackenzie, Director

 

 

 

 

 

VIRGIN MEDIA SECRETARIES LIMITED

 

 

 

 

 

 

 

By:

/s/ ROBERT GALE

 

 

 

Robert Gale, Director

 

 

 

DEUTSCHE BANK AG, LONDON BRANCH, as Security Trustee

 

 

 

 

 

 

 

By:

/s/ N. DAWES

 

 

Title:   V.P.

 

 

 

 

 

 

 

By:

/s/ V. MAYELL

 

 

Title:   A.V.P.

 

23



 

SCHEDULE 4(b)
EXISTING PLEDGED COLLATERAL

 

None.

 

1



 

SCHEDULE 5(a)
PARTNERSHIP INTERESTS

 

(1)
PARTNERSHIP
NAME

 

(2)
PRINCIPAL PLACE
OF BUSINESS

 

(3)
PARTNERS

 

(4)
TYPE

London South Cable Partnership

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

97.75% - United Cable (London South) Limited Partnership
2.25% - Crystal Palace Radio Limited

 

Colorado General

 

1



 

SCHEDULE 5(b)
OTHER PARTNERSHIP INTERESTS

 

PARTNERSHIP
NAME

 

PRINCIPAL PLACE
OF BUSINESS

 

PARTNERS

 

TYPE

N/A

 

N/A

 

N/A

 

N/A

 

1



 

SCHEDULE 13
PARTNERSHIP INTEREST ACCESSION AGREEMENT

 

(London South Cable Partnership)

 

The undersigned, desiring to become a partner of London South Cable Partnership, a Colorado general partnership (the “Partnership”) formed pursuant to an Amended and Restated Partnership Agreement dated 13 September 1989 (the “Partnership Agreement”) hereby agrees to, and by its execution hereof does, become a party to (i) the Partnership Agreement, as a partner thereunder, and (ii) that certain Pledge and Security Agreement (as amended from time to time, the “Pledge Agreement”), dated                          , 20    , initially entered into among UNITED CABLE (LONDON SOUTH) LIMITED PARTNERSHIP and CRYSTAL PALACE RADIO LIMITED, and Deutsche Bank AG, London Branch as Security Trustee for the benefit of the Beneficiaries described therein.  Capitalized terms used herein shall have the respective meanings set forth in the Pledge Agreement.  By its execution hereof, the undersigned agrees that, from and after the date hereof, the undersigned shall be, and be considered for all purposes, (i) a “Partner” under the Partnership Agreement and (ii) a “Pledgor” under the Pledge Agreement, as if referred to directly therein as such as a party thereto, entitled to all of the rights and subject to all of the liabilities and obligations of a Partner or Pledgor, respectively, thereunder.

 

As a Pledgor under the Pledge Agreement, the undersigned, as security and collateral for the due and punctual payment and performance of the Secured Obligations (as defined in the Pledge Agreement), hereby assigns, transfers and pledges to the Security Trustee, for the benefit of the Beneficiaries, a lien on and security interest in and to the undersigned’s right, title and interest to the Pledged Collateral (as defined in the Pledge Agreement).  As a Pledgor under the Pledge Agreement, the undersigned represents and warrants that the Pledged Collateral is free and clear of all liens other than the Permitted Liens (as defined in the Pledge Agreement).

 

This instrument, when executed by the undersigned, shall further constitute the undersigned’s counterpart signature page to the Partnership Agreement and the Pledge Agreement.

 

 

Dated this              day of                     ,             .

 

 

[Name of Transferee]

 

 

 

By:

 

 

Name:

 

Title:

 

 

 

Address for Notice:

 

1



 

SCHEDULE 27(a)

 

Full Legal Name

 

Type of Entity

 

State of
Incorporation,
Organization or
Formation

 

Organizational
Identification
Number

 

Location of Chief
Executive Office

 

Jurisdiction(s) of
place(s) of business

United Cable (London South) Limited Partnership

 

General Partnership

 

Colorado

 

None

 

2930 East Third Avenue
Denver, Colorado
80206
USA

 

Colorado

Crystal Palace Radio Limited

 

Private Limited Company

 

England & Wales

 

01459745

 

160 Great Portland Street
LONDON
W1W 5QA
UNITED KINGDOM

 

England & Wales

 

1



 

SCHEDULE 27(d)
CURRENT UCC FILINGS

 

None.

 

1




Exhibit 4.45

 

EXECUTION VERSION

 

AMENDMENT AND RESTATEMENT AGREEMENT

 

dated January 19, 2010

 

 

BETWEEN

 

 

Future Entertainment S.à r.l.

 

as the Pledgor

 

 

AND

 

Deutsche Bank AG, London Branch

 

as the Pledgee

 

 

RELATING TO AN ACCOUNTS PLEDGE AGREEMENT DATED MAY 15, 2009,

AS AMENDED AND RESTATED ON OCTOBER 29, 2009

 

 

 

18-20, rue Edward Steichen

L - 2540 LUXEMBOURG

 



 

THIS AMENDMENT AND RESTATEMENT AGREEMENT IS DATED JANUARY 19, 2010 AND IS MADE BETWEEN:

 

(1)           Future Entertainment S.à r.l., a Luxembourg private limited liability company (société à responsabilité limitée), with registered office at Media Center Betzdorf, 11 rue Pierre Werner, L-6832 Betzdorf, Grand Duchy of Luxembourg, registered with the Luxembourg Register of Commerce and Companies under number B 145.414 and having a share capital of GBP 400,000 (the Pledgor);

 

AND

 

(2)           Deutsche Bank AG, London Branch, acting as security trustee for the benefit of the Beneficiaries (as defined in the Amended and Restated Accounts Pledge Agreement (as defined below)) (the Pledgee).

 

The Pledgor and the Pledgee shall each be referred to as a Party and, collectively, the Parties.

 

WHEREAS:

 

(A)          Pursuant to a senior facilities agreement dated March 3, 2006 (as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 and as amended, restated, supplemented or novated from time to time) between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, the Pledgee, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, the Pledgee as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Pledgee as Original L/C Bank and the persons named therein as Lenders (the Senior Facilities Agreement), the Lenders have made available to the Borrowers (as defined therein) certain facilities for the purposes referred to in paragraphs (a) to (f) of Clause 2.4 thereof.

 

(B)           In order to secure the Borrowers’ obligations under the Senior Facilities Agreement, the Pledgor agreed for the benefit of the Pledgee to grant a first ranking security interest (gage de premier rang) over the Pledged Assets (as defined in the Amended and Restated Accounts Pledge Agreement (as defined below)) pursuant to an accounts pledge agreement entered into by and between the Pledgor and the Pledgee dated May 15, 2009, as amended and restated on October 29, 2009 (the Accounts Pledge Agreement).

 

(C)           The Parties now intend to amend and restate the Account Pledge Agreement by entry into this Agreement, which the Pledgor declares to be in its best corporate interest.

 



 

IT IS AGREED as follows:

 

1.           DEFINITIONS AND INTERPRETATION

 

1.1         Definitions

 

In this Agreement:

 

Amended and Restated Accounts Pledge Agreement means the Accounts Pledge Agreement, as amended and restated in the form set out in Schedule 1 (Form of Amended and Restated Accounts Pledge Agreement).

 

1.2         Incorporation of defined terms

 

Unless a contrary indication appears, terms defined in the Amended and Restated Accounts Pledge Agreement and used in this Agreement have the meaning ascribed to them in the Amended and Restated Accounts Pledge Agreement.

 

1.3         Clauses

 

In this Agreement any reference to a “Clause” or a “Schedule” is, unless the context otherwise requires, a reference to a Clause of or a Schedule to this Agreement.

 

1.4         Designation

 

This Agreement is to be considered as a Senior Finance Document for the purpose of the Group Intercreditor Deed.

 

2.           REPRESENTATIONS

 

The Pledgor repeats the representations and warranties contained in Clause 6 of the Amended and Restated Accounts Pledge Agreement, by reference to the facts and circumstances existing on the date of this Agreement. However, references to “this Agreement” shall instead refer to the “Amended and Restated Accounts Pledge Agreement” and/or this Agreement, where relevant.

 



 

3.           AMENDMENT

 

3.1         Amendment

 

With effect from the date of this Agreement, the Accounts Pledge Agreement shall be amended and restated in the form set out in Annex 1 (Form of Amended and Restated Accounts Pledge Agreement).

 

3.2         Continuing obligations and security interests

 

The provisions of the Amended and Restated Accounts Pledge Agreements and the first ranking security interest (gage de premier rang) initially created under the Accounts Pledge Agreement shall continue in full force and effect and shall be preserved for the benefit of the Pledgee.

 

The first ranking security interest (gage de premier rang) created initially under the Accounts Pledge Agreements will be maintained and preserved for the benefit of the Pledgee and it will be held and administered by the Pledgee in accordance with the Amended and Restated Accounts Pledge Agreement. Neither the obligations of the Pledgor and the Luxembourg Account Bank contained in the Accounts Pledge Agreement nor the rights, powers and remedies conferred upon the Pledgee or by law, nor the first ranking security interest (gage de premier rang) created thereby shall be discharged, released, impaired or otherwise affected by this Agreement.

 

The Pledgor hereby confirms that the first ranking security interest (gage de premier rang) created under the Amended and Restated Accounts Pledge Agreements shall secure and remain to secure the Secured Obligations.

 

4.           NOTIFICATION

 

The Pledgor shall notify within 1 (one) Business Day after the date of this Agreement to the Luxembourg Account Bank (as defined in the Amended and Restated Accounts Pledge Agreement) in accordance with article 5(3) of the Luxembourg law of August 5, 2005 on financial collateral arrangements, such notice to be in the form set out in Annex 1 (the Notice of Amendment) and to be delivered to the Luxembourg Account Bank together with a copy of this Agreement attaching the Amended and Restated Accounts Pledge Agreement, and shall instruct the Luxembourg Account Bank to sign the acknowledgment of the Notice of Amendment, to be in the form as set out in Annex 2, within 3 (three) Business Days after the date

 



 

of this Agreement.

 

5.           COUNTERPARTS

 

This Agreement 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 Agreement.

 

6.           GOVERNING LAW AND JURISDICTION

 

6.1         This Agreement shall be governed by, and be construed in accordance with, Luxembourg law.

 

6.2         With respect to any proceedings arising in connection with this Agreement, the Pledgor irrevocably submits to the jurisdiction of the Luxembourg courts, notwithstanding the right of the Pledgee and each Beneficiary to take proceedings in any other jurisdiction.

 

[signature page to follow]

 



 

IN WITNESS THEREOF the Parties hereto have executed this Agreement in one or multiple original counterparts, all of which together evidence the same Agreement, on the day and year first written above.

 

 

The Pledgor

 

Future Entertainment S.à r.l.

 

 

 

 

 

 /s/ EMMA JONES

 

Represented by: Emma Jones

 

Title:  General Manager

 

 

 

 

 

The Pledgee

 

Deutsche Bank AG, London Branch

 

as Pledgee for the benefit of the Beneficiaries

 

 

 

 

 

 /s/ N. DAWES

 

Represented by:   N. Dawes

 

Title:  V.P.

 

 

 

 

 

 /s/ V. MAYELL

 

Represented by:   V. Mayell

 

Title:  A.V.P.

 

 

 



 

ANNEX 1

 

FORM OF AMENDED AND RESTATED ACCOUNTS PLEDGE AGREEMENT

 



 

ACCOUNTS PLEDGE AGREEMENT

 

Dated May 15, as amended and restated on October 29, 2009 and on January 19, 2010

 

BETWEEN

 

 

Future Entertainment S.à.r.l

 

As the Pledgor

 

 

AND

 

 

Deutsche Bank AG, London Branch

 

As the Pledgee

 

 

 

18-20 rue Edward Steichen

L - 2540 LUXEMBOURG

 



 

THIS ACCOUNTS PLEDGE AGREEMENT IS DATED MAY 15, 2009, AS AMENDED AND RESTATED ON OCTOBER 29, 2009 AND JANUARY 19, 2010 (the Agreement) AND IS MADE BETWEEN:

 

(1)           Future Entertainment S.à r.l., a Luxembourg private limited liability company (société à responsabilité limitée), having its registered office at Media Center Betzdorf, 11 rue Pierre Werner, L-6832 Betzdorf, Grand Duchy of Luxembourg, registered with the Luxembourg Register of Commerce and Companies under number B 145.414 and with a share capital of GBP 400,000 (the Pledgor),

 

AND

 

(2)           Deutsche Bank AG, London Branch, acting as security trustee for the benefit of the Beneficiaries (as defined below) (the Pledgee).

 

The Pledgor and the Pledgee shall each be referred to as a Party and, collectively, the Parties.

 

WHEREAS:

 

(A)          Pursuant to a senior facilities agreement dated March 3, 2006 (as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 and as amended, restated, supplemented or novated from time to time) between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, the Pledgee, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, the Pledgee as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Pledgee as Original L/C Bank and the persons named therein as Lenders (the Senior Facilities Agreement), the Senior Lenders have made available to the Borrowers certain facilities for the purposes referred to in paragraphs (a) to (f) of Clause 2.4 thereof.

 

(B)          Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes (as defined in the Senior Secured Notes Indenture, as defined below) under the Senior Secured Notes Indenture(as defined below).

 

(C)          Pursuant to an accounts pledge agreement dated May 13, 2009 (the Former Agreement), the Parties have created a pledge over the Pledged Assets (as defined hereafter) and the Parties resolved to release the pledge created under the Former Agreement.

 

(D)          Pursuant to accession notices dated May 15, 2009, the Company acceded to the Senior Facilities Agreement as an Acceding Guarantor (as defined therein), the Group

 



 

Intercreditor Deed as an Obligor (as defined therein) and the Security Trust Agreement as an Obligor (as defined therein.

 

(E)           For the purpose of securing the Secured Oligations (as defined below), the Pledgor has pledged and granted to the Pledgee a first ranking security interest (gage de premier rang) over the Pledged Accounts by virtue of this Agreement.

 

IT IS AGREED as follows:

 

1.             DEFINITIONS

 

1.1.         Recitals

 

Recitals (A) to and including (E) above are an integral part of this Agreement.

 

1.2.         Definitions

 

Unless the context otherwise requires or unless otherwise defined in this Agreement, words and expressions defined in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Agreement:

 

Agreement means this first ranking accounts pledge agreement.

 

Beneficiaries means the First Beneficiary and the Second Beneficiaries.

 

Business Day means a day (other than a Saturday or Sunday) on which banks are open for general business in London and Luxembourg.

 

Enforcement Event means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the Pledgor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Default means each of:

 

(a)            a Senior Default; and

 

(b)           an event of default or termination event (however described) under any Hedging Agreement.

 

Group Intercreditor Deed means an intercreditor deed dated March 3, 2006, as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 between the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors.

 


 

Luxembourg Account Bank means RBS Global Banking (Luxembourg) S.A. (formerly ABN AMRO Bank (Luxembourg) S.A.), having its registered office at 46, Avenue J.F. Kennedy, L-1855 Luxembourg, Grand Duchy of Luxembourg.

 

Pledged Accounts means the bank accounts of the Pledgor opened with the Luxembourg Account Bank (including any sub-account, renewal, redesignation or replacement thereof), with Swift code [intentionally omitted] and numbers:

 

·                                           [intentionally omitted] (EUR)

·                                           [intentionally omitted]  (GBP)

·                                           [intentionally omitted]  (USD).

 

Pledged Assets means all the assets whether present or future, whether actual or contingent, which the Pledgor has or will have in the Pledged Accounts.

 

Pledge means the first ranking security interest (gage de premier rang) on the Pledged Assets constituted by this Agreement.

 

Relevant Facilities Agreement means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Rights of Recourse means all and any rights, actions or claims the Pledgor may have against any Obligor or any other person that has granted Security, including, in particular, the Pledgor’s right of recourse against such persons, or any of them, under the terms of article 2028 et seq. of the Luxembourg Civil Code (including, for the avoidance of doubt, any right of recourse prior to enforcement), or any right of recourse by way of subrogation or any other similar right, action or claim under any applicable law.

 

Secured Obligations means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                 in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder

 



 

(unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                that the Pledgee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement.

 

Security Period means the period beginning on the date of this Agreement and ending on the date upon which:

 

(a)                                 none of the Beneficiaries is under any obligation (whether actual or contingent) to make advances or provide other financial accommodation to the Obligors under any of the Senior Finance Documents; and

 

(b)                                all Secured Obligations have been unconditionally and irrevocably paid and discharged in full.

 

Security Trust Agreement means the security trust agreement dated March 3, 2006 and amended and restated on or about the date of this Agreement, between the Pledgee as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors.

 

Senior Secured Notes has the meaning given to the term “Notes” in the Senior Secured Notes Indenture.

 

Senior Secured Notes Documents means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes.

 

Senior Secured Notes Indenture means the indenture dated on or about the date of this Agreement governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time.

 

1.3.                             In this Agreement, any reference to (a) a Clause is, unless otherwise stated, a reference to a Clause hereof and (b) to any agreement (including this Agreement) is a reference to such agreement as amended, varied, modified or supplemented (however fundamentally) from time to time.

 



 

1.4.                             Clause headings are inserted for convenience of reference only and shall be ignored in construing this Agreement.

 

1.5.                              Words importing the singular shall include the plural and vice-versa.

 

1.6.                              Counterparts

 

This Agreement may be executed in any number of counterparts and by way of facsimile exchange of executed signature pages, all of which together shall constitute one and the same Agreement.

 

1.7.                              Group Intercreditor Deed

 

This Agreement should be read and construed subject to the terms of the Group Intercreditor Deed. In the event of any inconsistency between the terms of this Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.8.                              Secured Obligations

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)                                   all Liabilities under the Senior Facilities Agreement; and

 

(b)                                  all Liabilities under the Senior Secured Notes Documents.

 

2.                                       PLEDGE

 

2.1.                             The Pledgor hereby pledges in first rank, and the Pledgee accepts, the Pledged Assets as continuing first ranking security interest (gage de premier rang) in favour of the Pledgee for the prompt and complete payment when due and discharge of all Secured Obligations.

 

2.2.                             At any time prior to the occurrence of an Event of Default which is continuing, the Pledgor shall be entitled to receive, withdraw or otherwise transfer any credit balance in the ordinary course of trade from the Pledged Accounts (subject to the terms of any Senior Finance Documents), both before and after giving effect to the proposed transfer, until the Luxembourg Account Bank, with a copy to the Pledgor, has received notice of an Event of Default which is continuing (as set out in Schedule 3) (the Blocking Notice), duly confirmed by the Luxembourg Account Bank (as set out in Schedule 4).

 

2.3.                             Any new account(s) to be opened with the Luxembourg Account Bank, during the Security Period, shall be subject to a similar Pledge Notice (as defined below) from the Pledgor specifying the account number concerned and a similar Acknowledgment (as

 



 

defined below) from the Luxembourg Account Bank to be also sent to the Pledgee immediately after the date of the opening of such new account(s).

 

3.                                       EVENT OF DEFAULT

 

3.1.                             Upon the occurrence of an Event of Default which is continuing, the Pledgee shall be entitled to send a Blocking Notice to the Luxembourg Account Bank, with a copy to the Pledgor, and the Pledged Accounts shall be blocked and the Pledgee (or any person designated by the Pledgee) shall automatically become the Pledgor’s irrevocable proxy, so that the Pledgee, or its attorney, will, independently and without limitation, by giving the Blocking Notice, become solely entitled to freely operate the Pledged Accounts, to collect and receive payment of, and to dispose of the Pledged Assets, and any rights of the Pledgor over the Pledged Accounts shall be automatically terminated.

 

3.2.                             Upon the occurrence of an Event of Default which is continuing, the Pledgor shall not be entitled to receive, withdraw or otherwise transfer any credit balance from time to time in the Pledged Accounts.

 

4.                                       PERFECTION OF PLEDGE

 

4.1.                             In accordance with the Luxembourg law on financial collateral dated August 5, 2005 (the 2005 Law) for the perfection of the Pledge, the Pledgor has sent by fax and by registered letter a duly executed notice to the Luxembourg Account Bank, with a copy thereof to the Pledgee (the Pledge Notice) on May 15, 2009 (as set out in Schedule 1). The Pledgor has instructed the Luxembourg Account Bank to sign the acknowledgment of creation of the Pledge which has been delivered to the Pledgee on May 18, 2009 (as set out in Schedule 2) (the Acknowledgment).

 

4.2.                             Without prejudice to the above provisions, the Pledgor hereby irrevocably authorises and empowers the Pledgee to take or cause to be taken any formal steps to be taken by the Pledgor for the purpose of perfecting the present Pledge and, for the avoidance of doubt, the Pledgor hereby irrevocably undertakes to take any such steps if so requested in writing by the Pledgee.

 

5.                                       RIGHTS OF THE PLEDGEE

 

The Pledgee shall hold the Pledge to be created or given in its favour pursuant to this Agreement (upon trust for the benefit of the Beneficiaries) on the terms and subject to the conditions set out in the Group Intercreditor Deed and the Security Trust Agreement.

 

6.                                       REPRESENTATIONS AND WARRANTIES

 

6.1.                              The Pledgor hereby represents and warrants to the Pledgee that:

 

6.1.1.                     it is the sole owner of the Pledged Assets;

 



 

6.1.2.                    the Pledge, pursuant to this Agreement, creates a valid first ranking security interest (gage de premier rang) on the Pledged Assets in favour of the Pledgee acting for the benefit of the Beneficiaries in respect of all Secured Obligations and it is not subject to any other prior ranking or pari passu ranking security except for any mandatory privileges preferred under applicable law;

 

6.1.3.                    the terms on which the Pledged Accounts are maintained allow the Pledgor to pledge the Pledged Assets in accordance with the terms of this Agreement;

 

6.1.4.                    it is duly organised and validly existing under the laws of Luxembourg, it has, and will during the term of this Agreement have, its centre of main interests in Luxembourg and it has the corporate capacity, power and authority and legal right to own and operate its property, to hold and own all of its assets, including the Pledged Assets, and to conduct the business in which it is currently engaged;

 

6.1.5.                    this Agreement constitutes its legal, valid, binding and enforceable obligations and operates a valid and enforceable pledge over the Pledged Assets, in accordance with its terms;

 

6.1.6.                    there are no agreements or arrangements (including any restrictions on transfer or rights of pre-emption) affecting the Pledged Assets in any way or which would or might in any way fetter or otherwise prejudice the rights of the Pledgor under the Pledged Assets or the rights of the Pledgee acting for the benefit of the Beneficiaries under this Agreement;

 

6.1.7.                    no security (other than the present Pledge) exists on, over or with respect to the Pledged Assets;

 

6.1.8.                    it shall act in good faith to maintain the rights of the Pledgee hereunder as valid and enforceable rights, and in particular shall not take any steps nor do anything which would have a material adverse effect on the existence of the Pledge created hereunder or the value thereof;

 

6.1.9.                    it has the corporate capacity, power and authority and the legal right to enter into, execute and deliver, and to perform its obligations expressed to be assumed by it under this Agreement, and has taken all necessary action, including corporate action, and has obtained all necessary authorisations to enable it to enter into and to authorise the execution, delivery and performance of this Agreement, and this Agreement has been duly executed by it;

 

6.1.10.              the execution and delivery of, and performance by the Pledgor of its obligations under this Agreement and any other document related thereto will not:

 

(a)                                  result in a breach of any provision of the constitutive or governing documents of the Pledgor;

 



 

(b)                                 result in a breach of, or constitute an event of default under, any contract, undertaking, covenant or instrument to which the Pledgor is a party or by which the Pledgor is bound;

 

(c)                                  result in a breach of any law, decree, regulation, order, judgment or decree of any court or governmental agency or an arbitration award to which the Pledgor is a party or by which the Pledgor is bound; or

 

(d)                                 require the consent of the shareholders of the Pledgor or any other person or, if any such consent is required, it has been obtained and is in full force and effect;

 

6.1.11.                it is not subject to any personal insolvency procedure;

 

6.1.12.              no order has been made and no resolution has been passed for the winding-up, bankruptcy, admission to the regime of suspension of payment, controlled management, a composition with creditors of, or by, the Pledgor or similar laws affecting the rights of creditors generally or for a liquidator, curateur or commissaire or like official to be appointed in respect of the Pledgor and no petition has been presented and no meeting has been convened for any such purpose;

 

6.1.13.              no receiver has been appointed in respect of the Pledgor or all or any of its assets including the Pledged Assets and none of their respective assets is the subject of an arrest;

 

6.1.14.              no litigation is pending or to the best of its knowledge, threatened against it that, if adversely determined, would affect (i) the execution, delivery or enforceability of this Agreement, or (ii) its ability to perform any of its obligations hereunder;

 

6.1.15.              no event substantially similar in law to any of the Clauses 6.1.11, 6.1.12, 6.1.13 and 6.1.14 of this Agreement has occurred outside Luxembourg with respect to the Pledgor; and

 

6.1.16.              no guarantee, loan capital, borrowed money or interest is overdue for payment by the Pledgor, and no other obligation or indebtedness is outstanding which is overdue for performance or payment where such fact could have a material adverse effect on the Pledgor or its business.

 

6.2.                             The representations and warranties set out in Clause 6.1 are deemed to be repeated by the Pledgor by reference to the facts and circumstances then existing on the date of this Agreement on which all or any of the representations and warranties contained in Clause 21 of the Senior Facilities Agreement, or upon repayment in full and cancellation of all commitments thereunder such equivalent provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 



 

7.                                       COVENANTS

 

The Pledgor hereby covenants that, for as long as this Agreement will be in force:

 

7.1.                             it will pay or discharge the Secured Obligations on the due date therefore in the manner provided in the Senior Finance Documents;

 

7.2.                             it will promptly deposit all amounts received by it into the Pledged Accounts;

 

7.3.                             it will immediately take any measures, accomplish any formalities and, generally, or otherwise do all that is necessary at its own cost to permit the exercise, at any time, by the Pledgee of any rights, actions and privileges of the Beneficiaries pursuant to applicable law and this Agreement;

 

7.4.                             it will as soon as practicable inform the Pledgee of the occurrence of any event which may render any of the representations and warranties set out in Clause 6 of this Agreement above inaccurate;

 

7.5.                             without prejudice to the terms of the Senior Finance Documents other than this Agreement to which it is a party and subject to the prior written consent of the Pledgee, the Pledgor shall not create, grant or permit to exist (a) any security interest over (save for a second ranking security interest in favour of the Luxembourg Account Bank) or (b) any restriction on the ability to transfer or enforce or (c) assign or dispose of all or any part of the Pledged Assets; and

 

7.6.                             it shall cooperate with the Pledgee and sign or cause to be signed all such further documents and take all such further action as the Pledgee may from time to time reasonably request to perfect and protect this Pledge and to carry out the provisions and purposes of this Agreement.

 

8.                                       RELEASE OF PLEDGE

 

Upon (i) the expiry of the Security Period or (ii) the release or termination of the Pledgor’s obligations under the Senior Finance Documents in accordance with the terms thereof, the Pledgee shall, at the written request and at the exclusive cost of the Pledgor, execute and do all such deeds, acts and things as may be necessary to release the Pledge and (to the extent necessary) discharge the Pledgor from its liability and the first ranking security interest (gage de premier rang) created under this Agreement. However, if after the release of the first ranking security interest (gage de premier rang) created hereunder, the payment of any Secured Obligation is annulled by a court or otherwise, the Pledgor shall grant a new first ranking security interest (gage de premier rang) on identical terms over the Pledged Assets until such Secured Obligation is paid in full and the Security Period shall be reinstated and extended until such time.

 



 

9.                                       RIGHTS OF RECOURSE

 

9.1.                             The Pledgor hereby waives and formally undertakes not to exercise the Rights of Recourse or any other similar rights in any manner (including for the avoidance of doubt, by way of provisional measures such as provisional attachment (saisie-arrêt conservatoire)), by way of set-off or in any other way, nor to take any action or do anything in relation to such Rights of Recourse or other similar rights, except as otherwise permitted in writing by the Pledgee.

 

9.2.                             This Clause 9 shall remain in full force during the Security Period and shall, to the extent required, survive any termination or discharge of this Agreement.

 

10                                    POWER OF ATTORNEY

 

Upon the occurrence of an Enforcement Event, the Pledgor irrevocably and unconditionally appoints the Pledgee to be its attorney and in its name and on its behalf to execute, deliver and perfect all documents and do all things that the Pledgee may consider to be requisite for (a) carrying out any obligation imposed on the Pledgor under this Agreement or (b) exercising any of the rights conferred to the Pledgee under this Agreement or by law, it being understood that the enforcement of the Pledge over the Pledged Assets must be carried out as described in Clause 11 of this Agreement. The Pledgor shall ratify and confirm all things done and all documents executed by the Pledgee in the exercise of this power of attorney. The Pledgor shall at its own reasonable expense promptly and duly execute and do all such assurances, acts and things as the Pledgee may require as being necessary for perfecting or protecting all or any of the rights, powers, authorities and discretions which are for the time being exercisable by the Pledgee under this Agreement in relation to the Pledged Assets, for facilitating the enforcement of any such rights or any part thereof and in the exercise of all powers, authorities and discretions vested in the Pledgee. To that effect, the Pledgor shall in particular execute all documents or instruments and give all notices, orders and directions and make all registrations which the Pledgee may reasonably think expedient.

 

11                                    ENFORCEMENT OF PLEDGE

 

11.1.                       Upon the occurrence of an Enforcement Event the Pledgee shall, immediately and without further notice (mise en demeure), be entitled to enforce the Pledge and exercise all its rights and powers by virtue of this Agreement and, in particular, the Pledgee shall be entitled to:

 

11.1.1.              appropriate the Pledged Assets, as determined by an independent external auditor (réviseur d’entreprises) registered with the Institut Luxembourgeois des Réviseurs d’Entreprises, designated by the Pledgee;

 

11.1.2.              sell the Pledged Assets in a private sale on arms’ length commercial terms (conditions commerciales normales), in a sale organised by a stock exchange

 



 

or in a public sale (organised at the discretion of the Pledgee and which, for the avoidance of doubt, does not need to be made by or within a stock exchange);

 

11.1.3.              request a judicial decision that the Pledged Assets shall be attributed to the Pledgee in discharge of the Secured Obligations following a valuation of the Pledged Assets made by a court-appointed expert;

 

11.1.4.              proceed to a set-off between the Secured Obligations and the Pledged Assets valuated at their fair market value, as determined by an independent external auditor (réviseur d’entreprises) registered with the Institut Luxembourgeois des Réviseurs d’Entreprises, designated by the Pledgee;

 

11.1.5.              realise or, as the case may be, appropriate the Pledged Assets in the most favourable manner provided by the 2005 Law; and

 

11.1.6.              request the Luxembourg Account Bank to make payment to the Pledgee of the Pledged Assets standing to the credit of the Pledged Accounts into such bank account as designated by the Pledgee.

 

11.2.                       Any monies received by the Pledgee upon enforcement of the Pledge in accordance with the provisions of this Clause 11 shall be applied, after the discharge of all liabilities having priority to the Secured Obligations, to pay all or any part of the then outstanding Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, without prejudice to the rights of the Pledgee to recover any shortfall from any other obligor (if any) with regard to the Secured Obligations, except that the Pledgee may credit the same to a suspense account for so long and in such manner as the Pledgee may from time to time determine. Any surplus monies received by the Pledgee once the Secured Obligations have been unconditionally and irrevocably paid and discharged shall be forthwith returned to the Pledgor or such other person(s) entitled to it.

 

11.3.                       Upon enforcement as described above, the Pledgee shall have the right to request enforcement of the Pledge in respect of all or part of the Pledged Assets in its absolute discretion. No action, choice or absence of action in this respect, or partial enforcement, shall in any manner affect the Pledge over the part of the Pledged Assets which has not been subject to enforcement. The Pledge shall continue to remain in full and valid existence until enforcement, discharge or termination hereof, as the case may be.

 

11.4.                       Any surplus monies received by the Pledgee once the Secured Obligations have been unconditionally and irrevocably paid and discharged shall be forthwith returned to the Pledgor.

 

12                                    EFFECTIVENESS OF THE PLEDGE

 

12.1.                       The Pledge shall be a continuing first ranking security interest (gage de premier rang) and shall not be considered as satisfied or discharged or prejudiced by any intermediate payment or by the settlement of any part of the Secured Obligations and shall remain in

 



 

full force and effect until it has been released in accordance with the terms of this Agreement.

 

12.2.                       Subject to the terms of the Senior Finance Documents, the Pledgor shall not be entitled to require the release of the Pledge until the Secured Obligations are entirely, irrevocably, unconditionally and definitively repaid or discharged and the Pledgee shall, at the request of the Pledgor, give release of the Pledge after all the Secured Obligations being entirely, irrevocably, unconditionally and definitively repaid or discharged, subject to delivery of any documents or certificates which the Pledgee may reasonably request.

 

12.3.                       This Pledge shall be discharged by, and only by, the express release thereof granted by the Pledgee pursuant to the terms of Clauses 8 and 12.2 of this Agreement. All costs and expenses associated with the release and discharge of the Pledge shall be borne by the Pledgor.

 

12.4.                       The Pledge shall be cumulative, in addition to and independent of every other security which the Pledgee or any Beneficiary may at any time hold as security for the Secured Obligations or any rights, powers and remedies provided by law and shall not operate so as in any way to prejudice or affect or be prejudiced or affected by any security interest or other right or remedy which the Pledgee or any Beneficiary may now or at any time in the future have in respect of the Secured Obligations.

 

12.5.                       This Pledge shall not be prejudiced by any time or indulgence granted to any person, or any abstention or delay by the Pledgee or any Beneficiary in perfecting or enforcing any security interest or rights or remedies that the Pledgee or any Beneficiary may now or at any time in the future have from or against the Pledgor or any other person.

 

12.6.                       No failure on the part of the Pledgee or any Beneficiary, to exercise, or delay on its part in exercising, any of its rights under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right preclude any further or other exercise of that or any other rights.

 

12.7.                       Neither the obligations of the Pledgor contained in this Agreement nor the rights, powers and remedies conferred upon the Pledgee by the other Senior Finance Documents to which each of the Pledgor and the Pledgee are parties, this Agreement or by law, nor the Pledge shall be discharged, impaired or otherwise affected by:

 

12.7.1                 any amendment to, or any variation, waiver or release of, any obligation of the Pledgor or any other person under the Senior Finance Documents;

 

12.7.2                 any failure to take, or to fully take, any Security or otherwise agreed to be taken in respect of the Pledgor’s obligations under the Senior Finance Documents;

 

12.7.3                 any failure to realise or to fully realise the value of, or any release, discharge, exchange or substitution of, any security taken in respect of the Pledgor’s obligations under the Senior Finance Documents; or

 


 

12.7.4      any other act, event or omission which, but for this Clause 12.7.4 might operate to discharge, impair or otherwise affect any of the obligations of the Pledgor contained in this Agreement, or any of the rights, powers and remedies conferred upon the Pledgee by the other Senior Finance Documents to which each of the Pledgor and the Pledgee are parties, this Agreement, or by law.

 

12.8.        For the avoidance of doubt, the Pledgor hereby expressly waives any rights arising for it (if any) under article 2037 of the Luxembourg Civil Code or any right it may have of first requiring the Pledgee to proceed against or claim payment from any other person or enforce any guarantee or security before enforcing this Pledge.

 

12.9.        The Pledgor waives any right it may have of first requiring the Pledgee to proceed against or enforce any other rights or security or payment from any person before claiming from the Pledgor under this Agreement.

 

13            PARTIAL ENFORCEMENT

 

The Pledgee shall have the right to request enforcement of all or part of the Pledged Assets. No action, choice or absence of action in this respect, or partial enforcement, shall in any manner affect the first ranking security interest (gage de premier rang) created hereunder over the Pledged Assets as it then shall be (and in particular those Pledged Assets which have not been subject to enforcement). The first ranking security interest (gage de premier rang) thereover shall continue to remain in full and valid existence until discharge or termination thereof, as the case may be.

 

14            COSTS AND EXPENSES

 

All present and future costs, fees, stamp duties and other amounts incurred by the Beneficiaries or the Pledgee in connection with the negotiation, execution or enforcement of this Agreement or preservation of any rights of the Beneficiaries or the Pledgee conferred by this Agreement or by law will be for the account of the Pledgor.

 

15            NOTICES

 

15.1.        All notices or other communications under this Agreement shall be sent:

 

To the Pledgor, in the English language, at:

 

Future Entertainment S.à r.l.

Media Center Betzdorf,

11 rue Pierre Werner

L-6832 Betzdorf

Grand Duchy of Luxembourg

Fax: + 352 27 17 80 11

Attention: Emma Jones / Ron Paans

 



 

with a copy to:

 

To the Pledgee, in the English language, at:

 

Deutsche Bank AG, London Branch

Winchester House 1 Great Winchester Street

London EC2N 2DB

United Kingdom

Fax: +44 20 7547 6419

Attention: Nicola Dawes / Rajeev Thakeria

 

To the Luxembourg Account Bank, in the English language, at:

 

RBS Global Banking (Luxembourg) S.A.

46, Avenue J.F. Kennedy

L-1855 Luxembourg

Grand Duchy of Luxembourg

Fax: +352 2607 2970

Attention: Commercial Client Department

 

or any substitute address or fax number or department or officer as one Party may notify to the other Party and the Luxembourg Account Bank by not less than five Business Days’ notice.

 

15.2.        Any notice or other communication given shall be deemed to have been received:

 

15.2.1      if sent by fax, when received in legible form;

 

15.2.2      if posted, on the second Business Day following the day on which it was despatched by first class mail postage prepaid, or

 

15.2.3      if hand delivered, the day on which it is left at the relevant address,

 

provided that a notice given in accordance with the above but received on a day which is not a Business Day or after normal business hours in the place of receipt shall be deemed to have been received on the next Business Day.

 

16            SUCCESSORS

 

16.1.        This Agreement shall remain in effect despite any amalgamation or merger (however effected) relating to the Pledgee or any other Beneficiary, and without prejudice to the provision of any of the other Senior Finance Documents to which the Pledgor is a party, references to the Pledgee or any other Beneficiary shall be deemed to include any assignee or successor in title of the Pledgee or any other Beneficiary and any person who, under any applicable law, has assumed the rights and obligations of the Pledgee or any other Beneficiary hereunder or under any of the other Senior Finance Documents to which the Pledgor is a party or to which under such laws the same have been

 



 

transferred or novated or assigned in any manner. To the extent a further notification or registration or any other step is required by law to give effect to the above, the Pledgor hereby gives power of attorney to the Pledgee to make any notifications or registrations and/or to take any other steps, and each undertakes to do so itself if so requested by the Pledgee.

 

16.2.        For the purpose of article 1278 of the Luxembourg Civil Code, to the extent required, the Pledgee expressly reserves the preservation of this Pledge and the first ranking security interest (gage de premier rang) created under this Agreement in case of any assignment, novation, amendment or any other transfer of the Secured Obligations or any other rights of the Beneficiaries, so that the Pledge shall be automatically (without any formality) transferred to the benefit of any new assignee(s).

 

17            LIABILITY AND INDEMNITY

 

17.1         Neither the Pledgee nor any of the Beneficiaries nor any of their respective agents shall be liable by reason of (i) the loss or wrongful delivery of, or damage to, the Pledged Assets, howsoever arising, (ii) taking any action permitted by this Agreement, (iii) any neglect or default in connection with the Pledged Assets or (iv) the realisation of all or any part of the Pledged Assets, save to the extent that any loss or damage is caused by the gross negligence or wilful misconduct of the Pledgee, the Beneficiaries or their respective agents, any and all joint liability being excluded.

 

17.2         The Pledgor will indemnify the Pledgee, the Beneficiaries and every attorney which may be appointed from time to time in respect of all liabilities and expenses incurred by it, him, her or them in the execution of any rights, powers or discretions vested in it, him, her or them pursuant hereto (including the fees and expenses of legal advisers acting reasonably and VAT thereon if applicable) save for liabilities and expenses arising from the gross negligence or wilful misconduct of the Pledgee or its attorney or both.

 

18            SEVERABILITY

 

Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

19            WAIVERS, REMEDIES CUMULATIVE

 

19.1.        Neither this Agreement nor any terms or conditions hereof may be amended, changed, waived, discharged, terminated or otherwise modified unless such amendment, change, waiver, discharge, termination or modification is in writing duly executed by or on behalf of the Pledgee, and is otherwise in accordance with the terms of the Senior Finance Documents.

 



 

19.2.        No waiver of any of the terms hereof shall be effective unless in writing signed by the Pledgee. No delay in or non-exercise of any right by the Pledgee shall constitute a waiver. Any waiver may be on such terms as the Pledgee sees fit. The rights, powers and discretions of the Pledgee herein are additional to and not exclusive of those provided by law, by any agreement with or other security in favour of the Pledgee.

 

20            ASSIGNMENT

 

The Pledgor may not assign any of its rights or obligations under this Agreement without the prior written consent of the Pledgee. The Pledgee and each Beneficiary may assign or transfer all or any part of its rights under this Agreement. Such assignment or transfer by the Pledgee or the Beneficiaries shall be enforceable towards the Pledgor, subject to the notification referred to in article 1690 of the Luxembourg Civil Code.

 

21            GOVERNING LAW AND JURISDICTION

 

21.1.        This Agreement shall be governed by, and be construed in accordance with, Luxembourg law.

 

21.2.        With respect to any proceedings arising in connection with this Agreement, the Pledgor irrevocably submits to the jurisdiction of the Luxembourg courts, notwithstanding the right of the Pledgee and each Beneficiary to take proceedings in any other jurisdiction.

 

[signature page to follow]

 



 

IN WITNESS THEREOF the Parties hereto have executed this Agreement in one or multiple original counterparts, all of which together evidence the same Agreement, on the day and year first written above.

 

 

The Pledgor

 

Future Entertainment S.à r.l.

 

 

 

 

 

 

 

Represented by:

 

Title:

 

 

 

 

 

The Pledgee

 

Deutsche Bank AG, London Branch

 

as Pledgee for the benefit of the Beneficiaries

 

 

 

 

 

 

 

Represented by:

 

Title:

 

 

 

 

 

 

 

Represented by:

 

Title:

 

 



 

SCHEDULE 1

PLEDGE NOTICE(1)

 


(1)           Pledge Notice dated May 15, 2009 to be inserted

 



 

FUTURE ENTERTAINMENT SàRL

R.C.S. Luxembourg B No 145.414

 

 

Registered office:

 

Media Center Betzdorf

 

11, Rue Pierre Werner

 

L-6832 Betzdorf

 

T.: (352) 621 543 414

 

F.: (352) 44.37.38

 

May 15, 2009

 

 

BY FAX AND REGISTERED MAIL

 

URGENT

 

 

To:

ABN AMRO Bank (Luxembourg) S.A.

 

Avenue J.F. Kennedy

 

L-1855 Luxembourg

 

Grand Duchy of Luxembourg

 

Fax: +352 2607 2970

 

Attention: Commercial Client Department

 

 

Copy to:

Deutsche Bank AG, London Branch

 

Winchester House 1 Great Winchester Street

 

London EC2N 2DB

 

United Kingdom

 

Fax:+44 20 7547 6419

 

Attention: Nicola Dawes / Rajeev Thakeria

 

Dear Sirs,

 

1.             This is to give you notice that, pursuant to an accounts pledge agreement dated May 15, 2009 (the Accounts Pledge Agreement), Future Entertainment S.à r.l, as pledgor (the Pledgor), has pledged in favour of Deutsche Bank AG, London Branch, as pledgee for the benefit of the Finance Parties (as defined in the Accounts Pledge Agreement) (the Pledgee), any and all monies, securities, claims and any other assets standing now and in the future, to the credit of the following accounts:

 

· [intentionally omitted] (EUR)

· [intentionally omitted] (GBP)

· [intentionally omitted] (USD)

 

with Swift code [intentionally omitted] (the Pledged Accounts), held by the Pledgor with your institution (including any sub-account, renewal, redesignatlon or replacement thereof held by the Pledgor or on behalf of the Pledgor with your institution) (the Pledged Assets). For the avoidance of doubt, by “sub-account” is understood, if relevant, any sub-account of any of the three Pledged Accounts.

 

2.             We hereby give you notice, for the purposes of the Luxembourg law of 5 August 2005 on financial collateral arrangements as well as any other applicable laws, if any, of the first ranking pledge (gage de premier rang) granted by ourselves in favour of the Pledgee over the Pledged Assets.

 

3.             In accordance with the Accounts Pledge Agreement:

 

(a)           at any time prior to the occurrence of an Event of Default which is continuing, the Pledgor shall be entitled to receive, withdraw or otherwise transfer any credit balance in the ordinary course of trade from the Pledged Accounts (subject to the terms of the Facility Agreement), both before and after giving effect to the proposed transfer, until your institution with a copy to the Pledgor,

 

Société à Responsablilité limitée au capital de 20.000 GGP

TVA Nat. 2009 2407 188 - TVA INTRA LU23182569

 



 

have received notice of an Event of Default which is continuing (the Blocking Notice), duly confirmed by your institution;

 

 

(b)           upon the occurrence of an Event of Default which is continuing, the Pledgee shall be entitled to send a Blocking Notice to your institution, with a copy to the Pledgor, and the Pledged Accounts shall be blocked and the Pledgee (or any person designated by the Pledgee) shall automatically become the Pledgor’s irrevocably proxy, so that the Pledgee, or its attorney, will, independently and without limitation, by giving the Blocking Notice, become solely entitled to freely operate the Pledged Accounts, to collect and receive payment of, and to dispose of the Pledged Assets, and any rights of the Pledgor over the Pledged Accounts shall be automatically terminated; and

 

(c)           upon the occurrence of an Event of Default which is continuing, the Pledgor shall not be entitled to receive, withdraw or otherwise transfer any credit balance from time to time in the Pledged Accounts.

 

4.             We attach a copy of the Accounts Pledge Agreement for your reference.

 

5.             This notice shall be irrevocable, and may not be in any way amended, varied or supplemented or modified without the written consent of the Pledgee.

 

6.             We kindly ask you to immediately return the attached acknowledgment form, duly executed, to our above address, with a copy to the Pledgee.

 

Yours faithfully,

 

Future Entertainment S.à r.l.

 

 

/s/ EMMA JONES

 

By: Emma Jones

 

Title: General Manager

 

 



 

SCHEDULE 2

ACKNOWLEDGMENT(2)

 


(2)  Acknowledgment dated May 18, 2009 to be inserted

 



 

ABN AMRO

Luxembourg

 

 

 

46, Avenue J.F. Kennedy

 

L-1855 Luxembourg-Kirchberg

 

 

 

P.O. Box 581

 

L-2016 Luxembourg

 

T +352 26 07 I

 

F +352 28 07 29 99

 

SCHEDULE 3

FORM OF ACKNOWLEDGMENT

 

May 18, 2009

 

 

BY FAX AND REGISTERED MAIL

 

URGENT

 

 

To:

Future Entertainment S.à r.l.

 

Media Center Betzdorf

 

11, rue Pierre Werner

 

L-6832 Belzdorf

 

Grand Duchy of Luxembourg

 

Fax:+352 44 37 38

 

Attention: Emma Jones / Ron Paans

 

 

Copy to:

Deutsche Bank AG, London Branch

 

Winchester House 1 Great Winchester Street

 

London EC2N 2DB

 

United Kingdom

 

Fax: +44 20 7547 6419

 

Attention: Nicola Dawes / Rajeev Thakeria

 

Dear Sirs,

 

1)            We refer to the pledge notice dated May 15, 2009 relating to an accounts pledge agreement dated May 15, 2009 (the Accounts Pledge Agreement) pursuant to which Future Entertainment S.à.r.l., as pledgor (the Pledgor), has pledged in favour of Deutsche Bank AG, London Branch, as pledgee for the benefit of the Finance Parties (as defined in the Accounts Pledge Agreement) (the Pledgee), any and all monies, securities, claims and any other assets standing now and in the future, to the credit of the following accounts, held with ABN AMRO Bank (Luxembourg) S.A., 46, Avenue J.F. Kennedy, L-1855 Luxembourg (the Luxembourg Account Bank):

 

· [intentionally omitted] (EUR)

· [intentionally omitted] (GBP)

· [intentionally omitted] (USD)

 

with Swift code [intentionally omitted] (the Pledged Accounts), held by the Pledgor with our institution (including any sub-account, renewal, redesignation or replacement thereof held by the Pledgor or on behalf of the Pledgor with our institution) (the Pledged Assets). For the avoidance of doubt, by “sub-account” is understood, if relevant, any sub-account of any of the three Pledged Accounts.

 

Unless otherwise specified herein, capitalised terms and other expressions shall have the meaning ascribed to them in the Accounts Pledge Agreement.

 


 

2)                                     For the purposes of the Luxembourg law of 5 August 2005 on financial collateral arrangements, we hereby acknowledge that we accept the first- ranking pledge (gage de premier rang) created by the Accounts Pledge Agreement.

 

3)                                     The acknowledgment of the Accounts Pledge Agreement by our bank does not imply any obligation for us to guarantee any commitments of the Pledgor towards the Pledgee or towards any other party. The Pledgee has no action against our bank other than by the legally available means of enforcement of the pledge over the Pledged Assets and, in particular, does not have any recourse other than to the assets subject to the pledge, in such situation as they may be in at the time of enforcement.

 

4)                                     We waive particularly for the benefit of the Pledgee, any present and future security interest, right of set-off or right of retention over the Pledged Accounts in our favour, except that for the purpose of payment of our claims against the Pledgor, such as, without limitation, any claims arising from fees, commissions, interest, indemnities, or otherwise, we are entitled to deduct from the Pledged Accounts, upon such claims arising, any sums due in our favour.

 

5)                                     We have not previously received any other notice of pledge, charge, assignment or other in respect of the Pledged Accounts.

 

6)                                     We shall have only the duties and responsibilities expressly set forth In writing herein and in our standard account documentation and terms and conditions as in effect from time to time, all of which shall apply to the Pledged Accounts to the extent not inconsistent with the terms of the present acknowledgment and, for the avoidance of doubt, we have thus no obligation of any kind to provide information, to control, monitor or block the Pledged Accounts other than in accordance with the terms set forth in this acknowledgment.

 

7)                                     We hereby take notice of the following provisions of the Accounts Pledge Agreement and agree to act as follows:

 

a.                                      at any time prior to the occurrence of an Event of Default which is continuing, the Pledgor shall be entitled to receive, withdraw or otherwise transfer any credit balance in the ordinary course of trade from the Pledged Accounts (subject to the terms of the Facility Agreement), both before and after giving effect to the proposed transfer, until our institution, with a copy to the Pledgor, have received notice of an Event of Default which is continuing (the Blocking Notice), by authenticated Swift message (Bank Swift code [intentionally omitted]) addressed to the Commercial Clients Department and on condition that the swift message specifies the Pledged Accounts to be blocked, and subject to application of our standard account operating procedures, especially with respect to irreversible operations. The receipt of the Blocking notice shall be duly confirmed by our institution;

 

b.                                     upon the occurrence of an Event of Default which is continuing, the Pledgee shall be entitled to send a Blocking Notice to our institution, with a copy to the Pledgor, and the Pledged Accounts shall be blocked within one (1) Business Day upon receipt of the Blocking Notice and the Pledgee (or any person designated by the Pledgee) shall automatically become the Pledgor’s irrevocably proxy, so that the Pledgee or its attorney, will, independently and without limitation, by giving the Blocking Notice, become solely entitled to freely operate the Pledged Accounts, to collect and receive payment of, and to dispose of the Pledged Assets, and any rights of the Pledgor over the Pledged Accounts shall be automatically terminated;

 



 

c.                                      upon the occurrence of an Event of Default which is continuing, the Pledgor shall not be entitled to receive, withdraw or otherwise transfer any credit balance from time to time in the Pledged Accounts; and

 

d.                                     all reasonable costs and expenses (including, without limitation, legal fees) incurred by us in the lawful exercise of the powers and rights hereby conferred shall be payable by the Pledgor.

 

8)                                     The Pledgor and the Pledgee undertake to seek approval of our institution in respect of any material changes to the Accounts Pledge Agreement, affecting the rights and obligations of our institution hereunder, it being understood that until such approval, not to be unreasonably withheld, our institution will be entitled to rely on the terms contained herein.

 

9)                                     Notwithstanding clause 7a) hereof, all notices under the Accounts Pledge Agreement to our institution shall be sent by registered mail, by hand delivery, by special courier service or by fax to the following address:

 

ABN AMRO Bank (Luxembourg) S.A.

46, Avenue J.F. Kennedy

L-1855 Luxembourg

Grand Duchy of Luxembourg

Fax: +352 2607 2970

Attention: Commercial Client Department

 

10)                               In case of enforcement, we shall have no duty to check that the conditions set out in the Accounts Pledge Agreement or any other document for the existence or continuance of an Event of Default, maturity of the secured obligations or the enforceability or enforcement of the Pledge, are fulfilled or complied with.

 

11)                               To the extent applicable, if the assets held on the Pledged Accounts comprise fungible securities and other financial instruments, we shall immediately earmark such securities and other financial instruments as being pledged in favour of the Pledgee by way of an inscription of the security interest created under the Accounts Pledge Agreement in our books.

 

12)                               The Pledgor and the Pledgee hereby acknowledge that the Luxembourg Account Bank shall not be liable for any loss or damage suffered by the Pledgor or the Pledgee, save if such loss or damage is suffered as a result of willful misconduct or gross negligence of the Luxembourg Account Bank. Without prejudice to the terms of the general terms and conditions, the Pledgor will indemnify the Luxembourg Account Bank and hold the Luxembourg Account Bank harmless against any damages, losses, actions, claims, expenses, demands and liabilities which may be incurred by or made against the Luxembourg Account Bank for anything done or omitted in relation to the matters described herein, except where such damages, losses, actions, claims, expenses, demands and liabilities are incurred or made against the Luxembourg Account Bank as a result of gross negligence or wilful misconduct of the Luxembourg Account Bank

 

13)                               Unless otherwise defined herein, terms defined in the Accounts Pledge Agreement (including those definitions incorporated by reference to another document) shall have the same meanings when used in this acknowledgment.

 

14)                               This acknowledgment is governed by and shall be construed In accordance with Luxembourg law, and is subject to the exclusive jurisdiction of the courts of City of Luxembourg, without prejudice to the right of the Luxembourg Account Bank to bring any actions against the other parties before any other competent court.

 



 

Yours faithfully.

 

 

 

 

 

ABN AMRO Bank (Luxembourg) S.A.

 

 

 

 

 

/s/ NICOLETA GLODEAN

 

By: Nicoleta Glodean

 

Title: Legal Counsel

 

 

 

/s/ JEAN MARC LAHAYE

 

By: Jean Marc Lahaye

 

Title: Commercial Clients

 

 



 

SCHEDULE 3

BLOCKING NOTICE

 

[ON THE LETTERHEAD OF THE PLEDGEE]

 

[DATE]

BY FAX AND REGISTERED MAIL

URGENT

 

To:                                                                              RBS Global Banking (Luxembourg) S.A.

(formerly ABN AMRO Bank (Luxembourg) S.A.)

Avenue J.F. Kennedy

L-1855 Luxembourg

Grand Duchy of Luxembourg

Fax: +352 2607 2970

Attention: Commercial Client Department

 

Copy to:                                                  Future Entertainment S.à r.l.

Media Center Betzdorf

11, rue Pierre Werner

L-6832 Betzdorf

Grand Duchy of Luxembourg

Fax: + 352 27 17 80 11

Attention: Emma Jones / Ron Paans

 

Dear Sirs,

We refer to an accounts pledge agreement dated May 15, 2009, as amended and restated from time to time (the Accounts Pledge Agreement) between Future Entertainment S.à r.l., as pledgor (the Pledgor), and Deutsche Bank AG, London Branch, as pledgee for the benefit of the Beneficiaries (as defined in the Accounts Pledge Agreement), which was notified to your institution in accordance with a pledge notice executed by the Pledgor on May 15, 2009 and acknowledged by your institution in accordance with acknowledgment executed by your institution on May 18, 2009, together with any other notice of amendment and restatement relating to the Accounts Pledge Agreement as sent to, and acknowledged by, your institution from time to time.

 

We hereby kindly request you to block the following accounts:

 

[intentionally omitted] (EUR)

[intentionally omitted] (GBP)

[intentionally omitted] (USD)

 

with Swift code [intentionally omitted] (the Pledged Accounts) in accordance with Accounts Pledge Agreement and request that, upon the receipt of this notice, you:

 



 

·                                          immediately confirm us by return of fax the receipt of this blocking notice, and

·                                         immediately block the Pledged Accounts and do not execute any instructions whatsoever given by the Pledgor.

 

 

Yours faithfully,

 

 

 

 

 

Deutsche Bank AG, London Branch

 

as Pledgee for the benefit of the Beneficiaries

 

 

 

 

 

 

 

Represented by:

 

Title:

 

 

 

 

 

 

 

Represented by:

 

Title:

 

 



 

SCHEDULE 4

FORM OF CONFIRMATION

 

[ON THE LETTERHEAD OF THE LUXEMBOURG ACCOUNT BANK]

 

[DATE]

BY FAX AND REGISTERED MAIL

URGENT

 

To:                              Deutsche Bank AG, London Branch

Winchester House 1 Great Winchester Street

London EC2N 2DB

United Kingdom

Fax: +44 20 7547 6419

Attention: Nicola Dawes / Rajeev Thakeria

 

Dear Sirs,

 

We refer to the pledge notice dated May 15, 2009 regarding an accounts pledge agreement dated May 15, 2009, as amended and restated from time to time (the Accounts Pledge Agreement) pursuant to which Future Entertainment S.à r.l., as pledgor (the Pledgor), has pledged in favour of Deutsche Bank AG, London Branch, as pledgee for the benefit of the Beneficiaries (as defined in the Accounts Pledge Agreement), any and all monies, securities, claims and any other assets standing now and in the future, to the credit of the following accounts:

 

[intentionally omitted] (EUR)

[intentionally omitted] (GBP)

[intentionally omitted] (USD)

 

with Swift code [intentionally omitted] (the Pledged Accounts), held by the Pledgor with our bank (including any sub-account, renewal, redesignation or replacement thereof held by the Pledgor or on behalf of the Pledgor with our bank).

 

We hereby acknowledge the receipt of the blocking notice dated [date] (the Blocking Notice) and confirm that the Pledged Accounts referred to in the Blocking Notice will be effectively and immediately blocked.

 

Yours faithfully,

 

 

 

RBS Global Banking (Luxembourg) S.A.

 

 

 

 

 

 

 

Represented by:

 

Title:

 

 



 

ANNEX 2

 

FORM OF NOTICE OF AMENDMENT

[ON THE LETTERHEAD OF THE PLEDGOR]

 

January       , 2010

BY FAX AND REGISTERED MAIL

URGENT

 

To:                                                                              RBS Global Banking (Luxembourg) S.A.

(formerly ABN AMRO Bank (Luxembourg) S.A.)

Avenue J.F. Kennedy

L-1855 Luxembourg

Grand Duchy of Luxembourg

Fax: +352 2607 2970

Attention: Commercial Client Department

 

Copy to:                                               Deutsche Bank AG, London Branch

Winchester House 1 Great Winchester Street

London EC2N 2DB

United Kingdom

Fax: +44 20 7547 6419

Attention: Nicola Dawes / Rajeev Thakeria

 

Re: Notice of Amendment

 

Dear Sirs,

 

1.                             Reference is made to the Accounts Pledge Agreement, dated as of May 15, 2009, as amended and restated on October 29, 2009, between Future Entertainment S.à r.l., as pledgor (the Pledgor), and Deutsche Bank AG, London Branch, as Pledgee (the Pledgee) (the Accounts Pledge Agreement), which was notified to you (the Account Bank) in accordance with a notice of pledge executed by the Pledgor on May 15, 2009 (the Notice), acknowledged in accordance with the acknowledgment executed by your institution, as the Account Bank, on May 18, 2009 (the Acknowledgment). The Accounts Pledge Agreement (as amended and restated by the Amendment and Restatement Agreement (as defined below)), the Notice and the Acknowledgement are together referred to as the Pledge Documentation.

 



 

2.                            The Pledge Documentation relates to the following accounts:

 

[intentionally omitted] (EUR)

[intentionally omitted] (GBP)

[intentionally omitted] (USD)

 

with Swift code [intentionally omitted] (the Pledged Accounts), held by the Pledgor with your institution (including any sub-account, renewal, redesignation or replacement thereof held by the Pledgor or on behalf of the Pledgor with your institution) (the Pledged Assets). For the avoidance of doubt, by “sub-account” is understood, if relevant, any sub-account of any of the three Pledged Accounts.

 

3.                            The Pledgor and the Pledgee have amended the Accounts Pledge Agreement pursuant to an amendment and restatement agreement dated January       , 2010 (the Amendment and Restatement Agreement). A copy of the Amendment and Restatement Agreement, which attaches the Accounts Pledge Agreement as amended and restated by the Amendment and Restatement Agreement, is enclosed herein.

 

4.                            We hereby notify immediately the Amendment and Restatement Agreement to you as the Account Bank in accordance with article 5(3) of the Luxembourg law of August 5, 2005 on financial collateral arrangements.

 

5.                            The provisions of the Pledge Documentation and the first ranking security interest (gage de premier rang) created under the Pledge Documentation shall continue in full force and effect and shall be preserved for the benefit of the Pledgee. The first ranking security interest (gage de premier rang) created initially under the Pledge Documentation will be maintained and preserved for the benefit of the Pledgee and it will be held and administered by the Pledgee in accordance with the Pledge Documentation. Neither the obligations of the Pledgor and your institution, as the Account Bank contained in the Pledge Documentation nor the rights, powers and remedies conferred upon the Pledgee by the Pledge Documentation or by law, nor the first ranking interest (gage de premier rang) created thereby shall be discharged, released, impaired or otherwise affected by this Agreement.

 

6.                            This notice shall be irrevocable, and may not be in any way amended, varied or supplemented or modified without the written consent of the Pledgee.

 



 

7.                            We kindly ask you to return the attached acknowledgment form, duly executed as soon as possible within three (3) business days after the receipt of this notice to our above address, with a copy to the Pledgee.

 

 

Yours faithfully,

 

 

 

 

 

The Pledgor

 

The Pledgee

Future Entertainment S.à r.l.

 

Deutsche Bank AG, London Branch

 

 

as Pledgee for the benefit of the Beneficiaries

 

 

 

 

 

 

Represented by:

 

 

Title:

 

Represented by:

 

 

Title:

 

 

 

 

 

 

 

 

 

 

 

Represented by:

 

 

Title:

 

 

Accepted and acknowledged

 

 

RBS Global Banking (Luxembourg) S.A.

 

 

 

 

 

 

 

 

 

 

 

By:

 

 

Title:

 

 

Date:

 

 

 

 

Attachment: the Accounts Pledge Agreement as amended and restated by the Amendment and Restatement Agreement (as such terms are defined herein).

 




Exhibit 4.46

 

EXECUTION VERSION

 

 

 

Dated 19 January 2010

 

 

ASSIGNMENT OF CONTRACTS

 

 

between

 

 

FUTURE ENTERTAINMENT S.À R.L.
as Company

 

 

and

 

 

DEUTSCHE BANK AG, LONDON BRANCH
as Security Trustee

 

 

White & Case LLP

5 Old Broad Street

London  EC2N 1DW

 



 

TABLE OF CONTENTS

 

1.

INTERPRETATION

2

2.

COVENANT TO PAY

7

3.

ASSIGNMENTS, FIXED CHARGE AND FLOATING CHARGE

8

4.

CONTINUING SECURITY

9

5.

REPRESENTATIONS AND WARRANTIES

11

6.

GENERAL UNDERTAKINGS

13

7.

FURTHER ASSURANCE

13

8.

ENFORCEMENT OF SECURITY

14

9.

ADMINISTRATORS AND RECEIVERS

15

10.

APPLICATION OF PROCEEDS

17

11.

POWER OF ATTORNEY

17

12.

PROTECTION OF SECURITY TRUSTEE AND RECEIVERS

18

13.

PROTECTION OF THIRD PARTIES

18

14.

DELEGATION BY SECURITY TRUSTEE

19

15.

REDEMPTION OF PRIOR MORTGAGES

19

16.

RELEASE OF THE SECURITY

19

17.

PAYMENTS

19

18.

COSTS AND EXPENSES

20

19.

ASSIGNMENTS AND TRANSFERS

21

20.

REMEDIES AND WAIVERS

21

21.

SET-OFF

21

22.

ADDITIONAL PROVISIONS

22

23.

NOTICES

23

24.

GOVERNING LAW

23

25.

JURISDICTION

24

26.

COUNTERPARTS AND EFFECTIVENESS

24

SCHEDULE 1

CONTENT PROVIDER CONTRACTS

25

 

i



 

THIS ASSIGNMENT is made on 19 January 2010 between the following parties:

 

(1)                                 FUTURE ENTERTAINMENT S.À R.L., a Luxembourg private limited liability company (société à responsabilité limitée), with its registered office at Media Center Betzdorf, 11 rue Pierre Werner, L-6832 Betzdorf, Grand Duchy of Luxembourg, registered with the RCS under number B 145.414 and having a statutory capital of GBP 400,000 (the Company”); and

 

(2)                                 DEUTSCHE BANK AG, LONDON BRANCH as trustee for the Secured Creditors (the “Security Trustee”, which expression includes any person which is for the time being a trustee (or a co-trustee) for the Secured Creditors).

 

RECITALS

 

(A)                              The Senior Lenders have agreed to make available to the Borrowers (as defined in the Senior Facilities Agreement (as defined below)) certain credit facilities pursuant to the terms and subject to the conditions of the Senior Facilities Agreement.

 

(B)                                Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes under the Senior Secured Notes Indenture.

 

(C)                                By an intercreditor deed dated 3 March 2006, as amended and restated on 13 June 2006, 10 July 2006, 31 July 2006, 15 May 2008, 30 October 2009 and 8 January 2010 (the “Group Intercreditor Deed”) the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors (as each of those terms are defined therein) and certain other members of the Group have agreed to regulate their relationship as creditors on the terms set out therein.

 

(D)                               The Board of Managers of the Company is satisfied that the Company is entering into this Assignment for the purposes of its business and that its doing so benefits the Company.

 

(E)                                 The Security Trustee and the Company intend this Assignment to take effect as a deed (even though the Security Trustee only executes it under hand).

 

(F)                                 The Security Trustee holds the Security and the benefit of this Assignment on trust for itself and the other Secured Creditors on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

1.                                      INTERPRETATION

 

1.1                                 Definitions

 

In this Assignment the following terms have the meanings given to them in this Clause.

 

Account” means any account now or in the future opened or maintained by the Company with a bank or other financial institution (and any replacement account or subdivision or subaccount of that account), all amounts from time to time standing to the credit of, or accrued or accruing on, such account and all Related Rights.

 



 

Beneficiaries” means the First Beneficiary and the Second Beneficiaries.

 

Content Provider Contracts” means the contracts detailed in Schedule 1 (Content Provider Contracts) and any other contract of a similar nature from time to time designated in writing as a Content Provider Contract by the Security Trustee.

 

Contracts” means the Subscriber Contracts and the Content Provider Contracts.

 

Default Rate” means the rate specified in clause 28.2 of the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder such equivalent provision in the Relevant Facilities Agreement.

 

Enforcement Event” means the date on which, following the occurrence of an Event of Default that is continuing, either the Relevant Agent or the Security Trustee notifies the Company of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Default” means each of:

 

(a)                  a Senior Default; and

 

(b)                 an event of default or termination event (however described) under any Hedging Agreement;

 

Liability” means any obligation or liability for the payment of money, whether in respect of principal, interest or otherwise, whether actual or contingent, whether owed jointly or severally and whether as principal or surety or in any other capacity.

 

Receiver” means a receiver and manager or any other receiver (whether appointed pursuant to this Assignment or any statute, by a court or otherwise) of all or any of the Secured Assets and shall, where permitted by law, include an administrative receiver.

 

Related Rights means, in relation to any asset:

 

(a)                  the proceeds of sale of all or any part of that asset;

 

(b)                 all rights under any licence, agreement for sale or agreement for lease in respect of that asset;

 

(c)                  all rights, powers, benefits, claims, contracts, warranties, remedies, security, guarantees, indemnities or covenants for title in respect of that asset; and

 

(d)                 any moneys, proceeds or income paid or payable in respect of that asset.

 

Relevant Facilities Agreement” means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated

 

3



 

Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Secured Assets” means all of the Company’s assets, rights, title, interests and benefits in, to and in respect of the Contracts.

 

Secured Creditors” means the Beneficiaries and any Receiver appointed under this Assignment.

 

Secured Obligations” means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New Senior Liabilities” under the Group Intercreditor Deed or are incurred after 31 December 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                 that the Security Trustee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of this Agreement;

 

Security” means the security created or intended to be created by this Assignment.

 

Security Period” means the period beginning on the date of this Assignment and ending on the date upon which:

 

(a)                  none of the Secured Creditors is under any obligation (whether actual or contingent) to make advances or provide other financial accommodation to the Obligors under any of the Senior Finance Documents; and

 

(b)                 all Secured Obligations have been unconditionally and irrevocably paid and discharged in full.

 

Security Trust Agreement” means the security trust agreement dated 3 March 2006 and amended and restated on or about the date of this Deed between, Deutsche Bank AG, London Branch as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors;

 

4



 

Senior Facilities Agreement” means the senior facilities agreement dated 3 March 2006 (as amended and restated on 22 May 2006, 10 July 2006, 10 August 2006, 4 April 2007, 15 May 2008, 10 November 2008, 30 October 2009 and 8 January 2010 and as amended, restated, supplemented or novated from time to time between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, Deutsche Bank AG, London Branch, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, Deutsche Bank AG, London Branch as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, Deutsche Bank AG, London Branch as Original L/C Bank and the persons named therein as Lenders;

 

Senior Secured Notes” has the meaning given to the term “Notes” in the Senior Secured Notes Indenture;

 

Senior Secured Notes Documents” means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes;

 

Senior Secured Notes Indenture” means the indenture dated on or about the date of this Deed governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time; and

 

Subscriber Contracts” means all documents (including, without limitation, any relevant customer application forms), both present and future, evidencing a contract between the Company, Virgin Media Limited, Virgin Media Payments Limited and a Subscriber for the supply of, inter alia, services by the Company through the operation of telecommunications and/or television systems operated by the Company in accordance with applicable Telecommunications, Cable and Broadcasting Laws (including any part of such system and all modifications, substitutions, replacements, renewals and extensions made to such systems).

 

1.2                                 Successors and Assigns

 

The expressions “Beneficiaries”, “Company”, “Senior Lenders”, “Relevant Agent” and “Security Trustee” include, where the context admits, their respective successors, permitted assigns and transferees and, in the case of the Beneficiaries, their Transferees and, in the case of the Security Trustee, such other person as may from time to time be appointed as Security Trustee for the Secured Creditors pursuant to the provisions of the Security Trust Agreement.

 

5



 

1.3                                 Defined Terms

 

Unless this Assignment provides otherwise or the context otherwise requires, words and expressions defined (or expressed to be subject to a particular construction) in the Group Intercreditor Deed or (unless otherwise defined in the Group Intercreditor Deed) in the Relevant Facilities Agreement shall have the same meaning (or be subject to the same construction) when used in this Assignment.

 

1.4                                 References to Agreements

 

Unless otherwise stated, any reference in this Assignment to any agreement or document (including any reference to this Assignment or any other Senior Finance Document or to any agreement or document entered into pursuant to or in accordance with such agreement or document) shall be construed as a reference to:

 

(a)                  such agreement or document as amended, restated, varied, novated or supplemented from time to time; and

 

(b)                 any agreement or document whereby such agreement or document is so amended, varied, supplemented or novated or which is entered into pursuant to or in accordance with any such agreement or document.

 

1.5                                 Statutes

 

Any reference in this Assignment to a statute or statutory provision shall, unless the contrary is indicated, be construed as a reference to such statute or statutory provision as the same shall have been or may be amended or re-enacted.

 

1.6                                 Implied Covenants

 

The following provisions of the Law of Property (Miscellaneous Provisions) Act 1994 will not apply to Clause 3 (Assignments, Fixed Charge and Floating Charge):

 

(a)                  the words “other than any charges, encumbrances or rights which that person does not and could not reasonably be expected to know about” in Section 3(1);

 

(b)                 the words “except to the extent that” and all the words thereafter in Section 3(2); and

 

(c)                  Section 6(2).

 

1.7                                 Third Party Rights

 

(a)                  A person which is not a party to this Assignment (a “third party”) shall have no rights to enforce any of its provisions except that:

 

(i)                                     a third party shall have those rights it would have had if the Contracts (Rights of Third Parties) Act 1999 had not come into effect; and

 

(ii)                                  each of Clauses 18.4 (Indemnity), 18.5 (Value Added Tax), 21 (Set-Off), 22.3 (Currency Conversion) and 22.4 (Currency Indemnity) shall

 

6



 

be enforceable by any third party referred to in such clause as if such third party were a party to this Assignment.

 

(b)                 The parties to this Assignment may vary or rescind this Assignment without the consent of any third party.

 

1.8                                 Clause and Schedule Headings

 

(a)                  Unless otherwise stated, any reference in this Assignment to a Clause or a Schedule shall be construed as a reference to a clause of or a schedule to this Assignment.

 

(b)                 Clause and Schedule headings are for ease of reference only and shall not affect the construction of this Assignment.

 

1.9                                 Group Intercreditor Deed

 

This Assignment should be read and construed subject to the terms of the Group Intercreditor Deed.  In the event of any inconsistency between the terms of this Assignment and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.10                           Secured Obligations

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)                  all Liabilities under the Senior Facilities Agreement; and

 

(b)                 all Liabilities under the Senior Secured Notes Documents.

 

2.                                      COVENANT TO PAY

 

2.1                                 Covenant to Pay

 

The Company agrees that promptly on demand of the Security Trustee it will pay to the Security Trustee any Secured Obligation which is due but unpaid.

 

2.2                                 Interest

 

Any Secured Obligation which is owed by the Company under this Assignment and is not paid when due shall bear interest at the Default Rate from the due date until the date on which such Secured Obligation is unconditionally and irrevocably paid in full and such interest shall accrue from day to day (after as well as before judgment) and be payable by the Company on demand of the Security Trustee.

 

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3.                                      ASSIGNMENTS, FIXED CHARGE AND FLOATING CHARGE

 

3.1                                 Assignments

 

The Company assigns, with full title guarantee and as continuing security for the payment and discharge of the Secured Obligations, the Secured Assets to the Security Trustee to hold the same on trust for the Secured Creditors on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

3.2                                 Fixed Charge

 

(a)                  To the extent not effectively assigned pursuant to Clause 3.1 (Assignments), the Company charges by way of first fixed charge, with full title guarantee and as continuing security for the payment and discharge of the Secured Obligations, the Secured Assets in favour of the Security Trustee to hold the same on trust for the Secured Creditors on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

3.3                                 Floating Charge

 

(a)                  To the extent not effectively assigned pursuant to Clause 3.1 (Assignments) or effectively charged pursuant to Clause 3.2 (Fixed Charge), the Company charges by way of a first floating charge, with full title guarantee and as continuing security for the payment and discharge of the Secured Obligations, the Secured Assets in favour of the Security Trustee to hold the same on trust for the Secured Creditors on the terms and subject to the conditions of the Security Trust Agreement and the Group Intercreditor Deed.

 

(b)                 Paragraph 14 of Schedule B1 to the Insolvency Act 1986 applies to the floating charge created pursuant to this Clause 3.3.

 

3.4                                 Conversion of Floating Charge

 

(a)                  The Security Trustee may, by notice to the Company, convert the floating charge created under this Assignment with immediate effect into a fixed charge if:

 

(i)                                     the Security becomes enforceable in accordance with Clause 8 (Enforcement of Security);

 

(ii)                                  the Security Trustee in good faith considers any of the Secured Assets to be in danger of being seized or sold under or pursuant to any form of distress, attachment, execution or other legal process or otherwise to be in jeopardy; or

 

(iii)                               the Security Trustee considers such conversion to be necessary or desirable to protect the priority of the Security,

 

and such fixed charge shall apply to all assets which are the subject of the floating charge unless and to the extent that such notice otherwise specifies.

 

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(b)                 The floating charge created under this Assignment shall (in addition to the circumstances in which the same will occur under general law) automatically be converted into a fixed charge (without notice) as regards all the assets subject to the floating charge at such time:

 

(i)                                     upon the convening of a meeting of the members of the Company to consider a resolution to wind up the Company;

 

(ii)                                  upon the presentation of a petition to wind up the Company or the presentation or making of an application for a warrant of execution, a writ of fieri facias or a third party debt order or charging order in respect of any of the Secured Assets which are the subject of the floating charge under this Assignment;

 

(iii)                               upon the issue and notice of distraint by the Inland Revenue or HM Customs and Excise or other competent authority, or upon any steps being taken to distrain for rent against any property of the Company; or

 

(iv)                              if the Company fails to comply with its covenant in Clause 6.3 (Negative Pledge and Disposals) of this Assignment,

 

provided that nothing in this Assignment shall cause the floating charge to crystallise by reason of the Company obtaining or of anything being done with a view to the Company obtaining a moratorium under Section 1A of and Schedule A1 to the Insolvency Act 1986.

 

(c)                  The giving of notice by the Security Trustee pursuant to paragraph (a) above in relation to any of the Secured Assets shall not be construed as a waiver or abandonment of the right of the Security Trustee to serve similar notices in respect of any other of the Secured Assets or of any other of the rights of the Secured Creditors (or any of them) under any Senior Finance Document.

 

4.                                      CONTINUING SECURITY

 

4.1                                 Continuing and Independent Security

 

The Security shall constitute and be continuing security which shall not be released or discharged by any intermediate payment or settlement of all or any of the Secured Obligations, shall continue in full force and effect until the end of the Security Period and is in addition to and independent of, and shall not prejudice or merge with, any other security (or any right of set-off) which the Security Trustee or any other Secured Creditor may hold at any time for the Secured Obligations or any of them.

 

4.2                                 New Accounts

 

If the Security Trustee receives notice of any Encumbrance created or arising after the date of this Assignment in respect of the Secured Assets or any of them or makes demand of the Company for payment of any or all of the Secured Obligations:

 

(a)                  the Security Trustee may open a new account or accounts in respect of any or all of the Secured Obligations (and if it does not do so it shall be treated as

 

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if it had done so at the time it received such notice or made such demand); and

 

(b)                 thereafter any amounts paid to the Security Trustee in respect of the Secured Obligations, or realised or recovered by the Security Trustee under this Assignment, shall be credited to a new account (or be treated as having been so credited) and not applied (or be treated as having been applied) in or towards payment of all or any of the Secured Obligations.

 

4.3                                 Avoidance of Payments

 

Where any release, discharge or other arrangement in respect of any Secured Obligation or any security the Security Trustee may hold for such Secured Obligation is given or made in reliance on any payment or other disposition which is avoided or must be repaid in an insolvency, liquidation or otherwise, and whether or not the Security Trustee has conceded or compromised any claim that any such payment or other disposition will or should be avoided or repaid, this Assignment and the Security shall continue as if such release, discharge or other arrangement had not been given or made.

 

4.4                                 Immediate Recourse

 

Neither the Security Trustee nor any other Secured Creditor shall be obliged before exercising any of the rights conferred on it by this Assignment or by law to seek to recover amounts due from the Company or to exercise or enforce any other rights or security it may have or hold in respect of the Secured Obligations or any of them.

 

4.5                                 Waiver of Defences

 

Neither the obligations of the Company under this Assignment, nor the Security and the rights, powers and remedies conferred on the Security Trustee by this Assignment or by law shall be discharged, impaired or otherwise affected by:

 

(a)                  the winding-up, dissolution, administration or reorganisation of an Obligor or any other person or any change in the status, function, control or ownership of a Borrower or any such person;

 

(b)                 any of the Secured Obligations or any other security held by the Security Trustee or any other Secured Creditor in respect thereof being or becoming illegal, invalid, unenforceable or ineffective in any respect;

 

(c)                  any time or other indulgence being granted or agreed to or with an Obligor or any other person in respect of the Secured Obligations or any of them or in respect of any other security held by the Security Trustee or any other Secured Creditor in respect thereof;

 

(d)                 any amendment to, or any variation, waiver or release of, the Secured Obligations or any of them or any other security, guarantee or indemnity held by the Security Trustee or any other Secured Creditor in respect thereof;

 

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(e)                  any total or partial failure to take or perfect any security proposed to be taken in respect of the Secured Obligations or any of them;

 

(f)                    any total or partial failure to realise the value of, or any release, discharge, exchange or substitution of, any other security, guarantee or indemnity held by the Security Trustee or any other Secured Creditor in respect of the Secured Obligations or any of them; or

 

(g)                 any other act, event or omission which might operate to discharge, impair or otherwise affect the obligations of the Company under this Assignment, the Security or any of the rights, powers and remedies conferred on the Security Trustee by this Assignment or by law.

 

4.6                                 No Competition

 

Any right which the Company may have by way of subrogation, contribution or indemnity in relation to the Secured Obligations, or otherwise to claim or prove as a creditor of an Obligor or any other person or its estate in competition with the Security Trustee or any other Secured Creditor, shall be exercised by the Company only if and to the extent that the Security Trustee so requires and in such manner and upon such terms as the Security Trustee may specify and the Company shall hold any moneys, rights or security held or received by it as a result of the exercise of any such rights on trust for the Security Trustee for application in accordance with the terms of this Assignment as if such moneys, rights or security were held or received by the Security Trustee under this Assignment.

 

4.7                                 Appropriation

 

Neither the Security Trustee nor any other Secured Creditor shall be obliged to apply any sums held or received by it in respect of the Secured Obligations in or towards payment of the Secured Obligations and any such sum shall be held by or paid to the Security Trustee for application pursuant to the terms of this Assignment provided that any such sum may be credited to a suspense or impersonal account and held in such account pending the application from time to time of such sums in or towards discharge of the Secured Obligations.

 

5.                                      REPRESENTATIONS AND WARRANTIES

 

The Company makes the representations and warranties set out in Clauses 5.1 (Status and Due Authorisation) to 5.6 (No Conflicts) to each Secured Creditor and acknowledges that each of the Secured Creditors has entered into the Senior Finance Documents to which it is party in reliance on such representations and warranties.

 

5.1                                 Status and Due Authorisation

 

It is a private limited liability company incorporated under the laws of Luxembourg with power to enter into this Assignment and to exercise its rights and perform its obligations under this Assignment and all corporate and other action required to authorise its execution of this Assignment and its performance of its obligations under this Assignment has been duly taken.

 

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5.2                                 Binding Obligations

 

The obligations expressed to be assumed by it in this Assignment are legal and valid obligations binding on it in accordance with the terms of this Assignment.

 

5.3                                 All Actions Taken

 

All acts, conditions and things required to be done, fulfilled and performed in order to:

 

(a)                  enable it lawfully to enter into, exercise its rights under and perform and comply with the obligations expressed to be assumed by it in this Assignment;

 

(b)                 ensure that the obligations expressed to be assumed by it in this Assignment are legal, valid and binding; and

 

(c)                  make this Assignment admissible in evidence in England,

 

have been done, fulfilled and performed.

 

5.4                                 No Adverse Interests

 

Subject only to the Security, no person other than the Company has any legal or beneficial interest (or any right to claim any such interest) in the Secured Assets or any part thereof and the Company has not received notice of any such claim.

 

5.5                                 No Disposals

 

Save as contemplated in this Assignment or any of the other Senior Finance Documents, it has not transferred, mortgaged, charged or otherwise disposed of (or agreed to transfer, charge or otherwise dispose of), whether by way of security or otherwise, the benefit of all or any of the Secured Assets.

 

5.6                                 No Conflicts

 

Its execution of this Assignment and its exercise of its rights and performance of its obligations under this Assignment do not and will not (a) conflict with the provisions of (i) any agreement, mortgage, bond or other instrument or treaty to which it is a party or which is binding upon it or any of its assets, (ii) its Articles, or (iii) any applicable law, regulation or official or judicial order, or (b) cause any of the foregoing representations to be untrue.

 

5.7                                 Repetition

 

The representations and warranties set out in Clauses 5.1 (Status and Due Authorisation) to 5.6 (No Conflicts) are made on the date of this Assignment and are deemed to be repeated on each Utilisation Date and the date on which all or any of the representations and warranties contained in clause 21 of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder, such equivalent provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 

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6.                                      GENERAL UNDERTAKINGS

 

6.1                                 Authorisations

 

The Company shall obtain, comply with the terms of and do all that is necessary to maintain in full force and effect all authorisations, approvals, licences and consents required in or by the laws of England and the laws of Luxembourg to enable it lawfully to enter into and perform its obligations under this Assignment and to ensure the legality, validity, enforceability or admissibility in evidence in England of this Assignment.

 

6.2                                 Performance of Obligations

 

The Company will duly and promptly perform its obligations and, unless the Security Trustee shall otherwise require, diligently pursue its rights and remedies under or in relation to the Secured Assets.

 

6.3                                 Negative Pledge and Disposals

 

The Company will not during the Security Period:

 

(a)                  create or permit to subsist any Encumbrance over all or any part of the Secured Assets other than:

 

(i)                                     Encumbrances constituted by or created pursuant to any of the Senior Finance Documents; and/or

 

(ii)                                  other Encumbrances expressly permitted under the terms of the Senior Finance Documents; and/or

 

(b)                 dispose of all or any part of the Secured Assets except to the extent and in the manner expressly permitted under the Senior Finance Documents.

 

6.4                                 No Action

 

The Company shall not take any action which would cause any of the representations made in Clause 5 (Representations and Warranties) to be untrue at any time during the Security Period.

 

6.5                                 Notification of Misrepresentation

 

The Company shall notify the Security Trustee of the occurrence of any event which results in or may reasonably be expected to result in any of the representations made in Clause 5 (Representations and Warranties) being untrue when made or when deemed to be repeated.

 

7.                                      FURTHER ASSURANCE

 

The Company shall from time to time and at its own expense give all such assurances and do all such things as the Security Trustee may reasonably require or consider desirable to enable the Security Trustee to perfect, preserve or protect the Security or to exercise any of the rights conferred on it by this Assignment or by law and to that

 

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intent the Company shall execute all such instruments, deeds and agreements and give all such notices and directions as the Security Trustee may consider expedient.  The obligations of the Company under this Clause 7 are in addition to the covenants for further assurance deemed to be included by virtue of the Law of Property (Miscellaneous Provisions) Act 1994.

 

8.                                      ENFORCEMENT OF SECURITY

 

8.1                                 Security Enforceable

 

If (and only if) an Enforcement Event has occurred then the Security created pursuant to this Assignment shall become enforceable.

 

8.2                                 Enforcement

 

At any time after an Enforcement Event has occurred, the Security Trustee may in its absolute discretion enforce all or any part of the Security and exercise any of the rights conferred on it by this Assignment or by law at such times and in such manner as it thinks fit.

 

8.3                                 Rights of the Company on Enforcement

 

At any time after an Enforcement Event has occurred, the Company may not, without the prior written consent of the Security Trustee, compromise, compound, vary, discharge, postpone or release any of its rights to receive moneys or otherwise waive any rights of action in relation to the Secured Assets or do or omit to do anything which may delay or prejudice the full recovery thereof other than, save to the extent the Security Trustee otherwise instructs the Company in writing, granting extensions to normal trade credit in accordance with its reasonable and, in the circumstances then prevailing, prudent management of its debtors on a normal commercial basis.

 

8.4                                 Power of Sale

 

At any time after an Enforcement Event has occurred, the Security Trustee may (without notice to the Company) sell or otherwise dispose of the Secured Assets or any of them and shall be entitled to apply the proceeds of such sale or other disposal in paying the costs of such sale or disposal and thereafter in or towards the discharge of the Secured Obligations or otherwise as provided for in this Assignment.

 

8.5                                 Statutory Powers

 

For the purposes of all powers implied by statute, the Secured Obligations shall be deemed to have become due and payable on the date of this Assignment.

 

8.6                                 Law of Property Act

 

Sections 93 and 103 of the Law of Property Act 1925 shall not apply to this Assignment nor to any exercise by the Security Trustee of its right to consolidate mortgages or its power of sale.

 

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8.7                                 Realisation Accounts

 

If the Security Trustee enforces the Security (whether by appointment of a Receiver or otherwise), the Security Trustee may open and maintain with such financial institutions as it thinks fit one or more realisation accounts and pay any moneys it holds or receives under or pursuant to this Assignment into any such realisation account pending the application of such moneys pursuant to Clause 10 (Application of Proceeds).

 

9.                                      ADMINISTRATORS AND RECEIVERS

 

9.1                                 Appointment of Administrator

 

At any time after the Security has become enforceable, the Security Trustee may appoint an administrator pursuant to the power contained in paragraph 14 of Schedule B1 to the Insolvency Act 1986.

 

9.2                                 Appointment of Receivers

 

At any time after the Security has become enforceable or if the Company requests it to do so, the Security Trustee may, by written instrument and without notice to the Company, appoint any one or more persons as Receiver of such part of the Secured Assets as may be permitted by law.

 

9.3                                 Status of Receivers

 

Each Receiver shall:

 

(a)                  be entitled to act individually as well as jointly with any other person appointed as Receiver; and

 

(b)                 for all purposes be deemed to be the agent of the Company (and no Receiver shall at any time act as agent for the Security Trustee) and shall as such agent be deemed to be in the same position as a Receiver duly appointed by a mortgagee under the Law of Property Act 1925.

 

9.4                                 Powers of a Receiver

 

(a)                  Every Receiver appointed pursuant to Clause 9.2 (Appointment of Receivers) shall have and be entitled to exercise all of the powers set out in paragraph (b) below in addition to (i) all the powers conferred by the Law of Property Act 1925 (as extended by this Assignment) on any receiver appointed under such Act and (ii) (whether or not such Receiver is an administrative receiver) all the powers of an administrative receiver set out in Schedule 1 to the Insolvency Act 1986.

 

(b)                 The powers referred to in the first sentence of paragraph (a) above are:

 

(i)                                     to take immediate possession of, get in and collect all or any part of the Secured Assets over which he is appointed;

 

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(ii)                                  to carry on the business of the Company insofar as it relates to the Secured Assets over which he is appointed as it may think fit, including the entering into of contracts and the repudiation, rescission or variation of any contract to which the Company is a party, and the acquisition or hiring of assets;

 

(iii)                               for the purpose of exercising any of the powers, authorities and discretions conferred on it by or pursuant to this Assignment and/or of defraying any costs, charges, losses or expenses (including remuneration) which shall be incurred by it in the exercise thereof or for any other purpose, to raise and borrow money either unsecured or on the security of all or any part of the Secured Assets over which he is appointed either in priority to the Security or otherwise and generally on such terms and conditions as it may think fit and no person lending such money shall be concerned to enquire as to the propriety or purpose of the exercise of such power or to see to the application of any money so raised or borrowed;

 

(iv)                              to sell, lease, exchange, grant options or licences over, convert into money and realise or otherwise deal with, all or any part of the Secured Assets over which he is appointed by public auction or private contract and generally in such manner and on such terms as it shall think proper.  Without prejudice to the generality of the foregoing, it may do any of these things for a consideration consisting of cash, debentures or other obligations, shares, stock or other valuable consideration and any such consideration may be payable in a lump sum or by instalments spread over such period as it may think fit;

 

(v)                                 to settle, adjust, refer to arbitration, compromise and arrange any claims, accounts, disputes, questions and demands with or by any person who is or claims to be a creditor of the Company or relating in any way to the Secured Assets over which he is appointed or any part thereof;

 

(vi)                              to bring, prosecute, enforce, defend and abandon any actions, suits and proceedings in relation to the Secured Assets over which he is appointed or any part thereof as may seem to it to be expedient;

 

(vii)                           to give valid receipts for all moneys and execute all assurances and things which it may think proper or desirable for realising the Secured Assets over which he is appointed;

 

(viii)                        to form a Subsidiary or Subsidiaries of the Company (whether by acquisition or otherwise) and to supervise and manage the same and to transfer or otherwise dispose to any such Subsidiary all or any part of the Secured Assets over which he is appointed;

 

(ix)                                to enter into or otherwise grant guarantees, indemnities or otherwise incur obligations in respect of the liabilities of third parties and to make payments due in relation to the same; and

 

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(x)                                   to do all such other acts and things as it may consider desirable or necessary for realising all or any part of the Secured Assets over which he is appointed or incidental or conducive to any of the matters, powers or authorities conferred on a Receiver under or by virtue of this Assignment; to exercise in relation to all or any part of the Secured Assets over which he is appointed all such powers, authorities and things as it would be capable of exercising if it were the absolute beneficial owner of the same; and to use the name of the Company for all or any of such purposes.

 

9.5                                 Removal and Remuneration

 

(a)                  The Security Trustee may whenever it may deem it expedient (and so far as it is lawfully able), by written instrument (i) remove any Receiver appointed by it and (ii) appoint a new Receiver in the place of any Receiver whose appointment has been terminated and may from time to time fix the remuneration of any Receiver appointed by it without the limitations imposed by Section 109 of the Law of Property Act 1925.

 

(b)                 The Company shall be solely responsible for the payment of the remuneration of any Receiver appointed pursuant to this Assignment.

 

9.6                                 Security Trustee’s Rights

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions which are conferred by this Assignment (either expressly or impliedly) upon a Receiver in respect of the Secured Assets may, after the Security has become enforceable, be exercised by the Security Trustee in relation to the whole or any part of the Secured Assets irrespective of whether or not a Receiver of all or any part of such Secured Assets has been appointed.

 

10.                               APPLICATION OF PROCEEDS

 

All moneys received by the Security Trustee or by any Receiver shall be applied, after the discharge of the remuneration and expenses of the Receiver and all liabilities having priority to the Secured Obligations, in or towards satisfaction of the Secured Obligations in accordance with the terms of the Group Intercreditor Deed and the Security Trust Agreement, except that the Security Trustee may credit the same to a suspense account for so long and in such manner as the Security Trustee may from time to time determine and the Receiver may retain the same for such period as he and the Security Trustee consider expedient.

 

11.                               POWER OF ATTORNEY

 

11.1                           Appointment

 

By way of security for the performance of its obligations under this Assignment, the Company irrevocably appoints the Security Trustee and any Receiver (and their respective delegates and sub-delegates) to be its attorney acting severally (or jointly with any other such attorney or attorneys) and on its behalf and in its name or otherwise to do any and every thing which the Company is obliged to do under the

 

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terms of this Assignment or which such attorney considers necessary or desirable in order to exercise the rights conferred on it by or pursuant to this Assignment or by law.

 

11.2                           Ratification

 

The Company ratifies and confirms and agrees to ratify and confirm whatever any attorney appointed under this Assignment shall do in its capacity as such.

 

12.                               PROTECTION OF SECURITY TRUSTEE AND RECEIVERS

 

12.1                           No Liability as Mortgagee in Possession

 

Neither the Security Trustee nor any Receiver shall, by reason of it or such Receiver entering into possession of all or any part of the Secured Assets or taking any action permitted by this Assignment, be liable to account as mortgagee in possession or otherwise be liable for any loss of any kind or for any default or omission for which a mortgagee in possession might be liable.

 

12.2                           Receivers and Mortgagees

 

Each Receiver and the Security Trustee shall be entitled to all the rights, powers, privileges and immunities conferred by the Law of Property Act 1925 (as extended by this Assignment) on mortgagees and receivers when such receivers have been duly appointed thereunder.

 

12.3                           Receiver as Agent

 

Each Receiver shall be the agent of the Company and (subject to the provisions of this Assignment) the Company shall be solely responsible for the acts or default and the remuneration of each Receiver.

 

12.4                           Powers of the Security Trustee

 

To the fullest extent permitted by law, all or any of the powers, authorities and discretions of a Receiver in respect of the Secured Assets may, if a Receiver has been or could have been appointed, be exercised by the Security Trustee in relation to the whole or any part of the Secured Assets whether or not a Receiver is or has been appointed.

 

13.                               PROTECTION OF THIRD PARTIES

 

No purchaser, mortgagee or other person or company dealing with the Security Trustee or any Receiver or the agents of any of them shall have any need to enquire whether the Secured Obligations have become due and payable, or whether any power which the Security Trustee or any Receiver is purporting to exercise has become exercisable or whether any of the Secured Obligations remains outstanding nor to have regard to the application of any money paid to the Security Trustee or to such Receiver.

 

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14.                               DELEGATION BY SECURITY TRUSTEE

 

The Security Trustee may at any time and from time to time delegate by power of attorney or in any other manner to any person or persons all or any of the powers, authorities and discretions which are for the time being exercisable by the Security Trustee under this Assignment in relation to all or any part of the Secured Assets.  Any such delegation may be made upon such terms (including power to sub-delegate) and subject to such regulations as the Security Trustee may think fit.  The Security Trustee shall not be in any way liable or responsible to the Company for any loss or damage arising from any act, default, omission or misconduct on the part of any such delegate or sub-delegate.

 

15.                               REDEMPTION OF PRIOR MORTGAGES

 

The Security Trustee may, at any time after the Security has become enforceable, redeem any prior encumbrance over all or any part of the Secured Assets or procure the transfer of such encumbrance to itself and may settle and pass the accounts of the prior mortgagee, chargee or encumbrancer.  Any accounts so settled and passed shall be conclusive and binding on the Company.  All principal moneys, interest, costs, charges and expenses of and incidental to such redemption and transfer shall be paid by the Company to the Security Trustee on demand.

 

16.                               RELEASE OF THE SECURITY

 

After the end of the Security Period, the Security Trustee shall, at the request and cost of the Company, execute all such documents and do such other things as may be required to release the Secured Assets from the Security and procure the reassignment to the Company of the property and assets assigned to the Security Trustee pursuant to this Assignment, in each case subject to Clause 22.2 (Settlements Conditional).

 

17.                               PAYMENTS

 

17.1                           Grossing Up

 

All payments by the Company under this Assignment shall be made free and clear of, and without deduction for or on account of, tax except, in the latter case, to the extent that the Company is required by law to make payment subject to tax.  If any tax or amounts in respect of tax must be deducted, or any other deductions must be made, from any amounts payable or paid by the Company, or paid or payable by the Security Trustee to any Secured Creditor, under this Assignment, the Company shall pay such additional amounts as may be necessary to ensure that the relevant Secured Creditor receives a net amount equal to the full amount which it would have received had payment not been made subject to tax.

 

17.2                           No Set-Off

 

All payments by the Company under this Assignment shall be made free and clear of and without deduction for or on account of any set-off or counter claim.

 

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17.3                           Manner of Payment

 

Each payment made by the Company under this Assignment shall be paid in the manner in which payments are to be made by a Borrower under the Senior Facilities Agreement or, upon its repayment in full and cancellation of all undrawn commitments thereunder, under such equivalent provision in the Relevant Facilities Agreement.

 

18.                               COSTS AND EXPENSES

 

18.1                           Transaction Costs

 

The Company shall from time to time on demand of the Security Trustee reimburse the Security Trustee on a full indemnity basis for all reasonable costs and expenses (including legal fees), incurred by, or any remuneration payable to, the Security Trustee in connection with the negotiation, preparation, execution and perfection of this Assignment and the implementation of the arrangements contemplated in this Assignment.

 

18.2                           Preservation and Enforcement Costs

 

The Company shall, from time to time on demand of the Security Trustee, reimburse each Secured Creditor on a full indemnity basis for all costs and expenses (including legal fees) incurred in or in connection with the preservation and/or enforcement of any of the rights of such Secured Creditor under this Assignment.

 

18.3                           Taxes

 

The Company shall promptly pay all stamp, registration, documentary and other taxes, including any penalties, fines, supplements, surcharges or interest relating to such taxes, to which this Assignment or any judgment given in connection with this Assignment is or at any time may be subject and shall from time to time on demand of the Security Trustee indemnify each Secured Creditor against any liabilities, costs, claims and expenses (including legal fees) resulting from any failure to pay or any delay in paying any such tax.

 

18.4                           Indemnity

 

The Company shall indemnify the Security Trustee and any and every Receiver on demand from any and all costs, claims, losses, expenses (including legal fees) and liabilities, and any VAT thereon, which the Security Trustee or a Receiver may incur as a result of the occurrence of any Event of Default, the enforcement of the Security or the exercise or enforcement by the Security Trustee or a Receiver of any of the rights conferred on it or them by this Assignment or by law except in the case of fraud, wilful misconduct or gross negligence on the part of the Security Trustee or the relevant Receiver.

 

18.5                           Value Added Tax

 

(a)                  All amounts expressed to be payable under this Assignment by the Company to a Secured Creditor shall be exclusive of any VAT.  If VAT is chargeable on any supply made by a Secured Creditor to the Company under this

 

20



 

Assignment (whether that supply is taxable pursuant to the exercise of an option or otherwise), the Company shall pay to that Secured Creditor (in addition to and at the same time as paying that consideration) an amount equal to the amount of the VAT as further consideration.

 

(b)                 No payment or other consideration to be made or furnished to the Company pursuant to or in connection with this Assignment may be increased or added to by reference to (or as a result of any increase in the rate of) any VAT which shall be or may become chargeable in respect of any taxable supply.

 

(c)                  Where this Assignment requires any party to reimburse a Secured Creditor for any costs or expenses, that party shall also pay any amount of those costs or expenses incurred referable to VAT charged thereon.

 

19.                               ASSIGNMENTS AND TRANSFERS

 

19.1                           The Company’s Rights

 

None of the rights and benefits of the Company under this Assignment shall be capable of being assigned or transferred and the Company undertakes not to seek to assign or transfer all or any of such rights and benefits.

 

19.2                           The Security Trustee’s Rights

 

The Security Trustee may assign or transfer all or any of its rights and benefits under this Assignment in accordance with the terms of the Security Trust Agreement.

 

20.                               REMEDIES AND WAIVERS

 

No failure by the Security Trustee to exercise, nor any delay by the Security Trustee in exercising, any right or remedy under this Assignment shall operate as a waiver thereof nor shall any single or partial exercise of any such right or remedy prevent any further or other exercise thereof or the exercise of any other such right or remedy.

 

21.                               SET-OFF

 

21.1                           Right to Set-Off

 

Each Secured Creditor may (to the extent that the same is beneficially owned by it) set off its rights in respect of any matured Secured Obligation against any obligation (whether or not matured) owed by such Secured Creditor to the Company or any Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, such Secured Creditor may convert either obligation at a market rate of exchange in its usual course of business for the purpose of effecting such set-off.

 

21.2                           No Obligation

 

No Secured Creditor shall be obliged to exercise any right given to it by Clause 21.1 (Right to Set-Off).

 

21



 

21.3                           Time Deposits

 

Without prejudice to Clause 21.1 (Right to Set-Off), if any time deposit matures on any Account the Company has with any Secured Creditor at a time within the Security Period when:

 

(a)                  the Security has become enforceable; and

 

(b)                 no amount of the Secured Obligations is due and payable,

 

such time deposit shall automatically be renewed for such further period as such Secured Creditor in its absolute discretion considers appropriate.

 

22.                               ADDITIONAL PROVISIONS

 

22.1                           Partial Invalidity

 

If at any time any provision of this Assignment is or becomes illegal, invalid or unenforceable in any respect or any or all of the Security is or becomes ineffective in any respect under the law of any jurisdiction, such illegality, invalidity, unenforceability or ineffectiveness shall not affect:

 

(a)                  the legality, validity or enforceability of the remaining provisions of this Assignment or the effectiveness in any other respect of such Security; or

 

(b)                 the legality, validity or enforceability of such provision or the effectiveness of such Security under the laws of any other jurisdiction.

 

22.2                           Settlements Conditional

 

Any release, discharge or settlement between the Company and the Security Trustee shall be conditional upon no security, disposition or payment to the Security Trustee or any of the Beneficiaries by the Company or any other person being void, set aside or ordered to be refunded pursuant to any enactment or law relating to bankruptcy, liquidation, administration or insolvency or for any other reason whatsoever and if such condition shall not be fulfilled the Security Trustee shall be entitled to enforce this Assignment subsequently as if such release, discharge or settlement had not occurred and any such payment had not been made.

 

22.3                           Currency Conversion

 

In order to apply any sum held or received by the Security Trustee or a Receiver in or towards payment of the Secured Obligations, the Security Trustee or such Receiver may purchase an amount in another currency and the rate of exchange to be used shall be that at which, at such time as it considers appropriate, the Security Trustee or such Receiver is able to effect such purchase.

 

22.4                           Currency Indemnity

 

If any sum due from the Company under this Assignment or any order or judgment given or made in relation to this Assignment has to be converted from the currency (the “first currency”) in which the same is payable under this Assignment or under

 

22



 

such order or judgment into another currency (the “second currency”) for the purpose of (a) making or filing a claim or proof against the Company, (b) obtaining an order or judgment in any court or other tribunal or (c) enforcing any order or judgment given or made in relation to this Assignment, the Company shall indemnify each Secured Creditor from any loss it suffers or incurs as a result of any discrepancy between (i) the rate of exchange used for such purpose to convert the sum in question from the first currency into the second currency and (ii) the rate or rates of exchange at which such Secured Creditor may in the ordinary course of business purchase the first currency with the second currency upon receipt of a sum paid to it in satisfaction, in whole or in part, of any such order, judgment, claim or proof.

 

22.5                           Rights Cumulative

 

The rights and remedies provided by this Assignment are cumulative and not exclusive of any rights or remedies provided by law.

 

22.6                           Unfettered Discretion

 

Any liberty or power which may be exercised or any determination which may be made under this Assignment by the Security Trustee or any Receiver may, subject to the terms and conditions of the Security Trust Agreement and the Group Intercreditor Deed, be exercised or made in its absolute and unfettered discretion without any obligation to give reasons.

 

23.                               NOTICES

 

23.1                           Mode of Service

 

Any notice or demand for payment by the Security Trustee under this Assignment shall, without prejudice to any other effective mode of making the same, be deemed to have been properly served on the Company in the manner and at the address set out in clause 20 of the Group Intercreditor Deed.

 

23.2                           Notices Conclusive

 

Any such notice or demand or any certificate as to the amount at any time secured by this Assignment shall, save for manifest error, be conclusive and binding upon the Company if signed by an officer of the Security Trustee.

 

23.3                           English Language

 

Each communication and document made or delivered by one party to another pursuant to this Assignment shall be in English or accompanied by a translation into English which is certified (by an officer of the person making or delivering the same) as being a true and accurate translation.

 

24.                               GOVERNING LAW

 

This Assignment and any non-contractual obligations arising out of or in connection with this Assignment shall be governed by, and construed in accordance with, English law.

 

23



 

25.                               JURISDICTION

 

25.1                           Courts of England

 

Each of the Company and the Security Trustee irrevocably agrees that the courts of England shall have jurisdiction to hear and determine any suit, action or proceedings, and to settle any disputes, which may arise out of or in connection with this Assignment (respectively “Proceedings” and “Disputes”) and, for such purposes, irrevocably submits to the jurisdiction of such courts.

 

25.2                           Appropriate Forum

 

The Company irrevocably waives any objection which it might now or hereafter have to Proceedings being brought or Disputes settled in the courts of England and agrees not to claim that any such court is not a convenient or appropriate forum.

 

25.3                           Service of Process

 

The Company agrees that the process by which any Proceedings are begun may be served on it by being delivered in connection with any Proceedings in England to Virgin Media Investment Holdings Limited at 160 Great Portland Street, London W1W 5QA, United Kingdom or, if different, its registered office for the time being. If the appointment of the person mentioned in this Clause 25.3 ceases to be effective, the Company shall immediately appoint another person in England to accept service of process on its behalf in England and if it fails to do so within 15 days the Security Trustee shall be entitled to appoint such a person by notice to the Company. Nothing contained in this Assignment shall affect the right to serve process in any other manner permitted by law.

 

25.4                           Proceedings in Other Jurisdictions

 

Nothing in Clause 25.1 (Courts of England) shall (and shall not be construed so as to) limit the right of the Security Trustee to take Proceedings against the Company in any other court of competent jurisdiction nor shall the taking of Proceedings in any one or more jurisdictions preclude the taking of Proceedings in any other jurisdiction (whether concurrently or not) if and to the extent permitted by applicable law.

 

26.                               COUNTERPARTS AND EFFECTIVENESS

 

26.1                           Counterparts

 

This Assignment may be executed in counterparts and both such counterparts taken together shall be deemed to constitute one and the same instrument.

 

26.2                           Effectiveness

 

This Assignment shall take effect and be delivered as a deed on the date on which it is stated to be made.

 

24


 

SCHEDULE 1

 

CONTENT PROVIDER CONTRACTS

 

Parties

 

Description

 

Date

 

 

 

 

 

(1) Telewest Limited

 

(2) Asia TV Limited

 

Contract for the provision of linear channels

 

19 December 2005 as amended by letter agreements dated 19 July 2006 and 31 October 2006 and novated to Virgin Media Limited by agreement dated 27 June 2008

 

 

 

 

 

(1) Telewest Limited

 

(2) Ary Digital (UK) Limited

 

Contract for the provision of linear channels

 

4 June 2004 as amended by letter agreements dated 19 July 2006 and 17 January 2008

 

 

 

 

 

(1) Telewest Limited

 

(2) B4U Network (Europe) Limited

 

Contract for the provision of linear channels

 

24 March 2003 as amended by letter agreements dated 25 June 2003, 27 May 2004, 29 November 2005 and 18 July 2006 and novated to Virgin Media Limited by agreement dated 22 February 2008

 

 

 

 

 

(1) Virgin Media Limited

 

(2) MSM Satellite (Singapore) Pte Limited

 

Contract for the provision of linear channels

 

20 December 2006

 

 

 

 

 

(1) Virgin Media Limited

 

(2) Asian Broadcasting FZ-LLC

 

Contract for the provision of linear channels

 

31 August 2007

 

 

 

 

 

(1) Virgin Media Limited

 

(2) Portland Enterprises (CI) Limited

 

(3) RHF Productions Limited

 

Contract for the provision of linear channels

 

5 September 2007 as amended by letter agreements dated 28 August 2008 and 14 May 2009

 

 

 

 

 

(1) Virgin Media Limited

 

(2) Playboy TV UK/Benelux Limited

 

Contract for the provision of linear channels

 

22 May 2009

 

 

 

 

 

(1) Virgin Media Limited

 

(2) TV Group Limited

 

Contract for the provision of linear channels

 

30 June 2005 as amended by letter agreement dated 2 August 2007

 

25



 

Parties

 

Description

 

Date

 

 

 

 

 

(1) Virgin Media Limited

 

(2) Phoenix Chinese News & Entertainment Limited

 

Contract for the provision of linear channels

 

24 May 2005 as amended by letter agreement dated 28 August 2008

 

 

 

 

 

(1) Virgin Media Limited

 

(2) MUTV Limited

 

Contract for the provision of linear channels

 

29 May 2009

 

 

 

 

 

(1) Virgin Media Limited

 

(2) The Walt Disney Company Limited

 

Contract for the provision of linear channels

 

24 December 2008 as amended by agreement dated 28 April 2009

 

 

 

 

 

(1) Virgin Media Limited

 

(2) Baby Network Limited

 

Contract for the provision of linear channels

 

10 August 2005 as amended by amendment agreement dated 30 August 2006

 

 

 

 

 

(1) Virgin Media Limited

 

(2) Setanta Sport (PPV) Limited

 

Contract for the provision of linear channels

 

19 August 2007 as amended by letter agreement dated 22 December 2008

 

 

 

 

 

(1) Future Entertainment S.à r.l.

 

(2) Virgin Media Limited

 

(3) Virgin Media Investment Holdings Limited

 

(4) British Sky Broadcasting Limited

 

Consent Agreement relating to the provision of Sky’s premium digital linear channels

 

26 May 2009

 

26



 

THIS ASSIGNMENT has been executed as a deed by the Company and signed by the Security Trustee on the date written at the beginning of this Assignment.

 

 

THE COMPANY

 

EXECUTED as a DEED by

FUTURE ENTERTAINMENT S.À R.L.

 

 

/s/ EMMA JONES

 

Represented by: Emma Jones

 

Title: General Manager

 

 



 

THE SECURITY TRUSTEE

 

DEUTSCHE BANK AG, LONDON BRANCH

 

 

By:

/s/ N. DAWES

 

 

N. Dawes

 

 

 

 

 

 

 

By:

/s/ V. MAYELL

 

 

V. Mayell

 

 




Exhibit 4.47

 

EXECUTION VERSION

 

SHARE PLEDGE AGREEMENT

 

dated January 19, 2010

 

BETWEEN

 

Virgin Media Investments Limited

as the Pledgor

 

AND

 

Deutsche Bank AG, London Branch

as the Pledgee

 

AND

 

Future Entertainment S.à r.l.

as the Company

 

 

18-20, rue Edward Steichen

L - 2540 LUXEMBOURG

 



 

THIS SHARE PLEDGE AGREEMENT IS DATED JANUARY 19, 2010 (the Agreement) AND IS MADE BETWEEN:

 

(1)                                 Virgin Media Investments Limited, a company incorporated and registered in England and Wales with company number 7108297, where registered office is at 160 Great Portland Street, London W1W 5QA, the United Kingdom (the Pledgor);

 

AND

 

(2)                                 Deutsche Bank AG, London Branch, acting as security trustee for the benefit of the Beneficiaries (as defined below) (the Pledgee);

 

AND

 

(3)                                 Future Entertainment S.à r.l., a Luxembourg private limited liability company (société à responsabilité limitée), with registered office at Media Center Betzdorf, 11 rue Pierre Werner, L-6832 Betzdorf, Grand Duchy of Luxembourg, registered with the Luxembourg Register of Commerce and Companies under number B 145.414 and having a share capital of GBP 400,000 (the Company).

 

The Pledgor, the Pledgee and the Company shall each be referred to as a Party and, collectively, the Parties.

 

WHEREAS:

 

(A)                                       Pursuant to a senior facilities agreement dated March 3, 2006 (as amended and restated on May 22, 2006, July 10, 2006, August 10, 2006, April 4, 2007, May 15, 2008, November 10, 2008, October 30, 2009 and January 8, 2010 and as amended, restated, supplemented or novated from time to time) between Virgin Media Inc., Virgin Media Finance plc, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited), Telewest Communications Networks Limited, VMIH Sub Limited (formerly known as NTLIH Sub Limited) as UK Borrowers, Virgin Media Dover LLC (formerly known as NTL Dover LLC) as US Borrower, the Pledgee, J.P. Morgan plc, The Royal Bank of Scotland plc and Goldman Sachs International as Bookrunners and as Mandated Lead Arrangers, the Pledgee as Facility Agent and as Security Trustee, Deutsche Bank AG, New York Branch as US Paying Agent, GE Corporate Banking Europe SAS as Administrative Agent, the Pledgee as Original L/C Bank and the persons named therein as Lenders (the Senior Facilities Agreement), the Senior Lenders have made available to the Borrowers (as defined therein) certain facilities for the purposes referred to in paragraphs (a) to (f) of Clause 2.4 thereof.

 

(B)                                         Virgin Media Secured Finance PLC has agreed to issue and sell the Senior Secured Notes (as defined in the Senior Secured Notes Indenture, as defined below) under the Senior Secured Notes Indenture (as defined below).

 

(C)                                         Pursuant to accession notices dated May 15, 2009, the Company acceded to the Senior Facilities Agreement as an Acceding Guarantor (as defined in the Senior Facilities Agreement), the Group Intercreditor Deed as an Obligor (as defined below) and the Security Trust Agreement as an Obligor (as defined below).

 



 

(D)                                        Pursuant to a sale and purchase agreement dated December 18, 2009, all the Shares have been transferred to the Pledgor by the Former Pledgor to the Pledgor at the Effective Time.

 

(E)                                          For the purpose of securing the Secured Obligations (as defined in the Existing Pledge Agreement, as defined below), the Pledgor has pledged and granted a first ranking security interest (gage de premier rang) over the Shares pursuant to a share pledge agreement dated December 23, 2009 and effective as of the Effective Time (as defined therein) as amended and restated on January 19, 2010 (the Existing Pledge Agreement) in favour of the Pledgee (the Existing Pledge).

 

(F)                                          For the purpose of securing the Secured Obligations (as defined below), the Pledgor wishes to pledge and grant to the Pledgee a security interest (gage) over the Shares  in favour of the Pledgee (the Pledge).

 

(G)                                         THE PARTIES ACKNOWLEDGE THAT THE PLEDGE CREATED BY THIS AGREEMENT EXISTS SUBJECT TO THE EXISTING PLEDGE AND THE GROUP INTERCREDITOR DEED.

 

IT IS AGREED as follows:

 

1.                                     INTERPRETATION

 

1.1.                           Recitals

 

Recitals (A) to and including (F) above are an integral part of this Agreement.

 

1.2.                           Definitions

 

Unless the context otherwise requires or unless otherwise defined in this Agreement, words and expressions defined in the Group Intercreditor Deed and (unless otherwise defined in the Group Intercreditor Deed) the Relevant Facilities Agreement shall have the same meaning when used in this Agreement:

 

Agreement means this share pledge agreement.

 

Beneficiaries means the First Beneficiary and the Second Beneficiaries.

 

Business Day means a day (other than a Saturday or Sunday) on which banks are open for general business in London and Luxembourg.

 

Designated Secured Obligations means Financial Indebtedness in the form of notes or other such similar instruments of any member of the Group that is designated as “Designated Secured Obligations” by written notice from Virgin Media Investment Holdings Limited and its successors in title from time to time to the Pledgee which notice will certify that the Financial Indebtedness is an instrument for which Rule 3-16 of Regulation S-X under the Securities Act (Rule 3-16) is applicable or will become applicable upon registration of such instrument or an instrument exchangeable for such instrument pursuant to a contractual requirement.

 

Enforcement Event means the date on which, following the occurrence of an Event of

 



 

Default that is continuing, either the Relevant Agent or the Security Trustee notifies the Pledgor of the occurrence of that Event of Default, or takes, under any one or more of the Senior Finance Documents, any of the steps it is entitled to take by reason of the occurrence of such Event of Default.

 

Event of Default means each of:

 

(a)                                   a Senior Default; and

 

(b)                                 an event of default or termination event (however described) under any Hedging Agreement.

 

Excluded Charged Assets has the meaning given to such term in Clause 3.(b) of this Agreement.

 

Group Intercreditor Deed means an intercreditor deed dated March 3, 2006, as amended and restated on June 13, 2006, July 10, 2006, July 31, 2006, May 15, 2008, October 30, 2009 and January 8, 2010 between the Security Trustee, the Facility Agent, the Original Senior Borrowers, the Original Senior Guarantors, the Senior Lenders, the Hedge Counterparties, the Intergroup Debtors and the Intergroup Creditors.

 

Luxembourg means the Grand Duchy of Luxembourg.

 

Relevant Facilities Agreement means the Senior Facilities Agreement, or, upon its repayment in full and cancellation of all undrawn commitments thereunder, the Designated Refinancing Facilities Agreement, provided that if upon the repayment in full and cancellation of all undrawn commitments under the Senior Facilities Agreement there is no Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Senior Facilities Agreement immediately prior to such termination, and provided further that upon the repayment in full and cancellation of all undrawn commitments under the Designated Refinancing Facilities Agreement, until such time that a Refinancing Facilities Agreement has been designated as a Designated Refinancing Facilities Agreement, the “Relevant Facilities Agreement” shall be the Designated Refinancing Facilities Agreement immediately prior to such termination.

 

Rights of Recourse means all and any rights, actions or claims the Pledgor may have against the Company, any Obligor or any other person that has granted Security, including, in particular the Pledgor’s right of recourse against such persons, or any of them, under the terms of article 2028 et seq. of the Luxembourg Civil Code (including, for the avoidance of doubt, any right of recourse prior to enforcement), or any right of recourse by way of subrogation or any other similar right, action or claim under any applicable law.

 

Rule 3-16 has the meaning given to such term in “Designated Secured Obligations”.

 

SEC means the United States Securities and Exchange Commission.

 

Secured Obligations means the Security Trustee Liabilities, the Senior Liabilities and the Hedging Liabilities, provided that any liabilities that have been designated as “New

 



 

Senior Liabilities” under the Group Intercreditor Deed or are incurred after December 31, 2009 under any Refinancing Facilities Agreement entered into after such date,

 

(a)                                  in breach of the provisions of the Senior Facilities Agreement, or upon its repayment in full and cancellation of all undrawn commitments thereunder (unless there is no Designated Refinancing Facilities Agreement), the Designated Refinancing Facilities Agreement, or any Refinancing Facilities Agreement on the date of such designation (excluding any applicable cure period), or

 

(b)                                 that the Pledgee, acting reasonably, has not agreed to act as security trustee for,

 

shall not, in any such case constitute “Secured Obligations” for the purpose of Agreement.

 

Securities Act means the United States Securities Act of 1933, as amended.

 

Security Period means the period beginning on the date of this Agreement and ending on the date upon which:

 

(a)                                  none of the Beneficiaries is under any obligation (whether actual or contingent) to make advances or provide other financial accommodation to the Obligors under any of the Senior Finance Documents; and

 

(b)                                 all the Secured Obligations have been unconditionally and irrevocably paid and discharged in full.

 

Security Trust Agreement means the security trust agreement dated March 3, 2006 and amended and restated on or about the date of this Agreement, between the Pledgee as Security Trustee and as Facility Agent, Virgin Media Investment Holdings Limited (formerly known as NTL Investment Holdings Limited) and the companies named therein as Original Obligors.

 

Senior Secured Notes has the meaning given to the term “Notes” in the Senior Secured Notes Indenture.

 

Senior Secured Notes Documents means the Senior Secured Notes Indenture including the guarantees set out therein, and the Senior Secured Notes.

 

Senior Secured Notes Indenture means the indenture dated on or about the date of this Agreement governing the $1,000,000,000 6.50% Senior Secured Notes due 2018 and the £875,000,000 7.00% Senior Secured Notes due 2018, among Virgin Media Inc., Virgin Media Investment Holdings Limited, Virgin Media Finance PLC, Virgin Media Secured Finance PLC, the subsidiary guarantors named therein, The Bank of New York Mellon, as trustee, registrar and paying agent and The Bank of New York Mellon (Luxembourg), S.A., as Luxembourg paying agent, as amended, restated, supplemented or otherwise modified from to time.

 

Shares means all the four hundred thousand (400,000) shares (parts sociales) of the Company in registered form, having a par value of one British Pound (GBP 1) each,

 



 

held by the Pledgor in the Company, representing, on the date of this Agreement, one hundred per cent (100%) of the subscribed share capital of the Company, as well as the securities acquired or offered in substitution for such shares and one hundred per cent (100%) of those shares or securities which may be subscribed by the Pledgor in the case of an increase of share capital of the Company following an exchange, merger, consolidation, division, issue of stock dividend, subscription for cash or otherwise and, generally, one hundred per cent (100%) of all such stock and shares in the capital of the Company now or at any time hereafter owned by the Pledgor and, subject to Clause 2(b) hereof, one hundred per cent (100%) of the dividends or interest thereon, redemption distribution, bonus, preference, option rights or other rights to or in respect thereof.

 

1.3.                           In this Agreement, any reference to (a) a Clause is, unless otherwise stated, a reference to a Clause hereof and (b) to any agreement (including this Agreement) is a reference to such agreement as amended, varied, modified or supplemented (however fundamentally) from time to time.

 

1.4.                           Clause headings are inserted for convenience of reference only and shall be ignored in construing this Agreement.

 

1.5.                           Words importing the singular shall include the plural and vice-versa.

 

1.6.                           Counterparts

 

This Agreement may be executed in any number of counterparts and by way of facsimile exchange of executed signature pages, all of which together shall constitute one and the same Agreement.

 

1.7.                           Group Intercreditor Deed

 

This Agreement should be read and construed subject to the terms of the Group Intercreditor Deed. In the event of any inconsistency between the terms of this Agreement and the Group Intercreditor Deed, the terms of the Group Intercreditor Deed shall prevail.

 

1.8.                           Secured Obligations

 

It is acknowledged and agreed that (without prejudice to the extension of the Secured Obligations to any other Indebtedness from time to time included within the definition thereof) as at the date hereof, the Secured Obligations shall include:

 

(a)          all Liabilities under the Senior Facilities Agreement; and

 

(b)         all Liabilities under the Senior Secured Notes Documents.

 

2.                                     PLEDGE

 

(a)                                 Subject to any Clause of this Agreement, the Existing Pledge and the Group Intercreditor Deed, as continuing security interest (gage) for the due and full payment and discharge of the Secured Obligations, the Pledgor, as legal and beneficial owner of the Shares, hereby pledges, the Shares to, and in favour of, the Pledgee.

 



 

(b)                                Subject to Clause 2.(d) of this Agreement and the terms of the other Senior Finance Documents to which the Pledgor is a party, until the occurrence of an Event of Default which is continuing, the right to take part in the Company’s shareholders’ meetings, to vote therein and to receive dividends paid in cash or other interests, distributions or rights to distributions attaching to the Shares, shall remain vested in the Pledgor.

 

(c)                                 The Pledgor shall not, without the prior consent in writing of the Pledgee, exercise its voting powers in respect of the Shares in any way:

 

(i)                                   that in the event of the enforcement of this Pledge, would impede the ability of the Pledgee to appropriate or transfer any of the Shares;

 

(ii)                                that affects adversely in any material respect the value of any Shares;

 

(iii)                             that is inconsistent or conflicts with the terms of the other Senior Finance Documents to which the Pledgor is a party; or

 

(iv)                            that impairs the validity or enforceability of this Pledge or would have a material adverse effect on the security interest (gage) created under this Agreement.

 

(d)                                Upon the occurrence of an Event of Default, which is continuing, (x) the Parties to this Agreement expressly agree that the voting and dividend rights attaching to the Shares shall be vested in the Pledgee, (y) the Pledgor shall not, without the prior written consent of the Pledgee, exercise any voting rights or other rights in relation to the Shares, and (z) the Pledgor shall do whatever is necessary, including the issuing of a written proxy in any form or any other document that the Pledgee may require for the purpose of exercising such rights so that the Pledgee can, independently and without any limitations, (i) exercise the voting rights attached to the Shares in one or more ordinary or extraordinary general meetings of the shareholders of the Company for the purposes of protecting and/or enforcing its rights under this Agreement, (ii) receive or otherwise collect, all dividends and other monies due to the shareholders of the Company in relation to the Shares for the sole purpose of applying them towards the discharge of the Secured Obligations, and (iii) execute and perform all such assurances, acts and things which the Pledgor is required to do and fails to do under the provisions of this Agreement.

 

(e)                                 In exercising its powers and discretion in connection with the exercise of voting rights pertaining to the Shares, the Pledgee shall have an absolute discretion to the extent necessary for the purpose of protecting and/or enforcing its rights under this Agreement.

 

(f)                                   The provisions of this Clause shall be applicable mutatis mutandis to the Company’s shareholders’ decisions adopted by written resolution rather than in shareholders’ meetings.

 



 

3.                                     RULE 3-16 LIMITATION

 

(a)                                  Notwithstanding Clause 2 of this Agreement, the Excluded Charged Assets are not charged under this Deed to secure the Designated Secured Obligations. For the avoidance of doubt,

 

(ii)                                  all other Shares remain pledged or assigned (as the case may be) under this Agreement to secure all Secured Obligations, including without limitation the Designated Secured Obligations; and

 

(ii)                                  such Excluded Charged Assets remain pledged under Clause 2 hereof to secure any Secured Obligations that are not Designated Secured Obligations.

 

(b)                                 Excluded Charged Assets in relation to any Designated Secured Obligations means any Shares or other securities of a Subsidiary of Virgin Media Inc. (excluding the Shares or other securities issued by Virgin Media Investments Limited or any successor entity upon any merger, reorganisation or other restructuring effecting it) that are owned by any chargor or pledgor to the extent that charging or pledging such Shares or other securities under this Agreement to secure such Designated Secured Obligations would result in Rule 3-16 requiring separate financial statements of such Subsidiary to be filed with the SEC, but (i) only to the extent necessary to not be subject to such requirement, (ii) only for so long as such requirement is in existence and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC under a separate rule or regulation; provided that no shares or securities will constitute Excluded Charged Assets if any member of the Group takes any action in the form of a reorganisation, merger or other restructuring, a principal purpose of which is to provide for the limitation of the charge on any Shares or other securities pursuant to Clause 3(a) of this Agreement.

 

(c)                                  In the event that Rule 3-16 is amended, modified or interpreted by the SEC to require (or is replaced with another rule or regulation, or any other law, rule or regulation is adopted, which would require) the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of any such Subsidiary due to the fact that such Subsidiary’s Shares or other securities secure any Designated Secured Obligations, then such Shares or other securities (as applicable) of such Subsidiary shall automatically be deemed to be Excluded Charged Assets for such Designated Secured Obligations but (i) only to the extent necessary to not be subject to any such financial statement requirement, (ii) only for so long as such financial statement requirement would otherwise have been applicable to such Subsidiary and (iii) only if no member of the Group files or is otherwise required to file separate financial statements of such Subsidiary with the SEC or such other governmental agency under a separate rule or regulation. If the circumstances described in this paragraph (c) apply, this Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to release the Pledge (but only to the extent securing such Designated Secured Obligations and without prejudice to the Pledge securing Secured Obligations referred to in paragraph (a)(ii) of this Clause 3) in favour of the Pledgee on the relevant Shares and/or other securities that are so deemed to constitute Excluded Charged Assets.

 

(d)                                 In the event that Rule 3-16 is amended, modified or interpreted by the SEC to permit (or is replaced with another rule or regulation, or any other law, rule or regulation is

 



 

adopted, which would permit) such Subsidiary’s Shares and/or other securities to secure any Designated Secured Obligations in excess of the amount then pledged without the filing with the SEC (or any other United States federal or state governmental agency) of separate financial statements of such Subsidiary, then the Shares or other securities (as applicable) of such Subsidiary will automatically be deemed not to be Excluded Charged Assets for such Designated Secured Obligations, but limited to the extent necessary to not be subject to any such financial statement requirement. If the circumstances described in this paragraph (d) apply, this Agreement may be amended or modified, without the consent of any Senior Finance Party, to the extent necessary to charge in favour of the Pledgee such additional Shares or other securities that were deemed to constitute Excluded Charged Assets.

 

4.                                     PERFECTION OF THE PLEDGE

 

(a)                                 The Pledge shall by virtue of the execution of this Agreement by the Company be acknowledged and accepted by it and shall promptly be registered in the Company’s share register at the date of execution of this Agreement, in accordance with the Luxembourg law on financial collateral dated August 5, 2005 (the 2005 Law).

 

(b)                                The Parties instruct and appoint any manager of the Company, and any lawyer or employee of LG@vocats, acting and signing individually, with full power of substitution, to register the Pledge in the Company’s share register (registre des associés) by making the following entry (inscription):

 

“These and all future shares held by Virgin Media Investments Limited are pledged, as a security interest (gage) in favour of Deutsche Bank AG, London Branch, pursuant to a share pledge agreement dated January 19, 2010, as amended from time to time (the “Share Pledge Agreement”) between Virgin Media Investments Limited, as Pledgor, Deutsche Bank AG, London Branch, as Pledgee, and Future Entertainment SARL, as the Company, which is subject to any preexisting security interest (gage) created by the latters from time to time.”

 

(c)                                 The Pledgor and the Company undertake to provide the Pledgee, as soon as possible on the date of this Agreement, with a certified true copy of the Company’s share register evidencing such entry (inscription) and undertake to immediately reiterate the above steps and formalities every time the Pledge is extended to further Shares or other securities in the Company in accordance with this Agreement.

 

(d)                                The Pledgor hereby irrevocably authorises and empowers the Pledgee to cause any formal steps to be taken for the purpose of perfecting the Pledge and, for the avoidance of doubt, undertakes to take any such steps itself if so directed by the Pledgee.

 

(e)                                 For the avoidance of doubt, the Pledgor, acting as sole shareholder of the Company, hereby accepts the Pledgee or any potential transferee of the Shares as a new shareholder of the Company in case of enforcement of the Pledge for the purposes of the 2005 Law.

 

5.                                     EFFECTIVENESS OF THE PLEDGE

 

(a)                                 The Pledge shall be a continuing security interest (gage) and shall not be considered as satisfied or discharged or prejudiced by any intermediate payment, satisfaction or

 



 

settlement of any part of the Secured Obligations and shall remain in full force and effect until it has been released in accordance with the terms of this Agreement.

 

(b)                                Subject to the terms of the Senior Finance Documents, the Pledgor shall not be entitled to require the release of the Pledge until the Secured Obligations are entirely, irrevocably, unconditionally and definitively repaid or discharged and the Pledgee shall, at the request of the Pledgor, give release of the Pledge after all the Secured Obligations being entirely, irrevocably, unconditionally and definitively repaid or discharged, subject to delivery of any documents or certificates which the Pledgee may reasonably request.

 

(c)                                 This Pledge shall be discharged by, and only by, the express release thereof granted by the Pledgee pursuant to the terms of Clauses 5(b) and 10 of this Agreement. All costs and expenses associated with the release and discharge of the Pledge shall be borne by the Pledgor.

 

(d)                                The Pledge shall be cumulative, in addition to, and independent of, every other security or security interest which the Pledgee may at any time hold as security for the Secured Obligations (as defined in the Existing Pledge Agreement) or the Secured Obligations (as defined in this Agreement) or any rights, powers and remedies provided by law and shall not operate so as in any way to prejudice or affect or be prejudiced or affected by any security interest or other right or remedy which the Pledgee may now or at any time in the future have in respect of the Secured Obligations (as defined in the Existing Pledge Agreement) or the Secured Obligations (as defined in this Agreement).

 

(e)                                 The Pledge shall not be prejudiced by any time or indulgence granted to any person, or any abstention or delay by the Pledgee in perfecting or enforcing any security interest or rights or remedies that the Pledgee may now or at any time in the future have from or against the Pledgor and the Company (or any of them) or any other person.

 

(f)                                   No failure on the part of the Pledgee to exercise, or delay on its part in exercising, any of its rights under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right preclude any further or other exercise of that or any other rights.

 

(g)                                Neither the obligations of the Pledgor contained in this Agreement nor the rights, powers and remedies conferred upon the Pledgee by the other Senior Finance Documents to which each of the Pledgor and the Pledgee is a party, this Agreement or by law, nor the Pledge shall be discharged, impaired or otherwise affected by:

 

(i)                                   any amendment to, or any variation, waiver or release of, any obligation of the Pledgor or the Company or any other person under the Senior Finance Documents;

 

(ii)                                any failure to take, or to fully take, any Security otherwise agreed to be taken in respect of the Company’s obligations under the Senior Finance Documents;

 

(iii)                             any failure to realise or to fully realise the value of, or any release, discharge, exchange or substitution of, any security taken in respect of the Pledgor’s and the Company’s obligations under the Senior Finance Documents; or

 


 

 

(iv)                            any other act, event or omission which, but for this Clause 5.(g)(iv) might operate to discharge, impair or otherwise affect any of the obligations of the Pledgor contained in this Agreement, or any of the rights, powers and remedies conferred upon the Pledgee by the other Senior Finance Documents to which each of the Pledgor and the Pledgee is a party, this Agreement, or by law.

 

(h)                                For the avoidance of doubt, the Pledgor hereby expressly waives any rights arising for its benefit (if any) under article 2037 of the Luxembourg Civil Code or any right it may have of first requiring the Pledgee to proceed against or claim payment from any other person or enforce any guarantee or security before enforcing this Pledge.

 

6.                                     RIGHTS OF THE PLEDGEE

 

The Pledgee shall hold the Pledge to be created or given in its favour pursuant to this Agreement (upon trust for the benefit of the Beneficiaries) on the terms and subject to the conditions set out in the Group Intercreditor Deed and the Security Trust Agreement.

 

7.                                     REPRESENTATIONS, WARRANTIES AND COVENANTS

 

7.1.                           Representations and warranties

 

Each of the Pledgor and the Company hereby represents and warrants to the Pledgee that:

 

(a)                                 the Shares represent, on the date of this Agreement, one hundred per cent (100%) of the shares issued by the Company;

 

(b)                                the Pledge pursuant to this Agreement creates a valid security interest (gage) on the Shares in favour of the Beneficiaries in respect of all the Secured Obligations and it is not subject to any other prior ranking or pari passu ranking security except for any mandatory privileges preferred under applicable law or the Existing Pledge created by the Parties from time to time;

 

(c)                                 the Pledgor is duly organised and validly existing under the laws of England and Wales, it has, and will during the term of this Agreement have, its centre of main interests in England and Wales and it has the corporate capacity, power and authority and legal right to own and operate its property, to hold and own all of its assets, including the Shares, to conduct the business in which it is currently engaged, and it has neither transferred, nor assigned, pledged or in any way encumbered the Shares, other than pursuant to this Agreement or the Existing Pledge;

 

(d)                                the Company is duly organised and validly existing under the laws of Luxembourg, it has, and will during the term of this Agreement have, its centre of main interests in Luxembourg and it has the corporate capacity, power and authority and legal right to own and operate its property, to hold and own all of its assets and to conduct the business in which it is currently engaged;

 

(e)                                 this Agreement constitutes its legal, valid, binding and enforceable obligations and operates a valid and enforceable pledge over the Shares, in accordance with its terms;

 

(f)                                   the execution and delivery of, and performance by the Pledgor of its obligations under

 



 

this Agreement and any other document related thereto will not:

 

(i)                                   result in a breach of any provision of the constitutive or governing documents of the Pledgor;

 

(ii)                                result in a breach of, or constitute an event of default under, any contract, undertaking, covenant or instrument to which the Pledgor is a party or by which the Pledgor is bound;

 

(iii)                             result in a breach of any law, decree, regulation, order, judgment or decree of any court or governmental agency or an arbitration award to which the Pledgor is a party or by which the Pledgor is bound; or

 

(iv)                            require the consent of the shareholders of the Pledgor or any other person or, if any such consent is required, it has been obtained and is in full force and effect;

 

(g)                                there are no agreements or arrangements (including any restrictions on transfer or rights of pre-emption) affecting the Shares in any way or which would or might in any way fetter or otherwise prejudice the rights of the Pledgee under this Agreement;

 

(h)                                 no security (other than the present Pledge or the Existing Pledge) exists on, over or with respect to the Shares;

 

(i)                                    it shall act in good faith to maintain the rights of the Pledgee hereunder as valid and enforceable rights, and in particular shall not take any steps nor do anything which would have a material adverse effect on the existence of the Pledge created under this Agreement or the Existing Pledge or the value thereof;

 

(j)                                    it has the corporate capacity, power and authority and the legal right to enter into, execute and deliver, and to perform its obligations expressed to be assumed by it under, this Agreement, and has taken all necessary action, including corporate action, and has obtained all necessary authorisations to enable it to enter into and to authorise the execution, delivery and performance of this Agreement, and this Agreement has been duly executed by it;

 

(k)                                 it is not subject to any personal insolvency procedure;

 

(l)                                    no order has been made and no resolution has been passed for the winding-up, bankruptcy, admission to the regime of suspension of payment, controlled management, or for a composition with creditors of, or by, the Pledgor or similar laws affecting the rights of creditors generally or for a liquidator, curateur or commissaire or like official to be appointed in respect of the Company and no petition has been presented and no meeting has been convened for any such purpose;

 

(m)                              no receiver has been appointed in respect of the Company or all or any of its assets including the Shares and none of its respective assets is the subject of an arrest;

 

(n)                                no litigation is pending or to the best of its knowledge, threatened against it that, if adversely determined, would affect (i) the execution, delivery or enforceability of this Agreement, or (ii) their ability to perform any of its obligations hereunder or thereunder in accordance with the terms hereof or thereof;

 



 

(o)                                no event substantially similar in law to any of the Clauses 7.1(k), 7.1(l), 7.1(m) and 7.1(n) of this Agreement has occurred outside Luxembourg with respect to the Pledgor; and

 

(p)                                no guarantee, loan capital, borrowed money or interest is overdue for payment by the Pledgor, and no other obligation or indebtedness is outstanding which is overdue for performance or payment where such fact could have a material adverse effect on the Pledgor or its business.

 

The representations and warranties set out in this Clause 7.1 are deemed to be repeated by the Pledgor and the Company by reference to the facts and circumstances then existing on the date of this Agreement on which all or any of the representations and warranties contained in Clause 21 of the Senior Facilites Agreement, or upon repayment in full and cancellation of all commitments thereunder such equivalent provision in the Relevant Facilities Agreement, are deemed to be repeated pursuant to the relevant provisions thereof.

 

7.2.                           Covenants

 

Each of the Pledgor and the Company hereby covenants that during the Security Period, unless the Pledgee otherwise consents in writing:

 

(a)                                 it will promptly inform the Pledgee of any event which could reasonably be expected to affect the Pledge, the validity and perfection of the Pledge and the value of the Shares or the ability of the Pledgee to dispose of the Pledge;

 

(b)                                it will take any action that is necessary from time to time to maintain and ensure the validity and perfection of the security interest (gage) created under this Agreement or the Existing Pledge Agreement and not take or omit to take any action, which act or omission would directly or indirectly adversely affect the validity and enforceability of the Pledge;

 

(c)                                 it will not do or cause or permit to be done anything which will, or could reasonably be expected to have a material adverse effect on the Pledge or the rights of the Pledgee under this Agreement or the Existing Pledge Agreement or which in any way is inconsistent with or materially depreciates, jeopardises or otherwise prejudices the value of the Shares;

 

(d)                                it will, and will cause the Company, to assist the Pledgee, in order to obtain all necessary consents, approvals and authorisations from any relevant person(s) and/or authorities in order to permit the exercise by the Pledgee of its rights and powers under this Agreement upon enforcement of the Pledge;

 

(e)                                 it will not sell, dispose of, pledge or otherwise encumber hereafter, the whole or any part of the Shares or any interest therein to anyone other than pursuant to this Agreement;

 

(f)                                   it will not take any other action that is inconsistent or conflicts with its obligations under the Senior Finance Documents; and

 

(g)                                it will not take or permit to be taken any action, and in particular any act of disposal of

 



 

the assets of the Company, whereby the rights attaching to the Shares are altered or diluted or as a direct or indirect result of which the value of the Shares is, or is under the risk of being, affected by a material adverse effect, which action shall include without limitation, save as otherwise permitted or not restricted under each of the Senior Finance Documents:

 

(i)                                      any amalgamation, merger or consolidation of the Company or the Pledgor with any other person or the participation of the Company or the Pledgor in any other type of corporate reconstruction;

 

(ii)                                   the issuance of any further shares of the Company or the alteration of any rights attaching to the Shares or the repayment or redemption of the Shares; and

 

(iii)                                a voluntary dissolution or liquidation of the Company or the Pledgor.

 

8.                                     POWER OF ATTORNEY

 

Upon the occurrence of an Enforcement Event, the Pledgor irrevocably and unconditionally appoints the Pledgee to be its attorney and in its name and on its behalf to execute, deliver and perfect all documents and do all things that the Pledgee may consider to be requisite for (a) carrying out any obligation imposed on the Pledgor under this Agreement or (b) exercising any of the rights conferred to the Pledgee under this Agreement or by law, it being understood that the enforcement of the Pledge over the Shares must be carried out as described in Clause 9 of this Agreement. The Pledgor shall ratify and confirm all things done and all documents executed by the Pledgee in the exercise of this power of attorney. The Pledgor shall at its own reasonable expense promptly and duly execute and do all such assurances, acts and things as the Pledgee may require as being necessary for perfecting or protecting all or any of the rights, powers, authorities and discretions which are for the time being exercisable by the Pledgee under this Agreement in relation to the Shares, for facilitating the enforcement of any such rights or any part thereof and in the exercise of all powers, authorities and discretions vested in the Pledgee. To that effect, the Pledgor shall in particular execute all documents or instruments and give all notices, orders and directions and make all registrations which the Pledgee may reasonably think expedient.

 

9.                                     ENFORCEMENT OF THE PLEDGE

 

Upon the occurrence of an Enforcement Event, the Pledgee shall, immediately and without further notice (mise en demeure), be entitled to enforce the Pledge and exercise all its rights and powers by virtue of this Agreement, and in particular, the Pledgee shall be entitled to:

 

(a)                                  appropriate the Shares at their fair market value, as determined by an independent external auditor (réviseur d’entreprises) registered with the Institut Luxembourgeois des Réviseurs d’Entreprises, designated by the Pledgee;

 

(b)                                 sell the Shares in a private sale on arms’ length commercial terms (conditions commerciales normales), in a sale organised by a stock exchange or in a public sale (organised at the discretion of the Pledgee and which, for the avoidance of doubt, does not need to be made by or within a stock exchange);

 



 

(c)                                  request a judicial decision that the Shares shall be attributed to the Pledgee in discharge of the Secured Obligations following a valuation of the Shares made by a court-appointed expert;

 

(d)                                 proceed to a set-off between the Secured Obligations and the Shares as valued at their fair market value, as determined by an independent external auditor (réviseur d’entreprises) registered with the Institut Luxembourgeois des Réviseurs d’Entreprises, designated by the Pledgee; and

 

(e)                                  realise or, as the case may be, appropriate the Shares in the most favourable manner provided by the 2005 Law.

 

Any monies received by the Pledgee upon enforcement of the Pledge in accordance with the provisions of this Clause 9 shall be applied, after the discharge of all liabilities having priority to the Secured Obligations, to pay all or any part of the then outstanding Secured Obligations in accordance with the Group Intercreditor Deed and the Security Trust Agreement, without prejudice to the rights of the Pledgee to recover any shortfall from any other obligor (if any) with regard to the Secured Obligations, except that the Pledgee may credit the same to a suspense account for so long and in such manner as the Pledgee may from time to time determine. Any surplus monies received by the Pledgee once the Secured Obligations have been unconditionally and irrevocably paid and discharged shall be forthwith returned to the Pledgor or such other person(s) entitled to it.

 

Upon enforcement as described above, the Pledgee shall have the right to request enforcement of the Pledge in respect of all or part of the Shares in its absolute discretion. No action, choice or absence of action in this respect, or partial enforcement, shall in any manner affect the Pledge over the part of the Shares which has not been subject to enforcement. The Pledge shall continue to remain in full and valid existence until enforcement, release of the Pledge or termination hereof, as the case may be.

 

10.                              RELEASE OF THE PLEDGE

 

Upon (i) the expiry of the Security Period or (ii) the release or termination of the Pledgor’s obligations under the Senior Finance Documents in accordance with the terms thereof, the Pledgee shall, at the written request and at the exclusive cost of the Pledgor, (a) execute and do all such deeds, acts and things as may be necessary to release the Pledge and (to the extent necessary) discharge the Pledgor from its liability and the security interest (gage) created under this Agreement and (b), in particular, instruct and appoint any manager of the Company, acting and signing individually, with full power of substitution, to strike out the entry (inscription) made in the Company’s share register pursuant to Clause 4(b) of this Agreement. However, if after the release of the security interest (gage) created hereunder, the payment of any Secured Obligation is annulled by a court or otherwise, the Pledgor shall grant a new security interest (gage) on identical terms over the Shares until such Secured Obligation is paid in full and the Security Period shall be reinstated and extended until such time.

 



 

11.                              RIGHTS OF RECOURSE

 

(a)                                 The Pledgor hereby waives and formally undertakes not to exercise the Rights of Recourse or any other similar rights in any manner (including for the avoidance of doubt, by way of provisional measures such as provisional attachment (saisie-arrêt conservatoire)), by way of set-off or in any other way, nor to take any action or do anything in relation to such Rights of Recourse or other similar rights, except as otherwise permitted in writing by the Pledgee.

 

(b)                                This Clause 11 shall remain in full force during the Security Period and shall, to the extent required, survive any termination or discharge of this Agreement.

 

12.                              COSTS AND EXPENSES

 

All present and future costs, fees, stamp duties and other amounts incurred by the Beneficiaries or the Pledgee in connection with the negotiation, execution or enforcement of this Agreement or preservation of any rights of the Beneficiaries or the Pledgee conferred by this Agreement or by law will be for the account of the Pledgor.

 

13.                              LIABILITY AND INDEMNITY

 

(a)                                 Neither the Pledgee nor any of the Beneficiaries nor any of their respective agents shall be liable by reason of (i) the loss or wrongful delivery of, or damage to, the Shares, howsoever arising, (ii) taking any action permitted by this Agreement, (iii) any neglect or default in connection with the Shares or (iv) the realisation of all or any part of the Shares, save to the extent that any loss or damage is caused by the gross negligence or wilful misconduct of the Pledgee, the Beneficiaries or their respective agents, any and all joint liability being excluded.

 

(b)                                The Pledgor will indemnify the Pledgee, the Beneficiaries and every attorney which may be appointed from time to time in respect of all liabilities and expenses incurred by it, him, her or them in the execution of any rights, powers or discretions vested in it, him, her or them pursuant hereto (including the fees and expenses of legal advisers acting reasonably and VAT thereon if applicable) save for liabilities and expenses arising from the gross negligence or wilful misconduct of the Pledgee or its attorney or both.

 

14.                              WAIVERS, REMEDIES CUMULATIVE

 

No waiver of any of the terms hereof shall be effective unless in writing signed by the Pledgee. No delay in or non-exercise of any right by the Pledgee shall constitute a waiver. Any waiver may be on such terms as the Pledgee sees fit. The rights, powers and discretions of the Pledgee herein are additional to and not exclusive of those provided by law, by any agreement with or other security in favour of the Pledgee.

 



 

15.                              NOTICES

 

All notices or other communications under this Agreement shall be sent:

 

(i)                                      to the Pledgor, in the English language, at:

 

Virgin Media Investments Limited

160 Great Portland Street,

London W1W 5QA

United Kingdom

Fax: +44 20 72 99 6000

Attention: Group Legal Director

 

(ii)                                   to the Pledgee, in the English language, at:

 

Deutsche Bank AG, London Branch

Winchester House 1 Great Winchester Street

London EC2N 2DB

United Kingdom

Fax: +44 20 75 47 6419

Attention: Nicola Dawes / Rajeev Thakeria

 

(iii)                                to the Company, in the English language, at:

 

Future Entertainment S.à r.l.

Media Center Betzdorf

11 rue Pierre Werner

L-6832 Betzdorf

Grand Duchy of Luxembourg

Fax: + 352 27 17 80 11

Attention: Emma Jones / Ron Paans

 

or any substitute address or fax number or department or officer as one Party may notify to the other Parties by not less than five (5) Business Days’ notice.

 

Any notice or other communication given shall be deemed to have been received:

 

·                  if sent by fax, when received in legible form;

 

·                  if posted, on the second Business Day following the day on which it was despatched by first class mail postage prepaid, or

 

·                  if hand delivered, the day on which it is left at the relevant address,

 

provided that a notice given in accordance with the above but received on a day which is not a Business Day or after normal business hours in the place of receipt shall be deemed to have been received on the next Business Day.

 



 

16.                              ASSIGNMENT

 

(a)                                 This Agreement shall remain in effect despite any amalgamation or merger (however effected) relating to the Pledgee. In the case of an assignment, transfer or novation by the Pledgee to one or several transferees of all or any part of its rights and obligations under the Senior Finance Documents, the Pledgee and the Pledgor hereby agree that in such event, to the extent required under applicable laws, the Pledgee shall preserve all of its rights under this Agreement as expressly permitted under articles 1278 to 1281 of the Luxembourg Civil Code, so that the security interest (gage) created hereunder shall automatically, and without any formality, benefit to any such transferees.

 

(b)                                The Pledgor may not assign any of its rights under this Agreement without the prior written consent of the Pledgee. The Pledgee may assign all or any part of its rights under this Agreement. Such assignment by the Pledgee shall be enforceable towards the Pledgor, subject to the notification referred to in article 1690 of the Luxembourg Civil Code, without disruption of the security interest (gage) created hereunder.

 

17.                              SEVERABILITY

 

If any provision of this Agreement is or becomes prohibited, unenforceable or void in any jurisdiction, this shall not affect the legality, validity or enforceability of any other provisions hereof nor affect the legality, validity or enforceability of such provision in any other jurisdiction.

 

18.                              GOVERNING LAW AND JURISDICTION

 

(a)                                 This Agreement is governed by, and shall be construed in accordance with, Luxembourg law.

 

(b)                                With respect to any proceedings arising in connection with this Agreement, the Pledgor irrevocably submits to the jurisdiction of the Luxembourg courts, notwithstanding the right of the Pledgee and each Beneficiary to take proceedings in any other jurisdiction.

 

[signature page to follow]

 



 

IN WITNESS THEREOF the Parties hereto have executed this Agreement in one or multiple original counterparts, all of which together evidence the same Agreement, on the day and year first written above.

 

 

The Pledgor

 

 

 

Virgin Media Investments Limited acting by:

 

 

 

Robert Mackenzie, a director

 

 

 

/s/ ROBERT MACKENZIE

 

 

 

 

 

Robert Gale, a director

 

 

 

/s/ ROBERT GALE

 

 

 

 

 

The Pledgee

 

 

 

Deutsche Bank AG, London Branch

 

as Pledgee for the benefit of the Beneficiaries

 

 

 

 

 

/s/ N. DAWES

 

Represented by: N. Dawes

 

Title: V.P.

 

 

 

 

 

/s/ V. MAYELL

 

Represented by: V. Mayell

 

Title: A.V.P

 

 

 

 

 

The Company

 

 

 

Future Entertainment S.à r.l.

 

 

 

 

 

/s/ EMMA JONES

 

Represented by: Emma Jones

 

Title: General Manager

 

 


 



Exhibit 23.1

 

Consent of Independent Registered Public Accounting Firm

 

We consent to the reference to our firm under the caption “Experts” in Amendment No.1 to the Registration Statement (Form S-4 No. 333-167532) of Virgin Media Inc. and to (i) the inclusion therein of our report with respect to the consolidated financial statements and schedule of Virgin Media Inc. and subsidiaries dated February 26, 2010, except as to the Condensed Consolidating Financial Statements as to which the date is June 15, 2010, and (ii) the incorporation by reference therein of our report dated February 26, 2010, with respect to internal control over financial reporting on Virgin Media Inc. and subsidiaries, included in its Annual Report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on February 26, 2010.

 

 

 

/s/Ernst & Young LLP

 

 

 

London, England

 

  June 30, 2010

 




Exhibit 23.2

 

Consent of Independent Registered Public Accounting Firm

 

We consent to the reference to our firm under the caption “Experts” in Amendment No.1 to the Registration Statement (Form S-4 No. 333-167532) of Virgin Media Inc. and to the use of our report with respect to the consolidated financial statements of Virgin Media Investment Holdings Limited and subsidiaries dated June 15, 2010.

 

 

 

/s/Ernst & Young LLP

 

 

 

London, England

 

  June 30, 2010

 




Exhibit 23.3

 

Consent of Independent Registered Public Accounting Firm

 

We consent to the reference to our firm under the caption “Experts” in Amendment No.1 to the Registration Statement (Form S-4 No. 333-167532) of Virgin Media Inc. and to the use of our report with respect to the consolidated financial statements of Virgin Media Investments Limited and subsidiaries dated June 15, 2010.

 

 

 

/s/Ernst & Young LLP

 

 

 

London, England

 

  June 30, 2010

 




Exhibit 99.1

 

LETTER OF TRANSMITTAL

 

Relating to

 

VIRGIN MEDIA SECURED FINANCE PLC

 

Exchange Offer for

 

up to $1,000,000,000 aggregate principal amount of 6.50% Senior Secured Notes due 2018
for a like amount of new 6.50% Senior Secured Notes due 2018 which have been registered
under the U.S. Securities Act of 1933, as amended (the “Securities Act”)

 

and

 

up to £875,000,000 aggregate principal amount of 7.00% Senior Secured Notes due 2018
for a like amount of new 7.00% Senior Secured Notes due 2018 which have been

registered under the Securities Act

 

THE EXCHANGE OFFER WILL EXPIRE AT 5:00 P.M., NEW YORK CITY TIME, ON                 , 2010
(THE “EXPIRATION DATE”), UNLESS THE OFFER IS EXTENDED BY THE ISSUER IN ITS SOLE
DISCRETION.  TENDERS OF OUTSTANDING NOTES MAY BE WITHDRAWN AT ANY TIME
PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.

 

Exchange Agent:

 

THE BANK OF NEW YORK MELLON

 

By Mail, Hand or Overnight Delivery:

 

The Bank of New York Mellon

OR

The Bank of New York Mellon

 

One Canada Square

 

Attn: Reorganization Unit

 

40th Floor

 

101 Barclay Street—7 East

 

London E14 5AL

 

New York, NY10286

 

United Kingdom

 

USA

 

 

 

 

 

Attn: Event Administration

 

Attn: William Buckley

 

Fax: +44 207 964 2536

 

Fax: +1 212 298 1915

 

Tel: +44 207 964 4958

 

Tel: +1 212 815 5788

 

DELIVERY TO AN ADDRESS OTHER THAN AS SET FORTH ABOVE OR TRANSMISSION OF INSTRUCTIONS VIA A FACSIMILE TRANSMISSION TO A NUMBER OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY.

 

By execution hereof, the undersigned acknowledges receipt of the Prospectus dated                , 2010 (the “Prospectus”) of Virgin Media Secured Finance PLC (the “Issuer”) and the guarantors named therein (the “Guarantors”) which, together with this Letter of Transmittal (the “Letter of Transmittal”), constitute the Issuer’s offer (the “Exchange Offer”) to exchange any and all of its outstanding $1,000,000,000 aggregate principal amount of 6.50% Senior Secured Notes due 2018 and £875,000,000 aggregate principal amount of 7.00% Senior Secured Notes due 2018 (collectively, the “Outstanding Notes”), for a like amount of its new 6.50% Senior Secured Notes due 2018 and 7.00% Senior Secured Notes due 2018, respectively (collectively, the “Exchange Notes”) which have been registered under the Securities Act.  The Exchange Notes are being offered only in exchange for the Outstanding Notes, and not for any other notes.  The terms of the Exchange Notes are identical to the terms of the Outstanding Notes for which they may be exchanged pursuant to the Exchange Offer, except that the transfer restrictions, registration rights and additional interest provisions relating to the Outstanding Notes will not apply to the Exchange Notes.

 



 

This Letter of Transmittal is to be completed by a holder of Outstanding Notes if certificates for Outstanding Notes are to be forwarded with this letter. Tenders of Outstanding Notes held in book-entry form must be made in accordance with the book-entry procedures of The Depository Trust Company, or DTC, Euroclear Bank S.A./N.V., or Euroclear, or Clearstream Banking S.A., or Clearstream, as applicable, and must include the transmission of an agent’s message to the Exchange Agent. The term “agent’s message” means a message, transmitted to DTC, Euroclear or Clearstream, as the case may be, received by the Exchange Agent and forming part of the confirmation of a book-entry transfer, which states that DTC, Euroclear or Clearstream, as applicable, has received an express acknowledgment from the holder that is tendering the Outstanding Notes that are the subject of the book-entry transfer that such holder agrees to be bound by the terms of the Prospectus and this Letter of Transmittal and that the Issuer may enforce such terms against such holder. DELIVERY OF DOCUMENTS TO DTC, EUROCLEAR OR CLEARSTREAM DOES NOT CONSTITUTE DELIVERY TO THE EXCHANGE AGENT.

 

By complying with the book-entry confirmation procedures of DTC, Euroclear or Clearstream to exchange Outstanding Notes, a holder will not be required to deliver this Letter of Transmittal to the Exchange Agent. However, that holder will be bound by the terms of this Letter of Transmittal just as if that holder had signed this letter. See “The Exchange Offer—Procedures for Tendering” in the Prospectus.

 

The undersigned has completed, executed and delivered this Letter of Transmittal to indicate the action the undersigned desires to take with respect to the Exchange Offer.

 

The instructions included with this Letter of Transmittal must be followed.  Questions and requests for assistance or for additional copies of the Prospectus and this Letter of Transmittal may be directed to the Exchange Agent.

 

HOLDERS WHO WISH TO ACCEPT THE EXCHANGE OFFER AND TENDER THEIR OUTSTANDING NOTES MUST COMPLETE THIS LETTER OF TRANSMITTAL IN ITS ENTIRETY.

 

List below the Outstanding Notes to which this Letter of Transmittal relates.  If the space provided below is inadequate, the Certificate Numbers and Principal Amount should be listed on a separate signed schedule affixed hereto.  Tenders of Outstanding Notes will be accepted only in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof (in the case of the dollar denominated Outstanding Notes) and minimum denominations of £50,000 and integral multiples of £1,000 in excess thereof (in the case of the sterling denominated Outstanding Notes).

 

2



 

DESCRIPTION OF OUTSTANDING NOTES

 

Name(s) and Address(es) of Holder(s)
(Please fill in, if blank)

 

Certificate Number(s)*
(Attached signed list
if necessary)

 

Principal Amount Tendered
(if less than all)**

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Principal Amount of Outstanding Notes Tendered

 

 

 

 


*

Need not be completed by holders tending by book-entry transfer.

**

Need not be completed by holders who wish to tender with respect to all Outstanding Notes listed.  See Instruction 2.

 

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o                       CHECK HERE IF TENDERED OUTSTANDING NOTES ARE BEING DELIVERED BY BOOK-ENTRY TRANSFER MADE TO THE ACCOUNT MAINTAINED BY THE EXCHANGE AGENT WITH DTC:

 

Name of Tendering Institution:

DTC Book-Entry Account:

Transaction Code No.:

 

By crediting the Outstanding Notes to the Exchange Agent’s account at DTC in accordance with DTC’s Automated Tender Offer Program (ATOP) and by complying with applicable ATOP procedures with respect to the Exchange Offer, including transmitting an agent’s message (as defined above) to the Exchange Agent, the participant in DTC confirms on behalf of itself and the beneficial owners of such Outstanding Notes all provisions of this Letter of Transmittal applicable to it and such beneficial owners as fully as if it had completed the information required herein and executed and transmitted this Letter of Transmittal to the Exchange Agent. Please Note: By complying with the ATOP procedures to exchange Outstanding Notes held in book-entry form through DTC, a holder will not be required to deliver this Letter of Transmittal to the Exchange Agent. See “The Exchange Offer—Procedures for Tendering” in the Prospectus.

 

o                       CHECK HERE IF TENDERED OUTSTANDING NOTES ARE BEING BLOCKED IN EUROCLEAR OR CLEARSTREAM PURSUANT TO AN ELECTRONIC ACCEPTANCE INSTRUCTION IN ACCORDANCE WITH THE PROCEDURES OF EUROCLEAR OR CLEARSTREAM:

 

Name of Tendering Institution:

Euroclear or Clearstream Book-Entry Account:

Transaction Code No.:

 

By submitting an electronic acceptance instruction, including an agent’s message (as defined above), to Euroclear or Clearstream to authorize the tender of the Outstanding Notes and the blocking of the account in Euroclear or Clearstream to which such Outstanding Notes are credited and by complying with applicable Euroclear or Clearstream procedures with respect to the Exchange Offer, the holder through Euroclear or Clearstream confirms on behalf of itself and the beneficial owners of such Outstanding Notes all provisions of this Letter of Transmittal applicable to it and such beneficial owners as fully as if it had completed the information required herein and executed and transmitted this Letter of Transmittal to the Exchange Agent. Please Note: By complying with the book-entry confirmation procedures of Euroclear or Clearstream to exchange Outstanding Notes, a holder will not be required to deliver this Letter of Transmittal to the Exchange Agent. See “The Exchange Offer—Procedures for Tendering” in the Prospectus.

 

o                       CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO:

 

Name:

Address:

 

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PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY

 

Ladies and Gentlemen:

 

Upon the terms and subject to the conditions of the Exchange Offer, the undersigned hereby tenders to the Issuer the above-described principal amount of Outstanding Notes.  Subject to, and effective upon, the acceptance for exchange of the Outstanding Notes tendered herewith, the undersigned hereby exchanges, assigns and transfers to, or upon the order of, the Issuer, all right, title and interest in and to such Outstanding Notes.

 

The Exchange Offer is subject to certain conditions as set forth in the Prospectus under the caption “The Exchange Offer—Conditions to the Exchange Offer.”  The undersigned recognizes that as a result of these conditions (which may be waived, in whole or in part, by the Issuer) as more particularly set forth in the Prospectus, the Issuer may not be required to exchange any of the Outstanding Notes tendered hereby and, in such event, the Outstanding Notes not exchanged will be returned to the undersigned at the address shown below the signature of the undersigned or, as applicable, credited to an account maintained with DTC, Euroclear or Clearstream, as the case may be.

 

Upon agreement to the terms of this Letter of Transmittal (including pursuant to an agent’s message), the undersigned, or the beneficial owner of Outstanding Notes on behalf of which the undersigned has tendered, will, subject to its ability to withdraw its tender, and subject to the terms and conditions of the Exchange Offer generally, hereby:

 

·                  irrevocably sell, assign and transfer to or upon the Issuer’s order or the order of the Issuer’s nominee all right, title and interest in and to, and any and all claims in respect of or arising or having arisen as a result of the undersigned’s status as a holder of, all Outstanding Notes tendered hereby, such that hereafter the holder shall have no contractual or other rights or claims in law or equity against the Issuer, any of the Guarantors or any fiduciary, trustee, fiscal agent or other person connected with the Outstanding Notes arising under, from or in connection with those Outstanding Notes;

 

·                  waive any and all rights with respect to the Outstanding Notes tendered hereby, including, without limitation, any existing or past defaults and their consequences in respect of those Outstanding Notes; and

 

·                  release and discharge the Issuer, the Guarantors and the trustee for the Outstanding Notes from any and all claims the undersigned may have, now or in the future, arising out of or related to the Outstanding Notes tendered hereby, including, without limitation, any claims that the undersigned is entitled to receive additional principal or interest payments with respect to the Outstanding Notes tendered hereby, other than as expressly provided in the Prospectus and in this Letter of Transmittal, or to participate in any redemption or defeasance of the Outstanding Notes tendered hereby.

 

In addition, by tendering Outstanding Notes in the Exchange Offer, the undersigned represents, warrants and agrees that:

 

·                  it has received and reviewed the Prospectus;

 

·                  it is the beneficial owner (as defined below) of, or a duly authorized representative of one or more beneficial owners of, the Outstanding Notes tendered hereby, and it has full power and authority to execute this Letter of Transmittal;

 

·                  the Outstanding Notes being tendered hereby were owned as of the date of tender, free and clear of any liens, charges, claims, encumbrances, interests and restrictions of any kind, and the Issuer will acquire good, indefeasible and unencumbered title to those Outstanding Notes, free and clear of all liens, charges, claims, encumbrances, interests and restrictions of any kind, when the Issuer accepts the same;

 

5



 

·                  it will not sell, pledge, hypothecate or otherwise encumber or transfer any Outstanding Notes tendered hereby from the date of this Letter of Transmittal, and any purported sale, pledge, hypothecation or other encumbrance or transfer will be void and of no effect;

 

·                  in evaluating the Exchange Offer and in making its decision whether to participate in the Exchange Offer by tendering its Outstanding Notes, it has made its own independent appraisal of the matters referred to in the Prospectus and this Letter of Transmittal and in any related communications and it is not relying on any statement, representation or warranty, express or implied, made to it by the Issuer, any Guarantor or the Exchange Agent, other than those contained in the Prospectus, as amended or supplemented through the Expiration Date;

 

·                  the execution and delivery of this Letter of Transmittal shall constitute an undertaking to execute any further documents and give any further assurances that may be required in connection with any of the foregoing, in each case on and subject to the terms and conditions described or referred to in the Prospectus;

 

·                  the agreement to the terms of this Letter of Transmittal (including pursuant to an agent’s message) shall, subject to the terms and conditions of the Exchange Offer, constitute the irrevocable appointment of the Exchange Agent as its attorney and agent and an irrevocable instruction to that attorney and agent to complete and execute all or any forms of transfer and other documents at the discretion of that attorney and agent in relation to the Outstanding Notes tendered hereby in favor of the Issuer or any other person or persons as the Issuer may direct and to deliver those forms of transfer and other documents in the attorney’s and agent’s discretion and the certificates and other documents of title relating to the registration of Outstanding Notes and to execute all other documents and to do all other acts and things as may be in the opinion of that attorney or agent necessary or expedient for the purpose of, or in connection with, the acceptance of the Exchange Offer, and to vest in the Issuer or the Issuer’s nominees those Outstanding Notes;

 

·                  the terms and conditions of the Exchange Offer as set forth in the Prospectus shall be deemed to be incorporated in, and form a part of, this Letter of Transmittal, which shall be read and construed accordingly;

 

·                  the Exchange Notes are being acquired in the ordinary course of business of the person receiving the Exchange Notes, whether or not that person is the holder;

 

·                  neither the holder nor that other person has any arrangement or understanding with any person to participate in the distribution (within the meaning of the Securities Act) of the Exchange Notes;

 

·                  it is not an “affiliate,” within the meaning of Rule 405 under the Securities Act, of the Issuer or any Guarantor and is not a broker-dealer who acquired the Outstanding Notes directly from the Issuer for its own account;

 

·                  if it is not a broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of the Exchange Notes; and

 

·                  if it is a broker-dealer that will receive Exchange Notes for its own account in exchange for Outstanding Notes that were acquired as a result of market-making or other trading activities, then it will deliver a copy of the Prospectus (or, to the extent permitted by law, make a copy of the Prospectus available to purchasers) in connection with any resale of those Exchange Notes.

 

The representations, warranties and agreements of a holder tendering Outstanding Notes will be deemed to be repeated and reconfirmed on and as of the Expiration Date and the settlement date. For purposes of this Letter of Transmittal, the “beneficial owner” of any Outstanding Notes means any holder that exercises investment discretion with respect to those Outstanding Notes.

 

6



 

If the tendering holder is a broker-dealer holding Outstanding Notes acquired for its own account as a result of market-making activities or other trading activities, such broker-dealer acknowledges that it will deliver a prospectus meeting the requirements of the Securities Act in connection with any resale of Exchange Notes received in respect of such Outstanding Notes pursuant to the Exchange Offer. By so acknowledging and by delivering a prospectus, such broker-dealer will not be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

 

For purposes of the Exchange Offer, the Issuer shall be deemed to have accepted validly tendered Outstanding Notes if and when the Issuer has given oral or written notice to that effect to the Exchange Agent.  If any tendered Outstanding Notes are not accepted for exchange or if Outstanding Notes are submitted for a greater principal amount than the tendering holder desires to exchange, the unaccepted or non-exchanged Outstanding Notes will be returned to the holder thereof without cost to such holder, or, as applicable, credited to an account maintained with DTC, Euroclear or Clearstream, as the case may be. These actions will occur as promptly as practicable after the expiration or termination of the Exchange Offer.

 

All authority conferred or agreed to be conferred by this Letter of Transmittal shall survive the death, incapacity or dissolution of the undersigned and every obligation under this Letter of Transmittal shall be binding upon the undersigned’s heirs, personal representatives, successors and assigns.

 

The undersigned understands that a tender of Outstanding Notes pursuant to the instructions hereto, and the Issuer’s subsequent acceptance of that tender, will constitute a binding agreement between the undersigned and the Issuer upon the terms and subject to the conditions of the Exchange Offer described in the Prospectus and this Letter of Transmittal.

 

Unless otherwise indicated under “Special Issuance Instructions,” please issue the certificates representing the Exchange Notes issued in exchange for the Outstanding Notes accepted for exchange and return any Outstanding Notes not tendered or not exchanged, in the name(s) of the undersigned (or in either such event in the case of Outstanding Notes in book-entry form tendered through DTC,  Euroclear or Clearstream, by credit to the respective account at DTC, Euroclear or Clearstream, as applicable).  Similarly, unless otherwise indicated under “Special Delivery Instructions,” please send the certificates representing the Exchange Notes issued in exchange for the Outstanding Notes accepted for exchange and any certificates for Outstanding Notes not tendered or not exchanged (and accompanying documents as appropriate) to the undersigned at the address shown below the undersigned’s signatures, unless, in either event, tender is being made through DTC, Euroclear or Clearstream.  In the event that both “Special Issuance Instructions” and “Special Delivery Instructions” are completed, please issue the certificates representing the Exchange Notes issued in exchange for the Outstanding Notes accepted for exchange and return any Outstanding Notes not tendered or not exchanged in the name(s) of, and send said certificates to, the person(s) so indicated.  The undersigned recognizes that the Issuer has no obligation pursuant to the “Special Issuance Instructions” and “Special Delivery Instructions” to transfer any Outstanding Notes from the name of the registered holder(s) thereof if the Issuer does not accept for exchange any of the Outstanding Notes so tendered.

 

7


 

PLEASE SIGN HERE

 

(TO BE COMPLETED BY ALL TENDERING HOLDERS OF OUTSTANDING NOTES)

 

This Letter of Transmittal must be signed by the holder(s) of Outstanding Notes exactly as their name(s) appear(s) on certificate(s) for Outstanding Notes or, if tendered by a participant in DTC, Euroclear or Clearstream, exactly as such participant’s name appears on a security position listing as the owner of Outstanding Notes, or by person(s) authorized to become registered holder(s) by endorsements and documents transmitted with this Letter of Transmittal.  If signature is by a trustee, executor, administrator, guardian, attorney-in-fact, officer or other person acting in a fiduciary or representative capacity, such person must set forth his or her full title below under “Capacity” and submit evidence satisfactory to the Issuer of such person’s authority to so act.  See Instruction 3 herein.  If the signature appearing below is not of the registered holder(s) of the Outstanding Notes, then the registered holder(s) must sign a valid proxy.

 

X

 

Date:

X

 

Date:

Signature(s) of Holder(s) or Authorized Signatory

 

 

 

 

 

Names:

 

Address:

 

 

 

(Please Print)

 

(Including ZIP Code)

 

 

 

Capacity(ies):

 

Area Code and

Telephone No:

 

 

 

Social Security No(s).:

 

PLEASE COMPLETE FORM W-9 HEREIN

 

SIGNATURE GUARANTEE (SEE INSTRUCTION 3 HEREIN)

CERTAIN SIGNATURES MUST BE GUARANTEED BY AN ELIGIBLE INSTITUTION

 

(Name of Eligible Institution Guaranteeing Signatures)

 

 (Address (including zip code) and Telephone Number (including area code) of Firm)

 

 (Authorized Signature)

 

(Printed Name)

 

 (Title)

 

Date:

 

 

8



 

SPECIAL ISSUANCE INSTRUCTIONS
(SEE INSTRUCTION 4 HEREIN)

 

To be completed ONLY if certificates for Outstanding Notes in a principal amount not tendered or exchanged are to be issued in the name of, or certificates for the Exchange Notes issued pursuant to the Exchange Offer are to be issued to the order of, someone other than the person or persons whose signature(s) appear(s) within this Letter of Transmittal or issued to an address different from that shown in the chart entitled “Description of Outstanding Notes” within this Letter of Transmittal.

 

Name:

 

 

 

Address:

 

 

(Please Print)

Zip Code :

 

 

 

 

Taxpayer Identification or Social Security Number:

(See Form W-9 herein)

 

SPECIAL DELIVERY INSTRUCTIONS

(SEE INSTRUCTION 4 HEREIN)

 

To be completed ONLY if certificates for Outstanding Notes in a principal amount not tendered or exchanged or the Exchange Notes issued pursuant to the Exchange Offer are to be sent to someone other than the person or persons whose signature(s) appear(s) within this Letter of Transmittal or to an address different from that shown in the chart entitled “Description of Outstanding Notes” within this Letter of Transmittal.

 

Name:

 

 

 

Address:

 

 

(Please Print)

Zip Code:

 

 

 

 

Taxpayer Identification or Social Security Number:

(See Form W-9 herein)

 

9



 

INSTRUCTIONS

 

FORMING PART OF THE TERMS AND CONDITIONS
OF THE EXCHANGE OFFER

 

1.             DELIVERY OF THIS LETTER OF TRANSMITTAL AND CERTIFICATES.  This letter is to be completed by holders of Outstanding Notes if certificates for Outstanding Notes are to be forwarded with this letter. Tender of Outstanding Notes by book-entry transfer by holders of Outstanding Notes in book-entry form must be made by delivering an agent’s message transmitted by DTC, Euroclear or Clearstream in lieu of this letter pursuant to the procedures set forth in the Prospectus under “The Exchange Offer—Procedures for Tendering.” To effectively tender Outstanding Notes by book-entry transfer, holders of Outstanding Notes must request a DTC, Euroclear or Clearstream participant to, on their behalf, electronically transmit their acceptance through DTC, Euroclear or Clearstream, as applicable.  In the case of Outstanding Notes held:

 

·                  in certificated from, certificates for all physically tendered Outstanding Notes as well as a properly completed and duly executed letter of transmittal (or manually signed facsimile of this letter); or

 

·                  in book-entry form, by a book-entry confirmation and delivery of an agent’s message,

 

and in either case any other documents required by this letter, must be received by the Exchange Agent at the address set forth herein at or prior to 5:00 p.m., New York City time, on the Expiration Date.

 

Tenders of Outstanding Notes will be accepted only in minimum denominations of $100,000 and integral multiples of $1,000 in excess thereof (in the case of the dollar denominated Outstanding Notes) and minimum denominations of £50,000 and integral multiples of £1,000 in excess thereof (in the case of the sterling denominated Outstanding Notes).

 

The Issuer will determine in its sole discretion all questions as to the validity, form, eligibility, time of receipt, acceptance of tendered Outstanding Notes and withdrawal of tendered Outstanding Notes. Its determination will be final and binding. The Issuer reserves the absolute right to reject any Outstanding Notes not properly tendered or any Outstanding Notes the Issuer’s acceptance of which would, in the opinion of the Issuer’s counsel, be unlawful. The Issuer also reserves the right to waive any defect, irregularities or conditions of tender as to particular Outstanding Notes. The Issuer’s interpretation of the terms and conditions of the Exchange Offer, including the instructions in this Letter of Transmittal, will be final and binding on all parties. Unless waived, all defects or irregularities in connection with tenders of Outstanding Notes must be cured within such time as the Issuer shall determine. Although the Issuer intends to notify holders of defects or irregularities with respect to tenders of Outstanding Notes, neither the Issuer, any Guarantor, the Exchange Agent nor any other person will incur any liability for failure to give such notification. Tenders of Outstanding Notes will not be deemed made until such defects or irregularities have been cured or waived. Any Outstanding Notes received by the Exchange Agent that are not properly tendered and as to which the defects or irregularities have not been cured or waived will be returned to the tendering holder as soon as practicable after the Expiration Date of the Exchange Offer.

 

2.             PARTIAL TENDERS; WITHDRAWALS.  If less than all Outstanding Notes are tendered, the tendering holder should fill in the number of Outstanding Notes tendered in the third columns of the charts entitled “Description of Outstanding Notes.” All Outstanding Notes delivered to the Exchange Agent will be deemed to have been tendered unless otherwise indicated.  If not all Outstanding Notes are tendered, Outstanding Notes for the aggregate principal amount of Outstanding Notes delivered to the Exchange Agent will be deemed to have been tendered unless otherwise indicated.  If not all Outstanding Notes are tendered, a certificate or certificates representing Exchange Notes issued in exchange of any Outstanding Notes tendered and accepted will be sent to the holder at his or her registered address, unless a different address is provided in the appropriate box in this Letter of Transmittal or unless tender is made through DTC, Euroclear or Clearstream, as promptly as practicable after the Outstanding Notes are accepted for exchange.

 

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Tenders of Outstanding Notes may be withdrawn at any time prior to 5:00 p.m., New York City time, on the Expiration Date.

 

For a withdrawal to be effective, the tendering holder must:

 

·                  comply with the appropriate procedures of DTC, Euroclear or Clearstream for electronic withdrawals; or

 

·                  in respect of Outstanding Notes not tendered through DTC, Euroclear or Clearstream, send a written notice of withdrawal to the Exchange Agent at the address set forth above.

 

Any such notice of withdrawal must:

 

·                  specify the name of the person that has tendered the Outstanding Notes to be withdrawn;

 

·                  identify the Outstanding Notes to be withdrawn, including the principal amount of such Outstanding Notes; and

 

·                  where certificates for Outstanding Notes are transmitted, specify the name in which Outstanding Notes are registered, if different from that of the withdrawing holder.

 

If certificates for Outstanding Notes have been delivered or otherwise identified to the Exchange Agent, then, prior to the release of such certificates, the withdrawing holder must also submit the serial numbers of the particular certificates to be withdrawn and signed notice of withdrawal with signatures guaranteed by an by an Eligible Institution (as defined below).

 

If Outstanding Notes have been tendered pursuant to the procedures of DTC, Euroclear or Clearstream, any notice of withdrawal must specify the name and number of the account at DTC, Euroclear or Clearstream, as applicable, to be credited with withdrawn Outstanding Notes and otherwise comply with the procedures of such facility.

 

The Issuer will determine all questions as to the validity, form, eligibility and time of receipt of a notice of withdrawal. The Issuer’s determination shall be final and binding on all parties. The Issuer will deem any Outstanding Notes so withdrawn not to have been validly tendered for exchange for purposes of the Exchange Offer.

 

3.             SIGNATURE ON THE LETTER OF TRANSMITTAL; BOND POWER AND ENDORSEMENTS; GUARANTEE OF SIGNATURES.  If this Letter of Transmittal (or copy hereof) is signed by the registered holder of the Outstanding Notes tendered hereby, the signature must correspond with the name as written on the face of the Outstanding Notes without alteration, enlargement or any change whatsoever.

 

If this Letter of Transmittal (or copy hereof) is signed by the registered holder of Outstanding Notes tendered and the certificate(s) for Exchange Notes issued in exchange therefor is to be issued (or any untendered number of Outstanding Notes is to be reissued) to the registered holder, such holder need not and should not endorse any tendered Outstanding Notes, nor provide a separate bond power.  In any other case, such holder must either properly endorse the Outstanding Notes tendered or transmit a properly completed separate bond power with this Letter of Transmittal, with the signature on the endorsement or bond power guaranteed by an Eligible Institution.

 

If this Letter of Transmittal (or copy hereof) is signed by a person other than the registered holder of Outstanding Notes listed therein, such Outstanding Notes must be endorsed or accompanied by properly completed bond powers which authorized such person to tender the Outstanding Notes on behalf of the registered holder, in either case signed as the name of the registered holder appears on the Outstanding Notes.

 

If this Letter of Transmittal (or copy hereof) or any Outstanding Notes or bond powers are signed by trustees, executors, administrators, guardians, attorneys-in-fact, or officers of corporations or others acting in a

 

11



 

fiduciary or representative capacity, such persons should so indicate when signing and unless waived by the Issuer, evidence satisfactory to the Issuer of their authority to so act must be submitted with this Letter of Transmittal.

 

Endorsements on Outstanding Notes or signatures on bond powers required by this Instruction 3 must be guaranteed by an Eligible Institution.

 

Signatures on this Letter of Transmittal (or copy hereof) or a notice of withdrawal, as the case may be, must be guaranteed by a member firm of a registered national securities exchange or of the Financial Industry Regulatory Authority, a commercial bank or trust company having an office or correspondent in the United States or an “eligible guarantor institution” within the meaning of Rule 17Ad-15 under the Exchange Act (an “Eligible Institution”) unless the Outstanding Notes tendered pursuant thereto are tendered (i) by a registered holder (including any participant in DTC, Euroclear or Clearstream whose name appears on a security position listing as the owner of Outstanding Notes) who has not completed the box set forth herein entitled “Special Issuance Instructions” or “Special Delivery Instructions” of this Letter of Transmittal or (ii) for the account of an Eligible Institution.

 

4.             SPECIAL ISSUANCE AND DELIVERY INSTRUCTIONS.  Tendering holders should include, in the applicable spaces, the name and address to which Exchange Notes or substitute Outstanding Notes for principal amount not tendered or exchanged are to be sent, if different from the name and address of the person signing this Letter of Transmittal.  In the case of issuance in a different name, the taxpayer identification or social security number of the person named must also be indicated.

 

5.             TRANSFER TAXES.  Holders who tender their Outstanding Notes for Exchange Notes will not be obligated to pay any transfer taxes in connection with the exchange.  If, however, certificates representing Exchange Notes, or Outstanding Notes for principal amount not tendered or accepted for exchange, are to be delivered to, or are to be issued in the name of, any person other than the registered holder of the Outstanding Notes tendered hereby, or if a transfer tax is imposed for any reason other than the exchange of Outstanding Notes pursuant to the Exchange Offer, then the amount of any such transfer taxes (whether imposed on the registered holder or any other person) will be payable by the tendering holder.  If satisfactory evidence of payment of such taxes or exemption therefrom is not submitted herewith, the amount of such transfer taxes will be billed directly to such tendering holder.

 

Except as provided in this Instruction 5, it will not be necessary for transfer tax stamps to be affixed to the Outstanding Notes listed in this Letter of Transmittal.

 

6.             WAIVER OF CONDITIONS.  The Issuer reserves the absolute right to amend, waive or modify, in whole or in part, any of the conditions to the Exchange Offer set forth in the Prospectus.  Notwithstanding the foregoing, in the event of a material change in the Exchange Offer, including the Issuer’s waiver of a material condition, the Issuer will extend the Exchange Offer period if necessary so that at least five business days remain in the Exchange Offer following notice of the material change.

 

7.             MUTILATED, LOST, STOLEN OR DESTROYED NOTES.  Any holder whose Outstanding Notes have been mutilated, lost, stolen or destroyed should contact the Exchange Agent at the address indicated above for further instructions.

 

8.             REQUESTS FOR ASSISTANCE OR ADDITIONAL COPIES.  Questions relating to the procedure for tendering, as well as requests for additional copies of the Prospectus and this Letter of Transmittal, may be directed to the Exchange Agent at the address and telephone number set forth above.  In addition, all questions relating to the Exchange Offer, as well as requests for assistance or additional copies of the Prospectus and this Letter of Transmittal, may be directed to the Exchange Agent at the address and telephone number set forth above.

 

9.             IRREGULARITIES.  The Issuer will determine in its sole discretion all questions as to the validity, form, eligibility, time of receipt, acceptance of Letters of Transmittal and tendered Outstanding Notes and withdrawal of tendered Outstanding Notes. Its determination will be final and binding. The Issuer reserves the absolute right to

 

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reject any Outstanding Notes not properly tendered or any Outstanding Notes the Issuer’s acceptance of which would, in the opinion of the Issuer’s counsel, be unlawful. The Issuer also reserves the right to waive any defect, irregularities or conditions of tender as to particular Outstanding Notes. The Issuer’s interpretation of the terms and conditions of the Exchange Offer, including the instructions in this Letter of Transmittal, will be final and binding on all parties. Unless waived, all defects or irregularities in connection with tenders of Outstanding Notes must be cured within such time as the Issuer shall determine. Although the Issuer intends to notify holders of defects or irregularities with respect to tenders of Outstanding Notes, neither the Issuer, any Guarantor, the Exchange Agent nor any other person will incur any liability for failure to give such notification. Tenders of Outstanding Notes will not be deemed made until such defects or irregularities have been cured or waived. Any Outstanding Notes received by the Exchange Agent that are not properly tendered and as to which the defects or irregularities have not been cured or waived will be returned to the tendering holder as soon as practicable after the Expiration Date of the Exchange Offer.

 

10.           NO CONDITIONAL TENDERS.  No alternative, conditional, irregular or contingent tenders will be accepted unless consented to by the Issuer.  All tendering holders of Outstanding Notes, by execution of this Letter of Transmittal, shall waive any right to receive notice of the acceptance of their Outstanding Notes for exchange.

 

11.           DEFINITIONS.  Capitalized terms used in this Letter of Transmittal and not otherwise defined have the meanings given in the Prospectus.

 

IMPORTANT:  THIS LETTER OF TRANSMITTAL OR A FACSIMILE THEREOF (TOGETHER WITH CERTIFICATES FOR OUTSTANDING NOTES AND ALL OTHER REQUIRED DOCUMENTS) MUST BE RECEIVED BY THE EXCHANGE AGENT PRIOR TO THE EXPIRATION DATE.

 

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IMPORTANT:       THIS LETTER OF TRANSMITTAL (TOGETHER WITH CERTIFICATES FOR OUTSTANDING NOTES AND ALL OTHER REQUIRED DOCUMENTS) MUST BE RECEIVED BY THE EXCHANGE AGENT ON OR PRIOR TO 5:00 P.M., NEW YORK CITY TIME, ON THE EXPIRATION DATE.

 

(DO NOT WRITE IN SPACE BELOW)

 

Certificate Surrendered

 

Outstanding Notes Tendered

 

Outstanding Notes Accepted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Delivery Prepared by:

 

Checked by:

 

Date: