Document:

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                                                                    EXHIBIT 10.1

                                                                  EXECUTION COPY

                  SECOND AMENDED AND RESTATED CREDIT AGREEMENT

                                      AMONG

                      TRANSWESTERN PUBLISHING COMPANY, LLC,

                              WORLDPAGES.COM, INC.

                                       AND

                              TWP CAPITAL CORP. II,

                                  AS BORROWERS

                               THE SEVERAL LENDERS

                        FROM TIME TO TIME PARTIES HERETO,

                       CANADIAN IMPERIAL BANK OF COMMERCE,

                            AS ADMINISTRATIVE AGENT,

                           FIRST UNION NATIONAL BANK,

                              AS SYNDICATION AGENT,

                                       AND

                              FLEET NATIONAL BANK,

                             AS DOCUMENTATION AGENT

                            DATED AS OF JUNE 28, 2001

                            CIBC WORLD MARKETS CORP.

                                       AND

                          FIRST UNION SECURITIES, INC.,

                   AS CO-LEAD ARRANGERS AND JOINT BOOKRUNNERS

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                                TABLE OF CONTENTS

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SECTION 1.   DEFINITIONS................................................................................................2
           1.1   Defined Terms..........................................................................................2
           1.2   Other Definitional Provisions.........................................................................21

SECTION 2.   AMOUNT AND TERMS OF COMMITMENTS...........................................................................22
           2.1   Revolving Credit Commitments..........................................................................22
           2.2   Procedure for Revolving Credit Borrowing..............................................................22
           2.3   Fees .................................................................................................22
           2.4   Termination or Reduction of Revolving Credit Commitments..............................................23
           2.5   Term Loans............................................................................................23
           2.6   Closing Date Term Loan Borrowings.....................................................................23
           2.7   Repayment of Loans; Evidence of Debt..................................................................23
           2.8   Optional Prepayments; Mandatory Prepayments and Revolving Credit Commitment Reductions................25
           2.9   Conversion and Continuation Options...................................................................27
           2.10   Minimum Amounts and Maximum Number of Tranches.......................................................28
           2.11   Interest Rates and Payment Dates.....................................................................28
           2.12   Computation of Interest and Fees.....................................................................28
           2.13   Inability to Determine Interest Rate.................................................................29
           2.14   Pro Rata Treatment and Payments......................................................................29
           2.15   Illegality...........................................................................................30
           2.16   Requirements of Law..................................................................................30
           2.17   Taxes................................................................................................32
           2.18   Indemnity............................................................................................33
           2.19   Change of Lending Office; Mandatory Assignment.......................................................33
           2.20   Increases of the Term Loans or Revolving Credit Commitments..........................................34

SECTION 3.   REPRESENTATIONS AND WARRANTIES............................................................................35
           3.1   Financial Condition...................................................................................35
           3.2   No Change.............................................................................................36
           3.3   Existence; Compliance with Law........................................................................37
</TABLE>

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<TABLE>
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           3.4   Power; Authorization; Enforceable Obligations.........................................................37
           3.5   No Legal Bar..........................................................................................37
           3.6   No Material Litigation................................................................................37
           3.7   No Default............................................................................................38
           3.8   Ownership of Property; Liens..........................................................................38
           3.9   Intellectual Property.................................................................................38
           3.10   No Burdensome Restrictions...........................................................................38
           3.11   Taxes................................................................................................38
           3.12   Federal Regulations..................................................................................38
           3.13   ERISA................................................................................................39
           3.14   Investment Company Act; Other Regulations............................................................39
           3.15   Purpose of Loans.....................................................................................39
           3.16   Environmental Matters................................................................................39
           3.17   Solvency.............................................................................................40
           3.18   Accuracy of Information..............................................................................40
           3.19   Employee Matters, etc................................................................................41
           3.20   Security Documents...................................................................................41
           3.21   Ownership............................................................................................41
           3.22   Subsidiaries.........................................................................................41
           3.23   Senior Indebtedness..................................................................................42
           3.24   Certain Documents....................................................................................42

SECTION 4.   CONDITIONS PRECEDENT......................................................................................42
           4.1   Conditions to Effectiveness...........................................................................42
           4.2   Conditions to Each Loan...............................................................................44

SECTION 5.   AFFIRMATIVE COVENANTS.....................................................................................45
           5.1   Financial Statements.  Furnish to each Lender:........................................................45
           5.2   Certificates; Other Information.......................................................................46
           5.3   Conduct of Business and Maintenance of Existence......................................................47
           5.4   Maintenance of Property; Insurance....................................................................47
           5.5   Inspection of Property; Books and Records; Discussions................................................47
           5.6   Notices...............................................................................................47
</TABLE>

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           5.7   Environmental Laws....................................................................................48
           5.8   Additional Collateral; Subsidiaries...................................................................49

SECTION 6.   NEGATIVE COVENANTS........................................................................................51
           6.1   Financial Condition Covenants.........................................................................51
           6.2   Limitation on Indebtedness............................................................................52
           6.3   Limitation on Liens...................................................................................53
           6.4   Limitation on Guarantee Obligations...................................................................54
           6.5   Limitation on Fundamental Changes.....................................................................54
           6.6   Limitation on Sale of Assets..........................................................................55
           6.7   Limitation on Leases..................................................................................55
           6.8   Limitation on Distributions...........................................................................55
           6.9   Limitation on Capital Expenditures....................................................................57
           6.10   Limitation on Investments, Loans and Advances........................................................57
           6.11   Limitation on Transactions with Affiliates...........................................................59
           6.12   Limitation on Sales and Leasebacks...................................................................60
           6.13   Limitation on Changes in Fiscal Year.................................................................60
           6.14   Limitation on Negative Pledge Clauses................................................................60
           6.15   Limitation on Lines of Business......................................................................60
           6.16   Limitation on Designated Senior Debt.................................................................60
           6.17   Limitation on Activities of Holdings.................................................................60
           6.18   Limitation on Optional Payments and Modifications of Subordinated Debt...............................60

SECTION 7.   EVENTS OF DEFAULT.........................................................................................60

SECTION 8.   THE AGENTS................................................................................................63
           8.1   Appointment...........................................................................................63
           8.2   Delegation of Duties..................................................................................63
           8.3   Exculpatory Provisions................................................................................64
           8.4   Reliance by Agents....................................................................................64
           8.5   Notice of Default.....................................................................................64
           8.6   Non-Reliance on Agents and Other Lenders..............................................................65
           8.7   Indemnification.......................................................................................65
</TABLE>

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           8.8   Agents in Their Individual Capacity...................................................................66
           8.9   Successor Administrative Agent........................................................................66
           8.10   Releases of Collateral...............................................................................66

SECTION 9.   MISCELLANEOUS.............................................................................................66
           9.1   Amendments and Waivers................................................................................66
           9.2   Notices...............................................................................................67
           9.3   No Waiver; Cumulative Remedies........................................................................68
           9.4   Survival of Representations and Warranties............................................................68
           9.5   Payment of Expenses and Taxes.........................................................................68
           9.6   Successors and Assigns; Participations and Assignments................................................69
           9.7   Adjustments; Set-off..................................................................................72
           9.8   Counterparts..........................................................................................72
           9.9   Severability..........................................................................................72
           9.10   Integration..........................................................................................72
           9.11   GOVERNING LAW........................................................................................73
           9.12   Submission To Jurisdiction; Waivers..................................................................73
           9.13   Acknowledgements.....................................................................................73
           9.14   Partner Liability....................................................................................74
           9.15   Confidentiality......................................................................................74
           9.16   WAIVERS OF JURY TRIAL................................................................................74
</TABLE>

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        SECOND AMENDED AND RESTATED CREDIT AGREEMENT, dated as of June 28, 2001,
among TransWestern Publishing Company, LLC, a Delaware limited liability company
(the "Company"), WorldPages.com, Inc., a Delaware corporation and a wholly owned
Subsidiary of the Company ("WPZ"), TWP Capital Corp. II, a Delaware corporation
and a wholly owned Subsidiary of the Company ("TWP Capital II"; the Company, WPZ
and TWP Capital II, collectively, the "Borrowers"), the several banks and other
financial institutions from time to time parties to this Agreement (the
"Lenders"), Canadian Imperial Bank of Commerce, New York Agency, as
administrative agent for the Lenders hereunder (in such capacity, the
"Administrative Agent"), First Union National Bank, as syndication agent for the
Lenders hereunder (in such capacity, the "Syndication Agent"), Fleet National
Bank, as documentation agent for the Lenders hereunder (in such capacity, the
"Documentation Agent" and, together with the Administrative Agent and the
Syndication Agent, the "Agents").

                              W I T N E S S E T H :

        WHEREAS, pursuant to the Assumption Agreement and Amended and Restated
Credit Agreement, dated as of November 6, 1997 (the "Existing Credit
Agreement"), among the Company, TWP Capital II, the several banks and other
financial institutions parties thereto, CIBC, as administrative agent
thereunder, and First Union, as documentation agent thereunder, the lenders
thereunder have agreed to make, and have made, certain loans and other
extensions of credit to the Company and TWP Capital II;

        WHEREAS, pursuant to the Agreement and Plan of Merger, dated as of April
26, 2001 (the "Merger Agreement"), by and among the Company, WorldPages Merger
Subsidiary, Inc., a Delaware corporation and wholly-owned subsidiary of the
Company ("Merger Subsidiary"), and WPZ, the parties thereto have agreed to the
merger of Merger Subsidiary with and into WPZ (the "Merger");

        WHEREAS, pursuant to the Recapitalization Agreement, dated as of June
28, 2001 (the "Recapitalization Agreement"), by and among Holdings, the Company,
TransWestern Communications Company, Inc., and the New Investors, the Selling
Investors and the Reinvesting Manager (as each term is defined in the
Recapitalization Agreement), the parties thereto have agreed to the
recapitalization of Holdings provided for therein pursuant to which the
partnership interests of certain partners of Holdings (including Thomas H. Lee
Equity Fund III, L.P. and certain of its Affiliates) will be repurchased,
certain new and existing partners will make equity investments in Holdings
(including equity investments by Thomas H. Lee Equity Fund V, L.P. and certain
of its Affiliates), with the effect that the aggregate equity investment in
Holdings will be increased by at least $60,500,000 (and such increased amount
will be contributed to the capital of the Company) and Thomas H. Lee Equity Fund
V, L.P. and certain of its Affiliates will be the largest holder of partnership
interests in Holdings (the "Recapitalization"); and

        WHEREAS, the Borrowers have requested that the Lenders and the Agents
enter into this Second Amended and Restated Credit Agreement to amend certain
provisions of the Existing Credit Agreement for the purpose, among others, of
(i) refinancing and replacing the Revolving Credit Commitments (as defined in
the Existing Credit Agreement) thereunder with the Revolving Credit Commitments
hereunder and (ii) providing new extensions of credit, in the

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form of the Term Loans hereunder, as a source of funds to enable the Borrowers
to consummate the Merger, and the Lenders and the Agents have agreed to do so;

        NOW THEREFORE, the parties hereto hereby agree that, effective on the
Closing Date, the Existing Credit Agreement shall be superseded, amended and
restated to read in its entirety as follows:

                             SECTION 1. DEFINITIONS

        1.1 DEFINED TERMS. As used in this Agreement, the following terms shall
have the following meanings:

                "ABR": at any time, a rate per annum equal to the higher of (a)
        the Prime Rate and (b) the Federal Funds Rate as quoted by the
        Administrative Agent plus 1/2 of 1%. Each change in the ABR shall take
        effect simultaneously with the corresponding change or changes in the
        Prime Rate or the Federal Funds Rate.

                "ABR Loans": Loans the rate of interest applicable to which is
        based upon the ABR.

                "Acquisition Debt": Indebtedness of the Company (other than
        Loans) issued as part of the consideration for a Permitted Acquisition,
        provided that (a) such Indebtedness is unsecured, (b) either (i) all the
        terms and conditions of such Indebtedness are reasonably satisfactory in
        form and substance to the Required Lenders, as evidenced by their prior
        written approval thereof, or (ii) the Revolving Credit Commitments or
        the Term Loans are, contemporaneously with the issuance of such
        Indebtedness, permanently reduced or prepaid, as the case may be, in
        accordance with subsection 2.4(a) or 2.8(a), as the case may be, by an
        amount equal to the principal amount thereof, and (c) after giving
        effect to the issuance thereof, no Default or Event of Default shall
        have occurred and be continuing.

                "Administrative Agent": as defined in the preamble hereto.

                "Affiliate": as to any Person, any other Person (other than a
        Subsidiary) which, directly or indirectly, is in control of, is
        controlled by, or is under common control with, such Person. For
        purposes of this definition, "control" of a Person means the power,
        directly or indirectly, to direct or cause the direction of the
        management and policies of such Person, whether by contract or
        otherwise.

                "Agents": as defined in the preamble hereto.

                "Agreement": this Second Amended and Restated Credit Agreement,
        as amended, supplemented or otherwise modified from time to time.

                "Amarillo Asset Sale": the sale by WPZ of the office building
        located at 2400 Lakeview Drive in Amarillo, Texas.

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                "Applicable Margin": (a) for each Tranche B Term Loan, the
        applicable margin for ABR Loans is 1.75% and the applicable margin for
        LIBOR Loans is 3.00%, and (b) for each Revolving Credit Loan and Tranche
        A Term Loan, the rate per annum set forth in the table below opposite
        the Total Leverage Ratio then in effect; such Applicable Margin shall be
        in effect for the period beginning the second Business Day following the
        date on which the Pricing Certificate provided pursuant to subsection
        5.2(b) is delivered to the Lenders and ending on the first Business Day
        following the date on which the next such Pricing Certificate is
        delivered to the Lenders; provided, that, if for any reason the Pricing
        Certificate required by subsection 5.2(b) is not delivered in accordance
        with such subsection to the Lenders, the Total Leverage Ratio shall, for
        purposes of determining the Applicable Margin, be deemed to be greater
        than or equal to 5.00 to 1.00 for each day during the period from and
        including the day such Pricing Certificate was required to be delivered
        pursuant to subsection 5.2(b) to the day such Pricing Certificate is so
        delivered; and provided, further, that for the period from and including
        the Closing Date to the first Business Day following the date on which
        the Borrowers shall deliver the first Pricing Certificate pursuant to
        subsection 5.2(b), the Total Leverage Ratio shall, for purposes of
        determining Applicable Margin, be deemed to be greater than or equal to
        5.00 to 1.00.

<TABLE>
<CAPTION>
                                                                               APPLICABLE           APPLICABLE
                                                                               MARGIN FOR           MARGIN FOR
                TOTAL LEVERAGE RATIO                                            ABR LOANS          LIBOR LOANS
                --------------------                                            ---------          -----------
<S>                                                                            <C>                <C>
Revolving Credit Loans and Tranche A Term Loans

Greater than or equal to 5.00 to 1.00                                             1.75%               3.00%
Less than 5.00 to 1.00 and greater than or equal to 4.50 to 1.00                  1.50%               2.75%
Less than 4.50 to 1.00 and greater than or equal to 4.00 to 1.00                  1.25%               2.50%
Less than 4.00 to 1.00 and greater than or equal to 3.50 to 1.00                  1.00%               2.25%
Less than 3.50 to 1.00                                                            0.75%               2.00%
</TABLE>

                "Approved Fund": any Fund that is administered or managed by (a)
        a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate
        of an entity that administers or manages a Lender.

                "Asset Sale": any sale or other disposition (including any
        Permitted Disposition) or series of related sales or other dispositions
        by any Borrower or any Subsidiary of any asset or assets of such
        Borrower or Subsidiary (including any sale and leaseback of assets) and
        any issuance by any Subsidiary of any shares of Capital Stock of such
        Subsidiary to any Person other than the Company or any wholly owned
        Subsidiary; provided, that any sale of assets expressly permitted by
        subsections 6.6(a) through (d) shall not constitute an "Asset Sale"
        hereunder.

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                                                                               4

                "Available Commitment": as to any Lender at any time, an amount
        equal to the excess, if any, of (a) the amount of such Lender's
        Revolving Credit Commitment over (b) the aggregate principal amount of
        all Revolving Credit Loans outstanding to such Lender.

                "Board of Directors": (i) in the case of a Person that is a
        limited partnership, the board of directors of its corporate general
        partner or any committee authorized to act therefor (or, if the general
        partner is itself a limited partnership, the board of directors of such
        general partner's corporate general partner or any committee authorized
        to act therefor), (ii) in the case of a Person that is a corporation,
        the board of directors of such Person or any committee authorized to act
        therefor, (iii) in the case of a Person that is a limited liability
        company, the board of managers of such Person or any committee
        authorized to act therefor (or, if the manager of such Person is a
        corporation, the board of directors of such corporate manager or any
        committee authorized to act therefor) and (iv) in the case of any other
        Person, the board of directors, management committee or similar
        governing body or any authorized committee thereof responsible for the
        management of the business and affairs of such Person.

                "Borrowers": as defined in the preamble hereto.

                "Borrowers Security Agreement": the Assumed Amended and Restated
        Borrowers Security Agreement, dated as of November 6, 1997, made by the
        Company and TWP Capital II in favor of the Administrative Agent for the
        benefit of the banks and other financial institutions parties to the
        Existing Credit Agreement, substantially in the form of Exhibit C to the
        Existing Credit Agreement, as amended, supplemented or modified from
        time to time.

                "Borrowing Date": any Business Day specified in a notice
        pursuant to subsection 2.2 or 2.6 as a date on which the Company
        requests the Lenders to make Loans hereunder.

                "Business": as defined in subsection 3.16(b).

                "Business Day": a day other than a Saturday, Sunday or other day
        on which commercial banks in New York City, New York or London, England
        are authorized or required by law to close.

                "Canadian Subsidiaries": each of ACG Holding Company, a Nova
        Scotia unlimited company, ACG Exchange Company, a Nova Scotia unlimited
        company, and YPtel Corporation, a Nova Scotia unlimited company.

                "Capital Expenditures": of any Person for any period the amount,
        without duplication, of expenditures (including by way of the
        acquisition of securities of a Person or otherwise), determined in
        accordance with GAAP, for such period in respect of the purchase or
        other acquisition of fixed or capital assets (excluding (i) any such
        asset acquired in connection with normal replacement and maintenance
        programs properly charged to current operations, (ii) expenditures made
        with the proceeds of insurance and awards of condemnation and (iii)
        assets acquired as part of a Permitted Acquisition).

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                                                                               5

                "Capital Stock": any and all shares, interests, participations
        or other equivalents (however designated) of capital stock of a
        corporation, any and all equivalent ownership interests in a Person
        other than a corporation (including general and limited partnership
        interests in a partnership) and any and all warrants or options to
        purchase any of the foregoing.

                "Cash Equivalents": (a) securities with maturities of six months
        or less from the date of acquisition issued or fully guaranteed or
        insured by the United States Government or any agency thereof, (b)
        certificates of deposit, time deposits, overnight bank deposits, bankers
        acceptances and repurchase agreements of any commercial bank which has
        combined capital and surplus in excess of $200,000,000 having maturities
        of six months or less from the date of acquisition, (c) commercial paper
        of an issuer rated at least A-1 by Standard & Poor's Corporation or P-1
        by Moody's Investors Service, Inc., or carrying an equivalent rating by
        a nationally recognized rating agency if both of the two named rating
        agencies cease publishing ratings of investments having maturities of
        six months or less from the date of acquisition and (d) shares of money
        market mutual or similar funds which invest exclusively in assets
        satisfying the requirements of clauses (a) through (c) of this
        definition.

                "Cash Interest Coverage Ratio": EBITDA for any period of four
        consecutive fiscal quarters divided by Cash Interest Expense for such
        period.

                "Cash Interest Expense": for any period, Interest Expense for
        such period, excluding (a) interest paid in kind or by accretion or
        addition to principal, (b) amortization of commissions, discounts, fees,
        costs and other charges paid in connection with the incurrence of
        Indebtedness and (c) other interest costs not paid in cash.

                "ChoiceContent Asset Sale": the sale by WPZ of all of the
        Capital Stock or substantially all of the assets of ChoiceContent.com,
        Inc., a Texas corporation.

                "CIBC": Canadian Imperial Bank of Commerce, New York Agency.

                "Closing Date": the date on which the conditions precedent set
        forth in subsection 4.1 shall be satisfied.

                "Code": the Internal Revenue Code of 1986, as amended from time
        to time.

                "Collateral": all assets of the Loan Parties, now owned or
        hereinafter acquired, upon which a Lien is purported to be created by
        any Security Document.

                "Commonly Controlled Entity": an entity, whether or not
        incorporated, which is under common control with the Company within the
        meaning of Section 4001 of ERISA or is part of a group which includes
        the Company and which is treated as a single employer under Section 414
        of the Code.

                "Company": as defined in the preamble hereto.

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                                                                               6

                "Confidential Information Memorandum": the Confidential
        Information Memorandum dated June 2001 and furnished to the Lenders.

                "Consolidated Net Income": of any Person for any period,
        consolidated net income of such Person for such period determined in
        accordance with GAAP.

                "Contemplated Transaction": collectively, the Merger and the
        Recapitalization.

                "Contractual Obligation": as to any Person, any provision of any
        security issued by such Person or of any agreement, instrument or other
        undertaking to which such Person is a party or by which it or any of its
        property is bound.

                "Current Assets": at a particular date, with respect to any
        Person, all amounts (other than cash and Cash Equivalents and assets
        which would not otherwise be included in "total current assets" in
        accordance with GAAP but for the fact that such assets are being held
        for sale) which would, in conformity with GAAP, be set forth opposite
        the caption "total current assets" (or any like caption) on a balance
        sheet of such Person at such date.

                "Current Liabilities": at a particular date, with respect to any
        Person, all amounts which would, in conformity with GAAP, be set forth
        opposite the caption "total current liabilities" (or any like caption)
        on a balance sheet of such Person at such date (other than current
        maturities of long term debt).

                "Default": any of the events specified in Section 7, whether or
        not any requirement set forth therein for the giving of notice, the
        lapse of time, or both, has been satisfied.

                "Documentation Agent": as defined in the preamble hereto.

                "Dollars" and "$": dollars in lawful currency of the United
        States of America.

                "Domestic Subsidiary": any Subsidiary of the Borrowers organized
        under the laws of any jurisdiction within the United States.

                "EBITDA": of any Person for any period, Consolidated Net Income
        of such Person for such period plus, without duplication and to the
        extent reflected as a charge in the statement of such Consolidated Net
        Income, the sum of (a) provision for income tax expense (including,
        without limitation, any income taxes that would be payable if the
        Company were to become a taxable entity for purposes of Federal, state
        or local income taxes), (b) Interest Expense, (c) depreciation and
        amortization expense, (d) any extraordinary, non-recurring or unusual
        losses or expenses (including, whether or not otherwise includable as a
        separate item in the statement of such Consolidated Net Income, losses
        on the sales of assets outside of the ordinary course of business and
        transaction expenses incurred in connection with the Recapitalization
        and the Merger), (e) distributions to the Equity Compensation Trust and
        any payments made by the Equity Compensation Trust and (f) expenses
        incurred during such period in connection with the creation of
        prototypes for one or more new telephone directories not to exceed

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                                                                               7

        $2,000,000 in any such period, minus, without duplication and to the
        extent reflected as income in the statement of such Consolidated Net
        Income, any extraordinary, non-recurring or unusual gains (including,
        whether or not otherwise includable as a separate item in the statement
        of such Consolidated Net Income, gains on the sales of assets outside of
        the ordinary course of business); provided that (i) in computing EBITDA
        for any period any Permitted Acquisition or Permitted Disposition
        occurring during such period shall be deemed to have been completed on
        the first day of such period, (ii) EBITDA shall be adjusted for
        projected cost savings and other pro forma adjustments in connection
        with any Permitted Acquisition (other than the Merger) if such savings
        or adjustments are described in a certificate on behalf of the Company
        of a Responsible Officer demonstrating in reasonable detail such cost
        savings delivered to the Administrative Agent and approved in writing by
        the Administrative Agent (which approval shall not be unreasonably
        withheld) and (iii) EBITDA shall, for the periods of four consecutive
        fiscal quarters ending September 30, 2001, December 31, 2001, March 31,
        2002 and June 30, 2002, also be adjusted upwards for projected cost
        savings in connection with the Merger in an amount equal to $16,408,000,
        $11,933,000, $7,458,000 and $2,983,000, respectively.

                "Eligible Assignee": (a) a Lender; (b) an Affiliate of a Lender;
        (c) an Approved Fund; and (d) any other Person (other than a natural
        Person) approved by the Administrative Agent, and, unless (x) such
        Person is taking delivery of an assignment in connection with physical
        settlement of a credit derivatives transaction or (y) an event described
        in Section 7(f) has occurred and is continuing, the Borrowers (each such
        approval not to be unreasonably withheld or delayed). If the consent of
        the Borrowers to an assignment or to an Eligible Assignee is required
        hereunder (including a consent to an assignment which does not meet the
        minimum assignment thresholds specified in subsection 9.6(c)), the
        Borrowers shall be deemed to have given their consent five Business Days
        after the date notice thereof has been delivered by the assigning Lender
        (through the Administrative Agent) unless such consent is expressly
        refused by the Borrowers prior to such fifth Business Day.

                "Employment Agreements": collectively, the Employment Agreements
        entered into by the Company with Mr. Laurence H. Bloch, Mr. Ricardo
        Puente and the other individuals listed on Schedule 1.2 hereto, all such
        agreements in substantially the form of Exhibit C to the
        Recapitalization Agreement.

                "Environmental Laws": any and all foreign, Federal, state, local
        or municipal laws, rules, orders, regulations, statutes, ordinances,
        codes, decrees, requirements of any Governmental Authority or other
        Requirements of Law (including common law) regulating, relating to or
        imposing liability or standards of conduct concerning protection of
        human health (as it relates to the environment) or the environment, as
        now or may at any time hereafter be in effect.

                "Equity Compensation Trust": the trust established for the
        benefit of certain members of management and certain full time employees
        of the Company pursuant to the terms of the Equity Compensation Trust
        Agreement, dated as of April 14, 1998, as amended, between TransWestern
        Holdings L.P. and the Trustees named therein, or any

<PAGE>   13
                                                                               8

        trust established for such purposes on substantially identical terms for
        such members of management and full time employees of the Company a copy
        of which shall be delivered to each Agent.

                "Equity Consideration": any consideration given by the Company
        in connection with a Permitted Acquisition or proposed Permitted
        Acquisition consisting of equity interests issued by the Company or
        Holdings or cash proceeds from the sale of equity interests in the
        Company.

                "ERISA": the Employee Retirement Income Security Act of 1974, as
        amended from time to time.

                "Event of Default": any of the events specified in Section 7,
        provided that any requirement set forth therein for the giving of
        notice, the lapse of time, or both, has been satisfied.

                "Excess Cash Flow": for any period of the Company, the excess of
        (a) the sum, without duplication, of (i) EBITDA of the Company for such
        period, (ii) the amount of returned surplus assets of any pension plan
        received by the Company or any of its Subsidiaries during such period to
        the extent not included in Consolidated Net Income to determine EBITDA
        for such period or any prior period commencing on or subsequent to the
        Closing Date, (iii) decreases in Working Capital of the Company and its
        Subsidiaries for such period and (iv) extraordinary, non-recurring or
        unusual cash gains during such period included in Consolidated Net
        Income of the Company for such period, over (b) the sum, without
        duplication, of (i) the aggregate amount of cash Capital Expenditures
        permitted pursuant to subsection 6.9 and made by the Company and its
        Subsidiaries during such period, (ii) the aggregate amount of payments
        of principal in respect of any Indebtedness of the Company or any of its
        Subsidiaries not prohibited hereunder during such period, including, but
        not limited to, prepayments made pursuant to subsection 2.8(a) (other
        than prepayments of Loans made pursuant to subsections 2.8(b), (c), (d)
        and (e) and prepayments of Revolving Credit Loans to the extent not
        accompanied by reductions of the Revolving Credit Commitments), (iii)
        increases in Working Capital of the Company and its Subsidiaries for
        such period, (iv) Interest Expense of the Company and its Subsidiaries
        for such period, (v) taxes paid in cash by the Company or any of its
        Subsidiaries in such period, (vi) cash distributions made in such period
        by the Company for payment of taxes to the extent permitted under
        subsection 6.8(a), (vii) any cash payments, made by the Company in
        accordance with subsection 6.8(d) during such period for the purchase of
        shares of its Capital Stock from departing officers and employees and on
        account of Subordinated Management Notes, (viii) any cash payments made
        by the Company or any of its Subsidiaries for acquisitions made during
        such period pursuant to subsection 6.10(f) and (ix) Management Fees paid
        during such period; notwithstanding the parenthetical phrase included in
        clause (b)(ii) above, the amount described in such clause (b)(ii) shall
        include the amount of any mandatory prepayment of the Loans to the
        extent that clause (a) of this definition includes a corresponding
        amount directly attributable to the event giving rise to such mandatory
        prepayment (such as, for example, the portion of the Net Cash Proceeds
        from an Asset Sale applied as a mandatory prepayment of the Loans
        representing the ordinary gain realized in such Asset Sale).

<PAGE>   14
                                                                               9

                "Excluded Foreign Subsidiary": any Foreign Subsidiary in respect
        of which either (a) the pledge of all of the Capital Stock of such
        Subsidiary as Collateral or (b) the guaranteeing by such Subsidiary of
        the Obligations (as defined in the Guarantee and Collateral Agreement),
        would, in the good faith judgment of the Borrowers, result in adverse
        tax consequences to any one of the Borrowers.

                "Executive Agreements": collectively, (a) the Executive
        Agreements entered into by Holdings with Mr. Laurence H. Bloch, Mr.
        Ricardo Puente and the other individuals listed on Schedule 1.2 hereto,
        and (b) the Executive Agreements entered into by Holdings with any other
        officers and employees of the Company who shall enter into an Executive
        Agreement with the Company subsequent to the Closing Date, all such
        agreements referred to in this clause (b) in substantially the form of
        Exhibit B to the Recapitalization Agreement.

                "Existing Credit Agreement": as defined in the recitals hereto.

                "Facilities Termination Date": June 27, 2008.

                "Facility": each of (a) the Tranche A Term Commitments and the
        Tranche A Term Loans made thereunder, (b) the Tranche B Term Commitments
        and the Tranche B Term Loans made thereunder and (c) the Revolving
        Credit Commitments and the Revolving Credit Loans made thereunder (the
        "Revolving Credit Facility").

                "Federal Funds Rate": for any day, a rate per annum equal to the
        weighted average of the rates on overnight Federal funds transactions
        with members of the Federal Reserve System arranged by Federal funds
        brokers, as published at 11:00 a.m. (New York City time) for such day
        (or, if such day is not a Business Day, for the next preceding Business
        Day) by the Federal Reserve Bank of New York, or, if such rate is not so
        published for any day which is a Business Day, the average of the
        quotations for such day on such transactions received by the
        Administrative Agent from three Federal funds brokers of recognized
        standing selected by it.

                "Financing Lease": any lease of property, real or personal, the
        obligations of the lessee in respect of which are required in accordance
        with GAAP to be capitalized on a balance sheet of the lessee.

                "First Union": First Union National Bank, a national banking
        association.

                "Fixed Charge Ratio": EBITDA for any period of four consecutive
        fiscal quarters (less the aggregate amount actually paid by the
        Borrowers and their Subsidiaries during such period on account of
        Capital Expenditures) divided by Fixed Charges for the Company for such
        period.

                "Fixed Charges": for the Company for any period the sum of (a)
        Total Debt Service for such period, (b) distributions for the payment of
        taxes made by the Company during such period pursuant to subsection
        6.8(a), and (c) cash dividend payments made by the Company pursuant to
        subsections 6.8(d) and (f) during such period, in each case determined
        on a consolidated basis in accordance with GAAP.

<PAGE>   15
                                                                              10

                "Foreign Subsidiary": any Subsidiary of the Borrowers that is
        not a Domestic Subsidiary.

                "Fund": any Person (other than a natural Person) that is (or
        will be) engaged in making, purchasing, holding or otherwise investing
        in commercial loans and similar extensions of credit in the ordinary
        course of its business.

                "GAAP": generally accepted accounting principles in the United
        States of America in effect from time to time.

                "General Partner": TransWestern Communications Company, Inc., a
        Delaware corporation and the general partner of Holdings.

                "Governmental Authority": any nation or government, any state or
        other political subdivision thereof and any entity exercising executive,
        legislative, judicial, regulatory or administrative functions of or
        pertaining to government.

                "Guarantee and Collateral Agreement": the Amended and Restated
        Guarantee and Collateral Agreement to be executed and delivered by
        Holdings, the Company, WPZ, TWP Capital II and each Subsidiary
        Guarantor, substantially in the form of Exhibit D, amending and
        restating the Borrowers Security Agreement and the Holdings Pledge
        Agreement, as the same may be amended, supplemented or otherwise
        modified from time to time.

                "Guarantee Obligation": as to any Person (the "guaranteeing
        person"), any obligation of (a) the guaranteeing person or (b) another
        Person (including, without limitation, any bank under any letter of
        credit) to induce the creation of which the guaranteeing person has
        issued a reimbursement, counterindemnity or similar obligation, in
        either case guaranteeing or in effect guaranteeing any Indebtedness,
        leases, dividends or other obligations (the "primary obligations") of
        any other third Person (the "primary obligor") in any manner, whether
        directly or indirectly, including, without limitation, any obligation of
        the guaranteeing person, whether or not contingent, (i) to purchase any
        such primary obligation or any property constituting direct or indirect
        security therefor, (ii) to advance or supply funds (1) for the purchase
        or payment of any such primary obligation or (2) to maintain working
        capital or equity capital of the primary obligor or otherwise to
        maintain the net worth or solvency of the primary obligor, (iii) to
        purchase property, securities or services primarily for the purpose of
        assuring the owner of any such primary obligation of the ability of the
        primary obligor to make payment of such primary obligation or (iv)
        otherwise to assure or hold harmless the owner of any such primary
        obligation against loss in respect thereof; provided, however, that the
        term Guarantee Obligation shall not include endorsements of instruments
        for deposit or collection in the ordinary course of business. The amount
        of any Guarantee Obligation of any guaranteeing person shall be deemed
        to be the lower of (a) an amount equal to the stated or determinable
        amount of the primary obligation in respect of which such Guarantee
        Obligation is made and (b) the maximum amount for which such
        guaranteeing person may be liable pursuant to the terms of the
        instrument embodying such Guarantee Obligation, unless such primary
        obligation and the maximum amount for which such

<PAGE>   16
                                                                              11

        guaranteeing person may be liable are not stated or determinable, in
        which case the amount of such Guarantee Obligation shall be such
        guaranteeing person's maximum reasonably anticipated liability in
        respect thereof as determined by the Company in good faith.

                "Holdings": TransWestern Holdings L.P.

                "Holdings Pledge Agreement": the Pledge Agreement, dated as of
        November 6, 1997, made by Holdings in favor of the Administrative Agent
        for the benefit of the banks and other financial institutions parties to
        the Existing Credit Agreement, substantially in the form of Exhibit D to
        the Existing Credit Agreement, as amended, supplemented or modified from
        time to time.

                "Increasing Lender": as defined in subsection 2.20.

                "Indebtedness": of any Person at any date, (a) all indebtedness
        of such Person for borrowed money or for the deferred purchase price of
        property or services (other than (i) current trade liabilities incurred
        in the ordinary course of business and payable in accordance with
        customary practices, (ii) any "earn-out" or similar obligations payable
        to the sellers in connection with any Permitted Acquisition based upon a
        percentage of the earnings or the cash flow of the business acquired and
        (iii) obligations of the Company or any of its Subsidiaries in respect
        of advance payments or deposits by its customers for goods or services
        to be sold by the Company or such Subsidiary), (b) any other
        indebtedness of such Person which is evidenced by a note, bond,
        debenture or similar instrument, (c) all obligations of such Person
        under Financing Leases, (d) all obligations, contingent or otherwise, of
        such Person in respect of acceptances, letters of credit and similar
        facilities issued or created for the account of such Person, (e) all
        liabilities secured by any Lien on any property owned by such Person
        where such Person has not assumed or otherwise become liable for the
        payment thereof and (f) for the purposes of subsection 6.2 and Section
        7(e) only, all obligations, contingent or otherwise, of such Person in
        respect of Interest Rate Agreements.

                "Insolvency": with respect to any Multiemployer Plan, the
        condition that such Plan is insolvent within the meaning of Section 4245
        of ERISA.

                "Insolvent": pertaining to a condition of Insolvency.

                "Interest Expense": of any Person for any period the amount of
        interest expense (including that attributable to Financing Leases)
        payable with respect to all outstanding Indebtedness of such Person,
        including, without limitation or duplication, all commissions, discounts
        and other fees and charges owed with respect to letters of credit and
        bankers' acceptance financing and all net amounts payable by such Person
        under Interest Rate Agreements, determined in accordance with GAAP,
        provided that in computing Interest Expense for any period during which
        Indebtedness shall have been incurred or repaid in connection with any
        Permitted Acquisition or Permitted Disposition, such Indebtedness shall
        be deemed to have been incurred or repaid, as the case may be, on the
        first day of such period and Interest Expense for such period shall be
        deemed to

<PAGE>   17
                                                                              12

        have been (i) increased by the amount of interest that would be payable
        on such newly incurred Indebtedness during the period from the first day
        of such period to the date of incurrence thereof, calculated at the
        interest rate per annum applicable thereto on the date of such
        incurrence or, as the case may be, (ii) decreased by the amount of
        interest actually paid on the principal repaid during the period from
        the first day of such period to the date of such repayment.

                "Interest Payment Date": (a) as to any ABR Loan, the first day
        of each January, April, July and October, (b) as to any LIBOR Loan
        having an Interest Period of three months or less, the last day of such
        Interest Period, and (c) as to any LIBOR Loan having an Interest Period
        longer than three months, each day which is three months, or a whole
        multiple thereof, after the first day of such Interest Period and the
        last day of such Interest Period.

                "Interest Period": with respect to any LIBOR Loan:

                (i) initially, the period commencing on the borrowing or
        conversion date, as the case may be, with respect to such LIBOR Loan and
        ending one, two, three or six or (if agreed to by all the Lenders under
        the relevant Facility) nine or twelve months (or, to the extent provided
        in subsection 2.6, one week) thereafter, as selected by the Borrowers in
        their notice of borrowing or notice of conversion, as the case may be,
        given with respect thereto; and

                (ii) thereafter, each period commencing on the last day of the
        next preceding Interest Period applicable to such LIBOR Loan and ending
        one, two, three or six or (if agreed to by all the Lenders under the
        relevant Facility) nine or twelve months (or, to the extent provided in
        subsection 2.6, one week) thereafter, as selected by the Borrowers by
        irrevocable notice to the Administrative Agent by 11:00 a.m. New York
        City time not less than three Business Days prior to the last day of the
        then current Interest Period with respect thereto;

        provided that, all of the foregoing provisions relating to Interest
        Periods are subject to the following:

                (1) if any Interest Period pertaining to a LIBOR Loan would
        otherwise end on a day that is not a Business Day, such Interest Period
        shall be extended to the next succeeding Business Day unless the result
        of such extension would be to carry such Interest Period into another
        calendar month in which event such Interest Period shall end on the
        immediately preceding Business Day;

                (2) any Interest Period that would otherwise extend beyond the
        Revolving Credit Termination Date (in the case of Revolving Credit
        Loans) or beyond the date final payment is due on the Tranche A Term
        Loans (in the case of the Tranche A Term Loans) or the Tranche B Term
        Loans (in the case of the Tranche B Term Loans) shall end on the
        Revolving Credit Termination Date or such date of final payment, as the
        case may be;

                (3) any Interest Period pertaining to a LIBOR Loan that begins
        on the last Business Day of a calendar month (or on a day for which
        there is no numerically

<PAGE>   18
                                                                              13

        corresponding day in the calendar month at the end of such Interest
        Period) shall end on the last Business Day of a calendar month; and

                (4) the Borrowers shall select Interest Periods so as not to
        require a payment or prepayment of any LIBOR Loan during an Interest
        Period for such Loan.

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

                "Lease Expense": for any Person for any period, the aggregate
        amount of fixed and contingent rentals payable by such Person,
        determined on a consolidated basis in accordance with GAAP, for such
        period with respect to operating leases of real and personal property.

                "Lenders": as defined in the preamble hereto.

                "LIBOR": the rate of interest determined on the basis of the
        rate for deposits in Dollars for a period equal to the applicable
        Interest Period commencing on the first day of such Interest Period
        appearing on Telerate Page 3750 as of 11:00 a.m. (London time) two (2)
        Business Days prior to the first day of the applicable Interest Period.
        If, for any reason, such rate is not available, then "LIBOR" shall be
        determined by the Administrative Agent to be the arithmetic average
        (rounded upward, if necessary, to the nearest one-sixteenth of one
        percent (1/16%)) of the rate per annum at which deposits in Dollars
        would be offered by first class banks in the London interbank market to
        the Administrative Agent at approximately 11:00 a.m. (London time) two
        (2) Business Days prior to the first day of the applicable Interest
        Period for a period equal to such Interest Period and in an amount
        substantially equal to the amount of the applicable Loan.

                "LIBOR Rate": for any Interest Period, LIBOR for such Interest
        Period.

                "LIBOR Loans": Loans bearing interest at a rate determined with
        reference to the LIBOR Rate.

                "Lien": any mortgage, pledge, hypothecation, assignment, deposit
        arrangement, encumbrance, lien (statutory or other), charge or other
        security interest or any preference, priority or other security
        agreement or preferential arrangement of any kind or nature whatsoever
        (including, without limitation, any conditional sale or other title
        retention agreement and any Financing Lease having substantially the
        same economic effect as any of the foregoing).

                "Loan": any loan made by any Lender pursuant to this Agreement.

                "Loan Documents": this Agreement, any Notes and the Security
        Documents.

                "Loan Parties": Holdings, the Company, WPZ, TWP Capital II and
        their respective Subsidiaries which are a party to a Loan Document.

<PAGE>   19
                                                                              14

                "Majority Facility Lenders": with respect to any Facility, the
        holders of more than 50% of the aggregate unpaid principal amount of the
        Term Loans or the Revolving Credit Loans, as the case may be,
        outstanding under such Facility (or, in the case of the Revolving Credit
        Facility, prior to any termination of the Revolving Credit Commitments,
        the holders of more than 50% of the aggregate Revolving Commitments then
        in effect).

                "Management Fees": as defined in subsection 6.11.

                "Material Adverse Effect": a material adverse effect on (a) the
        business, assets, condition (financial or otherwise) or results of
        operations of the Borrowers and their Subsidiaries, taken as a whole, or
        (b) the validity or enforceability of this or any of the other Loan
        Documents or the rights or remedies of the Agents or the Lenders
        hereunder or thereunder.

                "Materials of Environmental Concern": any gasoline or petroleum
        (including crude oil or any fraction thereof) or petroleum products or
        any hazardous or toxic substances, materials or wastes, defined or
        regulated as such in or under any Environmental Law, including, without
        limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde
        insulation.

                "Merger": as defined in the recitals hereto.

                "Merger Agreement": as defined in the recitals hereto.

                "Merger Documentation": collectively, the Merger Agreement and
        all schedules, exhibits and annexes thereto and all side letters and
        written agreements affecting the terms thereof or entered into in
        connection therewith.

                "Merger Subsidiary": as defined in the recitals hereto.

                "Multiemployer Plan": a Plan which is a multiemployer plan as
        defined in Section 4001(a)(3) of ERISA.

                "Net Cash Proceeds": (a) in connection with any Asset Sale, the
        cash proceeds (including any payments received by way of deferred
        payment of principal pursuant to a note or installment receivable or
        purchase price adjustment receivable or otherwise) of such Asset Sale
        net of all attorneys' fees, accountants' fees, investment banking fees,
        brokerage commissions, survey costs, title insurance premiums, required
        debt payments (other than pursuant hereto), amounts required to be paid
        to any Person (other than the Company) owning a beneficial interest in
        the assets subject to such Asset Sale, reasonable amounts to be provided
        by the Company as a reserve, in accordance with GAAP, against any
        liabilities associated with such Asset Sale and retained by the Company
        (provided, that, if any amount of such reserve shall be released or
        reversed, the amount of such release or reversal shall be "Net Cash
        Proceeds"), and other customary fees and expenses in connection
        therewith and net of taxes (including income taxes of partners) paid or
        payable as a result thereof and net of purchase price adjustments which
        are in amounts ascertainable on the date of such Asset Sale and which
        are reasonably

<PAGE>   20
                                                                              15

        expected to be payable in connection therewith within 6 months of such
        date and (b) in connection with any issuance of any equity or debt
        securities or instruments or the incurrence of loans, the cash proceeds
        (including any cash payments received by way of deferred payment of
        principal pursuant to a note or installment receivable or purchase price
        adjustment receivable or otherwise) received from such issuance, net of
        all investment banking fees, legal fees, accountants fees, underwriting
        discounts and commissions and other customary fees and expenses in
        connection therewith, provided that notwithstanding the foregoing, no
        fees described in clauses (a) or (b) above shall be deducted in
        determining such Net Cash Proceeds to the extent such fees are payable
        to an Affiliate of the Company.

                "Non-Excluded Taxes": as defined in subsection 2.17(a).

                "New Lender": as defined in subsection 2.20.

                "Non-U.S. Lender": as defined in subsection 2.17(b).

                "Notes": the collective reference to the Revolving Credit Notes
        and the Term Notes.

                "Other Taxes": any and all present or future stamp or
        documentary taxes or any other excise or property taxes, charges or
        similar levies arising from any payment made hereunder or from the
        execution, delivery or enforcement of, or otherwise with respect to,
        this Agreement, any Note or any other Loan Document.

                "Participant": as defined in subsection 9.6(b).

                "Partnership Agreement": the Fourth Amended and Restated
        Agreement of Limited Partnership of Holdings, dated as of June 28, 2001,
        as amended, modified or supplemented in accordance with the terms
        thereof.

                "PBGC": the Pension Benefit Guaranty Corporation established
        pursuant to Subtitle A of Title IV of ERISA.

                "Percentage": as to any Lender at any time the percentage which
        the sum, without duplication, of such Lender's Revolving Credit
        Commitment and the aggregate principal amount of such Lender's Term
        Loans then outstanding then constitutes of the sum, without duplication,
        of the aggregate Revolving Credit Commitments then in effect and Term
        Loans then outstanding (or, at any time after the Revolving Credit
        Commitments shall have expired or terminated, the percentage which the
        aggregate principal amount of such Lender's Loans then outstanding
        constitutes of the aggregate principal amount of the Loans then
        outstanding).

                "Permitted Acquisition": as defined in subsection 6.10(f).

                "Permitted Disposition": as defined in subsection 6.6(e).

<PAGE>   21
                                                                              16

                "Person": an individual, partnership, corporation, business
        trust, joint stock company, trust, unincorporated association, joint
        venture, Governmental Authority or other entity of whatever nature.

                "Plan": at a particular time, any employee benefit plan which is
        covered by ERISA and in respect of which the Company or a Commonly
        Controlled Entity is (or, if such plan were terminated at such time,
        would under Section 4069 of ERISA be deemed to be) an "employer" as
        defined in Section 3(5) of ERISA.

                "Pricing Certificate": as defined in subsection 5.2(b).

                "Prime Rate": at any time, the rate of interest per annum
        publicly announced from time to time by CIBC as its prime rate. Each
        change in the Prime Rate shall be effective as of the opening of
        business on the day such change in the Prime Rate occurs. The parties
        hereto acknowledge that the rate announced publicly by CIBC as its Prime
        Rate is an index or base rate and shall not necessarily be its lowest
        rate charged to its customers or other banks.

                "Pro Forma Balance Sheet": as defined in subsection 3.1(d).

                "Properties": as defined in subsection 3.16(a).

                "Recapitalization": as defined in the recitals hereto.

                "Recapitalization Agreement": as defined in the recitals hereto.

                "Recapitalization Documentation": collectively, the
        Recapitalization Agreement and all schedules, exhibits and annexes
        thereto and all side letters and written agreements affecting the terms
        thereof or entered into in connection therewith.

                "Refinancing Indebtedness": Indebtedness that refunds,
        refinances or extends the Senior Subordinated Notes, but only to the
        extent that (i) such Refinancing Indebtedness is subordinated to the
        obligations of the Borrowers hereunder to at least the same extent as
        the Senior Subordinated Notes, (ii) no amount of the principal of such
        Refinancing Indebtedness is scheduled to mature earlier than the date
        which is 91 days after the Facilities Termination Date, (iii) such
        Refinancing Indebtedness is in an aggregate principal amount that is
        equal to or less than the sum of (a) the aggregate principal amount then
        outstanding under the Senior Subordinated Notes being refunded,
        refinanced or extended, (b) the amount of accrued and unpaid interest,
        if any, and premiums owed, if any, not in excess of preexisting
        prepayment provisions on the Senior Subordinated Notes being refunded,
        refinanced or extended and (c) the amount of customary fees, expenses
        and costs related to the incurrence of such Refinancing Indebtedness,
        (iv) such Refinancing Indebtedness is incurred by the Borrowers and (v)
        such Refinancing Indebtedness shall not be on financial and other terms
        that are materially more onerous, and shall not have any defaults,
        rights or remedies more burdensome, to any Loan Party than the Senior
        Subordinated Notes being refunded, refinanced or extended.

                "Register": as defined in subsection 9.6(d).

<PAGE>   22
                                                                              17

                "Regulation U": Regulation U of the Board of Governors of the
        Federal Reserve System as in effect from time to time.

                "Reorganization": with respect to any Multiemployer Plan, the
        condition that such plan is in reorganization within the meaning of
        Section 4241 of ERISA.

                "Reportable Event": any of the events set forth in Section
        4043(b) of ERISA, other than those events as to which the thirty day
        notice period is waived under subsections .27, .28, .29, .30, .31, .32,
        .34 or .35 of PBGC Reg. Section 4043.

                "Required Lenders": at any time, Lenders the Percentages of
        which aggregate more than 50%; provided that notwithstanding the
        foregoing, Required Lenders shall at all times be at least two Lenders.

                "Requirement of Law": as to any Person, the Certificate of
        Incorporation and By-Laws or other organizational or governing documents
        of such Person, and any law, treaty, rule or regulation or determination
        of an arbitrator or a court or other Governmental Authority, in each
        case applicable to or binding upon such Person or any of its property or
        to which such Person or any of its property is subject.

                "Reserve Percentage": the maximum daily arithmetic reserve
        requirement imposed by the Board of Governors of the Federal Reserve
        System (or any successor) under Regulation D on Eurocurrency Liabilities
        (as defined in Regulation D) for the applicable Interest Period as of
        the first day of such Interest Period, but subject to any changes in
        such reserve requirement becoming effective during the Interest Period.
        For purposes of calculating the Reserve Percentage, the reserve
        requirement shall be as set forth in Regulation D without benefit of
        credit for prorations, exemptions or offsets under Regulation D, and
        further without regard to whether or not any Lender elects to actually
        fund any Loan or portion thereof with Eurocurrency Liabilities.

                "Responsible Officer": each of the chief executive officer and
        the president of the Company and, with respect to financial matters, the
        chief financial officer of the Company.

                "Revolving Credit Commitment": as to any Lender, the obligation
        of such Lender to make Revolving Credit Loans to the Borrowers hereunder
        in an aggregate principal amount at any one time outstanding not to
        exceed the amount set forth opposite such Lender's name on Schedule 1.1A
        under the heading "Revolving Credit Commitment" or, in the case of any
        Lender that is an Assignee, the amount of the assigning Lender's
        Revolving Credit Commitment assigned to such Assignee pursuant to
        subsection 9.6 (in each case as such amount may be changed from time to
        time (including, without limitation, as a result of assignment by one
        Lender to another) in accordance with the provisions of this Agreement).

                "Revolving Credit Commitment Percentage": as to any Lender at
        any time, the percentage which such Lender's Revolving Credit Commitment
        then constitutes of the aggregate Revolving Credit Commitments then in
        effect (or, at any time after the Revolving Credit Commitments shall
        have expired or terminated, the percentage which

<PAGE>   23
                                                                              18

        the aggregate principal amount of such Lender's Revolving Credit Loans
        then outstanding constitutes of the aggregate principal amount of the
        Revolving Credit Loans then outstanding).

                "Revolving Credit Commitment Period": the period from and
        including the Closing Date to, but not including the Revolving Credit
        Termination Date, or such earlier date on which the Revolving Credit
        Commitments shall terminate as provided herein.

                "Revolving Credit Loans": as defined in subsection 2.1.

                "Revolving Credit Note": as defined in subsection 2.7(e).

                "Revolving Credit Termination Date": June 27, 2007.

                "Revolving Lender": each Lender that has a Revolving Credit
        Commitment or that holds Revolving Credit Loans.

                "Security Documents": the collective reference to the Guarantee
        and Collateral Agreement and all other security documents hereafter
        delivered to the Administrative Agent granting a Lien on any asset or
        assets of any Person to secure the obligations and liabilities of any
        Loan Party hereunder and under any of the other Loan Documents, as the
        same may be amended, supplemented or otherwise modified according to the
        terms thereof.

                "Senior Debt": All Indebtedness of the Company and its
        Subsidiaries other than Subordinated Debt.

                "Senior Discount Notes": the 11.875% senior discount notes
        issued on November 6, 1997 by Holdings.

                "Senior Subordinated Notes": the 9.625% senior subordinated
        notes due 2007 issued by the Borrowers and any notes registered with the
        Securities and Exchange Commission having substantially the same terms
        and conditions that are issued in exchange therefor.

                "Senior Leverage Ratio": at any date, all then outstanding
        Senior Debt divided by EBITDA for the then most recently ended period of
        four consecutive fiscal quarters for which financial statements shall
        have been delivered to the Lenders.

                "Single Employer Plan": any Plan which is covered by Title IV of
        ERISA, but which is not a Multiemployer Plan.

                "Solvent": with respect to any Person on a particular date, the
        condition that on such date, (a) the fair value, on a going concern
        basis, of the property of such Person is greater than the total amount
        of liabilities, including, without limitation, probable liability in
        respect of contingent liabilities, of such Person, (b) the present fair
        salable value, on a going concern basis, of the assets of such Person is
        not less than the amount that will be required to pay the probable
        liability of such Person on its debts as they become absolute

<PAGE>   24
                                                                              19

        and matured, (c) such Person does not intend to, and does not believe
        that it will, incur debts or liabilities beyond such Person's ability to
        pay as such debts and liabilities mature, and (d) such Person is not
        engaged in business or a transaction, and is not about to engage in
        business or a transaction, for which such Person's property would
        constitute an unreasonably small amount of capital.

                "Subordinated Debt": the Senior Subordinated Notes, any related
        Refinancing Indebtedness and any other subordinated Indebtedness issued
        pursuant to subsection 6.2(b)(ii).

                "Subordinated Management Notes": promissory notes of the Company
        issued to Mr. Laurence H. Bloch, Mr. Ricardo Puente and those officers
        and employees of the Company listed on Schedule 1.2 hereto and any other
        officers and employees of the Company who shall enter into an Executive
        Agreement with the Company subsequent to the Closing Date in accordance
        with the provisions of Section 3 of the Executive Agreement to which
        such person is a party (as such Executive Agreements are in effect on
        the date of execution thereof), provided that all the terms and
        conditions of such notes that are not specified in such Section,
        including, without limitation, those relating to subordination, shall be
        in form and substance satisfactory to the Required Lenders, as evidenced
        by their prior written approval thereof, it being understood that such
        notes will not be satisfactory to the Required Lenders unless they
        include provisions prohibiting payments to be made thereunder if, after
        giving effect to such payment, the Total Leverage Ratio would be equal
        to or greater than 5.5 to 1.0 or any Event of Default under Sections
        7(a), (c), (f) and (h) shall have occurred and be continuing and
        provided, further, that payments pursuant to the Subordinated Management
        Notes may only be made in accordance with subsection 6.8.

                "Subsidiary": as to any Person, a corporation, partnership or
        other entity of which shares of stock or other ownership interests
        having ordinary voting power (other than stock or such other ownership
        interests having such power only by reason of the happening of a
        contingency) to elect a majority of the board of directors or other
        managers of such corporation, partnership or other entity are at the
        time owned, or the management of which is otherwise controlled, directly
        or indirectly through one or more intermediaries, or both, by such
        Person. Unless otherwise expressly stated, all references to the term
        Subsidiary shall be deemed to be to a Subsidiary of the Company.

                "Subsidiary Guarantor": each Subsidiary of the Borrowers other
        than any Excluded Foreign Subsidiary.

                "Syndication Agent": as defined in the preamble hereto.

                "Term Lenders": the collective reference to the Tranche A Term
        Lenders and the Tranche B Term Lenders.

                "Term Loans": the collective reference to the Tranche A Term
        Loans and the Tranche B Term Loans.

<PAGE>   25
                                                                              20

                "Term Notes": the collective reference to the Tranche A Term
        Notes and the Tranche B Term Notes.

                "Total Amount Expended": when used with respect to any Permitted
        Acquisition or proposed Permitted Acquisition, the total amount expended
        or, as the case may be, proposed to be expended by the Company as the
        purchase consideration for such Permitted Acquisition, whether in cash,
        by issuance of Acquisition Debt, by assumption of debt or otherwise, but
        shall exclude (i) any Equity Consideration and (ii) any "earn-out" or
        similar obligations payable to the sellers based upon a percentage of
        the earnings or cash flow of the business acquired.

                "Total Debt Service": for any Person for any period, the sum of
        (a) regularly scheduled mandatory principal payments on Indebtedness
        (other than the Revolving Credit Loans) for such period and (b) Cash
        Interest Expense for such period.

                "Total Indebtedness": of any Person, as of the date of
        determination, all Indebtedness of such Person which, in accordance with
        GAAP, would be included as indebtedness on a consolidated balance sheet
        of such Person at such date.

                "Total Leverage Ratio": at any date, all then outstanding Total
        Indebtedness divided by EBITDA for the then most recently ended period
        of four consecutive fiscal quarters for which financial statements shall
        have been delivered to the Lenders.

                "Tranche": the collective reference to LIBOR Loans the then
        current Interest Periods with respect to all of which begin on the same
        date and end on the same later date (whether or not such Loans shall
        originally have been made on the same day); Tranches may be identified
        as "LIBOR Tranches".

                "Tranche A Term Commitment": as to any Lender, the obligation of
        such Lender, if any, to make a Tranche A Term Loan to the Borrowers in
        an amount equal to the amount set forth opposite such Lender's name on
        Schedule 1.1A under the heading "Tranche A Term Loan".

                "Tranche A Term Lender": each Lender that has a Tranche A Term
        Commitment or that holds a Tranche A Term Loan.

                "Tranche A Term Loan": as defined in subsection 2.5.

                "Tranche A Term Note": as defined in subsection 2.7(e).

                "Tranche B Term Commitment": as to any Lender, the obligation of
        such Lender, if any, to make a Tranche B Term Loan to the Borrowers in
        an amount equal to the amount set forth opposite such Lender's name on
        Schedule 1.1A under the heading "Tranche B Term Loan".

                "Tranche B Term Lender": each Lender that has a Tranche B Term
        Commitment or that holds a Tranche B Term Loan.

<PAGE>   26
                                                                              21

                "Tranche B Term Lender": each Lender that has a Tranche B Term
        Commitment or that holds a Tranche B Term Loan.

                "Tranche B Term Loan": as defined in subsection 2.5.

                "Tranche B Term Note": as defined in subsection 2.7(e).

                "Transferee": as defined in subsection 9.6(f).

                "TWP Capital II": as defined in the preamble hereto.

                "Type": as to any Loan, its nature as an ABR Loan or a LIBOR
        Loan.

                "Working Capital": the excess of Current Assets over Current
        Liabilities.

                "WPZ": as defined in the preamble hereto.

                "WPZ Convertible Debentures": the 5% convertible debentures
        issued on February 23, 2000 by WPZ.

                "WPZ Credit Agreement": the Amended and Restated Loan Agreement
        dated as of March 30, 2000, by and among WPZ, those certain financial
        institutions whose names appear on the signature pages thereof and Bank
        of America, N.A., as administrative agent.

                1.2 OTHER DEFINITIONAL PROVISIONS. (a) Unless otherwise
specified therein, all terms defined in this Agreement shall have the defined
meanings when used in any Notes or any certificate or other document made or
delivered pursuant hereto.

                (b) As used herein and in any Notes, and any certificate or
other document made or delivered pursuant hereto, accounting terms relating to
the Borrowers and their Subsidiaries not defined in subsection 1.1 and
accounting terms partly defined in subsection 1.1, to the extent not defined,
shall have the respective meanings given to them under GAAP, provided, however,
that if there shall occur any change after the date hereof in GAAP and such
change affects the method of calculating any component used in determining
compliance with the financial covenants set forth in subsection 6.1, GAAP as in
effect on the date hereof shall be applied in computing such components and
determining such compliance, and the Company shall deliver a certificate showing
in reasonable detail a reconciliation in respect of such adjustments
concurrently with the delivery of relevant financial statements hereunder.

                (c) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Section,
subsection, Schedule and Exhibit references are to this Agreement unless
otherwise specified. The words include, includes and including shall be deemed
to be followed by the phrase "without limitation".

                (d) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

<PAGE>   27
                                                                              22

                   SECTION 2. AMOUNT AND TERMS OF COMMITMENTS

                2.1 REVOLVING CREDIT COMMITMENTS. (a) Subject to the terms and
conditions hereof, each Revolving Lender severally agrees to make revolving
credit loans ("Revolving Credit Loans") to the Borrowers from time to time
during the Revolving Credit Commitment Period in an aggregate principal amount
at any one time outstanding not to exceed the amount of such Lender's Revolving
Credit Commitment, provided that the Revolving Credit Commitments of the Lenders
shall be adjusted to give effect to any increase in Revolving Credit Commitments
pursuant to subsection 2.20. During the Revolving Credit Commitment Period the
Borrowers may use the Revolving Credit Commitments by borrowing, prepaying the
Revolving Credit Loans in whole or in part, and reborrowing, all in accordance
with the terms and conditions hereof.

                (b) The Revolving Credit Loans may from time to time be (i)
LIBOR Loans, (ii) ABR Loans or (iii) a combination thereof, as determined by the
Borrowers and notified to the Administrative Agent in accordance with
subsections 2.2 and 2.9, provided that no Revolving Credit Loan shall be made as
a LIBOR Loan after the day that is one month prior to the Revolving Credit
Termination Date.

                2.2 PROCEDURE FOR REVOLVING CREDIT BORROWING. The Borrowers may
borrow under the Revolving Credit Commitments during the Revolving Credit
Commitment Period on any Business Day, provided that the Borrowers shall give
the Administrative Agent irrevocable written notice (which notice must be
received by the Administrative Agent prior to 12:00 Noon, New York City time,
(a) three Business Days prior to the requested Borrowing Date, if all or any
part of the requested Revolving Credit Loans are to be initially LIBOR Loans or
(b) one Business Day prior to the requested Borrowing Date, otherwise),
specifying (i) the amount to be borrowed, (ii) the requested Borrowing Date,
(iii) whether the borrowing is to be of LIBOR Loans, ABR Loans or a combination
thereof and (iv) if the borrowing is to be entirely or partly of LIBOR Loans,
the respective amounts of each such Type of Loan and the respective lengths of
the initial Interest Periods therefor. Each borrowing under the Revolving Credit
Commitments shall be in an amount equal to (x) in the case of LIBOR Loans,
$1,000,000 or a whole multiple of $100,000 in excess thereof and (y) in the case
of ABR Loans, $500,000 or a whole multiple of $100,000 in excess thereof. Upon
receipt of any such notice from the Borrowers, the Administrative Agent shall
promptly notify each Revolving Lender thereof. Upon receipt of such notice from
the Administrative Agent, each Revolving Lender will make the amount of its pro
rata share of each borrowing available to the Administrative Agent for the
account of the Borrowers at the office of the Administrative Agent specified in
subsection 9.2 prior to 11:00 a.m., New York City time, on the Borrowing Date
requested by the Borrowers in funds immediately available to the Administrative
Agent. Such borrowing will then be made available to the Borrowers by the
Administrative Agent crediting the account of the Company on the books of such
office with the aggregate of the amounts made available to the Administrative
Agent by the Revolving Lenders and in like funds as received by the
Administrative Agent.

                2.3 FEES. The Borrowers jointly and severally agree to pay to
the Administrative Agent for the account of each Revolving Lender a commitment
fee for the period from and including the first day of the Revolving Credit
Commitment Period to the Revolving Credit Termination Date, computed at the rate
of 1/2 of 1% per annum on the average daily amount of

<PAGE>   28
                                                                              23

the Available Commitment of such Lender during the period for which payment is
made, payable quarterly in arrears on the first day of each January, April, July
and October and on the Revolving Credit Termination Date or such earlier date as
the Revolving Credit Commitments shall terminate as provided herein, commencing
on the first of such dates to occur after the Closing Date.

                2.4 TERMINATION OR REDUCTION OF REVOLVING CREDIT COMMITMENTS.
(a) The Borrowers shall have the right, upon not less than three Business Days'
notice to the Administrative Agent, to terminate the Revolving Credit
Commitments or, from time to time, to reduce the amount of the Revolving Credit
Commitments. Any such reduction shall be in an amount equal to $5,000,000 or a
whole multiple of $1,000,000 in excess thereof and shall reduce permanently the
Revolving Credit Commitments then in effect.

                (b) The Revolving Credit Commitments shall automatically be
permanently be reduced as set forth in subsection 2.8.

                2.5 TERM LOANS. Subject to the terms and conditions hereof, (a)
each Tranche A Term Lender severally agrees to make a term loan (a "Tranche A
Term Loan") to the Borrowers on the Closing Date in an amount equal to such
Lender's Tranche A Term Commitment and (b) each Tranche B Term Lender severally
agrees to make a term loan (a "Tranche B Term Loan") to the Borrowers on the
Closing Date in an amount equal to such Lender's Tranche B Term Commitment,
provided that the Tranche A Term Loans and Tranche B Term Loans of Lenders shall
be adjusted to give effect to any increase in Tranche A Term Loans and Tranche B
Term Loans pursuant to subsection 2.20. The Term Loans may from time to time be
(i) LIBOR Loans, (ii) ABR Loans or (iii) a combination thereof, as determined by
the Borrowers and notified to the Administrative Agent in accordance with
subsections 2.6 and 2.9.

                2.6 CLOSING DATE TERM LOAN BORROWINGS. The Borrowers shall give
the Administrative Agent irrevocable written notice (which notice must be
received by the Administrative Agent prior to 12:00 Noon, New York City time,
one Business Day prior to the Closing Date in the case of ABR Loans requesting
that the Term Lenders make the Term Loans on the Closing Date. The Tranche B
Term Loans made on the Closing Date shall initially be ABR Loans and, unless
otherwise agreed by the Administrative Agent in its sole discretion, no Term
Loan may be converted into or continued as a LIBOR Loan prior to the date that
is 30 days after the Closing Date. Prior to the date that is 28 days after the
Closing Date, all Tranche A Term Loans and Revolving Credit Loans which are
LIBOR Loans shall have an Interest Period of one week. Upon receipt of such
notice the Administrative Agent shall promptly notify each Term Lender thereof.
Not later than 11:00 a.m. New York City time on the Closing Date, each Term
Lender shall make available to the Administrative Agent at its office specified
in subsection 9.2 an amount in immediately available funds equal to the Term
Loan or Term Loans to be made by such Lender. The Administrative Agent shall on
the Closing Date credit the account of the Company on the books of such office
of the Administrative Agent with the aggregate of the amounts made available to
the Administrative Agent by the Term Lenders.

                2.7 REPAYMENT OF LOANS; EVIDENCE OF DEBT. (a) The Borrowers
jointly and severally hereby unconditionally promise to pay to the
Administrative Agent for the account of each Lender (i) the then unpaid
principal amount of each Revolving Credit Loan of such Lender

<PAGE>   29
                                                                              24

on the Revolving Credit Termination Date (or such earlier date on which the
Revolving Credit Loans become due and payable pursuant to Section 7), (ii) the
principal amount of each Tranche A Term Loan of such Lender, in quarterly
installments on the dates set forth on Schedule 2.7, in the aggregate principal
amounts for all Lenders set forth on said Schedule opposite the date of such
installment (or the then unpaid principal amount of such Tranche A Term Loan, on
the date that the Tranche A Term Loans become due and payable pursuant to
Section 7 or otherwise) and (iii) the principal amount of each Tranche B Term
Loan of such Lender, in quarterly installments on the dates set forth on
Schedule 2.7, in the aggregate principal amounts for all Lenders set forth on
said Schedule opposite the date of such installment (or the then unpaid
principal amount of such Tranche B Term Loan, on the date that the Tranche B
Term Loans become due and payable pursuant to Section 7 or otherwise). The
Borrowers jointly and severally hereby further agree to pay interest on the
unpaid principal amount of the Loans from time to time outstanding from the
Closing Date until payment in full thereof at the rates per annum, and on the
dates, set forth in subsection 2.11.

                (b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing indebtedness of the Borrowers to such
Lender resulting from each Loan of such Lender from time to time, including the
amounts of principal and interest payable and paid to such Lender from time to
time under this Agreement.

                (c) The Administrative Agent shall maintain the Register
pursuant to subsection 9.6(d), and a subaccount therein for each Lender, in
which shall be recorded (i) the amount of each Revolving Credit Loan and Term
Loan made hereunder, the Type thereof and each Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to
become due and payable from the Borrowers to each Lender hereunder and (iii)
both the amount of any sum received by the Administrative Agent hereunder from
the Borrowers and each Lender's share thereof.

                (d) The entries made in the Register and the accounts of each
Lender maintained pursuant to subsection 2.7(b) shall, to the extent permitted
by applicable law, be prima facie evidence of the existence and amounts of the
obligations of the Borrowers therein recorded; provided, however, that the
failure of any Lender or the Administrative Agent to maintain the Register or
any such account, or any error therein, shall not in any manner affect the joint
and several obligation of the Borrowers to repay (with applicable interest) the
Loans made to such Borrower by such Lender in accordance with the terms of this
Agreement.

                (e) The Borrowers agree that, upon the request to the
Administrative Agent by any Lender, the Borrowers will execute and deliver to
such Lender (i) a promissory note of the Borrowers evidencing the Revolving
Credit Loans of such Lender, substantially in the form of Exhibit A with
appropriate insertions as to date and principal amount (a "Revolving Credit
Note"), and/or (ii) a promissory note of the Borrowers evidencing the Tranche A
Term Loans of such Lender, substantially in the form of Exhibit B with
appropriate insertions as to date and principal amount (a "Tranche A Term
Note"), and/or (iii) a promissory note of the Borrowers evidencing the Tranche B
Term Loans of such Lender, substantially in the form of Exhibit C with
appropriate insertions as to date and principal amount (a "Tranche B Term
Note"). In the event the Borrowers increase the aggregate principal amount of
the Term Loans or Revolving Credit Commitments, as the case may be, pursuant to
subsection 2.20, the Borrowers shall issue

<PAGE>   30
                                                                              25

replacement Term Notes or Revolving Credit Notes, as the case may be, to each
Increasing Lender and new Term Notes or Revolving Credit Notes, as the case may
be, to each New Lender.

                2.8 OPTIONAL PREPAYMENTS; MANDATORY PREPAYMENTS AND REVOLVING
CREDIT COMMITMENT REDUCTIONS. (a) The Borrowers may on the last day of any
Interest Period with respect thereto (or on any other day if the prepayment
referred to herein is accompanied by all amounts payable by the Borrowers
pursuant to subsection 2.18), in the case of LIBOR Loans, or at any time and
from time to time, in the case of ABR Loans, prepay the Loans, in whole or in
part, without premium or penalty, upon one Business Days' written notice in the
case of ABR Loans and three Business Days' written notice in the case of LIBOR
Loans to the Administrative Agent, specifying the date and amount of prepayment
and whether the prepayment is of LIBOR Loans, ABR Loans or a combination
thereof, and, if of a combination thereof, the amount allocable to each and
specifying whether the prepayment is of Tranche A Term Loans, Tranche B Term
Loans or Revolving Credit Loans or a combination thereof and, if a combination
thereof, the amount allocable to each. Upon receipt of any such notice the
Administrative Agent shall promptly notify each Lender thereof. If any such
notice is given, the amount specified in such notice shall be due and payable on
the date specified therein, together with any amounts payable pursuant to
subsection 2.18. Partial optional prepayments of the Tranche A Term Loans and
the Tranche B Term Loans pursuant to this subsection 2.8(a) shall, in each case,
be applied ratably to the respective remaining installments of principal
thereof. Amounts prepaid on account of the Term Loans may not be reborrowed.
Partial prepayments shall be in an aggregate principal amount equal to (x) in
the case of LIBOR Loans, $1,000,000 or a whole multiple of $100,000 in excess
thereof and (y) in the case of ABR Loans, $500,000 or a whole multiple of
$100,000 in excess thereof.

                (b) If, subsequent to the Closing Date, any Borrower or any
Subsidiary shall receive Net Cash Proceeds from any Asset Sale and shall not
have applied or committed to apply all or a portion of such Net Cash Proceeds to
the purchase or acquisition of other assets within 180 days after such Asset
Sale, or shall have committed to apply such Net Cash Proceeds to the purchase or
acquisition of other assets within 180 days after such Asset Sale but shall not
have so applied such Net Cash Proceeds within 270 days after such Asset Sale, an
amount equal to such unapplied Net Cash Proceeds shall, on the 180th (or 270th,
as the case may be) day following the receipt of such Net Cash Proceeds, be
applied toward the prepayment of the Loans and reduction of the Revolving Credit
Commitments as set forth in subsection 2.8(f), provided that no prepayment or
Revolving Credit Commitment reduction shall be required pursuant to this
paragraph unless the aggregate amount of all Net Cash Proceeds from Asset Sales
exceeds an amount equal to (i) $5,000,000 in any fiscal year or (ii) $15,000,000
subsequent to the Closing Date (and such prepayments shall be required only to
the extent of such excess), provided further that up to $4,000,000 in Net Cash
Proceeds from the Amarillo Asset Sale and up to $1,000,000 in Net Cash Proceeds
from the ChoiceContent Asset Sale shall be excluded from any calculation
pursuant to the foregoing clauses (i) and (ii).

                (c) If the Company's Total Leverage Ratio determined as of the
last day of any fiscal year, commencing with the fiscal year beginning January
1, 2002 and ending December 31, 2002, equals or exceeds 4.00 to 1.0, the
Borrowers shall, within 120 days from the

<PAGE>   31
                                                                              26

end of such fiscal year, prepay the Loans and reduce the Revolving Credit
Commitments as set forth in subsection 2.8(f) in an amount equal to 50% of
Excess Cash Flow for such fiscal year.

                (d) If, subsequent to the Closing Date, any Borrower or any
Subsidiary shall receive insurance proceeds (or proceeds from a condemnation
award) in excess of amounts used, or committed to be used, to restore or replace
any affected properties or equipment within 180 days from the date of the
related loss or condemnation, or shall have committed to use such excess to
restore or replace any affected properties or equipment within 180 days from the
date of the related loss or condemnation but shall not have so used such excess
within 270 days after such loss or condemnation, it shall promptly apply an
amount equal to such excess to prepay the Loans and reduce the Revolving Credit
Commitments as set forth in subsection 2.8(f).

                (e) If, subsequent to the Closing Date, Holdings or any
Subsidiary shall issue any equity securities or incur any Indebtedness
(excluding any Indebtedness incurred in accordance with subsection 6.2), the
Borrowers shall prepay the Loans and reduce the Revolving Credit Commitments as
set forth in subsection 2.8(f) by an amount equal to (x) 50% of the Net Cash
Proceeds of such equity issuance (other than Equity Consideration used to make
or finance Permitted Acquisitions as permitted by subsection 6.10(f), equity
issuances used to finance the repurchase of partnership interests or other
equity participation rights of departing officers or employees of the Company as
permitted by subsection 6.8(c) and equity issuances to Persons having ownership
interests in Holdings as of the Closing Date (and their Affiliates)) and (y)
100% of the Net Cash Proceeds of such Indebtedness incurred.

                (f) Subject to the provisions of subsection 2.8(h), all
mandatory prepayments pursuant to subsections 2.8(b), (c), (d) and (e) shall be
applied first, to the permanent repayment of the Term Loans and second, to the
permanent reduction of the Revolving Credit Commitments and, to the extent
required by subsection 2.8(g), to the prepayment of Revolving Credit Loans, in
each case together with interest accrued to the date of such prepayment and any
amounts payable under subsection 2.18. Mandatory prepayments of the Term Loans
shall be applied ratably to the remaining installments of the Term Loans.
Mandatory prepayments of the Term Loans may not be reborrowed.

                (g) If at any time the aggregate principal amount of the
Revolving Credit Loans exceeds the aggregate Revolving Credit Commitments, the
Borrowers shall prepay the Revolving Credit Loans in an amount equal to such
excess together with interest accrued to the date of such prepayment and any
amounts payable under subsection 2.18. If the Senior Subordinated Notes are not
refinanced with the proceeds of Refinancing Indebtedness on or before June 30,
2007, the Borrowers shall prepay the Tranche B Term Loans on August 15, 2007 in
an amount equal to the aggregate outstanding principal amount of the Tranche B
Term Loans together with interest accrued to the date of such prepayment and any
amounts payable under subsection 2.18.

                (h) Notwithstanding anything to the contrary in subsection
2.8(f) or 2.14, with respect to the amount of any mandatory prepayment described
in subsection 2.8(b), (c), (d) or (e) that is allocated to Tranche B Term Loans
(such amount, the "Tranche B Prepayment Amount"), at any time when Tranche A
Term Loans remain outstanding, the Borrowers will, in lieu of applying such
amount to the prepayment of Tranche B Term Loans, as provided in subsection

<PAGE>   32
                                                                              27

2.8(f), on the date specified in subsection 2.8(b), (c), (d) or (e), as the case
may be, for such prepayment, give the Administrative Agent telephonic notice
(promptly confirmed in writing) requesting that the Administrative Agent prepare
and provide to each Tranche B Term Lender notice (each, a "Prepayment Option
Notice") as described below. As promptly as practicable after receiving such
notice from the Borrowers, the Administrative Agent will send to each Tranche B
Term Lender a Prepayment Option Notice, which shall be in the form of Exhibit I,
and shall include an offer by the Borrowers to prepay on the date (each a
"Mandatory Prepayment Date") that is 10 Business Days after the date of the
Prepayment Option Notice, the Tranche B Term Loans of such Lender by an amount
equal to the portion of the Tranche B Prepayment Amount indicated in such
Lender's Prepayment Option Notice as being applicable to such Lender's Tranche B
Term Loans. On the Mandatory Prepayment Date, (i) the Borrowers shall pay to the
relevant Tranche B Lenders the aggregate amount necessary to prepay that portion
of the outstanding relevant Tranche B Term Loans in respect of which such
Lenders have accepted prepayment as described above and (ii) the Borrowers shall
pay to the Tranche A Term Lenders an amount equal to the portion of the Tranche
B Prepayment Amount not accepted by the relevant Lenders, and such amount shall
be applied to the prepayment of the Tranche A Term Loans.

                2.9 CONVERSION AND CONTINUATION OPTIONS. (a) The Borrowers may
elect from time to time to convert LIBOR Loans to ABR Loans by giving the
Administrative Agent at least two Business Days' prior irrevocable notice of
such election substantially in the form of Exhibit H, provided that any such
conversion of LIBOR Loans may only be made on the last day of an Interest Period
with respect thereto and that the aggregate principal amount of LIBOR Loans so
converted shall be equal to $500,000 or a whole multiple of $100,000 in excess
thereof. The Borrowers may elect from time to time to convert ABR Loans to LIBOR
Loans by giving the Administrative Agent at least three Business Days' prior
irrevocable written notice of such election substantially in the form of Exhibit
H, provided that the aggregate principal amount of ABR Loans so converted shall
be equal to $1,000,000 or a whole multiple of $100,000 in excess thereof. Any
such notice of conversion to LIBOR Loans shall specify the length of the initial
Interest Period or Interest Periods therefor. Upon receipt of any such notice
the Administrative Agent shall promptly notify each Lender thereof. All or any
part of outstanding LIBOR Loans and ABR Loans may be converted as provided
herein, provided that (i) no Loan may be converted into a LIBOR Loan when any
Default or Event of Default has occurred and is continuing and the
Administrative Agent has or the Required Lenders have determined that such a
conversion is not appropriate and (ii) no Loan may be converted into a LIBOR
Loan after the date that is one month prior to the Revolving Credit Termination
Date (in the case of conversions of Revolving Credit Loans) or the date of the
final installment of principal of the applicable Term Loans.

                (b) Any LIBOR Loans may be continued as such upon the expiration
of the then current Interest Period with respect thereto by the Borrowers giving
written notice to the Administrative Agent substantially in the form of Exhibit
H, in accordance with the applicable provisions of the term "Interest Period"
set forth in subsection 1.1, of the length of the next Interest Period to be
applicable to such Loans, provided that no LIBOR Loan may be continued as such
(i) when any Default or Event of Default has occurred and is continuing and the
Administrative Agent has or the Required Lenders have determined that such a
continuation is not appropriate or (ii) after the date that is one month prior
to the Revolving Credit Termination

<PAGE>   33
                                                                              28

Date (in the case of continuations of Revolving Credit Loans) or the date of the
final installment of principal of the applicable Term Loans and provided,
further, that if the Borrowers shall fail to give such written notice or if such
continuation is not permitted such Loans shall be automatically converted to ABR
Loans on the last day of such then expiring Interest Period.

                2.10 MINIMUM AMOUNTS AND MAXIMUM NUMBER OF TRANCHES. All
borrowings, conversions and continuations of Loans hereunder and all selections
of Interest Periods hereunder shall be in such amounts and be made pursuant to
such elections so that, after giving effect thereto, the aggregate principal
amount of the Loans comprising each LIBOR Tranche shall be equal to $1,000,000
or a whole multiple of $100,000 in excess thereof. In no event shall there be
more than seven LIBOR Tranches outstanding at any time.

                2.11 INTEREST RATES AND PAYMENT DATES. (a) Each LIBOR Loan shall
bear interest for each day during each Interest Period with respect thereto at a
rate per annum equal to the LIBOR Rate determined for such day plus the
Applicable Margin.

                (b) Each ABR Loan shall bear interest at a rate per annum equal
to the ABR plus the Applicable Margin.

                (c) Upon the occurrence and during the continuance of any Event
of Default under Section 7(a), (i) all outstanding LIBOR Loans will bear
interest at a rate per annum 2.00% in excess of the rate per annum otherwise
applicable thereto until the end of the Interest Period then in effect with
respect thereto and thereafter at a rate per annum 2.00% in excess of the ABR
from time to time in effect plus the Applicable Margin and (ii) all outstanding
ABR Loans will bear interest at a rate per annum 2.00% in excess of the ABR from
time to time in effect plus the Applicable Margin. Any interest, fees or other
amounts (other than principal) payable hereunder that are not paid when due
shall bear interest until paid in full at a rate per annum equal to the ABR from
time to time in effect plus the Applicable Margin.

                (d) Interest shall be payable in arrears on each Interest
Payment Date, provided that interest accruing pursuant to paragraph (c) of this
subsection shall be payable from time to time on demand.

                2.12 COMPUTATION OF INTEREST AND FEES. (a) Revolving Credit
Commitment fees and, whenever it is calculated on the basis of the ABR, interest
shall be calculated on the basis of a 365- (or 366-, as the case may be) day
year for the actual days elapsed; otherwise, interest shall be calculated on the
basis of a 360-day year for the actual days elapsed. The Administrative Agent
shall as soon as practicable notify the Company and the Lenders of each
determination of a LIBOR Rate. Any change in the interest rate on a Loan
resulting from a change in the ABR shall become effective as of the opening of
business on the day on which such change becomes effective. The Administrative
Agent shall as soon as practicable notify the Company and the Lenders of the
effective date and the amount of each such change in interest rate.

                (b) Each determination of an interest rate by the Administrative
Agent pursuant to any provision of this Agreement shall be conclusive and
binding on the Borrowers and the Lenders in the absence of manifest error. The
Administrative Agent shall, at the request

<PAGE>   34
                                                                              29

of the Borrowers, deliver to the Company a statement showing the quotations used
by the Administrative Agent in determining any interest rate pursuant to
subsection 2.11(a) or (c).

                2.13 INABILITY TO DETERMINE INTEREST RATE. If prior to the first
day of any Interest Period:

                (a) the Administrative Agent shall have determined (which
        determination shall be conclusive and binding upon the Borrowers) that,
        by reason of circumstances affecting the relevant market, adequate and
        reasonable means do not exist for ascertaining the LIBOR Rate for such
        Interest Period, or

                (b) the Administrative Agent shall have received notice from the
        Required Lenders that the LIBOR Rate determined or to be determined for
        such Interest Period will not adequately and fairly reflect the cost to
        such Lenders (as conclusively certified by such Lenders) of making or
        maintaining their affected LIBOR Loans during such Interest Period and
        the Borrowers shall not have entered into a written agreement providing
        to the affected Lenders compensation satisfactory to such Lenders for
        such inadequately and unfairly reflected cost.

the Administrative Agent shall give telecopy or telephonic notice thereof to the
Company and the Lenders as soon as practicable thereafter. If such notice is
given (x) any LIBOR Loans requested to be made on the first day of such Interest
Period shall be made as ABR Loans, (y) any Loans that were to have been
converted on the first day of such Interest Period to LIBOR Loans shall be
converted to or continued as ABR Loans and (z) any outstanding LIBOR Loans shall
be converted, on the first day of such Interest Period, to ABR Loans. Until such
notice has been withdrawn by the Administrative Agent (which the Administrative
Agent shall be obligated to do when the circumstances giving rise to such notice
no longer exist), no further LIBOR Loans shall be made or continued as such, nor
shall the Borrowers have the right to convert Loans to LIBOR Loans.

                2.14 PRO RATA TREATMENT AND PAYMENTS. (a) Each borrowing by the
Borrowers of Revolving Credit Loans from the Revolving Lenders hereunder, each
payment by the Borrowers on account of any commitment fee hereunder and any
reduction of the Revolving Credit Commitments of the Revolving Lenders shall be
made pro rata according to the respective Revolving Credit Commitment
Percentages of the Revolving Lenders, subject to the provisions of subsection
2.20. Each payment (including each prepayment) by the Borrowers on account of
principal of and interest on the Term Loans shall be made pro rata according to
the respective outstanding principal amounts of the Term Loans then held by the
Term Lenders, subject to the provisions of subsection 2.8(h). The amount of each
principal prepayment of the Term Loans shall be applied to reduce the then
remaining installments of the Tranche A Term Loans and Tranche B Term Loans, as
the case may be, pro rata based upon the then remaining principal amounts
thereof. Each payment (including each prepayment) by the Borrowers on account of
principal of and interest on the Revolving Credit Loans shall be made pro rata
according to the respective outstanding principal amounts of the Revolving
Credit Loans then held by the Revolving Lenders, subject to the provisions of
subsection 2.20. All payments (including prepayments) to be made by the
Borrowers hereunder, whether on account of principal, interest, fees or
otherwise, shall be made without set off or counterclaim and shall be made prior
to 1:00

<PAGE>   35
                                                                              30

P.M., New York City time, on the due date thereof to the Administrative Agent,
for the account of the Lenders, at the Administrative Agent's office specified
in subsection 9.2, in Dollars and in immediately available funds. The
Administrative Agent shall distribute such payments to the Lenders promptly upon
receipt in like funds as received. If any payment hereunder becomes due and
payable on a day other than a Business Day, such payment shall be extended to
the next succeeding Business Day, and, with respect to payments of principal,
interest thereon shall be payable at the then applicable rate during such
extension.

                (b) Unless the Administrative Agent shall have been notified in
writing by any Lender prior to a borrowing that such Lender will not make the
amount that would constitute its share of such borrowing available to the
Administrative Agent, the Administrative Agent may assume that such Lender is
making such amount available to the Administrative Agent, and the Administrative
Agent may, in reliance upon such assumption, make available to the Borrowers a
corresponding amount. If such amount is not made available to the Administrative
Agent by the required time on the Borrowing Date therefor, such Lender shall pay
to the Administrative Agent, on demand, such amount with interest thereon at a
rate equal to the daily average Federal Funds Effective Rate for the period
until such Lender makes such amount immediately available to the Administrative
Agent. A certificate of the Administrative Agent submitted to any Lender with
respect to any amounts owing under this subsection shall be conclusive in the
absence of manifest error. If such Lender's share of such borrowing is not made
available to the Administrative Agent by such Lender within three Business Days
of such Borrowing Date, the Administrative Agent shall also be entitled to
recover such amount with interest thereon at the rate per annum applicable to
ABR Loans hereunder, on demand, from the Borrowers.

                2.15 ILLEGALITY. Notwithstanding any other provision herein, if
the adoption of or any change in any Requirement of Law or in the interpretation
or application thereof shall make it unlawful for any Lender to make or maintain
LIBOR Loans as contemplated by this Agreement, (a) the commitment of such Lender
hereunder to make LIBOR Loans, continue LIBOR Loans as such and convert ABR
Loans to LIBOR Loans shall forthwith be cancelled and (b) such Lender's Loans
then outstanding as LIBOR Loans, if any, shall be converted automatically to ABR
Loans on the respective last days of the then current Interest Periods with
respect to such Loans or within such earlier period as required by law. If any
such conversion of a LIBOR Loan occurs on a day which is not the last day of the
then current Interest Period with respect thereto, the Borrowers shall pay to
such Lender such amounts, if any, as may be required pursuant to subsection
2.18.

                2.16 REQUIREMENTS OF LAW. (a) If the adoption of or any change
in any Requirement of Law or in the interpretation or application thereof or
compliance by any Lender with any request or directive (whether or not having
the force of law) from any central bank or other Governmental Authority made
subsequent to the date hereof:

                (i) shall subject any Lender to any tax of any kind whatsoever
        with respect to this Agreement, any Note or any LIBOR Loan made by it,
        or change the basis of taxation of payments to such Lender in respect
        thereof (except for Non-Excluded Taxes covered by subsection 2.17 and
        changes in the rate of tax on the overall net income of such Lender);

<PAGE>   36
                                                                              31

                (ii) shall impose, modify or hold applicable any reserve,
        special deposit, compulsory loan or similar requirement against assets
        held by, deposits or other liabilities in or for the account of,
        advances, loans or other extensions of credit by, or any other
        acquisition of funds by, any office of such Lender which is not
        otherwise included in the determination of the LIBOR Rate hereunder; or

                (iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender,
by an amount which such Lender deems to be material, of making, converting into,
continuing or maintaining LIBOR Loans or to reduce any amount receivable
hereunder in respect thereof, then, in any such case, the Borrowers shall be
jointly and severally obligated to promptly pay such Lender such additional
amount or amounts as will compensate such Lender for such increased cost or
reduced amount receivable.

                (b) If any Lender shall have determined that the adoption of or
any change in any Requirement of Law regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender's or such corporation's capital as a
consequence of its obligations hereunder to a level below that which such Lender
or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender's or such corporation's
policies with respect to capital adequacy) by an amount deemed by such Lender to
be material, then from time to time, the Borrowers shall be jointly and
severally obligated to promptly pay to such Lender such additional amount or
amounts as will compensate such Lender for such reduction.

                (c) In the event that after the date hereof a Lender is required
to maintain reserves of the type contemplated by the definition of "Reserve
Percentage", such Lender may require the Borrowers, jointly and severally, to
pay, promptly after receiving notice of the amount due, additional interest on
the related LIBOR Loan of such Lender at a rate per annum determined by such
Lender up to but not exceeding the excess of (i) (A) the applicable LIBOR Rate
divided by (B) one minus the Reserve Percentage over (ii) the applicable LIBOR
Rate.

                (d) If any Lender becomes entitled to claim any additional
amounts or additional interest pursuant to this subsection, it shall promptly
notify the Company (with a copy to the Administrative Agent) of the event by
reason of which it has become so entitled; provided that the Borrowers shall not
be required to compensate a Lender pursuant to this subsection for any
additional amounts or additional interest incurred more than three months prior
to the date on which such Lender notifies the Company of such event giving rise
to such additional amounts or additional interest and of such Lender's intention
to make claim therefor under this subscription; and provided, further, that, if
any adoption or change of any Requirement in Law or other event giving rise to
such claim for additional amounts is retroactive, then the three-month period
referred to above shall be extended to include the period of retroactive effect
thereof. A certificate as to any additional amounts payable pursuant to this
subsection submitted by such Lender to the Company (with a copy to the
Administrative Agent) shall be conclusive in the

<PAGE>   37
                                                                              32

absence of manifest error. The agreements in this subsection shall survive the
termination of this Agreement and the payment of the Loans and all other amounts
payable hereunder.

                2.17 TAXES. (a) All payments made by the Borrowers under this
Agreement and any Notes shall be made free and clear of, and without deduction
or withholding for or on account of, any present or future income, stamp or
other taxes, levies, imposts, duties, charges, fees, deductions or withholdings,
now or hereafter imposed, levied, collected, withheld or assessed by any
Governmental Authority, excluding net income taxes and franchise or similar
taxes (imposed in lieu of net income taxes) imposed on any Agent or Lender as a
result of a present or former connection between such Agent or Lender and the
jurisdiction of the Governmental Authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such
connection arising solely from such Agent or Lender having executed, delivered
or performed its obligations or received a payment under, or enforced, this
Agreement, any Note or any other Loan Document). If any such non-excluded taxes,
levies, imposts, duties, charges, fees deductions or withholdings ("Non-Excluded
Taxes") or Other Taxes are required to be withheld from any amounts payable to
any Agent or any Lender hereunder or under any Note, the amounts so payable to
any Agent or Lender shall be increased to the extent necessary to yield to any
Agent or Lender (after payment of all Non-Excluded Taxes and Other Taxes)
interest or any such other amounts payable hereunder at the rates or in the
amounts specified in this Agreement, provided, however, that the Borrowers shall
not be required to increase any such amounts payable to any Lender that is not
organized under the laws of the United States of America or a state thereof if
such Lender fails to comply with the requirements of paragraph (b) of this
subsection. In addition, the Borrowers shall pay any Other Taxes to the relevant
Government Authority in accordance with applicable law. Whenever any
Non-Excluded Taxes or Other Taxes are payable by the Borrowers, as promptly as
possible thereafter the Borrowers shall send to the Administrative Agent for its
own account or for the account of such Lender, as the case may be, a certified
copy of an original official receipt received by the Borrowers showing payment
thereof. If the Borrowers fail to pay any Non-Excluded Taxes or Other Taxes when
due to the appropriate taxing authority or fails to remit to the Administrative
Agent the required receipts or other required documentary evidence, the
Borrowers shall be jointly and severally obligated to indemnify the Agents and
the Lenders for any incremental taxes, interest or penalties that may become
payable by either Agent or any Lender as a result of any such failure. The
agreements in this subsection shall survive the termination of this Agreement
and the payment of the Loans and all other amounts payable hereunder.

                (b) Each Lender (or Transferee) that is not a "U.S. Person" as
defined in Section 7701(a)(30) of the Code (a "Non-U.S. Lender") shall deliver
to the Borrowers and the Administrative Agent (or, in the case of a Participant,
to the Lender from which the related participation shall have been purchased)
two copies of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI,
or, in the case of a Non-U.S. Lender claiming exemption from U.S. federal
withholding tax under Section 871(h) or 881(c) of the Code with respect to
payments of "portfolio interest", a statement substantially in the form of
Exhibit K and a Form W-8BEN, or any subsequent versions thereof or successors
thereto, properly completed and duly executed by such Non-U.S. Lender claiming
complete exemption from, or a reduced rate of, U.S. federal withholding tax on
all payments by the Borrowers under this Agreement and the other Loan Documents.
Such forms shall be delivered by each Non-U.S. Lender on or before the date

<PAGE>   38
                                                                              33

it becomes a party to this Agreement (or, in the case of any Participant, on or
before the date such Participant purchases the related participation). In
addition, each Non-U.S. Lender shall deliver such forms promptly upon the
obsolescence or invalidity of any form previously delivered by such Non-U.S.
Lender. Each Non-U.S. Lender shall promptly notify the Borrowers at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrowers (or any other form of certification
adopted by the U.S. taxing authorities for such purpose). Notwithstanding any
other provision of this paragraph, a Non-U.S. Lender shall not be required to
deliver any form pursuant to this paragraph that such Non-U.S. Lender is not
legally able to deliver.

                2.18 INDEMNITY. The Borrowers jointly and severally agree to
indemnify each Lender and to hold each Lender harmless from any loss or expense
which such Lender may sustain or incur as a consequence of (a) default by the
Borrowers in making a borrowing of, conversion into or continuation of LIBOR
Loans after the Borrowers have given a notice requesting the same in accordance
with the provisions of this Agreement, (b) default by the Borrowers in making
any prepayment after the Borrowers have given a notice thereof in accordance
with the provisions of this Agreement or (c) the making of a prepayment of LIBOR
Loans on a day which is not the last day of an Interest Period with respect
thereto. Such indemnification may include an amount equal to the excess, if any,
of (i) the amount of interest which would have accrued on the amount so prepaid,
or not so borrowed, converted or continued, for the period from the date of such
prepayment or of such failure to borrow, convert or continue to the last day of
such Interest Period (or, in the case of a failure to borrow, convert or
continue, the Interest Period that would have commenced on the date of such
failure) in each case at the applicable rate of interest for such Loans provided
for herein (excluding, however, the Applicable Margin included therein, if any)
over (ii) the amount of interest (as reasonably determined by such Lender) which
would have accrued to such Lender on such amount by placing such amount on
deposit for a comparable period with leading banks in the interbank eurodollar
market. This covenant shall survive the termination of this Agreement and the
payment of the Loans and all other amounts payable hereunder.

                2.19 CHANGE OF LENDING OFFICE; MANDATORY ASSIGNMENT. (a) Each
Lender agrees that if it makes any demand for payment under subsection 2.16 or
2.17(a), or if any adoption or change of the type described in subsection 2.15
shall occur with respect to it, it will use reasonable efforts (consistent with
its internal policy and legal and regulatory restrictions and so long as such
efforts would not be disadvantageous to it, as determined in its sole
discretion) to designate a different lending office if the making of such a
designation would reduce or obviate the need for the Borrowers to make payments
under subsection 2.16 or 2.17(a), or would eliminate or reduce the effect of any
adoption or change described in subsection 2.15.

                If the Borrowers shall be required to pay any additional amounts
or other payments to any Lender in accordance with subsection 2.16 or 2.17(a) or
if any Lender shall, in accordance with subsection 2.15, no longer be obligated
to make or maintain LIBOR Loans hereunder, the Borrowers may, at their own
expense and in their sole discretion, unless such Lender has theretofore removed
or cured the conditions which result in the obligation to pay such additional
amounts or other payments or which result in such illegality, as the case may
be, after reasonable notice to the Administrative Agent and such Lender, require
such Lender to transfer or assign, in whole or in part, without recourse (in
accordance with subsection 9.6), all or

<PAGE>   39
                                                                              34

part of its interests, rights and obligations under this Agreement to another
bank or financial institution reasonably acceptable to the Administrative Agent
(provided that the Borrowers, with the full cooperation of such Lender, can
identify a bank or financial institution reasonably acceptable to the
Administrative Agent which is ready, willing and able to be an Assignee with
respect thereto) which shall assume such assigned obligations (which Assignee
may be another Lender, if such Assignee Lender accepts such assignment);
provided that (A) the Assignee or the Borrowers, as the case may be, shall have
paid to such Lender in immediately available funds the principal of and interest
accrued to the date of such payment on the Loans made by it hereunder and all
other amounts owed to it hereunder, including, without limitation, any amounts
owing pursuant to subsection 2.18 and any amounts that would be owing under said
subsection if such Loans were prepaid on the date of such assignment, and (B)
such assignment does not conflict with any law, rule or regulation or order of
any Governmental Authority.

                2.20 INCREASES OF THE TERM LOANS OR REVOLVING CREDIT
COMMITMENTS. At the mutual discretion of the Borrowers and the Administrative
Agent, the Borrowers may request in writing at any time during the period from
the Closing Date to and including the second anniversary of the Closing Date
that (x) the then effective aggregate principal amount of any Type or Types of
Term Loans be increased, and/or (y) the then effective aggregate principal
amount of Revolving Credit Commitments be increased; provided that (1) the
aggregate principal amount of the increases in Term Loans and/or Revolving
Credit Commitments pursuant to this subsection 2.20 shall not exceed
$35,000,000, (2) the Borrowers may not make more than two requests for such
increases in Term Loans and/or Revolving Credit Commitments, (3) no Event of
Default shall have occurred and be continuing or occurs as a result of such
increases in Term Loans and/or Revolving Credit Commitments, and (4) the
Borrowers shall, and shall cause their Subsidiaries to, execute and deliver such
documents and instruments and take such other actions as may be reasonably
requested by Administrative Agent in connection with such increases. Any request
under this subsection 2.20 shall be submitted by the Borrowers to the
Administrative Agent (which shall promptly forward copies to the Lenders),
specify the proposed effective date and amount of such increase and be
accompanied by an officer's certificate stating that no Event of Default exists
or will occur as a result of such increase. No Lender shall have any obligation,
express or implied, to offer to increase the aggregate principal amount of its
applicable Term Loans or Revolving Credit Commitment, as the case may be. Only
the consent of each Lender (an "Increasing Lender") which agrees to increase the
principal amount of its applicable Term Loans or Revolving Credit Commitments,
as the case may be, shall be required for an increase in the aggregate principal
amount of the applicable Term Loans or Revolving Credit Commitment, as the case
may be, pursuant to this subsection 2.20. No Lender which elects not to increase
the principal amount of its Term Loans or Revolving Credit Commitment, as the
case may be, may be replaced in respect of its existing applicable Term Loans or
Revolving Credit Commitment, as the case may be, as a result thereof without
such Lender's consent. Each Increasing Lender shall as soon as practicable
specify the amount of the proposed increase which it is willing to assume. The
Borrowers may accept some or all of the offered amounts or designate new lenders
who qualify as Eligible Assignees as additional Lenders hereunder in accordance
with this subsection 2.20 (each such new lender being a "New Lender"), which New
Lender may assume all or a portion of the increase in the aggregate principal
amount of the applicable Term Loans or Revolving Credit Commitments, as the case
may be. The Borrowers and the Administrative Agent shall have discretion jointly
to adjust the allocation of the increased aggregate principal amount of the
applicable Term Loans or

<PAGE>   40
                                                                              35

Revolving Credit Commitments, as the case may be, among Increasing Lenders and
New Lenders. Each New Lender designated by the Borrowers shall become an
additional party hereto as a New Lender concurrently with the effectiveness of
the proposed increase in the aggregate principal amount of the applicable Term
Loans or Revolving Credit Commitments, as the case may be, upon its execution of
an instrument of joinder, in each case in form and substance satisfactory to the
Administrative Agent. Subject to the foregoing, any increase requested by the
Borrowers shall be effective as of the date proposed by the Borrowers and shall
be in the principal amount equal to (i) the principal amount which Increasing
Lenders are willing to assume as increases to the principal amount of their
applicable Term Loans or Revolving Credit Commitments, as the case may be, plus
(ii) the principal amount offered by New Lenders with respect to the applicable
Term Loans or Revolving Credit Commitments, as the case may be, in either case
as adjusted by the Borrowers and the Administrative Agent pursuant to this
subsection 2.20. All new Term Loan to be made under this subsection 2.20 shall
be made to the Borrowers on the same day as such increase in the applicable Term
Loans under this subsection 2.20 becomes effective. Upon effectiveness of any
such increase, the Percentage of each Lender will be adjusted to give effect to
the increase in the applicable Term Loans or Revolving Credit Commitments, as
the case may be, and the Administrative Agent shall distribute to Lenders
revised Schedules 1.1A and 2.7 reflecting the applicable Term Loans and
Revolving Credit Commitment of each Lender after giving effect to such increase.
To the extent that the adjustment of Percentage results in losses or expenses to
any Lender as a result of the prepayment of any Revolving Credit Loan which is a
LIBOR Loan on a date other than the scheduled last day of the applicable
Interest Period, the Borrowers shall be responsible for such losses or expenses
pursuant to subsection 2.18.

                    SECTION 3. REPRESENTATIONS AND WARRANTIES

                To induce the Agents and the Lenders to enter into this
Agreement and to make the Loans, the Borrowers hereby represent and warrant to
the Agents and each Lender that:

                3.1 FINANCIAL CONDITION. (a) The balance sheet of the Company as
at December 31, of each of 1998, 1999 and 2000 and the related statements of
income and of cash flows for the fiscal year ended on such date, reported on by
Ernst & Young, copies of which have heretofore been furnished to each Lender,
are complete and correct in all material respects and present fairly in all
material respects the financial condition of the Company as at such date, and
the results of its operations and its cash flows for the fiscal year then ended.
To the best knowledge of the Company, the balance sheet of WPZ as at December
31, of each of 1998, 1999 and 2000 and the related statements of operations,
changes in stockholders' equity and cash flows for the fiscal year ended on such
date, reported on by KPMG LLP, copies of which have heretofore been furnished to
each Lender, are complete and correct in all material respects and present
fairly in all material respects the financial condition of WPZ as at such date,
and the results of its operations and its cash flows for the fiscal year then
ended.

                (b) The unaudited balance sheet of the Company as at March 31,
2001 and the related unaudited statements of income and of cash flows for the
three-month period ended on such date, certified on behalf of the Company by a
Responsible Officer, copies of which have heretofore been furnished to each
Lender, are complete and correct in all material respects and present fairly in
all material respects the financial condition of the Company as at such date,
and

<PAGE>   41
                                                                              36

the results of its operations and its cash flows for the three-month period then
ended (subject to normal year-end audit adjustments and the absence of footnote
disclosure). The unaudited balance sheet of WPZ as at March 31, 2001 and the
related unaudited statements of operations, changes in stockholders' equity and
cash flows for the three-month period ended on such date, certified on behalf of
the Company by a Responsible Officer, copies of which have heretofore been
furnished to each Lender, are complete and correct in all material respects and
present fairly in all material respects the financial condition of WPZ as at
such date, and the results of its operations and its cash flows for the
three-month period then ended (subject to normal year-end audit adjustments and
the absence of footnote disclosure).

                (c) All such financial statements referred to in subsection
2.1(a) and (b), including the related schedules and notes thereto, have been
prepared in accordance with GAAP applied consistently throughout the periods
involved (except as approved by such accountants or Responsible Officer, as the
case may be, and as disclosed therein and except that the unaudited financial
statements referred to in subsection 2.1(b) may not be accompanied by notes
thereto or reflect year-end adjustments). Neither the Company nor WPZ had, at
the date of the most recent balance sheet referred to above, any material
Guarantee Obligation, contingent liability or liability for taxes, or any
long-term lease or unusual forward or long-term commitment, including, without
limitation, any interest rate or foreign currency swap or exchange transaction,
which is not reflected in the foregoing statements or in the notes thereto.
During the period from December 31, 2000 to and including the date hereof there
has been no sale, transfer or other disposition by Holdings (with the exception
of the Contemplated Transaction), the Company or WPZ of any material part of its
business or property and no purchase or other acquisition of any business or
property (including any capital stock of any other Person) material in relation
to the financial condition of Holdings, the Company or WPZ, as the case may be,
at December 31, 2000.

                (d) The unaudited pro forma balance sheet of the Company as at
March 31, 2001 (the "Pro Forma Balance Sheet"), and the related unaudited pro
forma statements of income and of cash flows for the three months ended on such
date, certified by a Responsible Officer, copies of which have heretofore been
furnished to each Lender, have been prepared in good faith based on reasonable
assumptions for the purposes of fairly presenting the pro forma financial
condition of the Company as at such date after giving effect to (i) the
Recapitalization and the Merger, (ii) the payment of estimated fees and
expenses, financing costs and distributions related to the transactions
contemplated hereby and thereby and (iii) the making of the Loans on the Closing
Date in accordance with this Agreement, as if all such transactions described in
clauses (i) through (iii) had occurred on such date.

                3.2 NO CHANGE. (a) Since December 31, 2000, there has been no
development or event which has had or would reasonably be expected to have a
Material Adverse Effect, and (b) except (i) as permitted pursuant to subsection
6.8, (ii) as set forth on Schedule 3.2 hereto and (iii) as made on the Closing
Date in connection with the Recapitalization or the Merger in accordance with
the terms hereof, during the period from such date to and including the date
hereof no dividends or other distributions have been declared, paid or made upon
the Capital Stock of Holdings or the Company nor has any of the Capital Stock of
Holdings or the Company been redeemed, retired, purchased or otherwise acquired
for value by Holdings or the Company, as the case may be.

<PAGE>   42
                                                                              37

                3.3 EXISTENCE; COMPLIANCE WITH LAW. Each Loan Party (a) is duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, (b) has the power and authority, and the legal
right, to own and operate its property, to lease the property it operates as
lessee and to conduct the business in which it is currently engaged, (c) is duly
qualified and in good standing under the laws of each jurisdiction where its
ownership, lease or operation of property or the conduct of its business
requires such qualification except to the extent that failure to be so qualified
or in good standing would not reasonably be expected to have a Material Adverse
Effect and (d) is in compliance with all Requirements of Law except to the
extent that the failure to comply therewith would not, in the aggregate, be
reasonably expected to have a Material Adverse Effect.

                3.4 POWER; AUTHORIZATION; ENFORCEABLE OBLIGATIONS. Each Loan
Party has the power and authority, and the legal right, to make, deliver and
perform the Loan Documents to which it is a party and, in the case of the
Borrowers, to borrow hereunder and has taken all necessary corporate or
partnership action to authorize the execution, delivery and performance of the
Loan Documents to which it is a party and, in the case of the Borrowers, to
authorize the borrowings on the terms and conditions of this Agreement and any
Notes. No consent or authorization of, filing with, notice to or other act by or
in respect of, any Governmental Authority or any other Person is required in
connection with the Merger, the borrowings hereunder or with the execution,
delivery, performance, validity or enforceability of the Loan Documents, except
as may be required to perfect the Liens created thereby. This Agreement has
been, and each other Loan Document to which it is a party will be, duly executed
and delivered on behalf of each Loan Party thereto. This Agreement constitutes,
and each other Loan Document to which it is a party when executed and delivered
will constitute, a legal, valid and binding obligation of each Loan Party
thereto, enforceable against such Loan Party in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

                3.5 NO LEGAL BAR. The execution, delivery and performance of the
Loan Documents by each Loan Party thereto, the borrowings hereunder and the use
of the proceeds thereof will not violate any Requirement of Law or Contractual
Obligation (other than Contractual Obligations the failure of the Company to
have good title to which would not result in the representation set forth in
subsection 3.8 being untrue) of any Loan Party and will not result in, or
require, the creation or imposition of any Lien (other than imposed by any
Security Document) on or their respective properties or revenues pursuant to any
such Requirement of Law or Contractual Obligation or on any of the limited or
general partnership interests in the Company.

                3.6 NO MATERIAL LITIGATION. No litigation, investigation or
proceeding of or before any arbitrator or Governmental Authority is pending or,
to the knowledge of the Borrowers, threatened by or against any Loan Party or
against any of its properties or revenues (a) with respect to any of the Loan
Documents or any of the transactions contemplated hereby or thereby, or (b)
which would reasonably be expected to have a Material Adverse Effect.

<PAGE>   43
                                                                              38

                3.7 NO DEFAULT. No Loan Party is in default under or with
respect to any of its Contractual Obligations in any respect which would
reasonably be expected to have a Material Adverse Effect. No Default or Event of
Default has occurred and is continuing.

                3.8 OWNERSHIP OF PROPERTY; LIENS. The Borrowers have good record
and marketable title in fee simple to, or a valid leasehold interest in, all its
real property, and good title to, or a valid leasehold interest in, all its
other material property, and none of such property described in this sentence is
subject to any Lien (except as permitted by subsection 6.3), except insofar as
the failure to have such title or leasehold interest or the presence of any
non-permitted Lien would not reasonably be expected to have a Material Adverse
Effect.

                3.9 INTELLECTUAL PROPERTY. Each Borrower owns, or is licensed to
use, all trademarks, tradenames, copyrights, technology, know-how, data bases,
listing information and processes necessary for the conduct of its business as
currently conducted except for those the failure to own or license which would
not reasonably be expected to have a Material Adverse Effect (the "Intellectual
Property"). No claim has been asserted and is pending by any Person challenging
or questioning the use of any such Intellectual Property or the validity or
effectiveness of any such Intellectual Property, nor do the Borrowers know of
any valid basis for any such claim. The use of such Intellectual Property by
each Borrower does not infringe on the rights of any Person, except for such
claims and infringements that, in the aggregate, would not reasonably be
expected to have a Material Adverse Effect.

                3.10 NO BURDENSOME RESTRICTIONS. No Requirement of Law or
Contractual Obligation of any Loan Party has had or would reasonably be expected
to have a Material Adverse Effect.

                3.11 TAXES. Each Loan Party has filed or caused to be filed all
Federal, state and other material tax returns which, to the knowledge of the
Borrowers, are required to be filed and has paid all taxes shown to be due and
payable on said returns or on any assessments made against it or any of its
property and all other taxes, fees or other charges imposed on it or any of its
property by any Governmental Authority (other than any the amount or validity of
which are currently being contested in good faith by appropriate proceedings and
with respect to which reserves in conformity with GAAP have been provided on the
books of the Borrowers or such Loan Party, as the case may be); no tax Lien has
been filed, and, to the knowledge of the Borrowers, no claim is being asserted,
with respect to any such tax, fee or other charge except for such claims and tax
liens that, in the aggregate, would not reasonably be expected to have a
Material Adverse Effect.

                3.12 FEDERAL REGULATIONS. No part of the proceeds of any Loans
will be used for "buying" or "carrying" any "margin stock" within the respective
meanings of each of the quoted terms under Regulation U of the Board of
Governors of the Federal Reserve System, in violation of such regulations as now
and from time to time hereafter in effect. If requested by any Lender or the
Administrative Agent, the Borrowers will furnish to the Administrative Agent and
each Lender a statement to the foregoing effect in conformity with the
requirements of FR Form G-3 or FR Form U-1 referred to in said Regulation U.

<PAGE>   44
                                                                              39

                3.13 ERISA. Neither a Reportable Event nor an "accumulated
funding deficiency" (within the meaning of Section 412 of the Code or Section
302 of ERISA) has occurred during the five-year period prior to the date on
which this representation is made or deemed made with respect to any Plan, and
each Plan has complied in all material respects with the applicable provisions
of ERISA and the Code. No termination of a Single Employer Plan has occurred,
and no Lien in favor of the PBGC or a Plan has arisen, during such five-year
period. The present value of all accrued benefits under each Single Employer
Plan (based on those assumptions used to fund such Plans) did not, as of the
last annual valuation date prior to the date on which this representation is
made or deemed made, exceed the value of the assets of such Plan allocable to
such accrued benefits. Neither the Company nor any Commonly Controlled Entity
has had a complete or partial withdrawal from any Multiemployer Plan, and
neither the Company nor any Commonly Controlled Entity would become subject to
any liability under ERISA if the Company or any such Commonly Controlled Entity
were to withdraw completely from all Multiemployer Plans as of the valuation
date most closely preceding the date on which this representation is made or
deemed made. No such Multiemployer Plan is in Reorganization or Insolvent.

                3.14 INVESTMENT COMPANY ACT; OTHER REGULATIONS. None of the
Borrowers is an "investment company", or a company "controlled" by an
"investment company", within the meaning of the Investment Company Act of 1940,
as amended. None of the Borrowers is subject to regulation under any Federal or
State statute or regulation (other than Regulation X of the Board of Governors
of the Federal Reserve System) which limits its ability to incur Indebtedness.

                3.15 PURPOSE OF LOANS. The proceeds of the Term Loans shall be
used by the Borrowers (a) to finance the acquisition of WPZ pursuant to the
Merger, (b) to refinance existing indebtedness of the Borrowers and (c) to pay
related fees and expenses. The Revolving Credit Commitments are intended to
refinance and replace the Revolving Credit Commitments under (and as defined in)
the Existing Credit Agreement and the proceeds of the Revolving Credit Loans
shall be used by the Borrowers (a) for working capital purposes, capital
expenditures and general corporate purposes in the ordinary course of business
and (b) for Permitted Acquisitions.

                3.16 ENVIRONMENTAL MATTERS. Except as would not reasonably be
expected to have a Material Adverse Effect, to the best knowledge of the
Borrowers:

                (a) The facilities and properties owned, leased or operated by
the Borrowers (the "Properties") do not contain any Materials of Environmental
Concern in amounts or concentrations which (i) constitute a violation of, or
(ii) could reasonably be expected to give rise to liability under, any
Environmental Law;

                (b) The Properties and all operations at the Properties are in
compliance with all applicable Environmental Laws, and there is no contamination
at, under or about the Properties or violation of any Environmental Law with
respect to the Properties or the business operated by the Borrowers (the
"Business") which could interfere with the continued operation of the Properties
or impair the fair saleable value thereof;

<PAGE>   45
                                       40

                (c) The Borrowers have not received any written notice of
violation, alleged violation, non-compliance, liability or potential liability
regarding environmental matters or compliance with Environmental Laws with
regard to any of the Properties or the Business, nor do the Borrowers have
knowledge or reason to believe that any such notice will be received or is being
threatened;

                (d) Materials of Environmental Concern have not been transported
or disposed of from the Properties in violation of, or in a manner or to a
location which could reasonably be expected to give rise to liability under, any
Environmental Law, nor have any Materials of Environmental Concern been
generated, treated, stored or disposed of at, on or under any of the Properties
in violation of, or in a manner that could reasonably be expected to give rise
to liability under, any applicable Environmental Law;

                (e) No judicial proceeding or governmental or administrative
action is pending or, to the knowledge of the Borrowers, threatened, under any
Environmental Law to which the Borrowers are or will be named as a party with
respect to the Properties or the Business, nor are there any consent decrees or
other decrees, consent orders, administrative orders or other orders outstanding
under any Environmental Law with respect to the Properties or the Business; and

                (f) There has been no release or threat of release of Materials
of Environmental Concern at or from the Properties, or arising from or related
to the operations of the Borrowers in connection with the Properties or
otherwise in connection with the Business, in violation of or in amounts or in a
manner that could reasonably be expected to give rise to liability under
Environmental Laws.

                3.17 SOLVENCY. The Borrowers and their Subsidiaries will be,
after giving effect to the consummation of the Recapitalization and the Merger
and to the incurrence of all Indebtedness and obligations being incurred in
connection herewith and therewith, Solvent.

                3.18 ACCURACY OF INFORMATION. No statement or information (other
than projections and pro forma financial information described in the next
sentence) contained in this Agreement, any other Loan Document or any other
document, certificate or statement furnished in writing to the Agents or the
Lenders or any of them, by or on behalf of any Loan Party for use in connection
with the transactions contemplated by this Agreement or the other Loan
Documents, taken as a whole, contained as of the date such statement,
information, document or certificate was so furnished any untrue statement of
any fact material to the interests of the Agents or any Lender, or omitted to
state a fact necessary in order to make the statements contained herein or
therein, taken as a whole, not misleading in any respect material to the
interests of the Agents or any Lender. The projections and pro forma financial
information contained in the materials referenced above are based upon good
faith estimates and assumptions believed by management of the Borrowers to be
reasonable at the time made, it being recognized by the Lenders that such
financial information as it relates to future events is not to be viewed as fact
and that actual results during the period or periods covered by such financial
information may differ from the projected results set forth therein by a
material amount. Notwithstanding anything in this subsection 3.18 to the
contrary, to the extent the foregoing representation and

<PAGE>   46
                                                                              41

warranty relates to WPZ (whether the information referred to in such
representation and warranty is contained in this Agreement, the Confidential
Information Memorandum, the Merger Documentation or any other agreement or
document referred to herein), such representation and warranty is made by the
Company only to its knowledge.

                3.19 EMPLOYEE MATTERS, ETC. (a) None of the employees of the
Borrowers are subject to any collective bargaining agreement, (b) except as
expressly disclosed to the Lenders prior to the making of the representation and
warranty contained herein, no petition for certification or union election is
pending with respect to the employees of any Borrower and no union or collective
bargaining unit has sought such certification or recognition with respect to the
employees of the Borrowers, and (c) there are no strikes, slowdowns, work
stoppages, unfair labor practice complaints, grievances, arbitration proceedings
or controversies pending or, to the best knowledge of the Borrowers, threatened
against any Borrower by any of its employees, other than employee grievances or
controversies arising in the ordinary course of business that would not in the
aggregate be reasonably expected to have a Material Adverse Effect and (d) to
the Borrower's best knowledge, no partner or employee of the Borrowers are
subject to any employment agreement or non-competition agreement with any former
employer or any other Person which agreement would reasonably be expected to
have a Material Adverse Effect.

                3.20 SECURITY DOCUMENTS. The Guarantee and Collateral Agreement
is effective to create in favor of the Administrative Agent, for the benefit of
the Lenders, a legal, valid and enforceable security interest in the Collateral
described therein and proceeds thereof. In the case of the Pledged Stock
described in the Guarantee and Collateral Agreement, when stock certificates
representing such Pledged Stock are delivered to the Administrative Agent, and
in the case of the other Collateral described in the Guarantee and Collateral
Agreement, after financing statements in appropriate form are filed in the
offices specified on Schedule 3 to the Guarantee and Collateral Agreement, the
Guarantee and Collateral Agreement shall at all times constitute a fully
perfected Lien on, and security interest in, all right, title and interest of
the Loan Parties in such Collateral and the proceeds thereof, as security for
the Obligations (as defined in the Guarantee and Collateral Agreement), in each
case prior and superior in right to any other Person, other than with respect to
Liens expressly permitted by Section 6.3.

                3.21 OWNERSHIP. Schedule 3.21 is a complete and correct list of,
as of the Closing Date, (a) the owners of the LLC interests of the Company and
(b) the owners of Holdings and each owner's respective ownership percentage. As
of the Closing Date and thereafter, all the issued and outstanding Capital Stock
of the Company will be owned by Holdings.

                3.22 SUBSIDIARIES. Except as disclosed to the Administrative
Agent by the Borrowers in writing from time to time after the Closing Date, (a)
Schedule 3.22 sets forth the name and jurisdiction of incorporation of each
Subsidiary and, as to each such Subsidiary, the number of shares and percentage
of each class of Capital Stock owned by any Loan Party and (b) there are no
outstanding subscriptions, options, warrants, calls, rights or other agreements
or commitments (other than stock options granted to employees or directors and
directors' qualifying shares) of any nature relating to any Capital Stock of the
Borrowers or any Subsidiary, except as created by the Loan Documents.

<PAGE>   47
                                                                              42

                3.23 SENIOR INDEBTEDNESS. The Obligations (as defined in the
Guarantee and Collateral Agreement) constitute "Senior Indebtedness" of the
Borrowers under and as defined in the indenture for the Senior Subordinated
Notes. The obligations of each Subsidiary Guarantor under the Guarantee and
Collateral Agreement constitute "Guarantor Senior Indebtedness" of such
Subsidiary Guarantor under and as defined in the indenture for the Senior
Subordinated Notes.

                3.24 CERTAIN DOCUMENTS. The Borrowers have delivered to the
Administrative Agent a complete and correct copy of the Merger Documentation and
the Recapitalization Documentation, including any amendments, supplements or
modifications with respect to any of the foregoing.

                         SECTION 4. CONDITIONS PRECEDENT

                4.1 CONDITIONS TO EFFECTIVENESS. The effectiveness of this
Agreement, and the agreement of each Lender to make any extension of credit
hereunder on the Closing Date, shall be subject to the satisfaction of the
following conditions precedent:

                (a) Loan Documents. The Administrative Agent shall have received
        (i) this Agreement, executed and delivered by a duly authorized officer
        of each Borrower, with a counterpart for each Lender, (ii) the Guarantee
        and Collateral Agreement, executed and delivered by a duly authorized
        officer of Holdings, each Borrower and each Subsidiary Guarantor, with a
        counterpart or a conformed copy for each Lender, and (iii) an
        Acknowledgement and Consent in the form attached to the Guarantee and
        Collateral Agreement, executed and delivered by each Issuer (as defined
        therein), if any, that is not a Loan Party.

                (b) Related Agreements. The Administrative Agent shall have
        received, with a copy for each Lender, true and correct copies,
        certified as to authenticity by the Borrower, such other documents or
        instruments as may be in existence and reasonably requested by the
        Agents, including, without limitation, a copy of the Employment
        Agreements, the Executive Agreements, the Equity Compensation Trust
        Agreement, the Partnership Agreement and a copy of any debt instrument,
        security agreement or other material contract to which the Company,
        Holdings, WPZ or TWP Capital II may be a party and requested by the
        Agents.

                (c) Closing Certificate. The Administrative Agent shall have
        received, with a counterpart for each Lender, a certificate of each Loan
        Party, dated the Closing Date, substantially in the form of Exhibit F,
        with appropriate insertions and attachments, satisfactory in form and
        substance to the Agents.

                (d) Legal Opinions. The Administrative Agent shall have
        received, with a counterpart for each Lender (i) the executed legal
        opinion of Kirkland & Ellis, counsel to the Company, WPZ and TWP Capital
        II, substantially in the form of Exhibit G-1, and (ii) the executed
        legal opinion of Canadian counsel (reasonably satisfactory to the
        Administrative Agent) to YPtel Corporation, a Nova Scotia unlimited
        company, substantially in the form of Exhibit G-2.

<PAGE>   48
                                                                              43

                (e) Actions to Perfect Liens. The Administrative Agent shall
        have received (i) evidence in form and substance reasonably satisfactory
        to the Administrative Agent that all filings, recordings, registrations
        and other actions, including, without limitation, the filing of duly
        executed financing statements on form UCC-1, necessary or, in the
        opinion of the Administrative Agent, desirable to perfect the Liens
        created by the Security Documents shall have been completed or that all
        documents necessary to complete the foregoing shall have been executed
        and delivered to the Administrative Agent.

                (f) Insurance. The Agents shall have received evidence in form
        and substance satisfactory to them that all of the requirements of
        subsection 5.4 shall have been satisfied.

                (g) Leverage. The Total Leverage Ratio of the Company at the
        Closing Date shall not be greater than 5.50 to 1.00, after giving effect
        to the Merger and the making of the Loans on the Closing Date in
        accordance with this Agreement.

                (h) Pro Forma Balance Sheet; Financial Statements. The Lenders
        shall have received (i) the Pro Forma Balance Sheet, (ii) audited
        consolidated financial statements of each of Holdings, the Company and
        WPZ for the fiscal year ended December 31, 2000 and (iii) unaudited
        interim consolidated financial statements of each of Holdings, the
        Company and WPZ for each fiscal month and quarterly period ended
        subsequent to the date of the financial statements delivered pursuant to
        clause (ii) of this paragraph as to which such financial statements are
        available, and (A) such financial statements shall not, in the
        reasonable judgment of the Lenders, reflect any material adverse change
        in the business, operations, assets, liabilities, financial condition,
        results of operations, prospects or value of the Borrowers or WPZ and
        their respective Subsidiaries, each taken as a whole, and (B) the only
        Indebtedness on the Pro Forma Balance Sheet shall consist of
        Indebtedness of the Borrowers under this Agreement, the Senior
        Subordinated Notes and Acquisition Debt not in excess of $2,000,000.

                (i) Fees. The Lenders and the Administrative Agent shall have
        received all fees required to be paid, and all expenses for which
        invoices have been presented (including the reasonable fees and expenses
        of legal counsel), on or before the Closing Date. All such amounts will
        be paid with proceeds of Loans made on the Closing Date and will be
        reflected in the funding instructions given by the Borrowers to the
        Administrative Agent on or before the Closing Date.

                (j) Approvals. All governmental and third party approvals
        necessary in connection with the Merger, the continuing operations of
        Holdings and the Loan Parties and the transactions contemplated hereby
        shall have been obtained and be in full force and effect, and all
        applicable waiting periods shall have expired without any action being
        taken or threatened by any competent authority that would restrain,
        prevent or otherwise impose adverse conditions on the Merger or the
        financing contemplated hereby.

                (k) Existing Credit Agreement. The Administrative Agent shall
        have received satisfactory evidence that the existing Term Loans and
        Revolving Credit Loans under

<PAGE>   49
                                                                              44

        (and as defined in) the Existing Credit Agreement, and all interest and
        fees payable thereunder, shall have been paid in full.

                (l) Merger Documentation. Neither the Merger Documentation nor
        the Recapitalization Documentation shall have been amended, supplemented
        or otherwise modified (pursuant to a waiver or otherwise), other than
        pursuant to an amendment, supplement, modification or waiver which is,
        in form and substance, reasonably satisfactory to the Administrative
        Agent, as evidenced by its written approval thereof.

                (m) Merger, etc. The following transactions shall have been
        consummated, in each case on terms and conditions reasonably
        satisfactory to the Lenders:

                        (i) The Merger shall have been consummated in accordance
                with the Merger Agreement and applicable law;

                        (ii) The Recapitalization shall have been consummated in
                accordance with the Recapitalization Agreement and applicable
                law with the effect that the aggregate equity investment in
                Holdings will be increased by at least $60,500,000 (and such
                increased amount will be contributed to the capital of the
                Company); and

                        (iii) (A) The Administrative Agent shall have received
                satisfactory evidence that the WPZ Credit Agreement and the WPZ
                Convertible Debentures shall have been terminated and all
                amounts thereunder shall have been paid in full and (B)
                satisfactory arrangements shall have been made for the
                termination of all Liens granted in connection therewith.

                4.2 Conditions to Each Loan. The agreement of each Lender to
make any extension of credit requested to be made by it on any date (including,
without limitation, its initial extension of credit) is subject to the
satisfaction of the following conditions precedent:

                (a) Representations and Warranties. Each of the representations
        and warranties made by the Loan Parties in or pursuant to the Loan
        Documents shall be true and correct in all material respects on and as
        of such date as if made on and as of such date.

                (b) No Default. No Default or Event of Default shall have
        occurred and be continuing on such date or after giving effect to the
        Loans requested to be made on such date.

Each borrowing by the Borrowers hereunder shall constitute a representation and
warranty by the Borrowers as of the date thereof that the conditions contained
in this subsection have been satisfied or waived in accordance with subsection
9.1.

<PAGE>   50
                                                                              45

                        SECTION 5. AFFIRMATIVE COVENANTS

                The Borrowers hereby agree that, so long as the Revolving Credit
Commitments remain in effect or any Loan is outstanding, the Borrowers shall
and, where applicable, shall cause each Subsidiary to:

                5.1 FINANCIAL STATEMENTS. FURNISH TO EACH LENDER:

                (a) as soon as available, but in any event within 90 days after
        the end of each fiscal year of the Company, a copy of the balance sheet
        of the Company and its consolidated subsidiaries as at the end of such
        year and the related statements of income and retained earnings and of
        cash flows for such year, setting forth in each case in comparative form
        the figures for the previous year, reported on without a "going concern"
        or like qualification or exception, or qualification arising out of the
        scope of the audit, by Ernst & Young or other independent certified
        public accountants of nationally recognized standing accompanied by a
        comparison to the budget delivered pursuant to subsection 5.2(c) for
        such year;

                (b) as soon as available, but in any event not later than 45
        days after the end of (i) each of the first three quarterly periods of
        each fiscal year of each of the Company and its consolidated
        Subsidiaries, the unaudited balance sheet of each of the Company and its
        consolidated Subsidiaries as at the end of such period and the related
        unaudited statements of income and retained earnings and of cash flows
        of each of the Company and its consolidated Subsidiaries for such period
        and the portion of the fiscal year through the end of such period,
        setting forth in each case in comparative forms the figures for the
        previous year and for the budget delivered pursuant to subsection 5.2(c)
        for such year, certified by a Responsible Officer as being fairly stated
        in all material respects (subject to normal year-end audit adjustments
        and the absence of footnote disclosure); and

                (c) as soon as available, but in any event not later than 30
        days after the end of each calendar month, the unaudited interim balance
        sheet of the Company and its consolidated Subsidiaries as at the end of
        such month and the related unaudited interim statements of income and
        retained earnings and of cash flows of the Company and its consolidated
        Subsidiaries for such one-month period and the portion of the fiscal
        year through the end of such month, setting forth in each case in
        comparative form the figures for the previous year, certified by a
        Responsible Officer as being fairly stated in all material respects
        (subject to normal year-end audit adjustments and the absence of
        footnote disclosure);

all such financial statements shall be complete and correct in all material
respects and shall be prepared in reasonable detail and, except for the
financial statements referred to in paragraph (c) above, in accordance with GAAP
(provided that, with respect to the financial statements referred to in
paragraphs (b) above, such statements shall be prepared in accordance with GAAP
in the judgment of senior management of the Company) applied consistently
throughout the periods reflected therein and with prior periods (except as
approved by such accountants or officer, as the case may be, and disclosed
therein and except that the unaudited financial statements referred to

<PAGE>   51
                                       46

in subsection 5.1(b) and (c) may not be accompanied by notes thereto) and shall
be accompanied by a management discussion and analysis in respect of the fiscal
periods reported on therein.

                5.2 CERTIFICATES; OTHER INFORMATION. Furnish to each Lender:

                (a) concurrently with the delivery of the financial statements
        referred to in subsection 5.1(a), a certificate of the independent
        certified public accountants reporting on such financial statements in
        such form (if any) as may be consistent with the then general practice
        of such accountants stating that in making the examination necessary
        therefor no knowledge was obtained of any Default or Event of Default,
        except as specified in such certificate;

                (b) concurrently with the delivery of the financial statements
        referred to in subsections 5.1(a) and (b), a certificate of a
        Responsible Officer substantially in the form of Exhibit J (a "Pricing
        Certificate") (i) stating that, to the best of such Responsible
        Officer's knowledge except as specified in such certificate, each of the
        Company, its Subsidiaries, WPZ and TWP Capital II during such period
        have observed or performed all of its covenants and other agreements,
        and satisfied every condition, contained in this Agreement and the other
        Loan Documents to be observed, performed or satisfied by it, and that
        such Responsible Officer has obtained no knowledge of any Default or
        Event of Default, (ii) including calculations and information
        demonstrating in reasonable detail whether or not the Borrowers have
        complied with the requirements of subsections 6.1, 6.2(j), 6.6(b) and
        (e), 6.7, 6.8, 6.9 and 6.10(e) and (f) and (iii) describing in
        reasonable detail any material Guarantee Obligation, contingent
        liability or liability for taxes, or any long-term lease or unusual
        forward or long-term commitment, in each case which are not reflected in
        such financial statements;

                (c) not later than thirty days prior to the end of each fiscal
        year of the Company, a copy of the projections by the Company of the
        operating budget and cash flow budget of the Company and its
        consolidated Subsidiaries for the succeeding fiscal year, such
        projections to be accompanied by a certificate of a Responsible Officer
        to the effect that such projections have been prepared on the basis of
        reasonable assumptions and that such Responsible Officer has no reason
        to believe they are incorrect or misleading in any material respect and
        by a written management discussion, in reasonable detail, of such
        assumptions;

                (d) promptly upon receipt thereof, copies of all final reports
        submitted to the Company by independent certified public accountants in
        connection with each annual, interim or special financial audit of the
        books of the Company and its consolidated Subsidiaries made by such
        accountants, including, without limitation, any final comment letter
        submitted by such accountants to management in connection with their
        annual audit;

                (e) within five days after the same are sent, copies of all
        financial statements and reports which the Company sends to its
        partners, and within five days after the same are filed, copies of all
        financial statements and reports which the Company may make to,

<PAGE>   52
                                       47

        or file with, the Securities and Exchange Commission or any successor or
        analogous Governmental Authority; and

                (f) promptly, such additional financial and other information as
        any Lender may from time to time reasonably request.

                5.3 CONDUCT OF BUSINESS AND MAINTENANCE OF EXISTENCE. Continue
to engage in business of the same general type as now conducted by it (or as
otherwise allowed by subsection 6.15) and preserve, renew and keep in full force
and effect its existence and take all reasonable action to maintain all rights,
privileges and franchises necessary or desirable, in the Company's opinion, in
the normal conduct of its business except as otherwise permitted pursuant to
subsection 6.5; comply with all Contractual Obligations and Requirements of Law
except to the extent that failure to comply therewith would not, in the
aggregate, reasonably be expected to have a Material Adverse Effect; and
continue in effect in all material respects its practices in respect of advance
payments as in effect on the Closing Date.

                5.4 MAINTENANCE OF PROPERTY; INSURANCE. Keep all property useful
and necessary, in the Company's opinion, in its business in good working order
and condition (subject to normal wear and tear in the ordinary course of
business); maintain with financially sound and reputable insurance companies
insurance on all its property in at least such amounts and against at least such
risks (but including in any event public liability, product liability and
business interruption) as are usually insured against in the same general area
by companies engaged in the same or a similar business; and furnish to each
Lender, upon written request, full information as to the insurance carried.

                5.5 INSPECTION OF PROPERTY; BOOKS AND RECORDS; DISCUSSIONS. Keep
proper books of records and account in which complete, true and correct entries
in conformity with GAAP and all Requirements of Law shall be made of all
dealings and transactions in relation to its business and activities; and permit
representatives of any Lender, upon giving prior notice to the Company, to visit
and inspect any of its properties and examine and make abstracts from any of its
books and records at any reasonable time and as often as may reasonably be
desired and to discuss the business, operations, properties and financial and
other condition of the Company, its consolidated Subsidiaries, WPZ and TWP
Capital II with officers and employees of such parties and with its independent
certified public accountants.

                5.6 NOTICES. Promptly give notice to the Administrative Agent
and each Lender of:

                (a) the occurrence of any Default or Event of Default as soon as
        possible and no later than five Business Days after a Responsible
        Officer of the Company knows or has reason to know thereof;

                (b) any (i) default or event of default under any Contractual
        Obligation of the Company or (ii) litigation, investigation or
        proceeding which may exist at any time between the Company and any
        Governmental Authority, which is more likely than not to be determined
        adversely to the Company and, if so determined, would be reasonably
        expected to have a Material Adverse Effect;

<PAGE>   53
                                                                              48

                (c) any litigation or proceeding, other than as set forth on
        Schedule 5.6, affecting the Company in which the amount involved is
        $1,000,000 or more and not covered by insurance or in which injunctive
        or similar relief is sought;

                (d) (i) any release or discharge by the Company of any Material
        of Environmental Concern required to be reported under Environmental
        Laws to any Governmental Authority; (ii) any condition, circumstance,
        occurrence or event that could result in a liability under Environmental
        Laws where such liability would reasonably be expected to have a
        Material Adverse Effect or would reasonably be expected to result in the
        imposition of any Lien or other material restriction on the title,
        ownership or transferability of any material Property; and (iii) any
        proposed action to be taken by the Company that could subject the
        Company to any material additional or different requirements or
        liabilities under Environmental Law where such requirements or
        liabilities would reasonably be expected to have a Material Adverse
        Effect;

                (e) the following events, as soon as possible and in any event
        within 30 days after the Company knows or has reason to know thereof:
        (i) the occurrence or expected occurrence of any Reportable Event with
        respect to any Plan, a failure to make any required contribution to a
        Plan, the creation of any Lien in favor of the PBGC or a Plan or any
        withdrawal from, or the termination, Reorganization or Insolvency of,
        any Multiemployer Plan or (ii) the institution of proceedings or the
        taking of any other action by the PBGC or the Company or any Commonly
        Controlled Entity or any Multiemployer Plan with respect to the
        withdrawal from, or the terminating, Reorganization or Insolvency of,
        any Plan;

                (f) any development or event which would reasonably be expected
        to have a Material Adverse Effect as soon as possible and no later than
        five Business Days after the Company knows or has reason to know
        thereof; and

                (g) the termination, resignation or replacement of either of the
        chairman or the president and chief executive officer of the Company,
        and (together with copies thereof) the execution of any modification of
        the Employment Agreements, or any new employment agreement, with any
        such officer.

Each notice pursuant to this subsection shall be accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action the Company proposes to take with respect thereto.

                5.7 ENVIRONMENTAL LAWS. (a) Comply with, and ensure compliance
by all tenants and subtenants, if any, with, all applicable Environmental Laws
and obtain and comply with and maintain, and ensure that all tenants and
subtenants obtain and comply with and maintain, any and all licenses, approvals,
notifications, registrations or permits required by applicable Environmental
Laws, except to the extent that failure to do so would not reasonably be
expected to have a Material Adverse Effect.

                (b) Conduct and complete all investigations, studies, sampling
and testing, and all remedial, removal and other actions required under
Environmental Laws and promptly

<PAGE>   54
                                                                              49

comply with all lawful orders and directives of all Governmental Authorities
regarding Environmental Laws, except, in each case, to the extent that the
failure to do so would not reasonably be expected to have a Material Adverse
Effect.

                5.8 ADDITIONAL COLLATERAL; SUBSIDIARIES. (a) With respect to any
assets of the type covered by the Guarantee and Collateral Agreement acquired
after the Closing Date, and, upon the occurrence and during the continuance of
an Event of Default and at the request of the Required Lenders, with respect to
any other assets or property of the Loan Parties, as to which the Administrative
Agent, for the benefit of the Lenders, does not have a perfected Lien (i)
execute and deliver to the Administrative Agent such amendments to this
Agreement, the Guarantee and Collateral Agreement or such other documents as the
Administrative Agent reasonably requests in order to grant to the Administrative
Agent, for the benefit of the Lenders, a security interest in such assets, (ii)
take all actions reasonably requested by the Administrative Agent to grant to
the Administrative Agent, for the benefit of the Lenders, a perfected first
priority security interest in such assets, including without limitation, the
filing of Uniform Commercial Code financing statements in such jurisdictions as
may be required by the Guarantee and Collateral Agreement or by law or as may be
requested by the Administrative Agent and (iii) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described in the preceding clauses (i) and (ii) to the
extent such matters were addressed in the legal opinion delivered pursuant to
subsection 4.1(d), which opinions shall be in form and substance, and from
counsel, reasonably satisfactory to the Administrative Agent.

                (b) With respect to any Subsidiary of the Company (other than an
Excluded Foreign Subsidiary) created or acquired after the Closing Date by any
Loan Party (which, for the purposes of this paragraph (b), shall include any
existing Subsidiary that ceases to be an Excluded Foreign Subsidiary), (i)
execute and deliver, or cause to be executed and delivered, to the
Administrative Agent such amendments to this Agreement, the Guarantee and
Collateral Agreement or such other documents as the Administrative Agent
reasonably requests in order to grant to the Administrative Agent, for the
benefit of the Lenders, a perfected first priority security interest in the
Capital Stock of such Subsidiary at any time held by any Loan Party, (ii)
deliver to the Administrative Agent the certificates representing such Capital
Stock, if any, together with undated stock powers, executed in blank, (iii)
cause such Subsidiary (A) to become a party to the Guarantee and Collateral
Agreement, (B) to take such actions necessary or advisable to grant to the
Administrative Agent for the benefit of the Lenders a perfected first priority
security interest in the Collateral described in the Guarantee and Collateral
Agreement with respect to such Subsidiary, including the filing of Uniform
Commercial Code financing statements in such jurisdictions as may be required by
the Guarantee and Collateral Agreement or by law or as may be requested by the
Administrative Agent and (C) to deliver to the Administrative Agent a
certificate of such Subsidiary, substantially in the form of Exhibit F, with
appropriate insertions and attachments, and (iv) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described in the preceding clauses (i) and (ii), which
opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent.

                (c) With respect to any Excluded Foreign Subsidiary created or
acquired after the Closing Date by any Loan Party (other than by any Loan Party
that is an Excluded Foreign

<PAGE>   55
                                                                              50

Subsidiary), (i) execute and deliver, or cause to be executed and delivered, to
the Administrative Agent such amendments to this Agreement, the Guarantee and
Collateral Agreement or such other documents as the Administrative Agent
reasonably requests to grant to the Administrative Agent, for the benefit of the
Lenders, a perfected first priority security interest in the Capital Stock of
such Subsidiary that is owned by any such Loan Party (provided that in no event
shall more than 65% of the total outstanding voting Capital Stock of any such
new Subsidiary be required to be so pledged), (ii) deliver to the Administrative
Agent the certificates representing such Capital Stock, together with undated
stock powers, executed in blank, and take such other action as may be necessary
or, in the opinion of the Administrative Agent, desirable to perfect the
Administrative Agent's security interest therein, and (iii) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described in the preceding clauses (i) and (ii), which
opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Administrative Agent.

                (d) With respect to any fee interest in any real property having
a value (together with improvements thereof) of at least $1,000,000 acquired
after the Closing Date by any Loan Party (other than (x) any such real property
subject to a Lien permitted by Section 6.3(g) and (y) real property acquired by
any Excluded Foreign Subsidiary), (i) execute and deliver a first priority
mortgage or deed of trust, in favor of the Administrative Agent, for the benefit
of the Lenders, covering such real property, (ii) if requested by the
Administrative Agent, provide the Lenders with (x) title and extended coverage
insurance covering such real property in an amount at least equal to the
purchase price of such real property (or such other amount as shall be
reasonably specified by the Administrative Agent) as well as a current ALTA
survey thereof, together with a surveyor's certificate and (y) any consents or
estoppels reasonably deemed necessary or advisable by the Administrative Agent
in connection with such mortgage or deed of trust, each of the foregoing in form
and substance reasonably satisfactory to the Administrative Agent and (iii) if
requested by the Administrative Agent, deliver to the Administrative Agent legal
opinions relating to the matters described in the preceding clauses (i) and
(ii), which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent.

                (e) With respect to each of the Subsidiaries (other than the
Canadian Subsidiaries) listed on Schedule 5.8 (as to each of which the Company
hereby represents and warrants that, as of the Closing Date, the fair market
value of the assets of which does not exceed $250,000), comply with the
provisions of this subsection 5.8, insofar as they are applicable to such
Subsidiary, on or before August 31 if, and only if, such Subsidiary continues to
be a Subsidiary on such date. With respect to each of the Canadian Subsidiaries,
if individually or in the aggregate, the fair market value of their assets
(other than (i) the promissory notes issued to YPtel Corporation, a Nova Scotia
unlimited company, by WPZ and (ii) the preferred stock of YPTel, Inc., a
Washington Corporation, owned by YPtel Corporation (or its successors or
assigns, as applicable)) exceed $500,000, comply with the provisions of this
subsection 5.8 insofar as they are applicable to such Canadian Subsidiary.
Notwithstanding the foregoing, YPtel Corporation (or its successors or assigns,
as applicable) shall grant a security interest in (i) each promissory note
issued to it by WPZ and (ii) the Capital Stock of YPTel, Inc., in each case, on
the Closing Date as set forth in the Guarantee and Collateral Agreement.

<PAGE>   56
                                                                              51

                          SECTION 6. NEGATIVE COVENANTS

                The Borrowers hereby agree that, so long as the Revolving Credit
Commitments remain in effect or any Loan is outstanding, the Borrowers shall
not, nor shall they permit any Subsidiary to, directly or indirectly:

                6.1 FINANCIAL CONDITION COVENANTS.

                (a) Senior Leverage. Permit the Senior Leverage Ratio of the
        Company at any time during any period specified below to be greater than
        the Senior Leverage Ratio set forth opposite such period below:

<TABLE>
<CAPTION>
                                                                        Senior
        Period                                                       Leverage Ratio
        ------                                                       --------------
<S>                                                                   <C>
Closing Date to December 31, 2001                                      3.75:1.00
January 1, 2002 to June 30, 2002                                       3.50:1.00
July 1, 2002 to December 31, 2002                                      3.25:1.00
January 1, 2003 to September 30, 2003                                  3.00:1.00
October 1, 2003 to June 30, 2004                                       2.75:1.00
July 1, 2004 to the Facilities Termination Date                        2.50:1.00
</TABLE>

                (b) Total Leverage. Permit the Total Leverage Ratio of the
        Company at any time during any period specified below to be greater than
        the Total Leverage Ratio set forth opposite such period below:

<TABLE>
<CAPTION>
                                                                         Total
        Period                                                       Leverage Ratio
        ------                                                       --------------
<S>                                                                   <C>
Closing Date to December 31, 2001                                      5.95:1.00
January 1, 2002 to June 30, 2002                                       5.75:1.00
July 1, 2002 to December 31, 2002                                      5.50:1.00
January 1, 2003 to September 30, 2003                                  5.25:1.00
October 1, 2003 to June 30, 2004                                       5.00:1.00
July 1, 2004 to Facilities Termination Date                            4.75:1.00
</TABLE>

                (c) Cash Interest Coverage. Permit, for any period of four
        consecutive fiscal quarters (or, if less, the number of full fiscal
        quarters subsequent to the Closing Date) ending during any period
        specified below, the Cash Interest Coverage Ratio to be less than the
        ratio set forth opposite such period below:

<TABLE>
<CAPTION>
                                                                     Cash Interest
        Period                                                       Coverage Ratio
        ------                                                       --------------
<S>                                                                    <C>
Closing Date to December 31, 2002                                      1.75:1.00
January 1, 2003 to December 31, 2003                                   2.00:1.00
January 1, 2004 to the Facilities Termination Date                     2.25:1.00
</TABLE>

                (d) Fixed Charge Coverage. Permit, for any period of four
        consecutive fiscal quarters (or, if less, the number of full fiscal
        quarters subsequent to the Closing Date)

<PAGE>   57
                                                                              52

ending during any period specified below, the Fixed Charge Ratio to be less than
the ratio set forth opposite such period below:

<TABLE>
<CAPTION>
             Period                                                Fixed Charge Ratio
             ------                                                ------------------
<S>                                                                   <C>
Closing Date to December 31, 2002                                      1.50:1.00
January 1, 2003 to the Facilities Termination Date                     1.75:1.00
</TABLE>

                6.2 Limitation on Indebtedness. Create, incur, assume or suffer
to exist any Indebtedness, except:

                (a) Indebtedness of the Borrowers under this Agreement;

                (b) (i) Indebtedness of the Company in respect of the Senior
        Subordinated Notes outstanding on the Closing Date and any Refinancing
        Indebtedness in respect thereof and (ii) other Indebtedness incurred by
        the Borrowers (A) that is subordinated to the obligations of the
        Borrowers hereunder to at least the same extent as the Senior
        Subordinated Notes, (B) of which no amount of the principal thereof is
        scheduled to mature earlier than the date which is 91 days after the
        Facilities Termination Date and (C) which is not on financial and other
        terms that are materially more onerous, and does not have any defaults,
        rights or remedies more burdensome, to any Loan Party than the Senior
        Subordinated Notes;

                (c) Indebtedness outstanding on the Closing Date and listed on
        Schedule 6.2(c) and any refinancings, refundings, renewals or extensions
        thereof (without increasing, or shortening the maturity of, the
        principal amount thereof);

                (d) Indebtedness under any Interest Rate Protection Agreement
        not entered into for speculative purposes;

                (e) Indebtedness of a Person which becomes a Subsidiary after
        the date hereof, provided that (i) such Indebtedness existed at the time
        such Person became a Subsidiary and was not created in anticipation of
        the acquisition and (ii) immediately after giving effect to the
        acquisition of such Person by the Company or any Subsidiary no Default
        or Event of Default shall have occurred and be continuing, and any
        refinancings, refundings, renewals or extensions of such Indebtedness
        (without increasing the principal amount thereof or shortening the
        weighted average life to maturity of that portion of the principal
        amount thereof that is then scheduled to mature on or prior to the date
        which is 90 days after the Facilities Termination Date);

                (f) Acquisition Debt, and any refinancings, refundings, renewals
        or extensions thereof (without increasing the principal amount thereof
        or shortening the weighted average life to maturity of that portion of
        the principal amount thereof that is then scheduled to mature on or
        prior to the date which is 90 days after the Facilities Termination
        Date);

                (g) the Subordinated Management Notes issued in accordance with
        Section 6.8(e);

<PAGE>   58
                                                                              53

                (h) (i) Indebtedness of any Subsidiary which is not a Subsidiary
        Guarantor to the Company or any Subsidiary Guarantor in an aggregate
        principal amount for all such non-Subsidiary Guarantors not to exceed
        $5,000,000 at any one time outstanding, (ii) Indebtedness of the Company
        to any Subsidiary, (iii) Indebtedness of any Subsidiary Guarantor to the
        Company or any other Subsidiary Guarantor and (iv) Indebtedness of any
        Subsidiary which is not a Subsidiary Guarantor to any other Subsidiary
        which is not a Subsidiary Guarantor;

                (i) Indebtedness of Holdings or the Company to the Equity
        Compensation Trust in an aggregate principal amount not to exceed
        $2,800,000; and

                (j) additional Indebtedness not otherwise permitted under this
        subsection 6.2 in an aggregate principal amount not to exceed
        $10,000,000 at any one time outstanding.

                6.3 LIMITATION ON LIENS. Create, incur, assume or suffer to
exist any Lien upon any of its property, assets or revenues, whether now owned
or hereafter acquired, except for:

                (a) Liens for taxes, assessments or governmental charges or
        levies not yet due or which are being contested in good faith by
        appropriate proceedings, provided that adequate reserves with respect
        thereto are maintained on the books of the Company in conformity with
        GAAP;

                (b) carriers', warehousemen's, mechanics', materialmen's,
        repairmen's or other like Liens arising in the ordinary course of
        business which are not overdue for a period of more than 60 days or
        which are being contested in good faith by appropriate proceedings;

                (c) pledges or deposits in connection with workers'
        compensation, unemployment insurance and other social security
        legislation;

                (d) deposits to secure the performance of bids, trade contracts
        (other than for borrowed money), leases, statutory obligations, surety
        and appeal bonds, performance bonds and other obligations of a like
        nature incurred in the ordinary course of business;

                (e) easements, rights-of-way, minor defects or irregularities of
        title, restrictions and other similar encumbrances incurred in the
        ordinary course of business which, in the aggregate, are not substantial
        in amount and which do not in any case materially detract from the value
        of the property subject thereto or materially interfere with the
        ordinary conduct of the business of the Company or such Subsidiary;

                (f) Liens in existence on the Closing Date listed on Schedule
        6.3, securing Indebtedness permitted by subsection 6.2(c), provided that
        no such Lien is spread to cover any additional property after the
        Closing Date and that the amount of Indebtedness secured thereby is not
        increased;

                (g) Liens securing Indebtedness permitted by subsection 6.2(j);

                (h) Liens created or modified pursuant to the Security
        Documents;

<PAGE>   59
                                                                              54

                (i) additional Liens securing liabilities in an aggregate amount
        not to exceed $250,000 at any time outstanding;

                (j) Liens arising by operation of law in favor of depositary
        banks and collecting banks, incurred in the ordinary course of business;

                (k) Liens on property or assets of any corporation existing at
        the time such corporation becomes a Subsidiary of the Company or at the
        time such corporation is merged into the Company or any of its
        Subsidiaries, provided that such Liens are not incurred in connection
        with, or in contemplation of, such corporation becoming a Subsidiary of
        the Company or merging into the Company or any of its Subsidiaries;

                (l) Liens arising from the filing, for notice purposes only, of
        financing statements in respect of operating leases;

                (m) any attachment or judgment Lien not constituting an Event of
        Default that is being contested in good faith by appropriate proceedings
        and for which adequate reserves have been established in accordance with
        GAAP (if so required); and

                (n) Liens consisting of restrictions on the transfer of
        securities pursuant to applicable federal and state securities laws.

                6.4 LIMITATION ON GUARANTEE OBLIGATIONS. Create, incur, assume
or suffer to exist any Guarantee Obligation except (a) Guarantee Obligations in
existence on the Closing Date and listed on Schedule 6.4, (b) Guarantee
Obligations of the Company in respect of liabilities of any Subsidiary entered
into in the ordinary course of business and not prohibited by this Agreement or
any other Loan Document and (c) Guarantee Obligations of Subsidiaries entered
into in accordance with subsection 5.8 (the "Senior Subsidiary Guarantees") and
subordinated Guarantee Obligations of such Subsidiaries that are entered into in
accordance with any indenture pursuant to which Subordinated Debt is issued
provided that such subordinated Guarantee Obligations are subordinated to the
Senior Subsidiary Guarantees on the terms and conditions set forth in the
indenture pursuant to which the Subordinated Debt is issued.

                6.5 LIMITATION ON FUNDAMENTAL CHANGES. Enter into any merger,
consolidation or amalgamation, or liquidate, wind up or dissolve itself (or
suffer any liquidation or dissolution), or convey, sell, lease, assign, transfer
or otherwise dispose of, all or substantially all of its property, business or
assets, or make any material change in its present method of conducting business
other than in connection with (a) the Recapitalization and the Merger, (b)
Permitted Acquisitions, (c) any transaction in which WPZ, TWP Capital II, the
Company, the General Partner and any holding company thereof (provided such
holding company has no liabilities) are merged, consolidated or otherwise
combined, (d) any transaction in which the Company is reorganized from a limited
liability company into a corporation and (e) any transaction in which one or
more Subsidiaries are merged, consolidated or otherwise combined with one or
more other Subsidiaries; provided that (i) if any of such Subsidiaries was a
Subsidiary Guarantor before such merger, consolidation or other combination, the
surviving Subsidiary shall be a wholly owned Subsidiary Guarantor and (ii) if no
such Subsidiary was a

<PAGE>   60
                                                                              55

Subsidiary Guarantor before such merger, consolidation or other combination, the
surviving Subsidiary shall be a Subsidiary Guarantor only to the extent required
by Section 5.8.

                6.6 LIMITATION ON SALE OF ASSETS. Convey, sell, lease, assign,
transfer or otherwise dispose of any of its property, business or assets
(including, without limitation, receivables and leasehold interests), whether
now owned or hereafter acquired, or permit any Subsidiary to issue any shares of
its Capital Stock to any Person other than the Company or a wholly owned
Subsidiary, except:

                (a) the sale or other disposition of obsolete or worn out
property in the ordinary course of business;

                (b) the sale or other disposition of any property (other than
inventory) in the ordinary course of business at fair market value, provided
that the aggregate book value of all assets so sold or disposed of by the
Borrowers and their Subsidiaries in any period of twelve consecutive months
shall not exceed $100,000;

                (c) the sale of inventory in the ordinary course of business;

                (d) the sale or discount without recourse of accounts
receivable, such sale or discount arising in the ordinary course of business, at
fair market value in connection with the compromise or collection thereof;

                (e) the sale or other disposition of any property not covered by
paragraphs (a) through (d) above or the issuance by any Subsidiary of shares of
Capital Stock of such Subsidiary (any such non-excepted sale, disposition or
issuance described in this paragraph, a "Permitted Disposition"); provided that
(i) the EBITDA generated by or attributable to all such assets and Capital Stock
sold in any fiscal year does not exceed 10% of EBITDA for the prior fiscal year,
(ii) no Default or Event of Default exists immediately before or after giving
effect to such Permitted Disposition and (iii) any Net Cash Proceeds not applied
to purchase other assets within 180 days after the Permitted Disposition are
applied to permanently reduce the Term Loans and the Revolving Credit
Commitments in accordance with subsection 2.8;

                (f) so long as no Default or Event of Default shall have
occurred and be continuing or would result therefrom, the transfer of any assets
by the Company to WPZ or TWP Capital II and the transfer of any assets by any
Borrower to any new Subsidiary created or acquired after the Closing Date with
respect to which the requirements of subsection 5.8(b) shall have been fulfilled
and which, immediately prior to such transfer, shall have no material
obligations or liabilities; and

                (g) the Amarillo Asset Sale and the ChoiceContent Asset Sale.

                6.7 LIMITATION ON LEASES. Permit Lease Expense of the Company to
exceed $12,000,000 in any fiscal year of the Company ending on or before
December 31, 2003 or $15,000,000 in any fiscal year of the Company thereafter.

                6.8 LIMITATION ON DISTRIBUTIONS. Declare or pay any dividend
(other than dividends payable solely in common stock or non-redeemable preferred
stock of the Borrowers)

<PAGE>   61
                                                                              56

on, or make any payment on account of, or set apart assets for a sinking or
other analogous fund for, the purchase, redemption, defeasance, retirement or
other acquisition of, any shares of any class of Capital Stock of any Borrower
or any warrants or options to purchase any such Stock, whether now or hereafter
outstanding, or make any other distribution in respect thereof, either directly
or indirectly, whether in cash or property or in obligations of any Borrower or
any Subsidiary, except:

                (a) the Company may make cash distributions to Holdings, the
        proceeds of which are used by Holdings to make distributions to be used
        for the payment by the holders of partnership interests in Holdings of
        income taxes attributable to the net income of the Company in accordance
        with the terms of Section 5.1(b) of the Partnership Agreement as in
        effect on the Closing Date, provided that (i) prior to the making of
        such distribution, the Company shall have delivered to the
        Administrative Agent a letter in form and substance satisfactory to the
        Agents from independent public accountants detailing the highest
        federal, state and local tax rates applicable to the partners of
        Holdings (after giving effect to deductions for such state and local
        taxes applicable thereto) and (ii) the maximum percentage permitted to
        be so distributed as set forth in Section 5.1(b) of the Partnership
        Agreement with respect to any fiscal year of Holdings shall not exceed
        the percentage representing the maximum aggregate rate set forth in
        clause (i) above for such fiscal year;

                (b) the transactions to be made in connection with the
        Recapitalization and the Merger;

                (c) distributions to Holdings for the purpose of repurchases by
        Holdings of shares of its Capital Stock from departing officers or
        employees or payments on Subordinated Management Notes from the proceeds
        of any substantially contemporaneous issuance of shares of its Capital
        Stock;

                (d) so long as (i) no Default or Event of Default under Section
        7(a), (c), (f) or (h) shall have occurred and be continuing or would
        result therefrom and (ii) the Total Leverage Ratio after giving effect
        thereto and to the incurrence of any Indebtedness in connection
        therewith would be less than the lesser of (A) 5.5 to 1.0 and (B) the
        maximum Total Leverage Ratio permitted at such time pursuant to
        subsection 6.1(b), the Company may at any time make cash distributions
        to Holdings for the purchase of shares of Holdings' Capital Stock from
        departing officers and employees (including, without limitation, in
        accordance with the provisions of Section 4 of the respective Executive
        Agreements), provided that the aggregate amount of such purchases and
        payments, when added to the aggregate amount of principal payable
        pursuant to the Subordinated Management Notes, shall not exceed (x)
        $5,000,000 in any year or (y) $25,000,000 subsequent to the Closing
        Date;

                (e) to the extent that the Company does not for any reason
        effect by means of a cash payment to Holdings to repurchase shares of
        Holdings' Capital Stock required pursuant to Section 4 of the respective
        Executive Agreements, the Company shall be permitted to effect such
        purchase by the delivery of a Subordinated Management Note in an amount
        required by such Section, provided that the Company may not so deliver
        any

<PAGE>   62
                                                                              57

        such Subordinated Management Note if, after giving effect to such
        delivery, the sum of the aggregate amount of purchases and payments
        pursuant to subsection 6.8(d) plus the aggregate amount payable pursuant
        to the Subordinated Management Notes would exceed (x) $5,000,000 in any
        year or (y) $25,000,000 subsequent to the Closing Date;

                (f) so long as no Default or Event of Default shall have
        occurred and be continuing or would result therefrom, the Company may,
        after the fifth anniversary of the issuance of the Senior Discount
        Notes, pay cash dividends to Holdings in amount sufficient to permit
        Holdings to make scheduled interest payments (including payments, not to
        exceed $100,000 in the aggregate, to Holdings to make payments as
        liquidated damages to the holders of the Senior Discount Notes under the
        registration rights agreement relating to the Senior Discount Notes) on
        the Senior Discount Notes (it being agreed that, for purposes of
        determining whether or not a Default or Event of Default would result
        under subsection 6.1(d) as a result of the payment of any cash dividend
        pursuant to this paragraph, such determination will be made on a pro
        forma basis for the then most recently ended period of twelve
        consecutive months for which the Company shall have delivered to the
        Lenders financial statements pursuant to subsection 5.1(a) or (b)
        assuming that such cash dividend was paid during such period); and

                (g) provided that the payment thereof would be treated as an
        operating expense in the computation of Consolidated Net Income of the
        Company, the Company may pay dividends to Holdings in amounts, when
        added to any loans made for such purpose pursuant to subsection 6.10(h),
        that are needed to pay the reasonable expenses (excluding the payment of
        interest on indebtedness) incurred by Holdings or the General Partner in
        the ordinary course of its business.

                6.9 LIMITATION ON CAPITAL EXPENDITURES. Make or commit to make
(by way of the acquisition of securities of a Person or otherwise) any Capital
Expenditure except for Capital Expenditures in the ordinary course of business
not exceeding, in the aggregate for the Company and its Subsidiaries during any
fiscal year of the Company, an amount equal to $5,000,000, it being understood
that (x) the Company and its Subsidiaries may carry over for one fiscal year the
$5,000,000 amount of Capital Expenditures permitted to have been made, but not
made, in the immediately preceding fiscal year (it being agreed that, for
purposes of this clause (x), Capital Expenditures in any fiscal year of the
Company shall be deemed made first from the $5,000,000 permitted amount for such
fiscal year and then from any amount carried over into such fiscal year in
accordance with this clause (x)), and (y) repayments in any fiscal year of
Indebtedness incurred pursuant to subsection 6.2(j) shall not be included in
determining the amount of Capital Expenditures in such fiscal year for the
purposes hereof to the extent that such Indebtedness was included in determining
the amount of Capital Expenditures for the purpose hereof in the fiscal year in
which such Indebtedness was incurred.

                6.10 LIMITATION ON INVESTMENTS, LOANS AND ADVANCES. Make any
advance, loan, extension of credit or capital contribution to, or purchase any
stock, bonds, notes, debentures or other securities of or any assets
constituting a business unit of, or make any other investment in, any other
Person, except:

                (a) extensions of trade credit in the ordinary course of
        business;

<PAGE>   63
                                                                              58

                (b) acquisition of securities of a Person as a means of making
        Capital Expenditures permitted pursuant to subsection 6.9, subject to
        the limitations set forth therein;

                (c) investments in Cash Equivalents;

                (d) contributions to Holdings permitted under subsections 6.8;

                (e) loans and advances to officers and employees of a Borrower
        or affiliate entities of such officers or employees (whose obligations
        under the loans or advances, as applicable, are guaranteed by such
        officers or employees, as applicable) in the ordinary course of business
        provided that the aggregate principal amount thereof outstanding at any
        time does not exceed $1,000,000;

                (f) any acquisition (a "Permitted Acquisition") by the Company
        or any of its Subsidiaries of a business through the purchase or other
        acquisition of all or a portion of the assets or Capital Stock of any
        Person provided that the business or assets acquired fall within the
        restrictions of subsection 6.15; and provided, further, that:

                        (i) the Total Amount Expended in connection with all
                Permitted Acquisitions shall not exceed $100,000,000 in the
                aggregate during (x) the period commencing on the Closing Date
                and ending on June 30, 2002, or (y) any period of four
                consecutive fiscal quarters ending on any June 30 thereafter,
                provided that the Company and its Subsidiaries may carry over
                and add to the $100,000,000 permitted amount for the succeeding
                period an amount equal to the excess, if any (up to
                $100,000,000), of (A) the aggregate amount permitted during the
                prior period (after giving effect to any carryover pursuant to
                this proviso) over (B) the Total Amount Expended during such
                prior period;

                        (ii) no Default or Event of Default shall have occurred
                and be continuing on the date thereof or after giving effect to
                the proposed Permitted Acquisition, and at the request of the
                Administrative Agent, the Administrative Agent shall have
                received within five days prior to the consummation of such
                Permitted Acquisition a certificate on behalf of the Company of
                a Responsible Officer of the Company confirming such statement;
                and

                        (iii) the Lenders shall have received not later than the
                date of completion of such Permitted Acquisition, (I) available
                information regarding such Permitted Acquisition (including
                historical and projected revenue and cash flow and purchase
                price), (II) a pro forma consolidated balance sheet of the
                Company and its consolidated Subsidiaries as at the end of the
                most recent period for which financial statements shall have
                been delivered to the Lenders pursuant to subsection 5.1(a) or
                (b), adjusted to give effect to the consummation of such
                Permitted Acquisition and all other Permitted Acquisitions
                consummated prior to such date and any related financings and
                other transactions contemplated thereby (the "Acquisition Pro
                Forma Balance Sheet") which such Acquisition Pro Forma Balance
                Sheet shall demonstrate compliance with the requirements of the
                Loan

<PAGE>   64
                                       59

                Documents before and after giving effect to such Permitted
                Acquisition through and including the Facilities Termination
                Date and (III) a pro forma consolidated income statement of the
                Company and its consolidated Subsidiaries for the twelve-month
                period ended on the date of the Acquisition Pro Forma Balance
                Sheet adjusted as set forth in clause (II) of this clause (iii);

                (g) loans to officers and employees of the Company, the proceeds
        of which are used to purchase Capital Stock of Holdings (other than any
        preferred stock or similar interest with a mandatory redemption feature
        other than any such features provided for in an Executive Agreement);

                (h) provided that the making thereof would be treated as an
        operating expense in the computation of Consolidated Net Income of the
        Company, the Company may make loans to Holdings in amounts, when added
        to any dividends paid pursuant to subsection 6.8(g), that are needed to
        pay the reasonable expenses (excluding the payment of interest on
        indebtedness) incurred by Holdings or the General Partner in the
        ordinary course of its business;

                (i) the Merger;

                (j) loans permitted by subsection 6.2(h); and

                (k) advances, loans, extensions of credit or capital
        contributions to, or purchases of stock, bonds, notes, debentures or
        other securities of or assets constituting a business unit of, or other
        investments in, other Persons as set forth on Schedule 6.10.

                6.11 LIMITATION ON TRANSACTIONS WITH AFFILIATES. Enter into any
transaction, including, without limitation, any purchase, sale, lease or
exchange of property or the rendering of any service, with any Affiliate unless
such transaction is (a) otherwise permitted under this Agreement, (b) in the
ordinary course of the business of the Borrowers and their Subsidiaries and (c)
upon fair and reasonable terms no less favorable to the applicable Borrower or
Subsidiary than it would obtain in a comparable arm's length transaction with a
Person which is not an Affiliate; provided that, notwithstanding anything in
this Agreement to the contrary, the Company may (i) unless a Default under
subsection 7(a) has occurred and is continuing or would result therefrom and the
Administrative Agent has or the Required Lenders have determined the payment of
management fees is not appropriate and have so notified the Company, pay
management fees in an aggregate amount not to exceed $1,000,000 in any fiscal
year of the Company pursuant to the Management Agreement referenced in Section
3.11 of the Recapitalization Agreement (the "Management Fees"), provided that
if, as a result of the continued existence of such a Default, payment of the
Management Fees otherwise due in any fiscal year is not permitted by this clause
(i) to be paid in such fiscal year, (x) such Management Fees may be paid in any
subsequent fiscal year if, after giving effect thereto, no such Default under
Section 7(a) shall have occurred and be continuing and (y) the payment of such
deferred Management Fees in such subsequent fiscal year shall be disregarded in
determining whether any other Management Fees may be paid in such subsequent
fiscal year in accordance with the provisions of this clause (i), (ii) pay fees
and other transaction expenses in connection with the Recapitalization in an
aggregate amount not to exceed $18,000,000, (iii) reimburse any Affiliate

<PAGE>   65
                                                                              60

for amounts expended by such Affiliate in cash on behalf of the Company or any
Subsidiary and (iv) make the payments described in subsection 6.8(e).

                6.12 LIMITATION ON SALES AND LEASEBACKS. Enter into any
arrangement with any Person providing for the leasing by any Borrower or any
Subsidiary of real or personal property which has been or is to be sold or
transferred by such Borrower or such Subsidiary to such Person or to any other
Person to whom funds have been or are to be advanced by such Person on the
security of such property or rental obligations of such Borrower or such
Subsidiary.

                6.13 LIMITATION ON CHANGES IN FISCAL YEAR. Permit the fiscal
year of the Company to end on a day other than December 31.

                6.14 LIMITATION ON NEGATIVE PLEDGE CLAUSES. Enter into with any
Person any agreement, other than (a) this Agreement and (b) purchase money
mortgages or Financing Leases permitted by this Agreement (in which cases, any
prohibition or limitation shall only be effective against the assets financed
thereby), which prohibits or limits the ability of any Borrower or any
Subsidiary to create, incur, assume or suffer to exist any Lien upon any of its
property, assets or revenues, whether now owned or hereafter acquired, to secure
the obligations of the Borrowers and the Subsidiaries hereunder or under any
other Loan Document.

                6.15 LIMITATION ON LINES OF BUSINESS. Enter into any business,
either directly or through any Subsidiary, except for the business of providing
directory services or classified advertising.

                6.16 LIMITATION ON DESIGNATED SENIOR DEBT. Permit any
Indebtedness to be designated as "Designated Senior Debt" or "Designated Senior
Indebtedness" as such terms are defined in any indenture pursuant to which any
Subordinated Debt shall be issued.

                6.17 LIMITATION ON ACTIVITIES OF HOLDINGS. Permit Holdings to
engage in any business other than the provision of management to the Company, or
own any material assets other than its membership interest in the Company.

                6.18 LIMITATION ON OPTIONAL PAYMENTS AND MODIFICATIONS OF
SUBORDINATED DEBT. (a) Make any optional payment or prepayment on or redemption
or defeasance of any Subordinated Debt (except for prepayments of Acquisition
Debt or, to the extent permitted by subsection 6.8, Subordinated Management
Notes), or (b) amend, modify or change, or consent or agree to any amendment,
modification or change to any of the terms relating to the payment or prepayment
of principal of or interest on, any Subordinated Debt (other than any such
amendment, modification or change which would extend the maturity or reduce the
amount of any payment of principal thereof or which would reduce the rate or
extend the date for payment of interest thereon).

                          SECTION 7. EVENTS OF DEFAULT

                If any of the following events shall occur and be continuing:

                (a) The Borrowers shall fail to pay any principal of any Loan
        when due in accordance with the terms thereof or hereof; or the
        Borrowers shall fail to pay any

<PAGE>   66
                                                                              61

        interest on any Loan, or any other amount payable hereunder, within five
        days after any such interest or other amount becomes due in accordance
        with the terms thereof or hereof; or

                (b) Any representation or warranty made or deemed made by any
        Borrower or any other Loan Party herein or in any other Loan Document or
        which is contained in any certificate, document or financial or other
        written statement furnished by it at any time under or in connection
        with this Agreement or any such other Loan Document shall prove to have
        been incorrect in any material respect on or as of the date made or
        deemed made; or

                (c) Any Borrower or any other Loan Party shall default in the
        observance or performance of any agreement contained in Section 6
        hereof, Section 5 of the Guarantee and Collateral Agreement; or

                (d) Any Borrower or any other Loan Party shall default in the
        observance or performance of any other agreement contained in this
        Agreement or any other Loan Document (other than as provided in
        paragraphs (a) through (c) of this Section), and such default shall
        continue unremedied for a period of 30 days after the earlier of (i) the
        first date on which a Responsible Officer of the Company learns of such
        default and (ii) receipt by the Company of notice thereof from an Agent
        or any Lender; or

                (e) Any Borrower shall (i) default in any payment of principal
        of or interest of any of its Indebtedness (other than the Loans) or in
        the payment of any Guarantee Obligation, beyond the period of grace (not
        to exceed 30 days), if any, provided in the instrument or agreement
        under which such Indebtedness or Guarantee Obligation was created, if
        the aggregate amount of the Indebtedness and/or Guarantee Obligations in
        respect of which such default or defaults shall have occurred is at
        least $1,000,000; or (ii) default in the observance or performance of
        any other agreement or condition relating to any such Indebtedness or
        Guarantee Obligation or contained in any instrument or agreement
        evidencing, securing or relating thereto, or any other event shall occur
        or condition exist, the effect of which default or other event or
        condition is to cause, or to permit the holder or holders of such
        Indebtedness or beneficiary or beneficiaries of such Guarantee
        Obligation (or a trustee or agent on behalf of such holder or holders or
        beneficiary or beneficiaries) to cause, with the giving of notice if
        required, such Indebtedness to become due prior to its stated maturity
        or such Guarantee Obligation to become payable; or

                (f) (i) Any Borrower shall commence any case, proceeding or
        other action (A) under any existing or future law of any jurisdiction,
        domestic or foreign, relating to bankruptcy, insolvency, reorganization
        or relief of debtors, seeking to have an order for relief entered with
        respect to it, or seeking to adjudicate it a bankrupt or insolvent, or
        seeking reorganization, arrangement, adjustment, winding-up,
        liquidation, dissolution, composition or other relief with respect to it
        or its debts, or (B) seeking appointment of a receiver, trustee,
        custodian, conservator or other similar official for it or for all or
        any substantial part of its assets, or any Borrower shall make a general
        assignment for the benefit of its creditors; or (ii) there shall be
        commenced against any Borrower any case,

<PAGE>   67
                                                                              62

        proceeding or other action of a nature referred to in clause (i) above
        which (A) results in the entry of an order for relief or any such
        adjudication or appointment or (B) remains undismissed, undischarged or
        unbonded for a period of 60 days; or (iii) there shall be commenced
        against any Borrower any case, proceeding or other action seeking
        issuance of a warrant of attachment, execution, distraint or similar
        process on a claim exceeding $1,000,000 against all or any substantial
        part of its assets which results in the entry of an order for any such
        relief which shall not have been vacated, discharged, or stayed or
        bonded pending appeal within 60 days from the entry thereof; or (iv) any
        Borrower shall take any action in furtherance of, or indicating its
        consent to, approval of, or acquiescence in, any of the acts set forth
        in clause (i), (ii), or (iii) above; or (v) any Borrower shall generally
        not, or shall be unable to, or shall admit in writing its inability to,
        pay its debts as they become due; or

                (g) (i) Any Person shall engage in any "prohibited transaction"
        (as defined in Section 406 of ERISA or Section 4975 of the Code)
        involving any Plan, (ii) any "accumulated funding deficiency" (as
        defined in Section 302 of ERISA), whether or not waived, shall exist
        with respect to any Plan or any Lien in favor of the PBGC or a Plan
        shall arise on the assets of the Company or any Commonly Controlled
        Entity, (iii) a Reportable Event shall occur with respect to, or
        proceedings shall commence to have a trustee appointed, or a trustee
        shall be appointed, to administer or to terminate, any Single Employer
        Plan, which Reportable Event or commencement of proceedings or
        appointment of a trustee is, in the reasonable opinion of the Required
        Lenders, likely to result in the termination of such Plan for purposes
        of Title IV of ERISA, (iv) any Single Employer Plan shall terminate for
        purposes of Title IV of ERISA, (v) the Company or any Commonly
        Controlled Entity shall, or in the reasonable opinion of the Required
        Lenders is likely to, incur any liability in connection with a
        withdrawal from, or the Insolvency or Reorganization of, a Multiemployer
        Plan or (vi) any other event or condition shall occur or exist with
        respect to a Plan; and in each case in clauses (i) through (vi) above,
        such event or condition, together with all other such events or
        conditions, if any, could have a Material Adverse Effect; or

                (h) One or more judgments or decrees shall be entered against
        any Borrower involving in the aggregate a liability (not paid or fully
        covered by insurance) of $1,000,000 or more, and all such judgments or
        decrees shall not have been vacated, discharged, stayed or bonded
        pending appeal within 60 days from the entry thereof; or

                (i) (i) Any of the Security Documents shall cease, for any
        reason, to be in full force and effect, or the Borrowers or any other
        Loan Party which is a party to any of the Security Documents shall so
        assert, (ii) the Lien created by any of the Security Documents shall
        cease to be enforceable and of the same effect and priority purported to
        be created thereby or (iii) the guarantee contained in Section 2 of the
        Guarantee and Collateral Agreement shall cease, for any reason, to be in
        full force and effect, or the Borrowers or any other Loan Party or any
        Affiliate of any Loan Party shall so assert; or

                (j) (i) Thomas H. Lee Equity Fund V, L.P. and its Affiliates
        shall, at any time prior to the date upon which Holdings, any Borrower
        or any Subsidiary to which assets shall be transferred as permitted by
        subsection 6.6(f) shall have completed an initial

<PAGE>   68
                                                                              63

        registered public offering of shares of its Capital Stock, (1) cease to
        own, directly or indirectly, shares of Capital Stock representing at
        least 20% of the equity interest in Holdings and (2) not have the power
        (whether or not exercised) to elect a majority of the Board of Directors
        of the Company or Holdings, or (ii) there shall occur any "Change in
        Control" as such term (or any comparable term) is defined in the
        indenture pursuant to which the Subordinated Debt shall be issued or
        (iii) Holdings shall, at any time subsequent to the Closing Date, cease
        to own, directly or indirectly, 99% of the ownership interests in the
        Company;

then, and in any such event, (A) if such event is an Event of Default specified
in clause (i) or (ii) of paragraph (f) of this Section with respect to any
Borrower, automatically the Revolving Credit Commitments shall immediately
terminate and the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement shall immediately become due and payable, and
(B) if such event is any other Event of Default, either or both of the following
actions may be taken: (i) with the consent of the Required Lenders, the
Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Company, declare the Revolving
Credit Commitments to be terminated forthwith, whereupon the Revolving Credit
Commitments shall immediately terminate; and (ii) with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the
Required Lenders, the Administrative Agent shall, by notice to the Company,
declare the Loans hereunder (with accrued interest thereon) and all other
amounts owing under this Agreement to be due and payable forthwith, whereupon
the same shall immediately become due and payable. Except as expressly provided
above in this Section, presentment, demand, protest and all other notices of any
kind are hereby expressly waived.

                              SECTION 8. THE AGENTS

                8.1 APPOINTMENT. Each Lender hereby irrevocably designates and
appoints the Administrative Agent as the administrative agent of such Lender
under this Agreement and the other Loan Documents, and each such Lender
irrevocably authorizes the Administrative Agent, in such capacity, to take such
action on its behalf under the provisions of this Agreement and the other Loan
Documents and to exercise such powers and perform such duties as are expressly
delegated to the Administrative Agent by the terms of this Agreement and the
other Loan Documents, together with such other powers as are reasonably
incidental thereto. Notwithstanding any provision to the contrary elsewhere in
this Agreement, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, or any fiduciary
relationship with any Lender, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this
Agreement or any other Loan Document or otherwise exist against the
Administrative Agent. Notwithstanding any provision to the contrary contained
elsewhere in this Agreement, the Documentation and the Syndication Agent shall
not have any rights, duties or responsibilities, except those expressly set
forth herein, or any fiduciary relationship with any Lender, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall
be read into this Agreement or any other Loan Document or otherwise exist
against the Documentation Agent or the Syndication Agent.

                8.2 DELEGATION OF DUTIES. The Administrative Agent, the
Documentation Agent and the Syndication Agent may execute any of their
respective duties under this Agreement and

<PAGE>   69
                                                                              64

the other Loan Documents by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.
Neither the Administrative Agent, the Documentation Agent nor the Syndication
Agent shall be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by it with reasonable care.

                8.3 EXCULPATORY PROVISIONS. Neither the Administrative Agent,
the Documentation Agent, the Syndication Agent nor any of their respective
officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be
(i) liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with this Agreement or any other Loan Document
(except for its or such Person's own gross negligence or willful misconduct) or
(ii) responsible in any manner to any of the Lenders for any recitals,
statements, representations or warranties made by the Borrowers or any officer
thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Administrative Agent, the Documentation Agent or the
Syndication Agent under or in connection with, this Agreement or any other Loan
Document or for the value, validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document or for any failure
of the Borrowers to perform their obligations hereunder or thereunder. Neither
the Administrative Agent, the Documentation Agent nor the Syndication Agent
shall be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions
of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of the Borrowers.

                8.4 RELIANCE BY AGENTS. Each Agent shall be entitled to rely,
and shall be fully protected in relying, upon any Note, writing, resolution,
notice, consent, certificate, affidavit, letter, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it to be
genuine and correct and to have been signed, sent or made by the proper Person
or Persons and upon advice and statements of legal counsel (including, without
limitation, counsel to the Borrowers), independent accountants and other experts
selected by such Agent. Each Agent may deem and treat the payee of any Note as
the owner thereof for all purposes unless a written notice of assignment,
negotiation or transfer thereof shall have been filed with the Administrative
Agent. The Agents shall be fully justified in failing or refusing to take any
action under this Agreement or any other Loan Document unless they shall first
receive such advice or concurrence of the Required Lenders as they deem
appropriate or they shall first be indemnified to their satisfaction by the
Lenders against any and all liability and expense which may be incurred by them
by reason of taking or continuing to take any such action. Each Agent shall in
all cases be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the
Required Lenders, and such request and any action taken or failure to act
pursuant thereto shall be binding upon all the Lenders and all future holders of
the Loans.

                8.5 NOTICE OF DEFAULT. Neither Agent shall be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default
hereunder unless such Agent has received notice from a Lender or any Borrower
referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a "notice of default". In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall
promptly give notice thereof to the Lenders. The Administrative Agent shall take
such action with respect to

<PAGE>   70
                                                                              65

such Default or Event of Default as shall be directed by the Required Lenders;
provided that (i) the Administrative Agent shall not be required to take any
action that exposes the Administrative Agent to liability or that is contrary to
this Agreement or applicable law and (ii) unless and until the Administrative
Agent shall have received such directions, the Administrative Agent may (but
shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as it shall deem advisable in
the best interests of the Lenders.

                8.6 NON-RELIANCE ON AGENTS AND OTHER LENDERS. Each Lender
expressly acknowledges that neither the Administrative Agent, the Documentation
Agent, the Syndication Agent nor any of their respective officers, directors,
employees, agents, attorneys-in-fact or Affiliates has made any representations
or warranties to it and that no act by either Agent hereinafter taken, including
any review of the affairs of the Borrowers, shall be deemed to constitute any
representation or warranty by such Agent to any Lender. Each Lender represents
to the Agents that it has, independently and without reliance upon the
Administrative Agent, the Documentation Agent, the Syndication Agent or any
other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business,
operations, property, financial and other condition and creditworthiness of the
Borrowers and made its own decision to make its Loans hereunder and enter into
this Agreement. Each Lender also represents that it will, independently and
without reliance upon the Agents or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit analysis, appraisals and decisions in taking or not taking
action under this Agreement and the other Loan Documents, and to make such
investigation as it deems necessary to inform itself as to the business,
operations, property, financial and other condition and creditworthiness of the
Borrowers. Except for notices, reports and other documents expressly required to
be furnished to the Lenders by the Administrative Agent hereunder, neither Agent
shall have any duty or responsibility to provide any Lender with any credit or
other information concerning the business, operations, property, condition
(financial or otherwise), prospects or creditworthiness of the Borrowers which
may come into the possession of such Agent or any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates.

                8.7 INDEMNIFICATION. The Lenders agree to indemnify each Agent
in its capacity as such (to the extent not reimbursed by the Borrowers and
without limiting the obligation of the Borrowers to do so), ratably according to
their respective Percentages in effect on the date on which indemnification is
sought (or, if indemnification is sought after the date upon which the Revolving
Credit Commitments shall have terminated and the Loans shall have been paid in
full, ratably in accordance with their Percentages immediately prior to such
date), from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind whatsoever which may at any time (including, without limitation, at any
time following the payment of the Loans) be imposed on, incurred by or asserted
against such Agent in any way relating to or arising out of, the Revolving
Credit Commitments, this Agreement, any of the other Loan Documents or any
documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Agent
under or in connection with any of the foregoing; provided that no Lender shall
be liable for the payment of any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting solely from such Agent's gross negligence or willful
misconduct. The

<PAGE>   71
                                                                              66

agreements in this subsection shall survive the payment of the Loans and all
other amounts payable hereunder.

                8.8 AGENTS IN THEIR INDIVIDUAL CAPACITY. Each Agent and its
Affiliates may make loans to, accept deposits from and generally engage in any
kind of business with the Borrowers as though such Agent were not the
Administrative Agent, Documentation Agent or Syndication Agent, as the case may
be, hereunder and under the other Loan Documents. With respect to the Loans made
by them, the Agents shall have the same rights and powers under this Agreement
and the other Loan Documents as any Lender and may exercise the same as though
they were not the Administrative Agent, Documentation Agent and Syndication
Agent, as the case may be, and the terms "Lender" and "Lenders" shall include
the Agents in their individual capacity.

                8.9 SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may
resign as Administrative Agent upon 10 days' notice to the Lenders. If the
Administrative Agent shall resign as Administrative Agent under this Agreement
and the other Loan Documents, then the Required Lenders shall appoint from among
the Lenders a successor agent for the Lenders, which successor agent shall be
approved by the Borrowers, whereupon such successor agent shall succeed to the
rights, powers and duties of the Administrative Agent, and the term
"Administrative Agent" shall mean such successor agent effective upon such
appointment and approval, and the former Administrative Agent's rights, powers
and duties as Administrative Agent shall be terminated, without any other or
further act or deed on the part of such former Administrative Agent or any of
the parties to this Agreement or any holders of the Loans. After any retiring
Administrative Agent's resignation as Administrative Agent, the provisions of
this Section 8 shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent under this Agreement and the
other Loan Documents.

                8.10 RELEASES OF COLLATERAL. In connection with the sale or
other disposition of Collateral permitted under subsection 6.6, the
Administrative Agent shall, and is hereby authorized by the Lenders to,
promptly, upon the request of the Borrowers and at the sole expense of the
Borrowers, take all actions reasonably necessary to release the Collateral
subject to such sale or other disposition and shall take any other actions
reasonably requested by the Borrowers to effect the transactions permitted under
subsection 6.6.

                            SECTION 9. MISCELLANEOUS

                9.1 AMENDMENTS AND WAIVERS. Neither this Agreement nor any other
Loan Document, nor any terms hereof or thereof may be amended, supplemented or
modified except in accordance with the provisions of this subsection. The
Required Lenders may, or, with the written consent of the Required Lenders, the
Administrative Agent may, from time to time, (a) enter into with the Borrowers
written amendments, supplements or modifications hereto and to the other Loan
Documents for the purpose of adding any provisions to this Agreement or the
other Loan Documents or changing in any manner the rights of the Lenders or of
the Borrowers hereunder or thereunder or (b) waive, on such terms and conditions
as the Required Lenders or the Administrative Agent, as the case may be, may
specify in such instrument, any of the requirements of this Agreement or the
other Loan Documents or any Default or Event of Default and its consequences;
provided, however, that no such waiver and no such amendment,

<PAGE>   72
                                                                              67

supplement or modification shall (i) reduce the principal amount or extend the
final scheduled date of maturity of any Loan or of any installment thereof, or
reduce the stated rate of any interest (except (x) in connection with the waiver
of applicability of any post-default increase in interest rates (which waiver
shall be effective with the consent of the Majority Facility Lenders of each
adversely affected Facility) and (y) that any amendment or modification of
defined terms used in the financial covenants in this Agreement shall not
constitute a reduction in the rate of interest or fees for purposes of this
clause (i)) or fee payable hereunder or extend the scheduled date of any payment
thereof or increase the amount or extend the expiration date of any Lender's
Revolving Credit Commitment (other than in accordance with subsection 2.20), in
each case without the consent of each Lender directly affected thereby, or (ii)
reduce the percentage specified in the definition of Required Lenders, or (other
than any transaction permitted pursuant to Section 6.5) consent to the
assignment or transfer by the Borrowers of any of their rights and obligations
under this Agreement and the other Loan Documents, or release all or
substantially all of the Collateral, or release all or substantially all of the
Subsidiary Guarantors from their obligations under the Guarantee and Collateral
Agreement, in each case without the written consent of all the Lenders, or (iii)
amend, modify or waive any provision of Section 8 without the written consent of
the then Administrative Agent or (iv) amend the provisions of the first four
sentences of subsection 2.14(a) without the written consent of the Majority
Facility Lenders in respect of each Facility adversely affected thereby or (v)
reduce the amount of Net Cash Proceeds or Excess Cash Flow required to be
applied to prepay Loans under this Agreement without the written consent of the
Majority Facility Lenders with respect to each Facility or (vi) reduce the
percentage specified in the definition of Majority Facility Lenders with respect
to any Facility without the written consent of all Lenders under such Facility
or (vii) eliminate or reduce the voting rights of any Lender under this
subsection 9.1 without the written consent of such Lender. Any such waiver and
any such amendment, supplement or modification shall apply equally to each of
the Lenders and shall be binding upon the Borrowers, the Lenders, the
Administrative Agent and all future holders of the Loans. In the case of any
waiver, the Borrowers, the Lenders and the Administrative Agent shall be
restored to their former positions and rights hereunder and under the other Loan
Documents, and any Default or Event of Default waived shall be deemed to be
cured and not continuing; no such waiver shall extend to any subsequent or other
Default or Event of Default or impair any right consequent thereon.

                Notwithstanding the foregoing, this Agreement may be amended (or
amended and restated) with the written consent of the Required Lenders, the
Administrative Agent and the Borrowers (a) to add one or more credit facilities
to this Agreement (in addition to those provided for in Sections 2.1, 2.5 and
2.20) and to permit the extensions of credit from time to time outstanding
thereunder and the accrued interest and fees in respect thereof to share ratably
in the benefits of this Agreement and the other Loan Documents with the Term
Loans and Revolving Credit Loans and the accrued interest and fees in respect
thereof and (b) to include appropriately the Lenders holding such credit
facilities in any determination of the Required Lenders.

                9.2 NOTICES. All notices, requests and demands to or upon the
respective parties hereto to be effective shall be in writing (including by
facsimile transmission), and, unless otherwise expressly provided herein, shall
be deemed to have been duly given or made when delivered, or three days after
being deposited in the mail, postage prepaid, or, in the case of telecopy
notice, when received, addressed as follows in the case of the Borrowers and the

<PAGE>   73
                                                                              68

Administrative Agent, and as set forth in Schedule 1.1A in the case of the other
parties hereto, or to such other address as may be hereafter notified by the
respective parties hereto:

                The Borrowers:             TransWestern Publishing Company, LLC
                                           WorldPages.com, Inc.
                                           TWP Capital Corp. II
                                           8244 Clairemont Mesa Blvd.
                                           San Diego, CA 92111
                                           Attention: Joan Fiorito
                                           Fax: (858) 292-4125

                The Administrative Agent:  Canadian Imperial Bank of Commerce
                                           425 Lexington Avenue
                                           New York, New York  10017
                                           Attention:  Tefta Ghilaga
                                           Fax:  (212) 856-3558

                With a copy to:            Canadian Imperial Bank of Commerce
                                           425 Lexington Avenue
                                           New York, New York  10017
                                           Attention:  Agency Services
                                           Fax:  (212) 856-3763

provided that any notice, request or demand to or upon the Administrative Agent
or the Lenders pursuant to subsection 2.2, 2.4, 2.6, 2.8, 2.9, 2.14 or 2.20
shall not be effective until received.

                9.3 NO WAIVER; CUMULATIVE REMEDIES. No failure to exercise and
no delay in exercising, on the part of the Administrative Agent or any Lender,
any right, remedy, power or privilege hereunder or under the other Loan
Documents shall operate as a waiver thereof; nor shall any single or partial
exercise of any right, remedy, power or privilege hereunder preclude any other
or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are
cumulative and not exclusive of any rights, remedies, powers and privileges
provided by law.

                9.4 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties made hereunder, in the other Loan Documents and
in any document, certificate or statement delivered pursuant hereto or in
connection herewith shall survive the execution and delivery of this Agreement
and the making of the Loans hereunder.

                9.5 PAYMENT OF EXPENSES AND TAXES. The Borrowers jointly and
severally agree (a) to pay or reimburse the Agents for all their respective
out-of-pocket costs and expenses incurred in connection with the development,
preparation, syndication and execution of, and any amendment, supplement or
modification to, this Agreement and the other Loan Documents and any other
documents prepared in connection herewith or therewith, and the consummation and
administration of the transactions contemplated hereby and thereby, including,
without limitation, the reasonable fees and disbursements of counsel to the
Agents, (b) to pay or

<PAGE>   74
                                                                              69

reimburse the Lenders and the Agents for their reasonable costs and expenses
incurred in connection with the enforcement or preservation of any rights under
this Agreement, the other Loan Documents and any such other documents,
including, without limitation, the fees and disbursements of counsel (including
the allocated fees and expenses of in-house counsel) to the Lenders and the
Agents, (c) to pay, indemnify, and hold each Lender and each of the Agents
harmless from, any and all recording and filing fees and any and all liabilities
with respect to, or resulting from any delay in paying, stamp, excise and other
taxes, if any, which may be payable or determined to be payable in connection
with the execution and delivery of, or consummation or administration of any of
the transactions contemplated by, or any amendment, supplement or modification
of, or any waiver or consent under or in respect of, this Agreement, the other
Loan Documents and any such other documents, and (d) to pay, indemnify, and hold
each Lender and each of the Agents harmless from and against any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses or disbursements of any kind or nature whatsoever with respect
to the execution, delivery, enforcement, performance and administration of this
Agreement, the other Loan Documents or the use of the proceeds of the Loans in
connection with the Recapitalization and the Merger and any such other
documents, including, without limitation, any of the foregoing relating to the
violation of, noncompliance with or liability under, any Environmental Law
applicable to the operations of the Company or any of the Properties (all the
foregoing in this clause (d), collectively, the "indemnified liabilities"),
provided, that the Borrowers shall have no obligation hereunder to the Agents or
any Lender with respect to indemnified liabilities arising from (i) the gross
negligence, bad faith or willful misconduct of the Agents or any such Lender or
(ii) legal proceedings commenced against the Agents or any such Lender by any
security holder or creditor thereof arising out of and based upon rights
afforded any such security holder or creditor solely in its capacity as such.
The agreements in this subsection shall survive repayment of the Loans and all
other amounts payable hereunder.

                9.6 SUCCESSORS AND ASSIGNS; PARTICIPATIONS AND ASSIGNMENTS. (a)
The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted
hereby, except that the Borrowers may not assign or otherwise transfer any of
their rights or obligations hereunder without the prior written consent of each
Lender (and any attempted assignment or transfer by the Borrowers without such
consent shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto and their respective successors and assigns permitted hereby) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

                (b) Any Lender may, without the consent of, or notice to, the
Borrowers or the Administrative Agent, sell participations to one or more banks
or other entities (a "Participant") in all or a portion of such Lender's rights
and/or obligations under this Agreement (including all or a portion of its
Revolving Credit Commitment and/or the Loans owing to it); provided that (i)
such Lender's obligations under this Agreement shall remain unchanged, (ii) such
Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations and (iii) the Borrowers, the Administrative
Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to

<PAGE>   75
                                                                              70

approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide that such
Lender will not, without the consent of the Participant, agree to any amendment,
modification or waiver which requires the unanimous consent of the Lenders.
Subject to the last two sentences of this paragraph, the Borrowers agree that
each Participant shall be entitled to the benefits of subsections 2.16, 2.17 and
2.18 to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to paragraph (c) of this subsection. To the extent permitted
by law, each Participant also shall be entitled to the benefits of subsection
9.7(b) as though it were a Lender, provided such Participant agrees to be
subject to subsection 9.7(a) as though it were a Lender. A Participant shall not
be entitled to receive any greater payment under subsections 2.16, 2.17 and 2.18
than the applicable Lender would have been entitled to receive with respect to
the participation sold to such Participant, unless the sale of the participation
to such Participant is made with the prior written consent of the Borrowers. A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of subsection 2.17 unless the Borrowers are notified of
the participation sold to such Participant and such Participant agrees, for the
benefit of the Borrowers, to comply with subsection 2.17 as though it were a
Lender.

                (c) Any Lender may assign to one or more Eligible Assignees all
or a portion of its rights and obligations under this Agreement (including all
or a portion of its Revolving Credit Commitment and the Loans at the time owing
to it); provided that (i) except in the case of an assignment of the entire
remaining amount of the assigning Lender's Revolving Credit Commitment and the
Loans at the time owing to it or in the case of an assignment to a Lender or an
Affiliate of a Lender or an Approved Fund with respect to a Lender, the
aggregate amount of the Revolving Credit Commitment (which for this purpose
includes Loans outstanding thereunder) or principal outstanding balance of the
Term Loan of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Acceptance with respect to such assignment is
delivered to the Administrative Agent) shall not be less than $1,000,000, unless
each of the Administrative Agent and, so long as no event described in Section
7(f) has occurred and is continuing, the Borrowers otherwise consent (each such
consent not to be unreasonably withheld or delayed), (ii) each partial
assignment shall be made as an assignment of a proportionate part of all the
assigning Lender's rights and obligations under this Agreement with respect to
the Loan or the Revolving Credit Commitment assigned, except that this clause
(ii) shall not prohibit any Lender from assigning all or a portion of its rights
and obligations among separate Tranches on a non-pro rata basis, and (iii) the
parties to each assignment shall execute and deliver to the Administrative Agent
an Assignment and Acceptance, together with a processing and recordation fee of
$3,500, and the Eligible Assignee, if it shall not be a Lender, shall deliver to
the Administrative Agent an Administrative Questionnaire. For purposes of clause
(i) of the proviso contained in the preceding sentence, if any Lender which is
an Approved Fund (the "Selling Fund") shall seek to assign the entire amount of
its Revolving Credit Commitment and Loans to a Person (the "Purchaser") which is
not a Lender or an Affiliate of a Lender or an Approved Fund with respect to a
Lender, such entire amount is less than $1,000,000 and one or more other
Approved Funds related to the Selling Fund also hold Revolving Credit
Commitments and/or Loans, such Selling Fund may only make such assignment if (x)
such Selling Fund and all such related Approved Funds shall together assign to
the Purchaser the entire remaining amounts of their Revolving Credit Commitments
and Loans or (y) the aggregate amount of the Revolving Credit Commitments and
Loans assigned to the Purchaser by the Selling Fund and all such related
Approved Funds shall not be less than

<PAGE>   76
                                                                              71

$1,000,000. Subject to acceptance and recording thereof by the Administrative
Agent pursuant to paragraph (d) of this subsection, from and after the effective
date specified in each Assignment and Acceptance, the Eligible Assignee
thereunder shall be a party hereto and, to the extent of the interest assigned
by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent
of the interest assigned by such Assignment and Acceptance, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the assigning Lender's rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of subsections 2.16, 2.17, 2.18 and 9.5. Any
assignment or transfer by a Lender of rights or obligations under this Agreement
that does not comply with this paragraph shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with paragraph (b) of this subsection.

                (d) The Administrative Agent, acting solely for this purpose as
an agent of the Borrowers, shall maintain at the address of the Administrative
Agent referred to in subsection 10.2 a copy of each Assignment and Acceptance
delivered to it and a register for the recordation of the names and addresses of
the Lenders, and the Revolving Credit Commitments of, and principal amount of
the Loans owing to, each Lender pursuant to the terms hereof from time to time
(the "Register"). The entries in the Register shall be conclusive, in the
absence of manifest error, and the Borrowers, the Administrative Agent and the
Lenders may treat each Person whose name is recorded in the Register pursuant to
the terms hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. The Register shall be available for
inspection by the Borrowers and any Lender, at any reasonable time and from time
to time upon reasonable prior notice.

                (e) Upon its receipt of an Assignment and Acceptance executed by
an assigning Lender and an Assignee together with payment to the Administrative
Agent of a registration and processing fee of $3,500, the Administrative Agent
shall (i) promptly accept such Assignment and Acceptance and (ii) on the
effective date determined pursuant thereto record the information contained
therein in the Register and give notice of such acceptance and recordation to
the Lenders and the Borrowers.

                (f) The Borrowers authorize each Lender to disclose, subject to
the provisions of subsection 9.15, to any Participant or Assignee (each, a
"Transferee") and any prospective Transferee any and all financial information
in such Lender's possession concerning the Borrowers and its Affiliates which
has been delivered to such Lender by or on behalf of the Borrowers pursuant to
this Agreement or which has been delivered to such Lender by or on behalf of the
Borrowers in connection with such Lender's credit evaluation of the Borrowers
and its Affiliates prior to becoming a party to this Agreement.

                (g) Notwithstanding anything herein to the contrary, any Lender
may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, without
the consent of any party, without notice to any party and without payment of any
fees, in accordance with applicable law, including, without limitation, any
pledge or assignment to secure obligations to a Federal Reserve Bank; provided
that no such pledge or assignment of a security interest shall release a Lender
from any of its

<PAGE>   77
                                                                              72

obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.

                9.7 ADJUSTMENTS; SET-OFF. (a) If any Lender (a "benefitted
Lender") shall at any time receive any payment of all or part of its Loans, or
interest thereon, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off, pursuant to events or proceedings of
the nature referred to in Section 7(f), or otherwise), in a greater proportion
than any such payment to or collateral received by any other Lender, if any, in
respect of such other Lender's Loans, or interest thereon, such benefitted
Lender shall purchase for cash from the other Lenders a participating interest
in such portion of each such other Lender's Loans, or shall provide such other
Lenders with the benefits of any such collateral, or the proceeds thereof, as
shall be necessary to cause such benefitted Lender to share the excess payment
or benefits of such collateral or proceeds ratably with each of the Lenders;
provided, however, that if all or any portion of such excess payment or benefits
is thereafter recovered from such benefitted Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such
recovery, but without interest.

                (b) In addition to any rights and remedies of the Lenders
provided by law, each Lender shall have the right, without prior notice to the
Borrowers, any such notice being expressly waived by the Borrowers to the extent
permitted by applicable law, upon any amount becoming due and payable by the
Borrowers hereunder (whether at the stated maturity, by acceleration or
otherwise) to set-off and appropriate and apply against such amount any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by such Lender or any branch or agency
thereof to or for the credit or the account of the Borrowers. Each Lender agrees
promptly to notify the Borrowers and the Administrative Agent after any such
set-off and application made by such Lender, provided that the failure to give
such notice shall not affect the validity of such set-off and application.

                9.8 COUNTERPARTS. This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by facsimile transmission), and all of said counterparts taken
together shall be deemed to constitute one and the same instrument. A set of the
copies of this Agreement signed by all the parties shall be lodged with the
Borrowers and the Administrative Agent.

                9.9 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.

                9.10 INTEGRATION. This Agreement and the other Loan Documents
represent the agreement of the Borrowers, the Agents and the Lenders with
respect to the subject matter hereof, and there are no promises, undertakings,
representations or warranties by the Agents or any Lender relative to subject
matter hereof not expressly set forth or referred to herein or in the other Loan
Documents.

<PAGE>   78
                                                                              73

                9.11 GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

                9.12 SUBMISSION TO JURISDICTION; WAIVERS. Each Borrower hereby
irrevocably and unconditionally:

                (a) submits for itself and its property in any legal action or
        proceeding relating to this Agreement and the other Loan Documents to
        which it is a party, or for recognition and enforcement of any judgment
        in respect thereof, to the non-exclusive general jurisdiction of the
        Courts of the State of New York, the courts of the United States of
        America for the Southern District of New York, and appellate courts from
        any thereof;

                (b) consents that any such action or proceeding may be brought
        in such courts and waives any objection that it may now or hereafter
        have to the venue of any such action or proceeding in any such court or
        that such action or proceeding was brought in an inconvenient court and
        agrees not to plead or claim the same;

                (c) agrees that service of process in any such action or
        proceeding may be effected by mailing a copy thereof by registered or
        certified mail (or any substantially similar form of mail), postage
        prepaid, to such Borrower at its address set forth in subsection 9.2 or
        at such other address of which the Administrative Agent shall have been
        notified pursuant thereto;

                (d) agrees that nothing herein shall affect the right to effect
        service of process in any other manner permitted by law or shall limit
        the right to sue in any other jurisdiction; and

                (e) waives, to the maximum extent not prohibited by law, any
        right it may have to claim or recover in any legal action or proceeding
        referred to in this subsection any special, exemplary, punitive or
        consequential damages.

                9.13 ACKNOWLEDGEMENTS. Each Borrower hereby acknowledges that:

                (a) it has been advised by counsel in the negotiation, execution
        and delivery of this Agreement and the other Loan Documents;

                (b) neither of the Agents nor any Lender has any fiduciary
        relationship with or duty to such Borrower arising out of or in
        connection with this Agreement or any of the other Loan Documents, and
        the relationship between the Agents and Lenders, on one hand, and such
        Borrower, on the other hand, in connection herewith or therewith is
        solely that of debtor and creditor; and

                (c) no joint venture is created hereby or by the other Loan
        Documents or otherwise exists by virtue of the transactions contemplated
        hereby among the Lenders or among the Borrowers and the Lenders.

<PAGE>   79
                                                                              74

                9.14 PARTNER LIABILITY. None of the limited partners (or any of
their respective heirs, representatives, successors or assigns) of Holdings will
have any personal liability for the payment of the Loans or any other
obligations secured pursuant to the Security Documents or for the performance of
any obligations of the Borrowers or any Subsidiaries under this Agreement,
whether arising by law or contract.

                9.15 CONFIDENTIALITY. Each Lender agrees to keep confidential
any written information (a) provided to it by or on behalf of the Borrowers
pursuant to or in connection with this Agreement or (b) obtained by such Lender
based on a review of the books and records of the Borrowers; provided that
nothing herein shall prevent any Lender from disclosing any such information (i)
to the Agents or any other Lender, (ii) to any Transferee or prospective
Transferee which agrees to comply with the provisions of this subsection, (iii)
to its affiliates and its and their employees, directors, agents, attorneys,
accountants and other professional advisors, (iv) upon the request or demand of
any Governmental Authority having jurisdiction over such Lender, (v) in response
to any order of any court or other Governmental Authority or as may otherwise be
required pursuant to any Requirement of Law, (vi) for the purpose of defending
itself, reducing its liability, or protecting or exercising any of its claims,
rights, remedies or interests under or in connection with the Loan Documents,
any Interest Rate Agreement or the Collateral, (vii) which has been publicly
disclosed other than in breach of this Agreement, (viii) in connection with the
exercise of any remedy hereunder or (ix) with the consent of the Borrowers, to
any other Person which agrees to comply with the provisions of this subsection.

                9.16 WAIVERS OF JURY TRIAL. THE BORROWERS, THE AGENTS AND THE
LENDERS HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND
FOR ANY COUNTERCLAIM THEREIN.

                     [rest of page intentionally left blank]

<PAGE>   80
                                                                              75

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly authorized officers as of
the day and year first above written.

                                    TRANSWESTERN PUBLISHING COMPANY, LLC

                                    By:   /s/
                                       ---------------------------------
                                    Title:

                                    WORLDPAGES.COM, INC.

                                    By:   /s/
                                       ---------------------------------
                                    Title:

                                    TWP CAPITAL CORP. II

                                    By:   /s/
                                       ---------------------------------
                                    Title:

                                    CANADIAN IMPERIAL BANK OF COMMERCE,
                                    NEW YORK AGENCY, as Administrative Agent

                                    By:   /s/
                                       ---------------------------------
                                    Title:

                                    CIBC INC., as a Lender

                                    By:   /s/
                                       ---------------------------------
                                    Title:

                                    FIRST UNION NATIONAL BANK, as
                                    Syndication Agent and as a Lender

                                    By:   /s/
                                       ---------------------------------
                                    Title:

                                    FLEET NATIONAL BANK, as
                                    Documentation Agent and as a Lender

                                    By:   /s/
                                       ---------------------------------
                                    Title:

<PAGE>   81

                                                                 SCHEDULE 2.7 TO
                                                            THE CREDIT AGREEMENT

                                  AMORTIZATION

                               TRANCHE A TERM LOAN

<TABLE>
<CAPTION>
                                                           QUARTERLY
                 DATE                                    AMORTIZATION
                 ----                                    ------------
<S>                                                      <C>
          September 30, 2001                             $    656,250
          December 31, 2001                              $    656,250

          March 31, 2002                                 $    656,250
          June 30, 2002                                  $    656,250
          September 30, 2002                             $    875,000
          December 31, 2002                              $    875,000

          March 31, 2003                                 $    875,000
          June 30, 2003                                  $    875,000
          September 30, 2003                             $  1,312,500
          December 31, 2003                              $  1,312,500

          March 31, 2004                                 $  1,312,500
          June 30, 2004                                  $  1,312,500
          September 30, 2004                             $  1,531,250
          December 31, 2004                              $  1,531,250

          March 31, 2005                                 $  1,531,250
          June 30, 2005                                  $  1,531,250
          September 30, 2005                             $  1,750,000
          December 31, 2005                              $  1,750,000

          March 31, 2006                                 $  1,750,000
          June 30, 2006                                  $  1,750,000
          September 30, 2006                             $  2,625,000
          December 31, 2006                              $  2,625,000

          March 31, 2007                                 $  2,625,000
          June 27, 2007                                  $  2,625,000

          TOTAL                                          $ 35,000,000
</TABLE>

<PAGE>   82

                               TRANCHE B TERM LOAN

<TABLE>
<CAPTION>
                                                           QUARTERLY
                 DATE                                    AMORTIZATION
                 ----                                    ------------
<S>                                                      <C>
          September 30, 2001                             $    500,000
          December 31, 2001                              $    500,000

          March 31, 2002                                 $    500,000
          June 30, 2002                                  $    500,000
          September 30, 2002                             $    500,000
          December 31, 2002                              $    500,000

          March 31, 2003                                 $    500,000
          June 30, 2003                                  $    500,000
          September 30, 2003                             $    500,000
          December 31, 2003                              $    500,000

          March 31, 2004                                 $    500,000
          June 30, 2004                                  $    500,000
          September 30, 2004                             $    500,000
          December 31, 2004                              $    500,000

          March 31, 2005                                 $    500,000
          June 30, 2005                                  $    500,000
          September 30, 2005                             $    500,000
          December 31, 2005                              $    500,000

          March 31, 2006                                 $    500,000
          June 30, 2006                                  $    500,000
          September 30, 2006                             $    500,000
          December 31, 2006                              $    500,000

          March 31, 2007                                 $    500,000
          June 30, 2007                                  $    500,000
          September 30, 2007                             $ 47,000,000
          December 31, 2007                              $ 47,000,000

          March 31, 2008                                 $ 47,000,000
          June 27, 2008                                  $ 47,000,000

          TOTAL                                          $200,000,000
</TABLE>

<PAGE>   83

SCHEDULES

Schedule 1.1A     Commitments and Addresses
Schedule 1.2      Executive Agreement Signatories
Schedule 2.7      Amortization
Schedule 3.2      Material Adverse Effect
Schedule 3.21     Ownership
Schedule 3.22     Subsidiaries
Schedule 5.6      Litigation
Schedule 5.8      Excluded Subsidiaries
Schedule 6.2      Existing Indebtedness
Schedule 6.3      Existing Liens
Schedule 6.4      Existing Guarantee Obligations
Schedule 6.10     Investments, Loans and Advances

EXHIBITS

Exhibit A         Form of Revolving Credit Note
Exhibit B         Form of Tranche A Term Note
Exhibit C         Form of Tranche B Term Note
Exhibit D         Form of Guarantee and Collateral Agreement
Exhibit E         Form of Assignment and Acceptance
Exhibit F         Form of Closing Certificate
Exhibit G-1       Form of Opinion of Counsel to Borrowers (Kirkland & Ellis)
Exhibit G-2       Form of Opinion of Canadian Counsel to YPtel Corporation
Exhibit H         Form of Notice of Conversion/Continuation
Exhibit I         Form of Prepayment Option Notice
Exhibit J         Form of Pricing Certificate
Exhibit K         Form of Exemption Certificate<PAGE>   1

                                                                   EXHIBIT 10.2

                                                                  EXECUTION COPY

================================================================================

             AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT

                                     made by

                           TRANSWESTERN HOLDINGS L.P.,

                              WORLDPAGES.COM, INC.,

                              TWP CAPITAL CORP. II,

                      TRANSWESTERN PUBLISHING COMPANY, LLC

                         and certain of its Subsidiaries

                                   in favor of

                       CANADIAN IMPERIAL BANK OF COMMERCE,

                             as Administrative Agent

                            Dated as of June 28, 2001

================================================================================

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                      Page
                                                                                                      ----
<S>                                                                                                    <C>
SECTION 1. DEFINED TERMS ...............................................................................2
           1.1       Definitions........................................................................2
           1.2       Other Definitional Provisions......................................................5

SECTION 2. GUARANTEE ...................................................................................5
           2.1       Guarantee .........................................................................5
           2.2       Right of Contribution..............................................................6
           2.3       No Subrogation.....................................................................6
           2.4       Amendments, etc. with respect to the Borrower Obligations..........................6
           2.5       Guarantee Absolute and Unconditional...............................................7
           2.6       Reinstatement......................................................................8
           2.7       Payments ..........................................................................8

SECTION 3. GRANT OF SECURITY INTEREST...................................................................8

SECTION 4. REPRESENTATIONS AND WARRANTIES...............................................................9
           4.1       Title; No Other Liens..............................................................9
           4.2       Perfected First Priority Liens.....................................................9
           4.3       Jurisdiction of Organization; Chief Executive Office..............................10
           4.4       Inventory and Equipment...........................................................10
           4.5       Farm Products.....................................................................10
           4.6       Investment Property...............................................................10
           4.7       Receivables.......................................................................10
           4.8       Intellectual Property.............................................................10
           4.9       Holdings Representations..........................................................11

SECTION 5. COVENANTS ..................................................................................12
           5.1       Delivery of Instruments, Certificated Securities and Chattel Paper................12
           5.2       Maintenance of Insurance..........................................................12
           5.3       Payment of Obligations............................................................12
           5.4       Maintenance of Perfected Security Interest; Further Documentation.................12
           5.5       Changes in Locations, Name, etc...................................................13
           5.6       Notices ..........................................................................13
           5.7       Investment Property...............................................................13
           5.8       Receivables.......................................................................14
           5.9       Intellectual Property.............................................................15

SECTION 6. REMEDIAL PROVISIONS ........................................................................16
           6.1       Certain Matters Relating to Receivables...........................................16
</TABLE>

                                        i
<PAGE>   3

<TABLE>
<S>                                                                                                   <C>
           6.2       Communications with Obligors; Grantors Remain Liable..............................17
           6.3       Pledged Stock.....................................................................17
           6.4       Proceeds to be Turned Over To Administrative Agent................................18
           6.5       Application of Proceeds...........................................................18
           6.6       Code and Other Remedies...........................................................19
           6.7       Registration Rights...............................................................19
           6.8       Waiver; Deficiency................................................................20

SECTION 7. THE ADMINISTRATIVE AGENT....................................................................20
           7.1       Administrative Agent's Appointment as Attorney-in-Fact, etc. .....................20
           7.2       Duty of Administrative Agent......................................................22
           7.3       Execution of Financing Statements.................................................22
           7.4       Authority of Administrative Agent.................................................23

SECTION 8. MISCELLANEOUS ..............................................................................23
           8.1       Amendments in Writing.............................................................23
           8.2       Notices ..........................................................................23
           8.3       No Waiver by Course of Conduct; Cumulative Remedies...............................23
           8.4       Enforcement Expenses; Indemnification.............................................23
           8.5       Successors and Assigns............................................................24
           8.6       Set-Off ..........................................................................24
           8.7       Counterparts......................................................................24
           8.8       Severability......................................................................24
           8.9       Section Headings..................................................................25
           8.10      Integration.......................................................................25
           8.11      GOVERNING LAW.....................................................................25
           8.12      Submission To Jurisdiction; Waivers...............................................25
           8.13      Acknowledgements..................................................................25
           8.14      Additional Grantors...............................................................26
           8.15      Releases .........................................................................26
           8.16      WAIVER OF JURY TRIAL..............................................................26
</TABLE>

SCHEDULES

Schedule 1  Notice Addresses
Schedule 2  Investment Property
Schedule 3  Perfection Matters
Schedule 4  Jurisdictions of Organization and Chief Executive Offices
Schedule 5  Inventory and Equipment Locations
Schedule 6  Intellectual Property

<PAGE>   4

             AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT

        AMENDED AND RESTATED GUARANTEE AND COLLATERAL AGREEMENT, dated as of
June 28, 2001, made by each of the signatories hereto (together with any other
entity that may become a party hereto as provided herein, the "Grantors"), in
favor of Canadian Imperial Bank of Commerce, New York Agency, as Administrative
Agent (in such capacity, the "Administrative Agent") for the banks and other
financial institutions (the "Lenders") from time to time parties to the Second
Amended and Restated Credit Agreement, dated as of June 28, 2001 (as amended,
supplemented or otherwise modified from time to time, the "Credit Agreement"),
among TransWestern Publishing Company, LLC (the "Company"), WorldPages.com, Inc.
("WPZ"), TWP Capital Corp. II ("TWP Capital II" and, collectively with the
Company and WPZ, the "Borrowers"), the Lenders, the Documentation Agent and
Syndication Agent named therein and the Administrative Agent.

                              W I T N E S S E T H:

        WHEREAS, the Company and TWP Capital II are parties to the Assumed
Amended and Restated Borrowers Security Agreement (the "Existing Borrowers
Security Agreement"), dated as of November 6, 1997, made in favor of the
Administrative Agent for the banks and other financial institutions parties to
the Assumption Agreement and Amended and Restated Credit Agreement, dated as of
November 6, 1997 (as amended, supplemented or otherwise modified from time to
time, the "Existing Credit Agreement"), among the Company, TWP Capital II, the
lenders parties thereto, the Administrative Agent and First Union National Bank,
as documentation agent thereunder;

        WHEREAS, TransWestern Holdings L.P. ("Holdings") is a party to the
Pledge Agreement (the "Existing Holdings Pledge Agreement"), dated as of
November 6, 1997, made in favor of the Administrative Agent for the Lenders
party to the Existing Credit Agreement;

        WHEREAS, the Borrowers have requested that the Administrative Agent and
the Lenders party to the Existing Credit Agreement amend and restate the
provisions of the Existing Credit Agreement and the Administrative Agent and
such Lenders have agreed to do so;

        WHEREAS, the Existing Credit Agreement has been superseded, amended and
restated by the Credit Agreement, pursuant to which the Lenders have severally
agreed to make extensions of credit to the Borrowers upon the terms and subject
to the conditions set forth therein; and

        WHEREAS, it is a condition precedent to the obligation of the Lenders to
make their respective extensions of credit to the Borrowers under the Credit
Agreement that the Existing Borrowers Security Agreement and the Existing
Holdings Pledge Agreement be amended and restated in the form of a single
instrument and that the Grantors shall have executed and delivered this
Agreement to the Administrative Agent for the ratable benefit of the Lenders;

        NOW, THEREFORE, in consideration of the premises and to induce the
Administrative Agent and the Lenders to enter into the Credit Agreement and to
induce the Lenders to make their respective extensions of credit to the
Borrowers thereunder, each Grantor hereby agrees with the Administrative Agent,
for the ratable benefit of the Lenders, that the

<PAGE>   5
                                                                               2

Existing Borrowers Security Agreement and the Existing Holdings Pledge Agreement
shall be amended and restated to read in their entireties as follows:

                            SECTION 1. DEFINED TERMS

        1.1 Definitions (a) Unless otherwise defined herein, terms defined in
the Credit Agreement and used herein shall have the meanings given to them in
the Credit Agreement, and the following terms are used herein as defined in the
New York UCC: Accounts, Certificated Security, Chattel Paper, Documents,
Equipment, Farm Products, Instruments and Inventory.

        (b) The following terms shall have the following meanings:

            "Agreement": this Amended and Restated Guarantee and Collateral
Agreement, as the same may be amended, supplemented or otherwise modified from
time to time.

            "Borrower Obligations": the collective reference to the unpaid
principal of and interest on the Loans and all other obligations and liabilities
of the Borrowers (including, without limitation, interest accruing at the then
applicable rate provided in the Credit Agreement after the maturity of the Loans
and interest accruing at the then applicable rate provided in the Credit
Agreement after the filing of any petition in bankruptcy, or the commencement of
any insolvency, reorganization or like proceeding, relating to a Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) to the Administrative Agent or any Lender (or, in the case of
any Lender Interest Rate Agreement, any Affiliate of any Lender), whether direct
or indirect, absolute or contingent, due or to become due, or now existing or
hereafter incurred, which may arise under, out of, or in connection with, the
Credit Agreement, this Agreement, the other Loan Documents, any Lender Interest
Rate Agreement or any other document made, delivered or given in connection with
any of the foregoing, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to the
Administrative Agent or to the Lenders that are required to be paid by a
Borrower pursuant to the terms of any of the foregoing agreements).

            "Collateral": as defined in Section 3.

            "Collateral Account": any collateral account established by the
Administrative Agent as provided in Section 6.1 or 6.4.

            "Contracts": all contracts and agreements to which any Grantor is a
party, all rights of such Grantor thereunder, and all rights of any Grantor
under contracts and agreements under which such Grantor has any right, title or
interest or to which such Grantor or any property of such Grantor is subject,
including, without limitation, all licensing and other agreements relating to
the provision and/or use of names and telephone numbers supplied to such Grantor
by any party for publication by such Grantor in any directory or list, and in
each case including, without limitation, (i) all rights of any Grantor to
receive moneys due and to become due to it thereunder or in connection
therewith, (ii) all rights of any Grantor to damages arising thereunder and
(iii) all rights of any Grantor to perform and to exercise all remedies
thereunder.

            "Copyrights": (i) all copyrights arising under the laws of the
United States, any other country or any political subdivision thereof, whether
registered or unregistered and whether

<PAGE>   6
                                                                               3

published or unpublished (including, without limitation, those listed in
Schedule 6), all registrations and recordings thereof, and all applications in
connection therewith, including, without limitation, all registrations,
recordings and applications in the United States Copyright Office, and (ii) the
right to obtain all renewals thereof.

                  "Copyright Licenses": any written agreement naming any Grantor
as licensor or licensee (including, without limitation, those listed in Schedule
6), granting any right under any Copyright, including, without limitation, the
grant of rights to manufacture, distribute, exploit and sell materials derived
from any Copyright.

            "Foreign Subsidiary": any Subsidiary organized under the laws of any
jurisdiction outside the United States of America.

            "Foreign Subsidiary Voting Stock": the voting Capital Stock of any
Foreign Subsidiary.

            "General Intangibles": all "general intangibles" as such term is
defined in Section 9-106 of the New York UCC and, in any event, including,
without limitation, with respect to any Grantor, all contracts, agreements,
instruments and indentures in any form, and portions thereof, to which such
Grantor is a party or under which such Grantor has any right, title or interest
or to which such Grantor or any property of such Grantor is subject, as the same
may from time to time be amended, supplemented or otherwise modified, including,
without limitation, (i) all rights of such Grantor to receive moneys due and to
become due to it thereunder or in connection therewith, (ii) all rights of such
Grantor to damages arising thereunder and (iii) all rights of such Grantor to
perform and to exercise all remedies thereunder, in each case to the extent the
terms thereof (after giving effect to any consent that has been obtained, it
being understood that such Grantor is not obligated to obtain any such consent)
do not prohibit the grant by such Grantor of a security interest pursuant to
this Agreement in its right, title and interest therein without the consent of
any other party thereto and do not give any other party thereto the right to
terminate its obligations thereunder; provided, that the foregoing limitation
shall not affect, limit, restrict or impair the grant by such Grantor of a
security interest pursuant to this Agreement in any Receivable or any money or
other amounts due or to become due or other right to payment under any such
contract, agreement, instrument or indenture.

            "Guarantor Obligations": with respect to any Guarantor, all
obligations and liabilities of such Guarantor which may arise under or in
connection with this Agreement (including, without limitation, Section 2) or any
other Loan Document to which such Guarantor is a party, in each case whether on
account of guarantee obligations, reimbursement obligations, fees, indemnities,
costs, expenses or otherwise (including, without limitation, all fees and
disbursements of counsel to the Administrative Agent or to the Lenders that are
required to be paid by such Guarantor pursuant to the terms of this Agreement or
any other Loan Document).

            "Guarantors": the collective reference to each Grantor other than
the Borrowers and Holdings.

            "Intellectual Property": the collective reference to all rights,
priorities and privileges relating to intellectual property, whether arising
under United States, multinational or foreign laws or otherwise, including,
without limitation, the Copyrights, the Copyright Licenses, the Patents, the
Patent Licenses, the Trademarks and the Trademark Licenses, and all rights to

<PAGE>   7
                                                                               4

sue at law or in equity for any infringement or other impairment thereof,
including the right to receive all proceeds and damages therefrom.

            "Intercompany Note": any promissory note evidencing loans made by
any Grantor to Holdings or any of its Subsidiaries.

            "Investment Property": the collective reference to (i) all
"investment property" as such term is defined in Section 9-115 of the New York
UCC (other than any Foreign Subsidiary Voting Stock excluded from the definition
of "Pledged Stock") and (ii) whether or not constituting "investment property"
as so defined, all Pledged Notes and all Pledged Stock.

            "Issuers": the collective reference to each issuer of any Investment
Property.

            "Lender Interest Rate Agreements": all Interest Rate Agreements
entered into by a Borrower with any Lender (or any Affiliate of any Lender).

            "New York UCC": the Uniform Commercial Code as from time to time in
effect in the State of New York.

            "Obligations": (i) in the case of the Borrowers, the Borrower
Obligations, and (ii) in the case of each Guarantor, its Guarantor Obligations.

            "Patents": (i) all letters patent of the United States, any other
country or any political subdivision thereof, all reissues and extensions
thereof and all goodwill associated therewith, including, without limitation,
any of the foregoing referred to in Schedule 6, (ii) all applications for
letters patent of the United States or any other country and all divisions,
continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule 6, and (iii) all rights to obtain
any reissues or extensions of the foregoing.

            "Patent License": all agreements, whether written or oral, providing
for the grant by or to any Grantor of any right to manufacture, use or sell any
invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in Schedule 6.

            "Pledged Notes": all promissory notes listed on Schedule 2, all
Intercompany Notes at any time issued to any Grantor and all other promissory
notes issued to or held by any Grantor (other than promissory notes issued in
connection with extensions of trade credit by any Grantor in the ordinary course
of business).

            "Pledged Stock": the shares of Capital Stock listed on Schedule 2,
together with any other shares, stock certificates, options, interests or rights
of any nature whatsoever in respect of the Capital Stock of any Person that may
be issued or granted to, or held by, any Grantor while this Agreement is in
effect; provided that in no event shall more than 65% of the total outstanding
Foreign Subsidiary Voting Stock of any Foreign Subsidiary be required to be
pledged hereunder.

            "Proceeds": all "proceeds" as such term is defined in Section
9-306(1) of the New York UCC and, in any event, shall include, without
limitation, all dividends or other income from the Investment Property,
collections thereon or distributions or payments with respect thereto.

<PAGE>   8
                                                                               5

            "Receivable": any right to payment for goods sold or leased or for
services rendered, whether or not such right is evidenced by an Instrument or
Chattel Paper and whether or not it has been earned by performance (including,
without limitation, any Account).

            "Securities Act": the Securities Act of 1933, as amended.

            "Trademarks": (i) all trademarks, trade names, corporate names,
company names, business names, fictitious business names, trade styles, service
marks, logos and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common-law
rights related thereto, including, without limitation, any of the foregoing
referred to in Schedule 6, and (ii) the right to obtain all renewals thereof.

            "Trademark License": any agreement, whether written or oral,
providing for the grant by or to any Grantor of any right to use any Trademark,
including, without limitation, any of the foregoing referred to in Schedule 6.

        1.2 Other Definitional Provisions. The words "hereof," "herein",
"hereto" and "hereunder" and words of similar import when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of
this Agreement, and Section and Schedule references are to this Agreement unless
otherwise specified.

        (b) The meanings given to terms defined herein shall be equally
applicable to both the singular and plural forms of such terms.

        (c) Where the context requires, terms relating to the Collateral or any
part thereof, when used in relation to a Grantor, shall refer to such Grantor's
Collateral or the relevant part thereof.

                              SECTION 2. GUARANTEE

        2.1 Guarantee. (a) Each of the Guarantors hereby, jointly and severally,
unconditionally and irrevocably, guarantees to the Administrative Agent, for the
ratable benefit of the Lenders and their respective successors, indorsees,
transferees and assigns, the prompt and complete payment and performance by the
Borrowers when due (whether at the stated maturity, by acceleration or
otherwise) of the Borrower Obligations.

        (b) Anything herein or in any other Loan Document to the contrary
notwithstanding, the maximum liability of each Guarantor hereunder and under the
other Loan Documents shall in no event exceed the amount which can be guaranteed
by such Guarantor under applicable federal and state laws relating to the
insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

        (c) Each Guarantor agrees that the Borrower Obligations may at any time
and from time to time exceed the amount of the liability of such Guarantor
hereunder without impairing the guarantee contained in this Section 2 or
affecting the rights and remedies of the Administrative Agent or any Lender
hereunder.

<PAGE>   9
                                                                               6

           (d) The guarantee contained in this Section 2 shall remain in full
force and effect until all the Borrower Obligations and the obligations of each
Guarantor under the guarantee contained in this Section 2 shall have been
satisfied by payment in full, and the Revolving Credit Commitments shall be
terminated, notwithstanding that from time to time during the term of the Credit
Agreement the Borrowers may be free from any Borrower Obligations.

           (e) No payment made by the Borrowers, any of the Guarantors, any
other guarantor or any other Person or received or collected by the
Administrative Agent or any Lender from the Borrowers, any of the Guarantors,
any other guarantor or any other Person by virtue of any action or proceeding or
any set-off or appropriation or application at any time or from time to time in
reduction of or in payment of the Borrower Obligations shall be deemed to
modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment
made by such Guarantor in respect of the Borrower Obligations or any payment
received or collected from such Guarantor in respect of the Borrower
Obligations), remain liable for the Borrower Obligations up to the maximum
liability of such Guarantor hereunder until the Borrower Obligations are paid in
full, and the Revolving Credit Commitments are terminated

        2.2 Right of Contribution. Each Guarantor hereby agrees that to the
extent that a Guarantor shall have paid more than its proportionate share of any
payment made hereunder, such Guarantor shall be entitled to seek and receive
contribution from and against any other Guarantor hereunder which has not paid
its proportionate share of such payment. Each Guarantor's right of contribution
shall be subject to the terms and conditions of Section 2.3. The provisions of
this Section 2.2 shall in no respect limit the obligations and liabilities of
any Guarantor to the Administrative Agent and the Lenders, and each Guarantor
shall remain liable to the Administrative Agent and the Lenders for the full
amount guaranteed by such Guarantor hereunder.

        2.3 No Subrogation. Notwithstanding any payment made by any Guarantor
hereunder or any set-off or application of funds of any Guarantor by the
Administrative Agent or any Lender, no Guarantor shall be entitled to be
subrogated to any of the rights of the Administrative Agent or any Lender
against the Borrowers or any other Guarantor or any collateral security or
guarantee or right of offset held by the Administrative Agent or any Lender for
the payment of the Borrower Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrowers or any
other Guarantor in respect of payments made by such Guarantor hereunder, until
all amounts owing to the Administrative Agent and the Lenders by the Borrowers
on account of the Borrower Obligations are paid in full, and the Revolving
Credit Commitments are terminated. If any amount shall be paid to any Guarantor
on account of such subrogation rights at any time when all of the Borrower
Obligations shall not have been paid in full, such amount shall be held by such
Guarantor in trust for the Administrative Agent and the Lenders, segregated from
other funds of such Guarantor, and shall, forthwith upon receipt by such
Guarantor, be turned over to the Administrative Agent in the exact form received
by such Guarantor (duly indorsed by such Guarantor to the Administrative Agent,
if required), to be applied against the Borrower Obligations, whether matured or
unmatured, in such order as the Administrative Agent may determine.

        2.4 Amendments, etc. with respect to the Borrower Obligations. Each
Guarantor shall remain obligated hereunder notwithstanding that, without any
reservation of rights against any Guarantor and without notice to or further
assent by any Guarantor, any demand for payment

<PAGE>   10

                                                                              7

of any of the Borrower Obligations made by the Administrative Agent or any
Lender may be rescinded by the Administrative Agent or such Lender and any of
the Borrower Obligations continued, and the Borrower Obligations, or the
liability of any other Person upon or for any part thereof, or any collateral
security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified,
accelerated, compromised, waived, surrendered or released by the Administrative
Agent or any Lender, and the Credit Agreement and the other Loan Documents and
any other documents executed and delivered in connection therewith may be
amended, modified, supplemented or terminated, in whole or in part, as the
Administrative Agent (or the Required Lenders or all Lenders, as the case may
be) may deem advisable from time to time, and any collateral security, guarantee
or right of offset at any time held by the Administrative Agent or any Lender
for the payment of the Borrower Obligations may be sold, exchanged, waived,
surrendered or released. Neither the Administrative Agent nor any Lender shall
have any obligation to protect, secure, perfect or insure any Lien at any time
held by it as security for the Borrower Obligations or for the guarantee
contained in this Section 2 or any property subject thereto.

        2.5 Guarantee Absolute and Unconditional. Each Guarantor waives any and
all notice of the creation, renewal, extension or accrual of any of the Borrower
Obligations and notice of or proof of reliance by the Administrative Agent or
any Lender upon the guarantee contained in this Section 2 or acceptance of the
guarantee contained in this Section 2; the Borrower Obligations, and any of
them, shall conclusively be deemed to have been created, contracted or incurred,
or renewed, extended, amended or waived, in reliance upon the guarantee
contained in this Section 2; and all dealings between the Borrowers and any of
the Guarantors, on the one hand, and the Administrative Agent and the Lenders,
on the other hand, likewise shall be conclusively presumed to have been had or
consummated in reliance upon the guarantee contained in this Section 2. Each
Guarantor waives diligence, presentment, protest, demand for payment and notice
of default or nonpayment to or upon the Borrowers or any of the Guarantors with
respect to the Borrower Obligations. Each Guarantor understands and agrees that
the guarantee contained in this Section 2 shall be construed as a continuing,
absolute and unconditional guarantee of payment without regard to (a) the
validity or enforceability of the Credit Agreement or any other Loan Document,
any of the Borrower Obligations or any other collateral security therefor or
guarantee or right of offset with respect thereto at any time or from time to
time held by the Administrative Agent or any Lender, (b) any defense, set-off or
counterclaim (other than a defense of payment or performance) which may at any
time be available to or be asserted by the Borrowers or any other Person against
the Administrative Agent or any Lender, or (c) any other circumstance whatsoever
(with or without notice to or knowledge of the Borrowers or such Guarantor)
which constitutes, or might be construed to constitute, an equitable or legal
discharge of the Borrowers for the Borrower Obligations, or of such Guarantor
under the guarantee contained in this Section 2, in bankruptcy or in any other
instance. When making any demand hereunder or otherwise pursuing its rights and
remedies hereunder against any Guarantor, the Administrative Agent or any Lender
may, but shall be under no obligation to, make a similar demand on or otherwise
pursue such rights and remedies as it may have against the Borrowers, any other
Guarantor or any other Person or against any collateral security or guarantee
for the Borrower Obligations or any right of offset with respect thereto, and
any failure by the Administrative Agent or any Lender to make any such demand,
to pursue such other rights or remedies or to collect any payments from the
Borrowers, any other Guarantor or any other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of offset, or any
release of the Borrowers, any other Guarantor or any

<PAGE>   11
                                                                               8

other Person or any such collateral security, guarantee or right of offset,
shall not relieve any Guarantor of any obligation or liability hereunder, and
shall not impair or affect the rights and remedies, whether express, implied or
available as a matter of law, of the Administrative Agent or any Lender against
any Guarantor. For the purposes hereof "demand" shall include the commencement
and continuance of any legal proceedings.

        2.6 Reinstatement. The guarantee contained in this Section 2 shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the Borrower Obligations is rescinded or
must otherwise be restored or returned by the Administrative Agent or any Lender
upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of
the Borrowers or any Guarantor, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for, the
Borrowers or any Guarantor or any substantial part of its property, or
otherwise, all as though such payments had not been made.

        2.7 Payments. Each Guarantor hereby guarantees that payments hereunder
will be paid to the Administrative Agent without set-off or counterclaim in
Dollars at the office of the Administrative Agent specified in subsection 9.2 of
the Credit Agreement.

                     SECTION 3. GRANT OF SECURITY INTEREST

        Each Grantor hereby grants to the Administrative Agent, for the ratable
benefit of the Lenders, a security interest in, all of the following property
now owned or at any time hereafter acquired by such Grantor or in which such
Grantor now has or at any time in the future may acquire any right, title or
interest (collectively, the "Collateral"), as collateral security for the prompt
and complete payment and performance when due (whether at the stated maturity,
by acceleration or otherwise) of such Grantor's Obligations:

        (a)     all Accounts;

        (b)     all Chattel Paper;

        (c)     all Contracts;

        (d)     all Documents;

        (e)     all Equipment;

        (f)     all General Intangibles;

        (g)     all Instruments;

        (h)     all Intellectual Property;

        (i)     all Inventory;

        (j)     all Investment Property;

        (k)     all books and records pertaining to the Collateral; and

<PAGE>   12
                                                                               9

        (l) to the extent not otherwise included, all Proceeds and products of
any and all of the foregoing and all collateral security and guarantees given by
any Person with respect to any of the foregoing;

provided that, with respect to Holdings, "Collateral" shall mean only the shares
of Capital Stock issued by the Borrowers and owned by Holdings that are listed
on Schedule 2, and all Proceeds and products of such shares of Capital Stock,
provided further that, subject to Section 5.8 of the Credit Agreement, with
respect to YPtel Corporation, a Nova Scotia unlimited company (or its successors
or assigns, as applicable), "Collateral" shall mean only (i) each promissory
note issued to YPtel Corporation by WPZ and (ii) the shares of Capital Stock
issued by YPTel, Inc., a Washington corporation, and owned by YPtel Corporation
(or its successors or assigns, as applicable), in each case, that are listed on
Schedule 2, and all Proceeds and products of such shares of Capital Stock, and
provided further that the term "Collateral" shall in no event include any of the
foregoing constituting rights under a contract, license or other agreement or
any Intellectual Property to the extent the grant of a security interest
pursuant to this Agreement is prohibited by such contract, license or other
agreement or Intellectual Property without the consent of any other party
thereto, would give any other party to such Intellectual Property the right to
terminate its obligations thereunder, or is not permitted without consent unless
all necessary consents to such grant of a security interest have been obtained
from the other parties thereto (it being understood that the foregoing shall not
be deemed to obligate the applicable Grantor to obtain such consents but such
Grantor agrees to use commercially reasonable efforts to obtain such consents).

                   SECTION 4. REPRESENTATIONS AND WARRANTIES

        To induce the Administrative Agent and the Lenders to enter into the
Credit Agreement and to induce the Lenders to make their respective extensions
of credit to the Borrowers thereunder, each Grantor hereby represents and
warrants to the Administrative Agent and each Lender that:

        4.1 Title; No Other Liens. Except for the security interest granted to
the Administrative Agent for the ratable benefit of the Lenders pursuant to this
Agreement and the other Liens permitted to exist on the Collateral by the Credit
Agreement, such Grantor owns each item of the Collateral free and clear of any
and all Liens or claims of others. No financing statement or other public notice
with respect to all or any part of the Collateral is on file or of record in any
public office, except such as have been filed in favor of the Administrative
Agent, for the ratable benefit of the Lenders, pursuant to this Agreement or as
are permitted by the Credit Agreement.

        4.2 Perfected First Priority Liens. The security interests granted
pursuant to this Agreement (a) upon completion of the filings and other actions
specified on Schedule 3 (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Administrative Agent in
completed and duly executed form) will constitute valid perfected security
interests in all of the Collateral in favor of the Administrative Agent, for the
ratable benefit of the Lenders, as collateral security for such Grantor's
Obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase any Collateral
from such Grantor and (b) are prior to all other Liens on the Collateral in
existence on the date hereof except for unrecorded Liens permitted by the Credit
Agreement which have priority over the Liens on the Collateral by operation of
law.

<PAGE>   13
                                                                              10

        4.3 Jurisdiction of Organization; Chief Executive Office. On the date
hereof, such Grantor's jurisdiction of organization and the location of such
Grantor's chief executive office or sole place of business are specified on
Schedule 4.

        4.4 Inventory and Equipment. On the date hereof, the Inventory and the
Equipment (other than mobile goods) are kept at the locations listed on Schedule
5.

        4.5 Farm Products. None of the Collateral constitutes, or is the
Proceeds of, Farm Products.

        4.6 Investment Property. (a) The shares of Pledged Stock pledged by such
Grantor hereunder constitute all the issued and outstanding shares of all
classes of the Capital Stock of each Issuer owned by such Grantor or, in the
case of Foreign Subsidiary Voting Stock, if less, 65% of the outstanding Foreign
Subsidiary Voting Stock of each relevant Issuer.

        (b) All the shares of the Pledged Stock have been duly and validly
issued and are fully paid and nonassessable.

        (c) Each of the Pledged Notes constitutes the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with
its terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing.

        (d) Such Grantor is the record and beneficial owner of, and has good and
marketable title to, the Investment Property pledged by it hereunder, free of
any and all Liens or options in favor of, or claims of, any other Person, except
the security interest created by this Agreement.

        4.7 Receivables. (a) No amount payable to such Grantor under or in
connection with any Receivable is evidenced by any Instrument or Chattel Paper
which has not been delivered to the Administrative Agent.

        (b) The amounts represented by such Grantor to the Lenders from time to
time as owing to such Grantor in respect of the Receivables will at such times
be accurate.

        4.8 Intellectual Property. (a) Schedule 6 lists all Intellectual
Property owned by such Grantor in its own name on the date hereof.

        (b) On the date hereof, all material Intellectual Property is valid,
subsisting, unexpired and enforceable, has not been abandoned and does not
infringe the intellectual property rights of any other Person.

        (c) Except as set forth in Schedule 6, on the date hereof, none of the
Intellectual Property is the subject of any licensing or franchise agreement
pursuant to which such Grantor is the licensor or franchisor.

        (d) No holding, decision or judgment has been rendered by any
Governmental Authority which would limit, cancel or question the validity of, or
such Grantor's rights in, any

<PAGE>   14
                                                                              11

Intellectual Property in any respect that could reasonably be expected to have a
Material Adverse Effect.

        (e) No action or proceeding is pending, or, to the knowledge of such
Grantor, threatened, on the date hereof (i) seeking to limit, cancel or question
the validity of any Intellectual Property or such Grantor's ownership interest
therein, or (ii) which, if adversely determined, would have a material adverse
effect on the value of any Intellectual Property.

        4.9 Holdings Representations. In the case of Holdings:

        (a) Holdings (i) is duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization, (ii) has the
corporate or other organizational power and authority, and the legal right, to
own and operate its property, to lease the property it operates as lessee and to
conduct the business in which it is currently engaged, (iii) is duly qualified
as a foreign corporation or other entity and in good standing under the laws of
each jurisdiction where its ownership, lease or operation of property or the
conduct of its business requires such qualification and (iv) is in compliance
with all Requirements of Law except to the extent that the failure to comply
therewith could not, in the aggregate, reasonably be expected to have a Material
Adverse Effect.

        (b) Holdings has the corporate or other organizational power and
authority, and the legal right, to make, deliver and perform the Loan Documents
to which it is a party and has taken all necessary corporate or other
organizational action to authorize the execution, delivery and performance of
the Loan Documents to which it is a party. No consent or authorization of,
filing with, notice to or other act by or in respect of, any Governmental
Authority or any other Person is required in connection with the execution,
delivery, performance, validity or enforceability of the Loan Documents to which
Holdings is a party. This Agreement has been, and each other Loan Document to
which it is a party will be, duly executed and delivered on behalf of Holdings.
This Agreement constitutes, and each other Loan Document to which it is a party
when executed and delivered will constitute, a legal, valid and binding
obligation of Holdings enforceable against Holdings in accordance with its
terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar laws relating to or affecting
creditors' rights generally, general equitable principles (whether considered in
a proceeding in equity or at law) and an implied covenant of good faith and fair
dealing.

        (c) The execution, delivery and performance of the Loan Documents to
which Holdings is a party will not violate any Requirement of Law or Contractual
Obligation of Holdings or of any of its Subsidiaries and will not result in, or
require, the creation or imposition of any Lien on any of its or their
respective properties or revenues pursuant to any such Requirement of Law or
Contractual Obligation (other than pursuant to this Agreement).

        (d) No litigation, investigation or proceeding of or before any
arbitrator or Governmental Authority is pending or, to the knowledge of
Holdings, threatened by or against Holdings or any of its Subsidiaries or
against any of its or their respective properties or revenues (x) with respect
to any of the Loan Documents or any of the transactions contemplated hereby or
thereby, or (y) which could reasonably be expected to have a Material Adverse
Effect.

<PAGE>   15
                                                                              12

                              SECTION 5. COVENANTS

           Each Grantor covenants and agrees with the Administrative Agent and
the Lenders that, from and after the date of this Agreement until the
Obligations shall have been paid in full and the Revolving Credit Commitments
shall have terminated:

        5.1 Delivery of Instruments, Certificated Securities and Chattel Paper.
If any amount payable under or in connection with any of the Collateral shall be
or become evidenced by any Instrument, Certificated Security or Chattel Paper,
such Instrument, Certificated Security or Chattel Paper shall be immediately
delivered to the Administrative Agent, duly indorsed in a manner satisfactory to
the Administrative Agent, to be held as Collateral pursuant to this Agreement.

        5.2 Maintenance of Insurance. Such Grantor will maintain insurance
policies with respect to its respective items of Collateral as required by and
in accordance with the relevant provisions of the Credit Agreement.

        5.3 Payment of Obligations. Such Grantor will pay and discharge or
otherwise satisfy at or before maturity or before they become delinquent, as the
case may be, all taxes, assessments and governmental charges or levies imposed
upon the Collateral or in respect of income or profits therefrom, as well as all
claims of any kind (including, without limitation, claims for labor, materials
and supplies) against or with respect to the Collateral, except that no such
charge need be paid if the amount or validity thereof is currently being
contested in good faith by appropriate proceedings, reserves in conformity with
GAAP with respect thereto have been provided on the books of such Grantor and
such proceedings could not reasonably be expected to result in the sale,
forfeiture or loss of any material portion of the Collateral or any interest
therein.

        5.4 Maintenance of Perfected Security Interest; Further Documentation.
(a) Such Grantor shall maintain the security interest created by this Agreement
as a perfected security interest having at least the priority described in
Section 4.2 and shall defend such security interest against the claims and
demands of all Persons whomsoever.

        (b) Such Grantor will furnish to the Administrative Agent and the
Lenders from time to time statements and schedules further identifying and
describing the assets and property of such Grantor and such other reports in
connection therewith as the Administrative Agent may reasonably request, all in
reasonable detail.

        (c) At any time and from time to time, upon the written request of the
Administrative Agent, and at the sole expense of such Grantor, such Grantor will
promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further actions as the Administrative
Agent may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, (i) filing any financing or continuation
statements under the Uniform Commercial Code (or other similar laws) in effect
in any jurisdiction with respect to the security interests created hereby and
(ii) in the case of Investment Property and any other relevant Collateral,
taking any actions necessary to enable the Administrative Agent to obtain
"control" (within the meaning of the applicable Uniform Commercial Code) with
respect thereto.

<PAGE>   16
                                                                              13

        5.5 Changes in Locations, Name, etc. Such Grantor will not, except upon
15 days' prior written notice to the Administrative Agent and delivery to the
Administrative Agent of (a) all additional executed financing statements and
other documents reasonably requested by the Administrative Agent to maintain the
validity, perfection and priority of the security interests provided for herein
and (b) if applicable, a written supplement to Schedule 5 showing any additional
location at which Inventory or Equipment shall be kept:

                (i) permit any of the Inventory or Equipment to be kept at a
        location other than those listed on Schedule 5 and other than temporary
        transfers of immaterial amounts of Inventory or Equipment for periods
        not exceeding three months for the limited purpose of repair or
        transporting between locations;

                (ii) change its jurisdiction of organization or the location of
        its chief executive office or sole place of business from that referred
        to in Section 4.3; or

                (iii) change its name, identity or corporate or other
        organizational structure to such an extent that any financing statement
        filed by the Administrative Agent in connection with this Agreement
        would become misleading.

        5.6 Notices. Such Grantor will advise the Administrative Agent and the
Lenders promptly, in reasonable detail, of:

        (a) any Lien (other than security interests created hereby or Liens
permitted under the Credit Agreement) on any of the Collateral which would
adversely affect the ability of the Administrative Agent to exercise any of its
remedies hereunder; and

        (b) of the occurrence of any other event which could reasonably be
expected to have a material adverse effect on the aggregate value of the
Collateral or on the security interests created hereby.

        5.7 Investment Property. (a) If such Grantor shall become entitled to
receive or shall receive any certificate (including, without limitation, any
certificate representing a dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Capital
Stock of any Issuer, whether in addition to, in substitution of, as a conversion
of, or in exchange for, any shares of the Pledged Stock, or otherwise in respect
thereof, such Grantor shall accept the same as the agent of the Administrative
Agent and the Lenders, hold the same in trust for the Administrative Agent and
the Lenders and deliver the same forthwith to the Administrative Agent in the
exact form received, duly indorsed by such Grantor to the Administrative Agent,
if required, together with an undated stock power covering such certificate duly
executed in blank by such Grantor and with, if the Administrative Agent so
requests, signature guaranteed, to be held by the Administrative Agent, subject
to the terms hereof, as additional collateral security for the Obligations. Any
sums paid upon or in respect of the Investment Property upon the liquidation or
dissolution of any Issuer shall be paid over to the Administrative Agent to be
held by it hereunder as additional collateral security for the Obligations, and
in case any distribution of capital shall be made on or in respect of the
Investment Property or any property shall be distributed upon or with respect to
the Investment Property pursuant to the recapitalization or reclassification of
the capital of any Issuer or pursuant to the reorganization thereof, the
property so distributed shall, unless otherwise subject to a perfected security
interest in favor of the

<PAGE>   17
                                                                              14

Administrative Agent, be delivered to the Administrative Agent to be held by it
hereunder as additional collateral security for the Obligations. If any sums of
money or property so paid or distributed in respect of the Investment Property
shall be received by such Grantor, such Grantor shall, until such money or
property is paid or delivered to the Administrative Agent, hold such money or
property in trust for the Administrative Agent and the Lenders, segregated from
other funds of such Grantor, as additional collateral security for the
Obligations.

        (b) Without the prior written consent of the Administrative Agent, such
Grantor will not (i) vote to enable, or take any other action to permit, any
Issuer to issue any Capital Stock of any nature or to issue any other securities
convertible into or granting the right to purchase or exchange for any Capital
Stock of any nature of any Issuer, (ii) sell, assign, transfer, exchange, or
otherwise dispose of, or grant any option with respect to, the Investment
Property or Proceeds thereof (except pursuant to a transaction expressly
permitted by the Credit Agreement), (iii) create, incur or permit to exist any
Lien or option in favor of, or any claim of any Person with respect to, any of
the Investment Property or Proceeds thereof, or any interest therein, except for
the security interests created by this Agreement or (iv) enter into any
agreement or undertaking restricting the right or ability of such Grantor or the
Administrative Agent to sell, assign or transfer any of the Investment Property
or Proceeds thereof.

        (c) Each Issuer agrees and, in the case of each Grantor which is an
Issuer, such Issuer agrees that (i) it will be bound by the terms of this
Agreement relating to the Investment Property issued by it and will comply with
such terms insofar as such terms are applicable to it, (ii) it will notify the
Administrative Agent promptly in writing of the occurrence of any of the events
described in Section 5.7(a) with respect to the Investment Property issued by it
and (iii) the terms of Sections 5.6, 6.3(c) and 6.7 shall apply to it, mutatis
mutandis, with respect to all actions that may be required of it pursuant to
Section 5.6, 6.3(c) or 6.7 with respect to the Investment Property issued by it.

        (d) Each Grantor hereby authorizes and instructs each Issuer to comply,
and in the case of each Grantor which is an Issuer such Issuer hereby agrees to
so comply, with any instruction received thereby from the Administrative Agent
in accordance with the terms of this Agreement with respect to the Collateral,
without any consent or further instructions from such Grantor (or other
registered owner), and such Grantor agrees that such Issuer shall be fully
protected in so complying. Each Issuer agrees that its agreement set forth in
the preceding sentence shall be sufficient to create in favor of the
Administrative Agent, for the benefit of the Lenders, "control" of the
Investment Property, if any, of such Issuer within the meaning of such term
under Section 8-106(c) of the New York UCC. Notwithstanding the foregoing,
nothing in this Agreement is intended or shall be construed to mean or imply
that any Collateral that is not Investment Property constitutes a "security"
within the meaning of such term under Section 8-102(a)(15) of the New York UCC
or otherwise to limit or modify the application of Section 8-103(c) of the New
York UCC.

        5.8 Receivables. (a) Other than in the ordinary course of business
consistent with its past practice, such Grantor will not (i) grant any extension
of the time of payment of any Receivable, (ii) compromise or settle any
Receivable for less than the full amount thereof, (iii) release, wholly or
partially, any Person liable for the payment of any Receivable, (iv) allow any
credit or discount whatsoever on any Receivable or (v) amend, supplement or
modify any Receivable in any manner that could adversely affect the value
thereof.

<PAGE>   18
                                                                              15

        (b) Such Grantor will deliver to the Administrative Agent a copy of each
material demand, notice or document received by it that questions or calls into
doubt the validity or enforceability of more than 5% of the aggregate amount of
the then outstanding Receivables.

        5.9 Intellectual Property. (a) Such Grantor (either itself or through
licensees) will (i) continue to use each material Trademark 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 such Trademark
in full force free from any claim of abandonment for non-use, (ii) maintain as
in the past the quality of products and services offered under such Trademark,
(iii) use such Trademark with the appropriate notice of registration and all
other notices and legends required by applicable Requirements of Law, (iv) not
adopt or use any mark which is confusingly similar or a colorable imitation of
such Trademark unless the Administrative Agent, for the ratable benefit of the
Lenders, shall obtain a perfected security interest in such mark pursuant to
this Agreement, and (v) not (and not permit any licensee or sublicensee thereof
to) do any act or knowingly omit to do any act whereby such Trademark may become
invalidated or impaired in any way.

        (b) Such Grantor (either itself or through licensees) will not do any
act, or omit to do any act, whereby any material Patent may become forfeited,
abandoned or dedicated to the public.

        (c) Such Grantor (either itself or through licensees) (i) will employ
each material Copyright and (ii) will not (and will not permit any licensee or
sublicensee thereof to) do any act or knowingly omit to do any act whereby any
material portion of the Copyrights may become invalidated or otherwise impaired.
Such Grantor will not (either itself or through licensees) do any act whereby
any material portion of the Copyrights may fall into the public domain.

        (d) Such Grantor (either itself or through licensees) will not do any
act that knowingly uses any material Intellectual Property to infringe the
intellectual property rights of any other Person.

        (e) Such Grantor will notify the Administrative Agent and the Lenders
immediately if it knows, or has reason to know, that any application or
registration relating to any material Intellectual Property may become
forfeited, abandoned or dedicated to the public, or of any adverse determination
or development (including, without limitation, the institution of, or any such
determination or development in, any proceeding in the United States Patent and
Trademark Office, the United States Copyright Office or any court or tribunal in
any country) regarding such Grantor's ownership of, or the validity of, any
material Intellectual Property or such Grantor's right to register the same or
to own and maintain the same.

        (f) Whenever such Grantor, either by itself or through any agent,
employee, licensee or designee, shall file an application for the registration
of any Intellectual Property with the United States Patent and Trademark Office,
the United States Copyright Office or any similar office or agency in any other
country or any political subdivision thereof, such Grantor shall report such
filing to the Administrative Agent within five Business Days after the last day
of the fiscal quarter in which such filing occurs. Upon request of the
Administrative Agent, such Grantor shall execute and deliver, and have recorded,
any and all agreements, instruments, documents, and papers as the Administrative
Agent may request to evidence the Administrative

<PAGE>   19
                                                                             16

Agent's and the Lenders' security interest in any Copyright, Patent or Trademark
and the goodwill and general intangibles of such Grantor relating thereto or
represented thereby.

        (g) Such Grantor will take all reasonable and necessary steps,
including, without limitation, in any proceeding before the United States Patent
and Trademark Office, the United States Copyright Office or any similar office
or agency in any other country or any political subdivision thereof, to maintain
and pursue each application (and to obtain the relevant registration) and to
maintain each registration of the material Intellectual Property, including,
without limitation, filing of applications for renewal, affidavits of use and
affidavits of incontestability.

        (h) In the event that any material Intellectual Property is infringed,
misappropriated or diluted by a third party, such Grantor shall (i) take such
actions as such Grantor shall reasonably deem appropriate under the
circumstances to protect such Intellectual Property and (ii) if such
Intellectual Property is of material economic value, promptly notify the
Administrative Agent after it learns thereof and sue for infringement,
misappropriation or dilution, to seek injunctive relief where appropriate and to
recover any and all damages for such infringement, misappropriation or dilution.

                         SECTION 6. REMEDIAL PROVISIONS

        6.1 Certain Matters Relating to Receivables. (a) The Administrative
Agent shall have the right to make test verifications of the Receivables in any
manner and through any medium that is commercially reasonable and each Grantor
shall furnish all such assistance and information as the Administrative Agent
may reasonably require in connection with such test verifications. At any time
and from time to time, upon the Administrative Agent's request and at the
expense (but, so long as no Event of Default shall have occurred and be
continuing, for only one such report per year) of the relevant Grantor, such
Grantor shall cause independent public accountants or others satisfactory to the
Administrative Agent to furnish to the Administrative Agent reports showing
reconciliations, aging and test verifications of, and trial balances for, the
Receivables.

        (b) The Administrative Agent hereby authorizes each Grantor to collect
such Grantor's Receivables, subject to the Administrative Agent's direction and
control, and the Administrative Agent may curtail or terminate said authority at
any time after the occurrence and during the continuance of an Event of Default.
If required by the Administrative Agent at any time after the occurrence and
during the continuance of an Event of Default, any payments of Receivables, when
collected by any Grantor, (i) shall be forthwith (and, in any event, within two
Business Days) deposited by such Grantor in the exact form received, duly
indorsed by such Grantor to the Administrative Agent if required, in a
Collateral Account maintained under the sole dominion and control of the
Administrative Agent, subject to withdrawal by the Administrative Agent for the
account of the Lenders only as provided in Section 6.5, and (ii) until so turned
over, shall be held by such Grantor in trust for the Administrative Agent and
the Lenders, segregated from other funds of such Grantor. Each such deposit of
Proceeds of Receivables shall be accompanied by a report identifying in
reasonable detail the nature and source of the payments included in the deposit.

        (c) At the Administrative Agent's request, each Grantor shall deliver to
the Administrative Agent all original and other documents evidencing, and
relating to, the

<PAGE>   20
                                                                              17

agreements and transactions which gave rise to the Receivables, including,
without limitation, all original orders, invoices and shipping receipts.

        6.2 Communications with Obligors; Grantors Remain Liable. (a) The
Administrative Agent in its own name or in the name of others may at any time
after the occurrence and during the continuance of an Event of Default
communicate with obligors under the Receivables and parties to the Contracts to
verify with them to the Administrative Agent's satisfaction the existence,
amount and terms of any Receivables or Contracts.

        (b) Upon the request of the Administrative Agent at any time after the
occurrence and during the continuance of an Event of Default, each Grantor shall
notify obligors on the Receivables and parties to the Contracts that the
Receivables and the Contracts have been assigned to the Administrative Agent for
the ratable benefit of the Lenders and that payments in respect thereof shall be
made directly to the Administrative Agent.

        (c) Anything herein to the contrary notwithstanding, each Grantor shall
remain liable under each of the Receivables and Contracts to observe and perform
all the conditions and obligations to be observed and performed by it
thereunder, all in accordance with the terms of any agreement giving rise
thereto. Neither the Administrative Agent nor any Lender shall have any
obligation or liability under any Receivable (or any agreement giving rise
thereto) or Contract by reason of or arising out of this Agreement or the
receipt by the Administrative Agent or any Lender of any payment relating
thereto, nor shall the Administrative Agent or any Lender be obligated in any
manner to perform any of the obligations of any Grantor under or pursuant to any
Receivable (or any agreement giving rise thereto) or Contract, to make any
payment, to make any inquiry as to the nature or the sufficiency of any payment
received by it or as to the sufficiency of any performance by any party
thereunder, to present or file any claim, to take any action to enforce any
performance or to collect the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

        6.3 Pledged Stock. (a) Unless an Event of Default shall have occurred
and be continuing and the Administrative Agent shall have given notice to the
relevant Grantor of the Administrative Agent's intent to exercise its
corresponding rights pursuant to Section 6.3(b), each Grantor shall be permitted
to receive all cash dividends paid in respect of the Pledged Stock and all
payments made in respect of the Pledged Notes, in each case paid in the normal
course of business of the relevant Issuer and consistent with past practice, to
the extent permitted in the Credit Agreement, and to exercise all voting and
corporate or other organizational rights with respect to the Investment
Property; provided, however, that no vote shall be cast or corporate or other
organizational right exercised or other action taken which, in the
Administrative Agent's reasonable judgment, would impair the Collateral or which
would result in any violation of any provision of the Credit Agreement, this
Agreement or any other Loan Document.

        (b) If an Event of Default shall occur and be continuing and the
Administrative Agent shall give notice of its intent to exercise such rights to
the relevant Grantor or Grantors, (i) the Administrative Agent shall have the
right to receive any and all cash dividends, payments or other Proceeds paid in
respect of the Investment Property and make application thereof to the
Obligations in such order as the Administrative Agent may determine, and (ii)
any or all of the Investment Property shall be registered in the name of the
Administrative Agent or its nominee, and the Administrative Agent or its nominee
may thereafter exercise (x) all voting, corporate and other rights pertaining to
such Investment Property at any meeting of shareholders of the relevant

<PAGE>   21
                                                                              18

Issuer or Issuers or otherwise and (y) any and all rights of conversion,
exchange and subscription and any other rights, privileges or options pertaining
to such Investment Property as if it were the absolute owner thereof (including,
without limitation, the right to exchange at its discretion any and all of the
Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate or other
organizational structure of any Issuer, or upon the exercise by any Grantor or
the Administrative Agent of any right, privilege or option pertaining to such
Investment Property, and in connection therewith, the right to deposit and
deliver any and all of the Investment Property with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and
conditions as the Administrative Agent may determine), all without liability
except to account for property actually received by it, but the Administrative
Agent shall have no duty to any Grantor to exercise any such right, privilege or
option and shall not be responsible for any failure to do so or delay in so
doing.

        (c) Each Grantor hereby authorizes and instructs each Issuer of any
Investment Property pledged by such Grantor hereunder to (i) comply with any
instruction received by it from the Administrative Agent in writing that (x)
states that an Event of Default has occurred and is continuing and (y) is
otherwise in accordance with the terms of this Agreement, without any other or
further instructions from such Grantor, and each Grantor agrees that each Issuer
shall be fully protected in so complying, and (ii) unless otherwise expressly
permitted hereby, pay any dividends or other payments with respect to the
Investment Property directly to the Administrative Agent.

        6.4 Proceeds to be Turned Over To Administrative Agent. In addition to
the rights of the Administrative Agent and the Lenders specified in Section 6.1
with respect to payments of Receivables, if an Event of Default shall occur and
be continuing, all Proceeds received by any Grantor consisting of cash, checks
and other near-cash items shall be held by such Grantor in trust for the
Administrative Agent and the Lenders, segregated from other funds of such
Grantor, and shall, forthwith upon receipt by such Grantor, be turned over to
the Administrative Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the Administrative Agent, if required). All Proceeds
received by the Administrative Agent hereunder shall be held by the
Administrative Agent in a Collateral Account maintained under its sole dominion
and control. All Proceeds while held by the Administrative Agent in a Collateral
Account (or by such Grantor in trust for the Administrative Agent and the
Lenders) shall continue to be held as collateral security for all the
Obligations and shall not constitute payment thereof until applied as provided
in Section 6.5.

        6.5 Application of Proceeds. At such intervals as may be agreed upon by
the Borrowers and the Administrative Agent, or, if an Event of Default shall
have occurred and be continuing, at any time at the Administrative Agent's
election, the Administrative Agent may apply all or any part of Proceeds
constituting Collateral, whether or not held in any Collateral Account, in
payment of the Obligations in such order as the Administrative Agent may elect,
and any part of such funds which the Administrative Agent elects not so to apply
and deems not required as collateral security for the Obligations shall be paid
over from time to time by the Administrative Agent to the respective Borrower or
to whomsoever may be lawfully entitled to receive the same. Any balance of such
Proceeds remaining after the Obligations shall have been paid in full, and the
Revolving Credit Commitments shall have terminated shall be paid over to such
Borrower or to whomsoever may be lawfully entitled to receive the same.

<PAGE>   22
                                                                              19

        6.6 Code and Other Remedies. If an Event of Default shall occur and be
continuing, the Administrative Agent, on behalf of the Lenders, may exercise, in
addition to all other rights and remedies granted to them in this Agreement and
in any other instrument or agreement securing, evidencing or relating to the
Obligations, all rights and remedies of a secured party under the New York UCC
or any other applicable law. Without limiting the generality of the foregoing,
the Administrative Agent, without demand of performance or other demand,
presentment, protest, advertisement or notice of any kind (except any notice
required by law referred to below) to or upon any Grantor or any other Person
(all and each of which demands, defenses, advertisements and notices are hereby
waived), may in such circumstances forthwith collect, receive, appropriate and
realize upon the Collateral, or any part thereof, and/or may forthwith sell,
lease, assign, give option or options to purchase, or otherwise dispose of and
deliver the Collateral or any part thereof (or contract to do any of the
foregoing), in one or more parcels at public or private sale or sales, at any
exchange, broker's board or office of the Administrative Agent or any Lender or
elsewhere upon such terms and conditions as it may deem advisable and at such
prices as it may deem best, for cash or on credit or for future delivery without
assumption of any credit risk. The Administrative Agent or any Lender shall have
the right upon any such public sale or sales, and, to the extent permitted by
law, upon any such private sale or sales, to purchase the whole or any part of
the Collateral so sold, free of any right or equity of redemption in any
Grantor, which right or equity is hereby waived and released. Each Grantor
further agrees, at the Administrative Agent's request, to assemble the
Collateral and make it available to the Administrative Agent at places which the
Administrative Agent shall reasonably select, whether at such Grantor's premises
or elsewhere. The Administrative Agent shall apply the net proceeds of any
action taken by it pursuant to this Section 6.6, after deducting all reasonable
costs and expenses of every kind incurred in connection therewith or incidental
to the care or safekeeping of any of the Collateral or in any way relating to
the Collateral or the rights of the Administrative Agent and the Lenders
hereunder, including, without limitation, reasonable attorneys' fees and
disbursements, to the payment in whole or in part of the Obligations, in such
order as the Administrative Agent may elect, and only after such application and
after the payment by the Administrative Agent of any other amount required by
any provision of law, including, without limitation, Section 9-504(1)(c) of the
New York UCC, need the Administrative Agent account for the surplus, if any, to
any Grantor. To the extent permitted by applicable law, each Grantor waives all
claims, damages and demands it may acquire against the Administrative Agent or
any Lender arising out of the exercise by them of any rights hereunder. If any
notice of a proposed sale or other disposition of Collateral shall be required
by law, such notice shall be deemed reasonable and proper if given at least 10
days before such sale or other disposition.

        6.7 Registration Rights. (a) If the Administrative Agent shall determine
to exercise its right to sell any or all of the Pledged Stock pursuant to
Section 6.6, and if in the opinion of the Administrative Agent it is necessary
or advisable to have the Pledged Stock, or that portion thereof to be sold,
registered under the provisions of the Securities Act, the relevant Grantor will
cause the Issuer thereof to (i) execute and deliver, and cause the directors and
officers of such Issuer to execute and deliver, all such instruments and
documents, and do or cause to be done all such other acts as may be, in the
opinion of the Administrative Agent, necessary or advisable to register the
Pledged Stock, or that portion thereof to be sold, under the provisions of the
Securities Act, (ii) use its best efforts to cause the registration statement
relating thereto to become effective and to remain effective for a period of one
year from the date of the first public offering of the Pledged Stock, or that
portion thereof to be sold, and (iii) make all amendments

<PAGE>   23
                                                                              20

thereto and/or to the related prospectus which, in the opinion of the
Administrative Agent, are necessary or advisable, all in conformity with the
requirements of the Securities Act and the rules and regulations of the
Securities and Exchange Commission applicable thereto. Each Grantor agrees to
cause such Issuer to comply with the provisions of the securities or "Blue Sky"
laws of any and all jurisdictions which the Administrative Agent shall designate
and to make available to its security holders, as soon as practicable, an
earnings statement (which need not be audited) which will satisfy the provisions
of Section 11(a) of the Securities Act.

        (b) Each Grantor recognizes that the Administrative Agent may be unable
to effect a public sale of any or all the Pledged Stock, by reason of certain
prohibitions contained in the Securities Act and applicable state securities
laws or otherwise, and may be compelled to resort to one or more private sales
thereof to a restricted group of purchasers which will be obliged to agree,
among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The Administrative
Agent shall be under no obligation to delay a sale of any of the Pledged Stock
for the period of time necessary to permit the Issuer thereof to register such
securities for public sale under the Securities Act, or under applicable state
securities laws, even if such Issuer would agree to do so.

        (c) Each Grantor agrees to use its best efforts to do or cause to be
done all such other acts as may be necessary to make such sale or sales of all
or any portion of the Pledged Stock pursuant to this Section 6.7 valid and
binding and in compliance with any and all other applicable Requirements of Law.
Each Grantor further agrees that a breach of any of the covenants contained in
this Section 6.7 will cause irreparable injury to the Administrative Agent and
the Lenders, that the Administrative Agent and the Lenders have no adequate
remedy at law in respect of such breach and, as a consequence, that each and
every covenant contained in this Section 6.7 shall be specifically enforceable
against such Grantor, and such Grantor hereby waives and agrees not to assert
any defenses against an action for specific performance of such covenants except
for a defense that no Event of Default has occurred under the Credit Agreement.

        6.8 Waiver; Deficiency. Each Grantor waives and agrees not to assert any
rights or privileges which it may acquire under Section 9-112 of the New York
UCC. Each Grantor shall remain liable for any deficiency if the proceeds of any
sale or other disposition of the Collateral are insufficient to pay its
Obligations and the fees and disbursements of any attorneys employed by the
Administrative Agent or any Lender to collect such deficiency.

                      SECTION 7. THE ADMINISTRATIVE AGENT

        7.1 Administrative Agent's Appointment as Attorney-in-Fact, etc. (a)
Each Grantor hereby irrevocably constitutes and appoints the Administrative
Agent and any officer or agent thereof, with full power of substitution, as its
true and lawful attorney-in-fact with full irrevocable power and authority in
the place and stead of such Grantor and in the name of such Grantor or in its
own name, for the purpose of carrying out the terms of this Agreement, to take
any and all appropriate action and to execute any and all documents and
instruments which may be necessary or desirable to accomplish the purposes of
this Agreement, and, without limiting the generality of the foregoing, each
Grantor hereby gives the Administrative Agent the power and

<PAGE>   24
                                                                              21

right, on behalf of such Grantor, without notice to or assent by such Grantor,
to do any or all of the following:

                (i) in the name of such Grantor or its own name, or otherwise,
        take possession of and indorse and collect any checks, drafts, notes,
        acceptances or other instruments for the payment of moneys due under any
        Receivable or Contract or with respect to any other Collateral and file
        any claim or take any other action or proceeding in any court of law or
        equity or otherwise deemed appropriate by the Administrative Agent for
        the purpose of collecting any and all such moneys due under any
        Receivable or Contract or with respect to any other Collateral whenever
        payable;

                (ii) in the case of any Intellectual Property, execute and
        deliver, and have recorded, any and all agreements, instruments,
        documents and papers as the Administrative Agent may request to evidence
        the Administrative Agent's and the Lenders' security interest in such
        Intellectual Property and the goodwill and general intangibles of such
        Grantor relating thereto or represented thereby;

                (iii) pay or discharge taxes and Liens levied or placed on or
        threatened against the Collateral, effect any repairs or any insurance
        called for by the terms of this Agreement and pay all or any part of the
        premiums therefor and the costs thereof;

                (iv) execute, in connection with any sale provided for in
        Section 6.6 or 6.7, any indorsements, assignments or other instruments
        of conveyance or transfer with respect to the Collateral; and

                (v) (1) direct any party liable for any payment under any of the
        Collateral to make payment of any and all moneys due or to become due
        thereunder directly to the Administrative Agent or as the Administrative
        Agent shall direct; (2) ask or demand for, collect, and receive payment
        of and receipt for, any and all moneys, claims and other amounts due or
        to become due at any time in respect of or arising out of any
        Collateral; (3) sign and indorse any invoices, freight or express bills,
        bills of lading, storage or warehouse receipts, drafts against debtors,
        assignments, verifications, notices and other documents in connection
        with any of the Collateral; (4) commence and prosecute any suits,
        actions or proceedings at law or in equity in any court of competent
        jurisdiction to collect the Collateral or any portion thereof and to
        enforce any other right in respect of any Collateral; (5) defend any
        suit, action or proceeding brought against such Grantor with respect to
        any Collateral; (6) settle, compromise or adjust any such suit, action
        or proceeding and, in connection therewith, give such discharges or
        releases as the Administrative Agent may deem appropriate; (7) assign
        any Copyright, Patent or Trademark (along with the goodwill of the
        business to which any such Copyright, Patent or Trademark pertains),
        throughout the world for such term or terms, on such conditions, and in
        such manner, as the Administrative Agent shall in its sole discretion
        determine; and (8) generally, sell, transfer, pledge and make any
        agreement with respect to or otherwise deal with any of the Collateral
        as fully and completely as though the Administrative Agent were the
        absolute owner thereof for all purposes, and do, at the Administrative
        Agent's option and such Grantor's expense, at any time, or from time to
        time, all acts and things which the Administrative Agent deems necessary
        to protect, preserve or realize upon the Collateral and the
        Administrative Agent's and the Lenders'

<PAGE>   25
                                                                              22

        security interests therein and to effect the intent of this Agreement,
        all as fully and effectively as such Grantor might do.

        Anything in this Section 7.1(a) to the contrary notwithstanding, the
Administrative Agent agrees that it will not exercise any rights under the power
of attorney provided for in this Section 7.1(a) unless an Event of Default shall
have occurred and be continuing.

        (b) If any Grantor fails to perform or comply with any of its agreements
contained herein, the Administrative Agent, at its option, but without any
obligation so to do, may perform or comply, or otherwise cause performance or
compliance, with such agreement.

        (c) The expenses of the Administrative Agent incurred in connection with
actions undertaken as provided in this Section 7.1, together with interest
thereon at a rate per annum equal to the highest rate per annum at which
interest would then be payable on any category of past due ABR Loans under the
Credit Agreement, from the date of payment by the Administrative Agent to the
date reimbursed by the relevant Grantor, shall be payable by such Grantor to the
Administrative Agent on demand.

        (d) Each Grantor hereby ratifies all that said attorneys shall lawfully
do or cause to be done by virtue hereof. All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby are
released.

        7.2 Duty of Administrative Agent. The Administrative Agent's sole duty
with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession, under Section 9-207 of the New York UCC or
otherwise, shall be to deal with it in the same manner as the Administrative
Agent deals with similar property for its own account. Neither the
Administrative Agent, any Lender nor any of their respective officers,
directors, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Administrative Agent and the Lenders hereunder are solely to
protect the Administrative Agent's and the Lenders' interests in the Collateral
and shall not impose any duty upon the Administrative Agent or any Lender to
exercise any such powers. The Administrative Agent and the Lenders shall be
accountable only for amounts that they actually receive as a result of the
exercise of such powers, and neither they nor any of their officers, directors,
employees or agents shall be responsible to any Grantor for any act or failure
to act hereunder, except for their own gross negligence or willful misconduct.

        7.3 Execution of Financing Statements. Pursuant to Section 9-402 of the
New York UCC and any other applicable law, each Grantor authorizes the
Administrative Agent to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral without the
signature of such Grantor in such form and in such offices as the Administrative
Agent determines appropriate to perfect the security interests of the
Administrative Agent under this Agreement. A photographic or other reproduction
of this Agreement shall be sufficient as a financing statement or other filing
or recording document or instrument for filing or recording in any jurisdiction.

<PAGE>   26
                                                                              23

        7.4 Authority of Administrative Agent. Each Grantor acknowledges that
the rights and responsibilities of the Administrative Agent under this Agreement
with respect to any action taken by the Administrative Agent or the exercise or
non-exercise by the Administrative Agent of any option, voting right, request,
judgment or other right or remedy provided for herein or resulting or arising
out of this Agreement shall, as between the Administrative Agent and the
Lenders, be governed by the Credit Agreement and by such other agreements with
respect thereto as may exist from time to time among them, but, as between the
Administrative Agent and the Grantors, the Administrative Agent shall be
conclusively presumed to be acting as agent for the Lenders with full and valid
authority so to act or refrain from acting, and no Grantor shall be under any
obligation, or entitlement, to make any inquiry respecting such authority.

                            SECTION 8. MISCELLANEOUS

        8.1 Amendments in Writing. None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with subsection 9.1 of the Credit Agreement.

        8.2 Notices. All notices, requests and demands to or upon the
Administrative Agent or any Grantor hereunder shall be effected in the manner
provided for in subsection 9.2 of the Credit Agreement; provided that any such
notice, request or demand to or upon any Guarantor shall be addressed to such
Guarantor at its notice address set forth on Schedule 1.

        8.3 No Waiver by Course of Conduct; Cumulative Remedies. Neither the
Administrative Agent nor any Lender shall by any act (except by a written
instrument pursuant to Section 8.1), delay, indulgence, omission or otherwise be
deemed to have waived any right or remedy hereunder or to have acquiesced in any
Default or Event of Default. No failure to exercise, nor any delay in
exercising, on the part of the Administrative Agent or any Lender, any right,
power or privilege hereunder shall operate as a waiver thereof. No single or
partial exercise of any right, power or privilege hereunder shall preclude any
other or further exercise thereof or the exercise of any other right, power or
privilege. A waiver by the Administrative Agent or any Lender of any right or
remedy hereunder on any one occasion shall not be construed as a bar to any
right or remedy which the Administrative Agent or such Lender would otherwise
have on any future occasion. The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of any
other rights or remedies provided by law.

        8.4 Enforcement Expenses; Indemnification. (a) Each Guarantor agrees to
pay or reimburse each Lender and the Administrative Agent for all its costs and
expenses incurred in collecting against such Guarantor under the guarantee
contained in Section 2 or otherwise enforcing or preserving any rights under
this Agreement and the other Loan Documents to which such Guarantor is a party,
including, without limitation, the fees and disbursements of counsel (including
the allocated fees and expenses of in-house counsel) to each Lender and of
counsel to the Administrative Agent.

        (b) Each Guarantor agrees to pay, and to save the Administrative Agent
and the Lenders harmless from, any and all liabilities with respect to, or
resulting from any delay in paying, any and all stamp, excise, sales or other
taxes which may be payable or determined to be payable with respect to any of
the Collateral or in connection with any of the transactions contemplated by
this Agreement.

<PAGE>   27
                                                                              24

        (c) Each Guarantor agrees to pay, and to save the Administrative Agent
and the Lenders harmless from, any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of this Agreement to the extent the
Borrowers would be required to do so pursuant to subsection 10.5 of the Credit
Agreement.

        (d) The agreements in this Section 8.4 shall survive repayment of the
Obligations and all other amounts payable under the Credit Agreement and the
other Loan Documents.

        8.5 Successors and Assigns. This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Administrative Agent and the Lenders and their successors and permitted assigns;
provided that (excepting any transaction permitted by Section 6.5 of the Credit
Agreement) no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the
Administrative Agent; provided further that any assignment, transfer or
delegation by any Borrower of its rights or obligations under this Agreement
shall be subject to clause (ii) of the proviso of Section 9.1 of the Credit
Agreement.

        8.6 Set-Off. Each Grantor hereby irrevocably authorizes the
Administrative Agent and each Lender at any time and from time to time, without
notice to such Grantor or any other Grantor, any such notice being expressly
waived by each Grantor, to set-off and appropriate and apply any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in
each case whether direct or indirect, absolute or contingent, matured or
unmatured, at any time held or owing by the Administrative Agent or such Lender
to or for the credit or the account of such Grantor, or any part thereof in such
amounts as the Administrative Agent or such Lender may elect, against and on
account of the obligations and liabilities of such Grantor to the Administrative
Agent or such Lender hereunder and claims of every nature and description of the
Administrative Agent or such Lender against such Grantor, in any currency,
whether arising hereunder, under the Credit Agreement, any other Loan Document
or otherwise, as the Administrative Agent or such Lender may elect, whether or
not the Administrative Agent or any Lender has made any demand for payment and
although such obligations, liabilities and claims may be contingent or
unmatured. The Administrative Agent and each Lender shall notify such Grantor
promptly of any such set-off and the application made by the Administrative
Agent or such Lender of the proceeds thereof, provided that the failure to give
such notice shall not affect the validity of such set-off and application. The
rights of the Administrative Agent and each Lender under this Section 8.6 are in
addition to other rights and remedies (including, without limitation, other
rights of set-off) which the Administrative Agent or such Lender may have.

        8.7 Counterparts. This Agreement may be executed by one or more of the
parties to this Agreement on any number of separate counterparts (including by
telecopy), and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

        8.8 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.

<PAGE>   28
                                                                              25

        8.9 Section Headings. The Section headings used in this Agreement are
for convenience of reference only and are not to affect the construction hereof
or be taken into consideration in the interpretation hereof.

        8.10 Integration. This Agreement and the other Loan Documents represent
the agreement of the Grantors, the Administrative Agent and the Lenders with
respect to the subject matter hereof and thereof, and there are no promises,
undertakings, representations or warranties by the Administrative Agent or any
Lender relative to subject matter hereof and thereof not expressly set forth or
referred to herein or in the other Loan Documents.

        8.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

        8.12 Submission To Jurisdiction; Waivers. Each Grantor hereby
irrevocably and unconditionally:

        (a) submits for itself and its property in any legal action or
proceeding relating to this Agreement and the other Loan Documents to which it
is a party, or for recognition and enforcement of any judgment in respect
thereof, to the non-exclusive general jurisdiction of the courts of the State of
New York, the courts of the United States of America for the Southern District
of New York, and appellate courts from any thereof;

        (b) consents that any such action or proceeding may be brought in such
courts and waives any objection that it may now or hereafter have to the venue
of any such action or proceeding in any such court or that such action or
proceeding was brought in an inconvenient court and agrees not to plead or claim
the same;

        (c) agrees that service of process in any such action or proceeding may
be effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Grantor at its
address referred to in Section 8.2 or at such other address of which the
Administrative Agent shall have been notified pursuant thereto;

        (d) agrees that nothing herein shall affect the right to effect service
of process in any other manner permitted by law or shall limit the right to sue
in any other jurisdiction; and

        (e) waives, to the maximum extent not prohibited by law, any right it
may have to claim or recover in any legal action or proceeding referred to in
this Section any special, exemplary, punitive or consequential damages.

        8.13 Acknowledgements. Each Grantor hereby acknowledges that:

        (a) it has been advised by counsel in the negotiation, execution and
delivery of this Agreement and the other Loan Documents to which it is a party;

        (b) neither the Administrative Agent nor any Lender has any fiduciary
relationship with or duty to any Grantor arising out of or in connection with
this Agreement or any of the other Loan Documents, and the relationship between
the Grantors, on the one hand, and the Administrative Agent and Lenders, on the
other hand, in connection herewith or therewith is solely that of debtor and
creditor;

<PAGE>   29
                                                                             26

        (c) no joint venture is created hereby or by the other Loan Documents or
otherwise exists by virtue of the transactions contemplated hereby among the
Lenders or among the Grantors and the Lenders; and

        (d) the Liens granted under the Existing Borrowers Security Agreement
and the Existing Holdings Pledge Agreement shall continue in full force and
effect pursuant to the terms of this Agreement.

        8.14 Additional Grantors. Each Subsidiary of the Company that is
required to become a party to this Agreement pursuant to subsection 5.8 of the
Credit Agreement shall become a Grantor for all purposes of this Agreement upon
execution and delivery by such Subsidiary of an Assumption Agreement in the form
of Annex 1 hereto.

        8.15 Releases. (a) At such time as the Loans and the other Obligations
shall have been paid in full (other than Obligations in respect of Lender
Interest Rate Agreements and Obligations consisting of contingent obligations in
respect of indemnities which survive such event and with respect to which notice
for an amount payable has not been presented to the respective Borrower at or
prior to such event) and the Revolving Credit Commitments have been terminated,
the Collateral shall be released from the Liens created hereby, and this
Agreement and all obligations (other than those expressly stated to survive such
termination) of the Administrative Agent and each Grantor hereunder shall
terminate, all without delivery of any instrument or performance of any act by
any party, and all rights to the Collateral shall revert to the Grantors. At the
request and sole expense of any Grantor following any such termination, the
Administrative Agent shall deliver to such Grantor any Collateral held by the
Administrative Agent hereunder, and execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such termination.

        (b) If any of the Collateral shall be sold, transferred or otherwise
disposed of by any Grantor in a transaction permitted by the Credit Agreement,
then the Administrative Agent, at the request and sole expense of such Grantor,
shall execute and deliver to such Grantor all releases or other documents
reasonably necessary or desirable for the release of the Liens created hereby on
such Collateral. At the request and sole expense of the Borrowers, a Subsidiary
Guarantor shall be released from its obligations hereunder in the event that all
the Capital Stock of such Subsidiary Guarantor shall be sold, transferred or
otherwise disposed of in a transaction permitted by the Credit Agreement;
provided that the Borrowers shall have delivered to the Administrative Agent, at
least ten Business Days prior to the date of the proposed release, a written
request for release identifying the relevant Subsidiary Guarantor and the terms
of the sale or other disposition in reasonable detail, including the price
thereof and any expenses in connection therewith, together with a certification
by the Borrowers stating that such transaction is in compliance with the Credit
Agreement and the other Loan Documents.

        8.16 WAIVER OF JURY TRIAL. EACH GRANTOR HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

<PAGE>   30
                                                                              27

        IN WITNESS WHEREOF, each of the undersigned has caused this Amended and
Restated Guarantee and Collateral Agreement to be duly executed and delivered as
of the date first above written.

                                     TRANSWESTERN HOLDINGS L.P.

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     WORLDPAGES.COM, INC.

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     TWP CAPITAL CORP. II

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     TRANSWESTERN PUBLISHING COMPANY, LLC

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     TWP COMPANIES, INC.

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     TARGET DIRECTORIES OF MICHIGAN, INC.

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

<PAGE>   31
                                                                              28

                                     GREAT WESTERN DIRECTORIES, INC.

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     1 + USA V ACQUISITION CORP.

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     YPTEL, INC.

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     YPTEL CORPORATION

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

                                     PACIFIC COAST PUBLISHING, LTD.

                                     By:   /s/
                                        ---------------------------------------
                                        Title:

<PAGE>   32

                                                                     Schedule 1

                         NOTICE ADDRESSES OF GUARANTORS

<PAGE>   33

                                                                     Schedule 2

                       DESCRIPTION OF INVESTMENT PROPERTY

PLEDGED STOCK:

<TABLE>
<CAPTION>
          Issuer               Class of Stock               Stock Certificate No.               No. of Shares
          ------               --------------               ---------------------               -------------
<S>                           <C>                           <C>                                <C>

</TABLE>

PLEDGED NOTES:

<TABLE>
<CAPTION>
          Issuer               Payee               Principal Amount
          ------               -----               ----------------
<S>                           <C>                 <C>

</TABLE>

<PAGE>   34

                                                                     Schedule 3

                            FILINGS AND OTHER ACTIONS

                     REQUIRED TO PERFECT SECURITY INTERESTS

                         Uniform Commercial Code Filings

          [List each office where a financing statement is to be filed]

                          Patent and Trademark Filings

                               [List all filings]

                      Actions with respect to Pledged Stock

                                  Other Actions

                      [Describe other actions to be taken]

<PAGE>   35

                                                                     Schedule 4

       LOCATION OF JURISDICTION OF ORGANIZATION AND CHIEF EXECUTIVE OFFICE

<TABLE>
<CAPTION>
          Grantor               Jurisdiction of Organization               Location of Chief Executive Office
          -------               ----------------------------               ----------------------------------
<S>                            <C>                                        <C>

</TABLE>

<PAGE>   36

                                                                      Schedule 5

                      LOCATIONS OF INVENTORY AND EQUIPMENT

<TABLE>
<CAPTION>
          Grantor                                             Locations
          -------                                             ---------
<S>                                                          <C>

</TABLE>

<PAGE>   37

                                                                     Schedule 6

                        COPYRIGHTS AND COPYRIGHT LICENSES

                           PATENTS AND PATENT LICENSES

                        TRADEMARKS AND TRADEMARK LICENSES

<PAGE>   38

                           ACKNOWLEDGEMENT AND CONSENT

        The undersigned hereby acknowledges receipt of a copy of the Amended and
Restated Guarantee and Collateral Agreement dated as of June 28, 2001 (the
"Agreement"), made by the Grantors parties thereto for the benefit of Canadian
Imperial Bank of Commerce, New York Agency, as Administrative Agent. The
undersigned agrees for the benefit of the Administrative Agent and the Lenders
as follows:

        1. The undersigned will be bound by the terms of the Agreement and will
comply with such terms insofar as such terms are applicable to the undersigned.

        2. The undersigned will notify the Administrative Agent promptly in
writing of the occurrence of any of the events described in Section 5.7(a) of
the Agreement.

        3. The terms of Sections 6.3(c) and 6.7 of the Agreement shall apply to
it, mutatis mutandis, with respect to all actions that may be required of it
pursuant to Section 6.3(c) or 6.7 of the Agreement.

                                      [NAME OF ISSUER]

                                      By:
                                         --------------------------------------
                                         Name:
                                         Title:

                                      Address for Notices:

                                      -----------------------------------------
                                      -----------------------------------------
                                      -----------------------------------------
                                      Fax:

<PAGE>   39

                                                                      Annex 1 to
                                              Guarantee and Collateral Agreement

        ASSUMPTION AGREEMENT, dated as of ________________, 200_, made by
______________________________ (the "Additional Grantor"), in favor of Canadian
Imperial Bank of Commerce, New York Agency, as administrative agent (in such
capacity, the "Administrative Agent") for the banks and other financial
institutions or entities (the "Lenders") parties to the Credit Agreement
referred to below. All capitalized terms not defined herein shall have the
meaning ascribed to them in such Credit Agreement.

                              W I T N E S S E T H :

        WHEREAS, TransWestern Publishing Company, LLC (the "Company"),
WorldPages.com, Inc. ("WPZ"), TWP Capital Corp. II ("TWP Capital II" and,
collectively with the Company and WPZ, the "Borrowers"), the Lenders and the
Administrative Agent have entered into a Second Amended and Restated Credit
Agreement, dated as of June 28, 2001 (as amended, supplemented or otherwise
modified from time to time, the "Credit Agreement");

        WHEREAS, in connection with the Credit Agreement, the Borrowers and
certain of their Affiliates (other than the Additional Grantor) have entered
into the Amended and Restated Guarantee and Collateral Agreement, dated as of
June 28, 2001 (as amended, supplemented or otherwise modified from time to time,
the "Guarantee and Collateral Agreement") in favor of the Administrative Agent
for the benefit of the Lenders;

        WHEREAS, the Credit Agreement requires the Additional Grantor to become
a party to the Guarantee and Collateral Agreement; and

        WHEREAS, the Additional Grantor has agreed to execute and deliver this
Assumption Agreement in order to become a party to the Guarantee and Collateral
Agreement;

        NOW, THEREFORE, IT IS AGREED:

        1. Guarantee and Collateral Agreement. By executing and delivering this
Assumption Agreement, the Additional Grantor, as provided in Section 8.14 of the
Guarantee and Collateral Agreement, hereby becomes a party to the Guarantee and
Collateral Agreement as a Grantor thereunder with the same force and effect as
if originally named therein as a Grantor and, without limiting the generality of
the foregoing, hereby expressly assumes all obligations and liabilities of a
Grantor thereunder. The information set forth in Annex 1-A hereto is hereby
added to the information set forth in the Schedules to the Guarantee and
Collateral Agreement. The Additional Grantor hereby represents and warrants that
each of the representations and warranties contained in Section 4 of the
Guarantee and Collateral Agreement is true and correct on and as the date hereof
(after giving effect to this Assumption Agreement) as if made on and as of such
date.

        2. GOVERNING LAW. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

<PAGE>   40
                                                                               2

        IN WITNESS WHEREOF, the undersigned has caused this Assumption Agreement
to be duly executed and delivered as of the date first above written.

                                       [ADDITIONAL GRANTOR]

                                       By:
                                           ------------------------------------
                                           Name:
                                           Title:

<PAGE>   41

                                                                    Annex 1-A to

                                                            Assumption Agreement

                            Supplement to Schedule 1

                            Supplement to Schedule 2

                            Supplement to Schedule 3

                            Supplement to Schedule 4

                            Supplement to Schedule 5

                            Supplement to Schedule 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]