THIS INSTRUMENT is made by way of deed poll on the 21st day of September, 2000
by Microsoft Corporation, a company incorporated in Washington, whose principal
place of business is at One Microsoft Way, Washington 98052 6399, USA
("Microsoft").
By this deed poll, Microsoft declares as follows in respect of the revised new
relationship agreement dated 3 March 2000 between Microsoft (1), Liberty Media
International, Inc. (2), Liberty UK Holdings, Inc. (3), Liberty UK, Inc. (4) and
Telewest Communications plc ("Telewest") (5) (the "Agreement"):
That, subject to the provisos set out below, Microsoft shall not, and shall
procure that the Microsoft Group shall not, at any time exercise any right under
clause 5 of the Agreement to withhold its consent:
(i) to any immaterial acquisition within the scope of business carried on
by the Telewest Group in accordance with clause 11 of the Agreement or
to any immaterial disposal for which, in either case, its consent is
required under clause 5.1.1 of the Agreement (and so that for the
purposes of this deed an acquisition or disposal is to be treated as
immaterial where the fair value of the assets acquired or disposed of
represents 20 per cent or less of the fair value of the total assets
of the Telewest Group immediately prior to such acquisition or
disposal with the said fair values being determined by Microsoft
following the definitions provided by paragraph 7 of Statement of
Financial Accounting Standards No. 121, Accounting for the Impairment
of Long-Lived Assets and Long-Lived Assets to be Disposed of. For the
avoidance of doubt, the Microsoft Group shall (subject only to the
extent that it has expressly undertaken to surrender such rights under
the foregoing provisions of this paragraph (i)) retain its full right
and entitlement to withhold its consent under clause 5.1.1 at its
absolute discretion; or
(ii) to any matter for which its consent is required under clause 5.1.2 of
the Agreement;
PROVIDED THAT the declarations and obligations of Microsoft set out above shall
terminate and cease to have any effect in the event that Microsoft determines
that the exercise of the rights which it is surrendering (or procuring to be
surrendered) under this deed would not require the equity method of accounting
to be applied in relation to the interests of the Microsoft Group in Telewest
under generally accepted accounting principles in the United States of America
and Microsoft notifies Telewest in writing of such determination and the
consequent termination of the said declarations and obligations.
In relation to the provisions of paragraph (i) above, Microsoft shall notify
Telewest in writing of any determination of fair values that it makes for the
purposes thereof and, in the event that Telewest notifies Microsoft in writing
within five business days of the receipt of such notification that it disputes
the determination of such fair values (a "Dispute Notice"), Microsoft shall
permit the matter to be referred for determination to an independent valuation
specialist agreed on by Microsoft and Telewest, subject to Telewest agreeing
that (a) such independent valuation specialist shall act as an expert and not as
an arbitrator, (b) the decision of such specialist shall be final and binding
between Microsoft and Telewest and (c) the fees of such specialist shall be
allocated for payment between Microsoft and Telewest as such specialist may
determine to be fair.
The definitions contained in the Agreement shall, unless the context otherwise
requires, bear the same meanings in this deed poll. The provisions as to the
giving of notice in clause 23 of the Agreement shall apply as regards any notice
given by Microsoft and Telewest to each other under this instrument.
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This deed poll is intended to operate for the benefit of and be enforceable by
Telewest and is governed by and shall be construed in accordance with English
law.
Executed as a deed by Microsoft on the date first stated above.
SIGNED as a deed and )
DELIVERED by )
Microsoft Corporation )
acting by: )
/s/ Jean-Francois Heitz
.................................
Duly authorised
Name: Jean Francois Heitz
Title: Deputy Chief Financial Officer