Document:

<PAGE>

                                                                    Exhibit 10.1

                                                                [EXECUTION COPY]

                                  $150,000,000

                                CREDIT AGREEMENT

                                    -AMONG-

                           REGENT BROADCASTING, INC.,
                                  AS BORROWER

                          REGENT COMMUNICATIONS, INC.,
                        AS PARENT COMPANY AND GUARANTOR

                         THE SEVERAL LENDERS FROM TIME
                        TO TIME PARTY TO THIS AGREEMENT

                              FLEET NATIONAL BANK,
                            AS ADMINISTRATIVE AGENT

                              FLEET NATIONAL BANK,
                               AS ISSUING LENDER

                         US BANK, NATIONAL ASSOCIATION,
                              AS SYNDICATION AGENT

                                     -AND-

                      WACHOVIA BANK, NATIONAL ASSOCIATION

                                     -AND-

                                 SUNTRUST BANK,
                           AS CO-DOCUMENTATION AGENTS

                           --------------------------

                             FLEET SECURITIES INC.,
                                AS LEAD ARRANGER

                           --------------------------

                           DATED AS OF: JUNE 30, 2003

<PAGE>

                                TABLE OF CONTENTS

<TABLE>

<S>                                                                                                <C>
ARTICLE I. DEFINITIONS..............................................................................1
         1.1.   Defined Terms.......................................................................1
         1.2.   Use of Defined Terms................................................................33

         1.3.   Cross-References....................................................................34
         1.4.   Accounting and Financial Determinations.............................................34
         1.5.   General Provisions Relating to Definitions..........................................34

ARTICLE II. THE CREDIT FACILITIES...................................................................34
         2.1.   Amounts and Terms of Commitments....................................................34
         2.2.   Loan Accounts; Notes................................................................35
         2.3.   Requests for Borrowings.............................................................35
         2.4.   Interest Elections for all Borrowings...............................................36
         2.5.   Reduction and Termination of Commitments............................................37
         2.6.   Voluntary Prepayments...............................................................39
         2.7.   Mandatory Prepayments...............................................................39
         2.8.   Repayments of Principal.............................................................41
         2.9.   Fees................................................................................43
         2.10.  Computation of Fees and Interest....................................................43
         2.11.  Interest............................................................................43
         2.12.  Payments by the Borrower; Pro Rata Treatment; etc...................................44
         2.13.  Payments by Lenders to the Administrative Agent.....................................45
         2.14.  Sharing of Payments; etc............................................................45
         2.15.  Incremental Facilities..............................................................46

ARTICLE III. THE LETTERS OF CREDIT..................................................................47
         3.1.   Letter of Credit Subfacility........................................................47
         3.2.   Issuance, Amendment and Renewal of Letters of Credit................................48
         3.3.   Participations, Drawings and Reimbursement..........................................50
         3.4.   Repayment of Participation..........................................................51
         3.5.   Role of Issuing Lender..............................................................51
         3.6.   Obligations Absolute................................................................52
         3.7.   Cash Collateral Pledge..............................................................53
         3.8.   Letter of Credit Fees...............................................................53

ARTICLE IV.  TAXES, YIELD PROTECTION AND ILLEGALITY.................................................54
         4.1.   Taxes...............................................................................54
         4.2.   Illegality..........................................................................55
         4.3.   Increased Costs and Reductions of Return............................................56
         4.4.   Funding Losses......................................................................57
         4.5.   Inability to Determine Rates........................................................57
         4.6.   Reserves on Eurodollar Loans........................................................58
         4.7.   Certificates of Lenders.............................................................58
         4.8.   Change of Lending Office............................................................58

ARTICLE V. CONDITIONS PRECEDENT.....................................................................58
         5.1.   Conditions to Making First Credit Extensions........................................58
                  5.1.1. Execution and Delivery of this Agreement and Notes.........................58
                  5.1.2. Guaranty Agreement; Collateral Documents...................................58
                  5.1.3. Other Loan Documents; etc..................................................59
</TABLE>

<PAGE>

                                      -ii-
<TABLE>

<S>                                                                                                <C>
                  5.1.4. Termination of Existing Credit Facilities; etc.............................59
                  5.1.5. Financial Statements.......................................................59
                  5.1.6. Certificates of Insurance..................................................60
                  5.1.7. Resolutions; etc...........................................................60
                  5.1.8. Certificates of Good Standing; etc.........................................60
                  5.1.9. No Materially Adverse Effect; etc..........................................61
                  5.1.10. Ancillary Documents; Affiliate Transactions; etc..........................61
                  5.1.11. Minimum Consolidated Adjusted EBITDA; Compliance Certificate..............61
                  5.1.12. Fees and Expenses.........................................................61
                  5.1.13. Legal Opinions of Counsel.................................................62
         5.2.   All Credit Extensions...............................................................62
                  5.2.1.  Compliance with Warranties; No Default; etc...............................62
                  5.2.2.  Borrowing Request; Interest Election Request..............................62
                  5.2.3.  Legality of Transactions..................................................62
                  5.2.4.  Satisfactory Legal Form; etc..............................................62

ARTICLE VI.REPRESENTATIONS AND WARRANTIES...........................................................63
         6.1.   Corporate Existence and Power; etc..................................................63
         6.2.   Corporate Authorization; etc........................................................63
         6.3.   Governmental Authorization..........................................................63
         6.4.   Binding Effect......................................................................64
         6.5.   Collateral Documents................................................................64
         6.6.   No Default..........................................................................64
         6.7.   Use of Proceeds; Margin Regulations.................................................65
         6.8.   Financial Statements; etc...........................................................65
         6.9.   Materially Adverse Effect...........................................................65
         6.10.  Existing Indebtedness, Liens and Investments; etc...................................65
         6.11.  Transactions with Affiliates........................................................66
         6.12.  Corporate Structure; etc............................................................66
         6.13.  Title to Properties.................................................................66
         6.14.  Intellectual Property Rights; etc...................................................67
         6.15.  Litigation..........................................................................67
         6.16.  Compliance with Applicable Law; etc.................................................67
         6.17.  Governmental Regulation.............................................................67
         6.18.  Taxes...............................................................................67
         6.19.  ERISA...............................................................................68
         6.20.  Environmental Liabilities...........................................................68
         6.21.  Labor Controversies.................................................................68
         6.22.  FCC Authorizations..................................................................68

ARTICLE VII. AFFIRMATIVE COVENANTS..................................................................69
         7.1.   Financial Information; etc..........................................................69
         7.2.   Compliance Certificates; Other Information..........................................70
         7.3.   Notices.............................................................................70
         7.4.   Maintenance of Corporate Existence; etc.............................................71
         7.5.   Foreign Qualification; etc..........................................................71
         7.6.   Payment of Taxes; etc...............................................................71
         7.7.   Maintenance of Property; Insurance..................................................71
         7.8.   Compliance with Laws; etc...........................................................71
         7.9.   Books and Records...................................................................72
</TABLE>

<PAGE>
                                     -iii-
<TABLE>

<S>                                                                                                <C>
         7.10.  Use of Proceeds.....................................................................72
         7.11.  Interest Rate Protection............................................................72
         7.12.  Identification of Subsidiaries; Provision of Collateral.............................73
         7.13.  Further Assurances..................................................................74

ARTICLE VIII. NEGATIVE COVENANTS....................................................................74
         8.1.   Limitations on Lines of Business....................................................74
         8.2.   Indebtedness........................................................................74
         8.3.   Liens...............................................................................75
         8.4.   Financial Covenants.................................................................76
         8.5.   Consolidations, Mergers, Sales; etc.................................................77
         8.6.   Investments and Acquisitions........................................................78
         8.7.   Restricted Payments.................................................................79
         8.8.   Limitations on Hedge Agreements.....................................................81
         8.9.   Limitations on Restrictive Agreements...............................................81
         8.10.  Transactions with Affiliates........................................................81
         8.11.  Sale of Capital Stock; etc..........................................................82
         8.12.  Change of Control...................................................................83
         8.13.  Limitations on Optional Payments; etc...............................................83
         8.14.  Modification of other Ancillary Documents; etc......................................83
         8.15.  Maintenance of Separateness.........................................................83
         8.16.  Use of Credits; Compliance with Margin Regulations..................................84

ARTICLE IX. EVENTS OF DEFAULT.......................................................................84
         9.1.   Events of Default...................................................................84
                  9.1.1.   Non-Payment of Obligations...............................................84
                  9.1.2.   Non-Performance of Certain Obligations...................................84
                  9.1.3.   Non-Performance of Other Obligations.....................................84
                  9.1.4.   Breach of Representation or Warranty.....................................85
                  9.1.5. Cross-Default..............................................................85
                  9.1.6.   Insolvency; Voluntary Proceedings........................................85
                  9.1.7.   Involuntary Proceedings..................................................85
                  9.1.8. ERISA......................................................................85

                  9.1.9.  Judgments.................................................................85
                  9.1.10.  Change of Control........................................................86
                  9.1.11.  Guaranty Agreement.......................................................86
                  9.1.12.  Collateral Documents.....................................................86
                  9.1.13.  Main Station Licenses....................................................86
         9.2.   Remedies............................................................................87

ARTICLE X. THE ADMINISTRATIVE AGENT AND OTHER AGENTS................................................88
         10.1.  Appointment and Authorization.......................................................88
         10.2.  Delegation of Duties................................................................89
         10.3.  Liability of Administrative Agent...................................................89
         10.4.  Reliance by Administrative Agent....................................................89
         10.5.  Notice of Default...................................................................90
         10.6.  Credit Decisions....................................................................90
         10.7.  Indemnification.....................................................................91
         10.8.  Administrative Agent in its Individual Capacity.....................................91
         10.9.  Successor Administrative Agent......................................................92
         10.10. Collateral Documents and Guaranty Agreement.........................................92
</TABLE>

<PAGE>
                                      -iv-
<TABLE>

<S>                                                                                                <C>
         10.11. Other Agents........................................................................93

ARTICLE XI.  SUCCESSORS AND SSIGNS..................................................................93
         11.1.  General Conditions..................................................................93

         11.2.  Assignments.........................................................................93

         11.3.  Register............................................................................94

         11.4.  Participations......................................................................94
         11.5.  Payments to Participants............................................................95
         11.6.  Miscellaneous Assignment Provisions.................................................95
         11.7.  Assignee or Participant Affiliated with the Principal Companies.....................95
         11.8.  New Notes...........................................................................96
         11.9.  Special Purpose Funding Vehicle.....................................................96

ARTICLE XII. MISCELLANEOUS..........................................................................97
         12.1.  Amendments and Waivers..............................................................97
         12.2.  Notices.............................................................................98
         12.3.  No Waiver; Cumulative Remedies......................................................99
         12.4.  Costs and Expenses..................................................................99
         12.5.  Indemnity...........................................................................100
         12.6.  Confidentiality.....................................................................101
         12.7.  Set-off.............................................................................101
         12.8.  Survival of Representations, Warranties and Agreements..............................102
         12.9.  Marshalling; Payments Set Aside.....................................................102
         12.10. Obligations Several; Independent Nature of Lenders' Rights..........................102
         12.11. Notification of Addresses, Lending Offices; etc.....................................102
         12.12. Counterparts........................................................................102
         12.13. Severability........................................................................103
         12.14. No Third Parties Benefited..........................................................103
         12.15. Governing Law and Jurisdiction; Waiver of Trial by Jury.............................103
         12.16. Interest Rate Limitation............................................................104
         12.17. Delivery by Facsimile...............................................................104
</TABLE>

<PAGE>

                                      -v-

                             SCHEDULES AND EXHIBITS

SCHEDULE          DESCRIPTION

SCHEDULE 1        LENDING OFFICES/NOTICE ADDRESSES
SCHEDULE 2        COMMITMENTS OF LENDERS
SCHEDULE 6        DISCLOSURE SCHEDULE

EXHIBIT           DESCRIPTION

EXHIBIT A         FORM OF REVOLVING CREDIT NOTE
EXHIBIT B         FORM OF TERM NOTE
EXHIBIT C         FORM OF GUARANTY AGREEMENT
EXHIBIT D         FORM OF PLEDGE AGREEMENT
EXHIBIT E         FORM OF SECURITY AGREEMENT
EXHIBIT F         FORM OF COMPLIANCE CERTIFICATE
EXHIBIT G         FORM OF ASSIGNMENT AND ACCEPTANCE
EXHIBIT H         FORM OF LEGAL OPINION OF SPECIAL COUNSEL FOR THE PARENT
                  COMPANY AND THE BORROWER
EXHIBIT I         FORM OF LEGAL OPINION OF SPECIAL FCC COUNSEL FOR THE PARENT
                  COMPANY AND THE BORROWER

<PAGE>

                                                                [EXECUTION COPY]

                                CREDIT AGREEMENT

                  CREDIT AGREEMENT, dated as of June 30, 2003, among REGENT
BROADCASTING, INC., a Delaware corporation (hereinafter, together with its
successors in title and assigns, called the "BORROWER"), REGENT COMMUNICATIONS,
INC., a Delaware corporation (hereinafter, together with its successors in title
and assigns, called the "PARENT COMPANY" and, together with the Borrower,
called, collectively, the "PRINCIPAL COMPANIES" and, singly, a "PRINCIPAL
COMPANY"), the several financial institutions from time to time party to this
Agreement as Lenders hereunder, FLEET NATIONAL BANK, as Administrative Agent for
the Lenders, FLEET NATIONAL BANK, as Issuing Lender, US BANK, NATIONAL
ASSOCIATION, as Syndication Agent for the Lenders, and WACHOVIA BANK, NATIONAL
ASSOCIATION, and SUNTRUST BANK, as Co-Documentation Agents for the Lenders.

                                    RECITALS:

                  A. The Principal Companies have requested the Lenders to make
available to the Borrower senior secured credit facilities in the maximum
aggregate principal amount of $150,000,000, consisting of a senior secured
revolving credit facility in the aggregate principal amount of $85,000,000 and a
senior secured term loan facility in the aggregate principal amount of
$65,000,000.

                  B. The Lenders have agreed to make available to the Borrower
the senior secured credit facilities so requested upon the terms and subject to
the conditions contained in this Agreement.

                  NOW, THEREFORE, in consideration of the mutual agreements,
promises and covenants contained herein, the parties hereto hereby agree as
follows:

                                   ARTICLE I.

                                   DEFINITIONS

         1.1. DEFINED TERMS. As used in this Agreement, the capitalized terms in
the Preamble hereto shall have the meanings therein given to them, and the
following words and terms shall have the meanings specified below:

         "ACQUISITION" means, in relation to any Person, any transaction, or any
series of related transactions, in which such Person (a) acquires any business
or all or any substantial part of the Property of any other Person or any
division or other business unit thereof, whether through purchase of assets,
merger or otherwise, (b) directly or indirectly acquires ownership or control of
at least a majority (in number of votes) of the Voting Interests of any other
Person, or (c) directly or indirectly acquires ownership or control of at least
a majority of the Equity Interests of any other Person.

         "ACQUISITION DOCUMENTATION" means, collectively, in relation to any
Acquisition undertaken and completed or (as the case may be) to be undertaken
and completed by the Parent Company, the Borrower or any of their Subsidiaries:
(a) the purchase agreements, merger

<PAGE>
                                      -2-

agreements or other similar Instruments pursuant to which such Acquisition is or
(as the case may be) is to be effected; and (b) all schedules, exhibits, annexes
and amendments thereto and all material side letters and agreements affecting
the terms thereof or to be entered into in connection therewith, in each case,
as amended, supplemented or otherwise modified from time to time.

         "ADDITIONAL LENDER" has the meaning specified in Section 2.15(c).

         "ADMINISTRATIVE AGENT" means Fleet National Bank, in its capacity as
administrative agent for the Agents, the Issuing Lender and the Lenders under
this Agreement and the other Loan Documents, and any successor to such
administrative agent.

         "ADMINISTRATIVE AGENT-RELATED PERSONS" has the meaning specified in
Section 10.3.

         "ADMINISTRATIVE AGENT'S OFFICE" means the address for payments set
forth on the signature pages hereto in relation to the Administrative Agent or
such other address as the Administrative Agent may from time to time specify in
accordance with Section 12.2.

         "ADMINISTRATIVE QUESTIONNAIRE" means an Administrative Questionnaire in
a form supplied by the Administrative Agent.

         "AFFILIATE" means, with respect to any Person, any other Person (a)
directly or indirectly controlling, controlled by, or under direct or indirect
common control with, such Person, or (b) that directly or indirectly owns or
controls more than 10% of any class of the Capital Stock of, or Equity Interests
in, such Person. A Person shall be deemed to control another Person if such
Person possesses, directly or indirectly, the power to direct or to cause the
direction of the management and policies of such other Person, whether through
the ownership of Voting Interests, by contract or otherwise. For purposes of
this Agreement and the other Loan Documents, (i) the Parent Company shall be
deemed to be an Affiliate of the Borrower and of each of the Borrower's
Subsidiaries, (ii) the Borrower shall not be deemed to be an Affiliate of any of
the Borrower's Subsidiaries, (iii) none of the Subsidiaries of the Borrower
shall be deemed to be an Affiliate of the Borrower or of any of the other
Subsidiaries of the Borrower, and (iv) none of the Agents or the Lenders shall
be deemed to be an Affiliate of the Parent Company, the Borrower or any of their
Subsidiaries.

         "AFFILIATE TRANSACTION" means any of the following transactions or
arrangements: (a) the making by the Borrower or any of its Subsidiaries of any
payment or prepayment (whether of principal, premium, interest or any other sum)
of or on account of, or any payment or other distribution by the Borrower or any
of its Subsidiaries on account of the redemption, repurchase, defeasance or
other acquisition for value of, any Indebtedness of any kind whatsoever (i) of
any Affiliate of the Borrower, or (ii) of the Borrower or any of its
Subsidiaries to any Affiliate of the Borrower; (b) the making of any loans,
advances or other Investments of any kind whatsoever by the Borrower or any of
its Subsidiaries to or in any Affiliate of the Borrower or to or in any holder
of any Indebtedness described in clause (a) of this definition; (c) the Sale by
the Borrower or any of its Subsidiaries of all or any part of its Property to,
or for the direct or indirect benefit of, any Affiliate of the Borrower; (d) the
incurrence by the Borrower or any of its Subsidiaries of any Indebtedness to any
Affiliate of the Borrower; (e) the declaration or payment by the Borrower or any
of its Subsidiaries of any dividends or other distributions on account of, or
the making by the Borrower or any of its Subsidiaries of any payment or other
distribution on account of the purchase, repurchase, redemption or other
acquisition for value of, any Equity Interests or Securities of any Affiliate of
the Borrower; (f) the payment by the Borrower or any of

<PAGE>
                                      -3-

its Subsidiaries to any Affiliate of the Borrower of any fees or commissions of
any kind; or (g) any other transaction or Contractual Obligation between any
Affiliate of the Borrower, on the one hand, and the Borrower, on the other hand,
or between any Affiliate of the Borrower, on the one hand, and any Subsidiary of
the Borrower, on the other hand.

         "AGENTS" means, collectively, the Administrative Agent, the Collateral
Agent, the Syndication Agent, the Documentation Agents, and the Lead Arranger.

         "AGGREGATE INCREMENTAL COMMITMENTS" means the combined Incremental
Commitments of all Classes of the Lenders and Additional Lenders (in an
aggregate original amount not to exceed $100,000,000), as such amount may be
reduced from time to time pursuant to this Agreement.

         "AGGREGATE REVOLVING COMMITMENT" means the combined Revolving
Commitments of all of the Revolving Lenders, in the initial aggregate amount of
$85,000,000, as such amount may be reduced from time to time pursuant to this
Agreement.

         "AGGREGATE TERM COMMITMENT" means the combined Term Commitments of all
of the Term Lenders, in the initial aggregate amount of $65,000,000, as such
amount may be reduced from time to time pursuant to this Agreement.

         "AGREEMENT" means this Credit Agreement, as amended, supplemented or
otherwise modified from time to time.

         "ALTERNATE BASE RATE" means, for any day, the GREATER of (a) the Base
Rate in effect on such day, or (b) the Federal Funds Rate, in effect on such
day, plus 1/2%.

         "AMOUNT" means (a) with respect to any Acquisition, all consideration
paid in respect thereof, including consideration in the form of cash, Equity
Interests and other Property, including, without limitation, Media Assets (all
as valued at the time of such Acquisition), and the assumption of Indebtedness
or other obligations or liabilities, and (b) with respect to any Asset Sale, all
consideration received in respect thereof, including consideration in the form
of cash, Equity Interests and other Property, including, without limitation,
Media Assets (all as valued at the time of such Sale), and the assumption of
Indebtedness or other obligations or liabilities.

         "ANCILLARY DOCUMENTS" means, collectively, the Governing Documents of
each of the Parent Company, the Borrower and their Subsidiaries, and all other
Instruments that shall from time to time be identified by the Borrower and the
Administrative Agent in writing as "ANCILLARY DOCUMENTS" for purposes of this
Agreement and the other Loan Documents.

         "ANTICIPATED REINVESTMENT AMOUNTS" means, with respect to any
Reinvestment Election, the aggregate amount specified by either or both of the
Principal Companies in one or more written notices furnished to the
Administrative Agent from time to time within 270 days after delivery of the
related Reinvestment Notice as the aggregate amount of the Net Cash Proceeds or
(as the case may be) Net Issuance Proceeds from the related Reinvestment Event
that the Parent Company or the Borrower intends to use, or (as the case may be)
intends to cause one or more Subsidiaries of the Parent Company or of the
Borrower to use, to purchase, construct or otherwise acquire Reinvestment
Assets.

<PAGE>
                                      -4-

         "APPLICABLE COMMITMENT FEE PERCENTAGE" means, with respect to the
Aggregate Revolving Commitment, a percentage, per annum, determined by reference
to the Usage applicable to the Aggregate Revolving Commitment for any period,
all as set forth in the PRICING GRID below:

<TABLE>
<CAPTION>
         ============================ ======================================== ============================
                    USAGE                           USAGE                             USAGE
<S>                <C>                <C>                                          <C>
                   GREATER THAN       GREATER THAN      LESS THAN OR EQUAL TO      LESS THAN OR EQUAL TO
                   66.67%             33.33%       AND  66.67%                     33.33%
         ---------------------------- ---------------------------------------- --------------------------

                   0.375%                           0.500%                            0.625%
         ============================ ======================================== ==========================
</TABLE>

         "APPLICABLE LAW" means, in relation to any Person or its Property,
statutes and rules and regulations thereunder and interpretations thereof by any
Governmental Authority charged with the administration or the interpretation
thereof, and orders, requests, directives, instructions and notices of any
Governmental Authority, in each case, applicable to or binding upon such Person
or any of its Property.

         "APPLICABLE MARGIN" means, with respect to any of the Loans, a
percentage, per annum, determined by reference to the Consolidated Leverage
Ratio in effect from time to time, all as set forth in the PRICING GRID below:

<TABLE>
<CAPTION>
         ========================================================================================
                                              PRICING GRID
         ------------------------------ ---------------------------- ----------------------------
                 CONSOLIDATED
                   LEVERAGE                      BASE RATE                   EURODOLLAR
                     RATIO                         LOANS                        LOANS
         ------------------------------ ---------------------------- ----------------------------

<S>                                            <C>                           <C>
               GREATER THAN OR EQUAL TO
               6.00: 1.00                      1.500%                        3.000%

         ------------------------------ ---------------------------- ----------------------------
              LESS THAN
              6.00: 1.00                       1.250%                        2.750%
              GREATER THAN OR EQUAL TO
              5.50: 1.00

         ------------------------------ ---------------------------- ----------------------------
              LESS THAN
              5.50: 1.00                       1.000%                        2.500%
              GREATER THAN OR EQUAL TO
              5.00: 1.00
         ------------------------------ ---------------------------- ----------------------------
              LESS THAN
              5.00: 1.00                       0.750%                        2.250%
              GREATER THAN OR EQUAL TO
              4.50: 1.00

         ------------------------------ ---------------------------- ----------------------------
              LESS THAN
              4.50: 1.00                       0.500%                        2.000%
              GREATER THAN OR EQUAL TO
              4.00: 1.00

         ------------------------------ ---------------------------- ----------------------------
              LESS THAN
              4.00: 1.00                       0.250%                        1.750%
              GREATER THAN OR EQUAL TO
              3.50: 1.00

         ------------------------------ ---------------------------- ----------------------------
              LESS THAN
              3.50: 1.00                       0.000%                        1.500%
         ============================== ============================ ============================
</TABLE>

The "APPLICABLE MARGIN" shall be determined by reference to the Consolidated
Leverage Ratio set forth in the most recent Compliance Certificate delivered
pursuant to Section 7.2(a). No change in the Applicable Margin with respect to
any of the Loans shall be effective until three (3) Business Days after the date
on which the Administrative Agent shall have received the applicable financial
statements and a Compliance Certificate pursuant to Section 7.2(a) calculating
such new Consolidated Leverage Ratio. Promptly following receipt of the
applicable

<PAGE>
                                      -5-

information as and when required under Section 7.2(a), the Administrative Agent
shall give each Lender facsimile or telephonic notice (confirmed in writing) of
the Applicable Margin in effect from such date.

         "APPROVED FUND" means any Fund that is administered or managed by (a)
any Lender, (b) any Affiliate of a Lender, or (c) any entity or any Affiliate of
any entity that administers or manages a Lender.

         "ASSET SALE" means any direct or indirect Sale (including any Sale of
all or any part of any Subsidiary of the Parent Company or the Borrower by or
through the issue or Sale of any Equity Interests of such Subsidiary, and also
including any Sale pursuant to a sale and leaseback transaction), whether in a
single transaction or in a series of related transactions, by the Parent
Company, the Borrower or any of their Subsidiaries of any businesses or Property
of the Parent Company, the Borrower or any of their Subsidiaries, whether now
owned or from time to time hereafter created, arising or acquired, including
Equity Interests (including Equity Interests of any such Subsidiaries, but
excluding Equity Interests of the Parent Company); provided, however, that the
term "ASSET SALE" shall not include any Permitted Dispositions.

         "ASSIGNMENT AND ACCEPTANCE" means an Assignment and Acceptance entered
into by a Lender and an Eligible Assignee (with the consent of any other Person
whose consent is required by Section 11.2), and accepted by the Administrative
Agent, in or substantially in the form of Exhibit G.

         "ATTORNEY COSTS" means and includes all reasonable fees and
disbursements of any law firm or other external legal counsel actually incurred
or sustained, and, without duplication, the reasonable allocated cost of
internal legal counsel and other internal legal services, and all reasonable
disbursements of internal legal counsel and other internal legal services.

         "AUTHORIZED OFFICER" means, in relation to the Parent Company, the
Borrower or any of their Subsidiaries, the chief executive officer, the
president, any vice president, the chief financial officer or the treasurer of
such Person or any other officer of such Person having substantially the same
authority and responsibility, in each case, acting solely in such capacity and
without personal liability.

         "BANKRUPTCY CODE" means the Federal Bankruptcy Reform Act of 1978 (11
U.S.C.ss.101, et seq.), as amended from time to time.

         "BASE RATE" means the rate of interest publicly announced from time to
time by Fleet National Bank at its head office in Boston, Massachusetts as its
"base rate". Any change in the Base Rate announced by Fleet National Bank shall
take effect at the opening of business on the day specified in the public
announcement of such change.

         "BASE RATE LOAN" means any Loan that bears interest at an interest rate
based on the Alternate Base Rate.

         "BORROWER" has the meaning specified in the Preamble hereto.

         "BORROWING" means any borrowing hereunder consisting of one or more
Loans made or to be made to the Borrower on the same Borrowing Date by Lenders
pursuant to Section 2.1.

<PAGE>
                                      -6-

         "BORROWING DATE" means, in relation to any Loan, the date of the
borrowing of such Loan, as specified in the relevant Borrowing Request for such
Loan.

         "BORROWING REQUEST" means any request by the Borrower for a Borrowing
in accordance with Section 2.3.

         "BUSINESS DAY" means any day other than a Saturday, Sunday or other day
on which commercial banks in Boston, Massachusetts, New York City or Covington,
Kentucky are authorized or required by law to close, so long as, if such term
shall be used in relation to any Eurodollar Loan or any Interest Period relating
thereto, on such day dealings are also carried on by and between banks in Dollar
deposits in the applicable interbank market.

         "CAPITAL ADEQUACY REGULATION" means any guideline, request or directive
of any central bank or other Governmental Authority, whether or not having the
force of law, and any other Applicable Law regarding or affecting the capital
adequacy of any bank or of any corporation controlling a bank.

         "CAPITAL ASSETS" means, with respect to any Person, all equipment,
fixed assets and real Property or improvements of such Person, or replacements
or substitutions therefor or additions thereto, that, in accordance with GAAP,
have been or should be reflected as additions to Property, plant or equipment on
the balance sheet of such Person.

         "CAPITAL EXPENDITURES" means, with respect to any Person for any
period, all expenditures made directly or indirectly by such Person during such
period for Capital Assets (whether paid in cash or other consideration or
accrued as a liability and, including, without limitation, all expenditures for
maintenance and repairs which are required, in accordance with GAAP, to be
capitalized on the books of such Person).

         "CAPITAL LEASE" has the meaning specified in the definition of the term
"CAPITAL LEASE OBLIGATIONS".

         "CAPITAL LEASE OBLIGATIONS" means, with respect to any Person, all
obligations of such Person to pay rent or other amounts under any lease of (or
other arrangements conveying the right to use) real or personal Property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases (each, a "CAPITAL LEASE") on a balance sheet of
such Person under GAAP, and, for the purposes of this Agreement, the amount of
such obligations at any time shall be the capitalized amount thereof at such
time determined in accordance with GAAP.

         "CAPITAL STOCK" means (a) in the case of any corporation, any corporate
capital stock of any class or series, (b) in the case of any association or
business entity, any shares, interests, participations, rights or other
equivalents (howsoever designated) of corporate capital stock, and (c) in the
case of any partnership or limited liability company, partnership or membership
interests (whether general or limited).

         "CASH COLLATERALIZE" means to pledge and deposit with or deliver to the
Administrative Agent, as collateral for Letter of Credit Obligations, cash or
deposit account balances pursuant to documentation in form and substance
reasonably satisfactory to the Administrative Agent and the Issuing Lender.
Derivatives of such term shall have corresponding meanings.

<PAGE>
                                      -7-

         "CASH EQUIVALENTS" means any or all of the following: (a) obligations
of, or guaranteed as to principal and interest by, the United States government
or any agency thereof maturing within one year after the date on which such
obligations are purchased; (b) open market commercial paper of any corporation
(other than the Parent Company, the Borrower or any of their respective
Subsidiaries) incorporated under the laws of the United States or any State
thereof rated P-1 or its equivalent or higher by Moody's or A-1 or its
equivalent or higher by S&P; (c) time deposits, certificates of deposit or
bankers' acceptances maturing within one year after the acquisition thereof
issued by commercial banks organized under the laws of the United States or any
state thereof and having a combined capital and surplus in excess of
$250,000,000 or which is a Lender; (d) repurchase agreements with respect to
Securities described in clause (a) above entered into with an office of a bank
or trust company meeting the criteria specified in clause (c); (e) money market
funds investing only in Investments described in clauses (a) through (d); and
(f) direct obligations of, or obligations the principal and interest of which
are unconditionally guaranteed by any State of the United States or any foreign
state having, at the date of its acquisition by the Parent Company, the Borrower
or any of their Subsidiaries, a rating of at least AA by S&P or Aa by Moody's,
in each case maturing within one year from the date of the acquisition.

         "CHANGE OF CONTROL" means any event or series of related events
(including the Sale or issuance (or series of Sales or issuances) of Equity
Interests of the Borrower by the Borrower or by any holder or holders thereof,
or any merger, consolidation, recapitalization, reorganization or other
transaction or arrangement) as a result of which: (a) the Parent Company shall
cease to own and control (both legally and beneficially) 100% of the Voting
Stock and 100% of all of the other Equity Interests in the Borrower; (b) any
"person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act), excluding the JS Group, shall become the "beneficial owner" (as
defined in Rules 13(d)-3 and13(d)-5 under the Exchange Act), directly or
indirectly, of more than the greater of (i) 25% of the then outstanding Voting
Stock of the Parent Company, or (ii) the percentage of the then outstanding
Voting Stock of the Parent Company then owned by the JS Group; (c) the Board of
Directors of the Parent Company shall at any time cease to consist of a majority
of Continuing Directors; or (d) any "Change of Control" or any other similar
event under and as defined in any of the Instruments governing any Indebtedness
of the Parent Company or of any of its Subsidiaries in an aggregate principal
amount exceeding $10,000,000 shall at any time occur.

         "CLASS", when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans,
Incremental Revolving Loans, Term Loans or Incremental Term Loans, and, when
used in reference to any Commitment, refers to whether such Commitment is a
Revolving Commitment, Incremental Revolving Commitment of any class, Term
Commitment, or Incremental Term Commitment of any class.

         "CLOSING DATE" means the Borrowing Date on which the first Credit
Extensions are made or to be made by the Lenders to the Borrower hereunder.

         "CODE" means the Internal Revenue Code of 1986, and the rules and
regulations promulgated thereunder as from time to time in effect.

         "COLLATERAL" means, collectively, any and all collateral provided by
the Parent Company, the Borrower or any of their Subsidiaries to the
Administrative Agent, the Collateral Agent or any of the other Secured Parties
from time to time pursuant to the Collateral Documents and the other Loan
Documents.

<PAGE>
                                      -8-

         "COLLATERAL AGENT" means Fleet National Bank, in its capacity as
collateral agent or pledgee for the Secured Parties under this Agreement, the
Collateral Documents and the other Loan Documents, and any successor to such
collateral agent or pledgee.

         "COLLATERAL DOCUMENTS" means, collectively, the Security Agreement, the
Pledge Agreement, all other Instruments executed and delivered to the
Administrative Agent or the Collateral Agent on the Effective Date or from time
to time thereafter pursuant to Section 7.12, and all other Security Instruments
executed and/or delivered from time to time pursuant to any of the foregoing.

         "COMMITMENT" means, for each Lender, any of its Revolving Commitment,
Term Commitment or Incremental Commitments.

         "COMMITMENT REDUCTION AMOUNTS" has the meaning specified in Section
2.5(b).

         "COMMITMENT REDUCTION DATES" has the meaning specified in Section
2.5(b).

         "COMMUNICATIONS ACT" has the meaning specified in Section 6.22.

         "COMPLIANCE CERTIFICATE" means a compliance certificate, in or
substantially in the form of Exhibit F or otherwise in such other form as shall
from time to time be approved by the Administrative Agent in accordance with the
terms of this Agreement, duly executed by an Authorized Officer of each
Principal Company and delivered pursuant to Section 7.2(a) or (as the case may
be) other provisions of this Agreement.

         "CONSOLIDATED ADJUSTED CURRENT ASSETS" means, in relation to any Person
and its Subsidiaries as at any date, all amounts (other than cash and Cash
Equivalents) which would, in conformity with GAAP, be set forth opposite the
caption "total current assets" (or any like caption) on a consolidated balance
sheet of such Person and its Subsidiaries as at such date.

         "CONSOLIDATED ADJUSTED CURRENT LIABILITIES" means, in relation to any
Person and its Subsidiaries as at any date, all amounts which would, in
conformity with GAAP, be set forth opposite the caption "total current
liabilities" (or any like caption) on a consolidated balance sheet of such
Person and its Subsidiaries as at such date, but excluding the current portion
of any Indebtedness of such Person and its Subsidiaries.

         "CONSOLIDATED ADJUSTED EBITDA" means, in relation to the Parent Company
and its Subsidiaries for any period, the Consolidated EBITDA of the Parent
Company and its Subsidiaries for such period; provided, however, that, for
purposes of calculating Consolidated Adjusted EBITDA of the Parent Company and
its Subsidiaries for any period: (a) there shall be added to such Consolidated
EBITDA for such period all (if any) Consolidated Cost Savings for such period;
(b) the Consolidated EBITDA of any Person or attributable to any business
acquired by the Parent Company, the Borrower or any of their Subsidiaries during
such period shall be included on a Pro Forma Basis for such period (assuming the
consummation of such Acquisition occurred on the first day of such period); and
(c) the Consolidated EBITDA of any Person or attributable to any business sold
or otherwise disposed of by the Parent Company, the Borrower or any of their
Subsidiaries during such period shall be excluded on a Pro Forma Basis for such
period (assuming the consummation of such disposition occurred on the first day
of such period).

<PAGE>
                                      -9-

         "CONSOLIDATED BROADCAST CASH FLOW" means, in relation to the Parent
Company and its Subsidiaries for any period, the SUM of (a) the Consolidated
Adjusted EBITDA of the Parent Company and its Subsidiaries for such period, PLUS
(b) the Consolidated Corporate Overhead of the Parent Company and its
Subsidiaries for such period, to the extent, but only to the extent, that such
Consolidated Corporate Overhead was deducted in determining Consolidated
Adjusted EBITDA for such period.

         "CONSOLIDATED CAPITAL EXPENDITURES" means, in relation to any Person
and its Subsidiaries for any period, all Capital Expenditures by such Person and
its Subsidiaries for such period, all as determined on a consolidated basis in
accordance with GAAP.

         "CONSOLIDATED CASH INTEREST EXPENSE" means, in relation to any Person
and its Subsidiaries for any period, Consolidated Interest Expense of such
Person and its Subsidiaries for such period, but excluding, to the extent
otherwise included therein, interest expense to the extent not paid and not
required to be paid in cash in such period, all as determined on a consolidated
basis in accordance with GAAP.

         "CONSOLIDATED CORPORATE OVERHEAD" means, in relation to the Parent
Company and its Subsidiaries for any period, the portion of the corporate
overhead of the Parent Company and its Subsidiaries for such period not directly
allocable to the operation of Radio Stations or other operating assets, all as
determined on a consolidated basis in accordance with GAAP.

         "CONSOLIDATED COST SAVINGS" means, in relation to the Parent Company
and its Subsidiaries for any period and for any Acquisitions of Media Assets
completed by the Parent Company, the Borrower or any of their Subsidiaries
during such period, the SUM, determined on a consolidated basis and without
duplication, of all cost savings resulting from employee terminations,
facilities consolidations and closings, standardization of employee benefits and
compensation practices, consolidation of property, casualty and other insurance
coverage and policies, standardization of sales representation commissions and
other contract rates, and reductions in taxes other than income taxes, which
cost savings the Principal Companies reasonably believe in good faith would have
been achieved during such period as a result of such Acquisitions (regardless of
whether such cost savings could then be reflected in pro forma financial
statements under GAAP); provided, however, that (a) such cost savings with
respect to any particular Acquisition of Media Assets during such period shall
be identified and quantified in the first Compliance Certificate required to be
delivered to the Administrative Agent by the Principal Companies pursuant to
Section 7.2(a) (i) after the ninetieth day following the completion of such
Acquisition if the Principal Companies or any of their Subsidiaries assumed
control of the operations of the Media Assets prior to completion of such
Acquisition, and (ii) after the 180th day following the completion of such
Acquisition if such control was not assumed prior to completion of such
Acquisition, (b) if the aggregate amount of all of such cost savings for any
period shall not exceed ten percent (10%) of Consolidated Adjusted EBITDA for
such period, then the Principal Companies shall have obtained the prior written
approval of the Administrative Agent for such cost savings (which approval shall
not be unreasonably withheld or delayed by the Administrative Agent), and (c) if
the aggregate amount of all of such cost savings for any period shall exceed ten
percent (10%) of Consolidated Adjusted EBITDA for such period, then the
Principal Companies shall have obtained the prior written approval of the
Required Lenders for such cost savings.

         "CONSOLIDATED EBITDA" means, in relation to any Person and its
Subsidiaries for any period, Consolidated Net Income of such Person and its
Subsidiaries for such period, PLUS,

<PAGE>
                                      -10-

without duplication, and only to the extent reflected as a charge in the
statement of such Consolidated Net Income for such period, the SUM of (a)
provisions for income tax expense (including, without limitation, any franchise
taxes imposed in lieu of income taxes), PLUS (b) Consolidated Interest Expense,
amortization or write-off of deferred financing fees, debt discount and debt
issuance costs and commissions, discounts and other fees and charges associated
with Indebtedness, PLUS (c) depreciation and amortization expense, PLUS (d)
amortization of intangibles (including, without limitation, goodwill) and
organization costs, and PLUS (e) any non-cash charges or expenses or non-cash
losses (including non-cash losses on Sales of assets outside of the ordinary
course of business), and MINUS, without duplication, and only to the extent
included in the statement of such Consolidated Net Income for such period, the
SUM of (i) any extraordinary, unusual or non-recurring income or gains
(including gains on the Sales of assets outside of the ordinary course of
business), PLUS (ii) any other non-cash income, all as determined on a
consolidated basis and in accordance with GAAP.

         "CONSOLIDATED EXCESS CASH FLOW" means, for any Fiscal Year of the
Parent Company, the EXCESS, if any, of (a) the SUM of (i) the Consolidated
Adjusted EBITDA of the Parent Company and its Subsidiaries for such Fiscal Year,
PLUS (ii) the Consolidated Working Capital Adjustment of the Parent Company and
its Subsidiaries for such Fiscal Year, OVER (b) the SUM, without duplication, of
(i) the aggregate amount of all voluntary prepayments of Revolving Loans and
Incremental Revolving Loans during such Fiscal Year, but only if and to the
extent that the principal amounts so prepaid cannot be reborrowed by the
Borrower, (ii) the aggregate amount of all voluntary prepayments of Term Loans
and Incremental Term Loans during such Fiscal Year, (iii) without duplication of
any items in clause (i) or clause (ii), Consolidated Fixed Charges of the Parent
Company and its Subsidiaries for such period, and (iv) the sum of $1,000,000.

         "CONSOLIDATED FIXED CHARGE COVERAGE RATIO" means, as of the last day of
any Fiscal Quarter, the RATIO of (a) Consolidated Adjusted EBITDA of the Parent
Company and its Subsidiaries for the Measurement Period ending on such date, to
(b) Consolidated Fixed Charges of the Parent Company and its Subsidiaries for
such Measurement Period.

         "CONSOLIDATED FIXED CHARGES" means, in relation to any Person and its
Subsidiaries for any period, the SUM (without duplication) of (a) Consolidated
Cash Interest Expense of such Person and its Subsidiaries for such period, PLUS
(b) the aggregate amount paid or required to be paid in cash in respect of
income taxes by such Person or any of its Subsidiaries on a consolidated basis
during such period, PLUS (c) Consolidated Capital Expenditures (including
maintenance Capital Expenditures and Consolidated Investment Capital
Expenditures) of such Person and its Subsidiaries for such period, provided
that, for purposes of clause (c) of this definition, Consolidated Capital
Expenditures for such period shall not include any of the non-cash Capital
Expenditures of such Person and its Subsidiaries made by way of or pursuant to
one or more barter transactions, PLUS (d) all regularly scheduled payments
required to be made during such period on account of principal of Indebtedness
of such Person or of any of its Subsidiaries (including regularly scheduled
principal payments in respect of the Loans, and also including the principal
component of any scheduled payments in respect of Capital Lease Obligations),
all as determined on a consolidated basis in accordance with GAAP.

         "CONSOLIDATED INTEREST COVERAGE RATIO" means, as of the last day of any
Fiscal Quarter, the RATIO of (a) Consolidated Adjusted EBITDA of the Parent
Company and its Subsidiaries for the Measurement Period ending on such date, to
(b) Consolidated Cash Interest Expense of the Parent Company and its
Subsidiaries for such Measurement Period.

<PAGE>
                                      -11-

         "CONSOLIDATED INTEREST EXPENSE" means, in relation to any Person and
its Subsidiaries for any period, (a) interest expense on all Indebtedness of
such Person or of any of its Subsidiaries for such period, whether paid or
accrued, all as determined on a consolidated basis in accordance with GAAP, and
including: (i) interest expense in respect of Indebtedness (including the
Obligations), (ii) the interest component of Capital Lease Obligations, (iii)
commissions, discounts and other fees and charges payable in connection with
letters of credit and bankers' acceptances, (iv) the net payment, if any,
payable in connection with Hedge Agreements, less the net credit, if any,
received in connection with Hedge Agreements, (v) all Fees payable by such
Person, and (vi) all scheduled monthly fees payable in connection with LMA
Agreements (as defined below), LESS (b) interest income of such Person and its
Subsidiaries for such period, determined on a consolidated basis and in
accordance with GAAP. As used herein, the term "LMA AGREEMENT" means any time
brokerage, local marketing or similar agreement pursuant to which a Person
acquires the right to program substantially all of the time and to sell all of
the advertising spots of a Radio Station owned by another non-affiliated Person
in exchange for cash payments.

         "CONSOLIDATED INVESTMENT CAPITAL EXPENDITURES" means, in relation to
any Acquisition of any Radio Stations or other Media Assets by the Parent
Company or any of its Subsidiaries, all Capital Expenditures (other than
maintenance Capital Expenditures) made or to be made by the Parent Company or
any of its Subsidiaries in connection with such Acquisition, including, but not
limited to, Capital Expenditures relating to technology investments,
consolidation of Radio Stations or other Media Assets, and tower improvements,
all as determined on a consolidated basis in accordance with GAAP.

         "CONSOLIDATED LEVERAGE RATIO" means, as of the last day of any Fiscal
Quarter, the RATIO of (a) Consolidated Total Debt of the Parent Company and its
Subsidiaries as of such date, to (b) Consolidated Adjusted EBITDA of the Parent
Company and its Subsidiaries for the Measurement Period ending on such date.

         "CONSOLIDATED NET INCOME" means, in relation to any Person and its
Subsidiaries for any period, the consolidated net income (or loss) of such
Person and its Subsidiaries, determined on a consolidated basis in accordance
with GAAP.

         "CONSOLIDATED TOTAL DEBT" means, in relation to any Person and its
Subsidiaries as at any date, the aggregate amount of all of the Indebtedness of
such Person and its Subsidiaries as at such date, determined on a consolidated
basis.

         "CONSOLIDATED WORKING CAPITAL" means, in relation to any Person and its
Subsidiaries as at any date, the EXCESS of the Consolidated Adjusted Current
Assets of such Person and its Subsidiaries as at such date, OVER the
Consolidated Adjusted Current Liabilities of such Person and its Subsidiaries as
at such date.

         "CONSOLIDATED WORKING CAPITAL ADJUSTMENT" means, in relation to any
Person and its Subsidiaries for any period, the amount (which may be a negative
number) by which Consolidated Working Capital of such Person and its
Subsidiaries as of the beginning of such period exceeds (or is less than)
Consolidated Working Capital of such Person and its Subsidiaries as of the end
of such period.

<PAGE>
                                      -12-

         "CONTINUATION DATE" means any date on which a Eurodollar Loan is to be
continued as a Eurodollar Loan for a further Interest Period, in each case, in
accordance with the provisions of Section 2.4.

         "CONTINUING DIRECTORS" shall mean, collectively, directors of the
Parent Company on May 31, 2003, and each other director of the Parent Company
from time to time, if such other director's nomination for election to the Board
of Directors of the Parent Company was recommended by a majority of the then
Continuing Directors or by the JS Group.

         "CONTRACTUAL OBLIGATION" means, as to any Person, any agreement or
obligation under any Security issued by such Person or under any agreement,
undertaking, contract or other Instrument to which such Person is a party or by
which it or any of its Property is bound.

         "CONVERSION DATE" means any date on which a Base Rate Loan is to be
converted to a Eurodollar Loan, or a Eurodollar Loan is to be converted to a
Base Rate Loan, in each case, in accordance with the provisions of Section 2.4.

         "COVENANT DETERMINATION DATE" means, at any particular time, the last
day of the then most recent Fiscal Quarter of the Parent Company for which
financial statements of the Parent Company have been furnished to the
Administrative Agent pursuant to Section 7.1(a) or Section 7.1(b).

         "CREDIT EXTENSION" means (a) the making of any Loan to the Borrower
pursuant to this Agreement, or (b) the issuance, amendment or renewal of any
Letter of Credit by the Issuing Lender pursuant to this Agreement.

         "CREDIT PARTIES" means, collectively, the Parent Company, the Borrower
and the Subsidiary Guarantors.

         "DEFAULT" means any event or circumstance which, with the giving of
notice, the lapse of time, or both, would (if not cured or otherwise remedied
during such time) constitute an Event of Default.

         "DISBURSEMENT DATE" has the meaning specified in Section 3.3(b).

         "DISCLOSURE SCHEDULE" means Schedule 6, dated as of the Effective Date,
prepared and completed by the Parent Company and the Borrower, and delivered by
the Parent Company and the Borrower to the Administrative Agent in connection
with this Agreement and identified as the "DISCLOSURE SCHEDULE".

         "DISPOSITION" has the meaning specified for that term in the Guaranty
Agreement.

         "DOCUMENTATION AGENTS" means, collectively, Wachovia Bank, National
Association, and Suntrust Bank, each in its capacity as co-documentation agent
for the Agents, the Issuing Lender and the Lenders under this Agreement and the
other Loan Documents, and any successors to such documentation agents.

         "DOLLARS" and "$" mean lawful money of the United States.

         "DOMESTIC LENDING OFFICE" has the meaning specified in the definition
of the term "LENDING OFFICE".

<PAGE>
                                      -13-

         "EFFECTIVE DATE" means June 30, 2003, the date of this Agreement.

         "ELIGIBLE ASSIGNEE" means and includes (a) any Lender or any Affiliate
of any Lender, (b) any Approved Fund, and (c) any other Person (other than a
natural person) approved by (i) the Administrative Agent, and (ii) unless any
Default shall have occurred and shall be continuing, the Borrower (any such
approval not to be unreasonably withheld or delayed).

         "ENVIRONMENTAL LAWS" means, collectively, all laws, rules, regulations,
codes, ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to: the environment; preservation or reclamation of natural
resources; the management, release or threatened releases of any Hazardous
Material; or to health and safety matters.

         "ENVIRONMENTAL LIABILITY" means any liability, contingent or otherwise
(including any liability for damages, costs of environmental remediation, fines,
penalties or indemnities), of the Parent Company, the Borrower or any of their
Subsidiaries directly or indirectly resulting from or based upon (a) violation
of any Environmental Laws, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to any
Hazardous Materials, (d) the release or threatened release of any Hazardous
Materials into the environment, or (e) any contract, agreement or other
consensual arrangement pursuant to which liability is assumed or imposed with
respect to any of the foregoing.

         "EQUITY INTERESTS" means and includes Capital Stock and all warrants,
options or other rights to purchase or otherwise acquire Capital Stock (but
excluding any debt Securities that are convertible into, or exchangeable for,
Capital Stock).

         "ERISA" means the Employee Retirement Income Security Act of 1974, and
the rules and regulations promulgated thereunder, as from time to time in
effect.

         "ERISA AFFILIATE" means any trade or business (whether or not
incorporated) that, together with the Parent Company and the Borrower, is
treated as a single employer under Section 414(b) or (c) of the Code or, solely
for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as
a single employer under Section 414 of the Code.

         "ERISA EVENTS" means, collectively, any one or more of the following:
(a) any "reportable event", as defined in Section 4043 of ERISA or the
regulations issued thereunder with respect to a Plan (other than an event for
which the 30-day notice period is waived); (b) the existence with respect to any
Plan of an "accumulated funding deficiency"(as defined in Section 412 of the
Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to
Section 412(d) of the Code or Section 303(d) of ERISA of an application for a
waiver of the minimum funding standard with respect to any Plan; (d) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability under
Title IV of ERISA with respect to the termination of any Plan; (e) the receipt
by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of
any notice relating to an intention to terminate any Plan or Plans or to appoint
a trustee to administer any Plan; and (f) the incurrence by the Borrower or any
of its ERISA Affiliates of any liability with respect to the withdrawal or
partial withdrawal from any Plan or Multiemployer Plan.

         "EURODOLLAR LENDING OFFICE" has the meaning specified in the definition
of the term "LENDING OFFICE".

<PAGE>
                                      -14-

         "EURODOLLAR LOAN" means any Loan that bears interest at an interest
rate based on the Eurodollar Rate.

         "EURODOLLAR RATE" means, for any Eurodollar Loan and for any Interest
Period relating thereto, the rate per annum (rounded upwards, if necessary, to
the nearest 1/100 of 1%) appearing on Telerate Page 3750 (or any successor page)
as the London interbank offered rate for deposits in Dollars at approximately
11:00 a.m. (London time) two (2) Business Days prior to the first day of such
Interest Period for a term comparable to such Interest Period. If, for any
reason, such rate is not available, the term "EURODOLLAR RATE" shall mean, for
any Eurodollar Loan for any Interest Period relating thereto, the rate per annum
(rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters
Screen LIBO Page as the London interbank offered rate for deposits in Dollars at
approximately 11:00 a.m. (London time) two (2) Business Days prior to the first
day of such Interest Period for a term comparable to such Interest Period;
provided that if more than one rate is specified on Reuters Screen LIBO Page,
the applicable rate shall be the arithmetic mean of all such rates (rounded
upwards, if necessary, to the nearest 1/100 of 1%).

         "EVENT OF DEFAULT" has the meaning specified in Section 9.1.

         "EXCESS CASH FLOW APPLICATION DATES" means (a) April 30, 2005, and (b)
April 30 of each calendar year thereafter.

         "EXCLUDED TAXES" means, with respect to the Administrative Agent, any
Lender, the Issuing Lender or any other recipient of any payments to be made on
account of any of the Obligations, (a) income or franchise taxes imposed on (or
measured by) its net income by the United States, or by the jurisdiction under
the laws of which such recipient is organized or in which its principal office
is located or, in the case of any Lender, in which its applicable Lending Office
is located, (b) any branch profits taxes imposed by the United States or any
similar tax imposed by any other jurisdiction described in clause (a) above, and
(c) in the case of any Foreign Lender, any withholding tax that (i) is in effect
and would apply to amounts payable to such Foreign Lender at the time such
Foreign Lender becomes a party to this Agreement (or designates a new Lending
Office), except to the extent that such Foreign Lender (or its assignor, if any)
was entitled, at the time of designation of a new Lending Office (or
assignment), to receive additional amounts from the Borrower with respect to any
withholding tax pursuant to Section 4.1, or (ii) is attributable to such Foreign
Lender's failure to comply with Section 4.1.

         "EXISTING CREDIT FACILITIES" means, collectively, all of the credit
facilities, extensions of credit and other financial accommodation from time to
time provided to the Parent Company, the Borrower and their Subsidiaries under
or pursuant to (a) the Credit Agreement, dated as of January 27, 2000, among the
Parent Company, the Borrower, various lenders and other Persons party thereto,
and Fleet National Bank, as administrative agent for the lenders thereunder, as
amended from time to time, and (b) all of the agreements and other Instruments
from time to time executed and/or delivered pursuant to or in connection with
such Credit Agreement.

         "EXISTING INDEBTEDNESS" has the meaning specified in Section 6.10(a).

         "FAIR MARKET VALUE" means, with respect to any Property, the price
which could be negotiated in an arm's length free market transaction, for cash,
between a willing seller and a willing and able buyer, neither of whom is under
undue pressure or compulsion to complete the transaction.

<PAGE>
                                      -15-

         "FCC" means the Federal Communications Commission or any successor
thereto.

         "FCC AUTHORIZATIONS" has the meaning specified in Section 6.22.

         "FEDERAL FUNDS RATE" means, for any day, the rate set forth in the
weekly statistical release designated as H.15(519), or any successor
publication, published by the Federal Reserve Board (including any such
successor, "H.15(519)") for such day opposite the caption "Federal Funds
(Effective)." If, on any relevant day, the appropriate rate for such previous
day is not yet published in H.15(519), the rate for such day will be the
arithmetic mean of the rates for the last transaction in overnight federal funds
arranged prior to 9:00 a.m. (New York City time) on that day by each of three
leading brokers of federal funds transactions in New York City selected by the
Administrative Agent.

         "FEDERAL RESERVE BOARD" means the Board of Governors of the Federal
Reserve System or any successor thereto.

         "FEES" means, collectively, (a) the Revolving Commitment Fees, (b) the
Letter of Credit Fees, (c) all other fees payable to the Issuing Lender from
time to time pursuant to Section 3.8, and (d) all other fees payable to any of
the Agents or the Lenders from time to time pursuant to Section 2.9 or any other
provisions of this Agreement or any of the other Loan Documents.

         "FINANCING EVENT" has the meaning specified in the definition of the
term "NET ISSUANCE PROCEEDS".

         "FISCAL QUARTER" means any fiscal quarter of any Fiscal Year of the
Parent Company.

         "FISCAL YEAR" means the fiscal year of the Parent Company ending on
December 31 of each calendar year.

         "FOREIGN LENDER" means any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is located. For purposes of
this definition, the United States of America, each State thereof and the
District of Columbia shall be deemed to constitute a single jurisdiction.

         "FUND" means any Person (other than any 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" has the meaning specified in Section 1.4.

         "GOVERNING DOCUMENTS" means, with respect to any Person, the
certificate of incorporation or registration (including, if applicable,
certificate of change of name), articles of incorporation or association,
memorandum of association, charter, bylaws, partnership agreement, trust
agreement, joint venture agreement, limited liability company operating or
members agreement, or any one or more similar agreements, Instruments or
documents constituting the organization or formation of such Person. For
purposes of this Agreement, the term "GOVERNING DOCUMENTS", when used with
respect to the Parent Company, the Borrower or any of their Subsidiaries, shall
include the Stockholder Agreement and any other Shareholders Agreements by which
the Parent Company or the Borrower shall at any time be bound. If any provision
of any of the Loan Documents requires any Governing Document to be certified by
any Governmental

<PAGE>
                                      -16-

Authority, the reference to any such "Governing Document" shall only be to a
document of a type customarily certified by such Governmental Authority.

         "GOVERNMENTAL AUTHORITY" means any nation or government, any state or
other political subdivision thereof, any central bank (or similar monetary or
regulatory authority) thereof, and any entity exercising executive, legislative,
judicial, regulatory or administrative functions of or pertaining to government.

         "GUARANTEED OBLIGATIONS" has the meaning specified for that term in the
Guaranty Agreement.

         "GUARANTORS" means, collectively, the Parent Company, the Borrower and
the Subsidiary Guarantors.

         "GUARANTY" means, in relation to the Parent Company, the Borrower or
any of the Subsidiary Guarantors, the absolute, unconditional and irrevocable
guaranty by such Person of all of the Obligations upon the terms contained in
the Guaranty Agreement.

         "GUARANTY AGREEMENT" means the Guaranty Agreement, in or substantially
in the form of Exhibit C, pursuant to which, in accordance with the terms of
this Agreement, the Parent Company, the Borrower and all Subsidiaries of the
Parent Company and the Borrower (other than Inactive Subsidiaries) shall
guaranty the payment and performance of all of the Obligations.

         "GUARANTY OBLIGATIONS" means, as applied to any Person, any direct or
indirect liability of that Person with respect to any Indebtedness, lease,
dividend, letter of credit or other obligation (the "PRIMARY obligations") of
another Person (the "PRIMARY OBLIGOR"), including any obligation of that Person,
whether or not contingent, without duplication: (a) to purchase, repurchase or
otherwise acquire such primary obligations or any Property constituting direct
or indirect security therefor; (b) to advance or provide funds (i) for the
payment or discharge of any such primary obligation, or (ii) to maintain working
capital or equity capital of the primary obligor or otherwise to maintain the
net worth or solvency or any balance sheet item, level of income or financial
condition of the primary obligor; (c) 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 (d) otherwise to assure or hold harmless the holder of any such
primary obligation against loss in respect thereof; in each case, including
arrangements in which the rights and remedies of the holder of the primary
obligation are limited to repossession or Sale of certain Property of such
Person.

         "HAZARDOUS MATERIAL" means and includes all explosive or radioactive
substances or wastes and all hazardous or toxic wastes, substances or other
pollutants or contaminants defined as such in (or for purposes of), or that may
result in the imposition of liability under, any Environmental Laws.

         "HEDGE AGREEMENT" means any interest rate protection agreement, foreign
currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement.

         "IMPERMISSIBLE QUALIFICATION" means, relative to the opinion or
certification of the Independent Public Accountant as to any financial
statements of the Parent Company, the Borrower or any of their Subsidiaries, any
qualification or exception to such opinion or

<PAGE>
                                      -17-

certification: (a) which is of a "going concern" or similar nature; (b) which
relates to the limited scope of examination of matters relevant to such
financial statement; or (c) which relates to the treatment or classification of
any item in such financial statement and which, as a condition to its removal,
would require an adjustment to such item the effect of which would be to cause
the Principal Companies to be in default of any of their Obligations under
Section 8.4.

         "INACTIVE SUBSIDIARY" means, in relation to any Subsidiary of the
Parent Company or the Borrower at any particular time, any such Subsidiary that
conducts no business, holds no assets (other than insubstantial and immaterial
assets), and has no liabilities (other than insubstantial and immaterial
liabilities), in each case, as at such time. For purposes of this Agreement, any
Inactive Subsidiary shall cease to be an "INACTIVE SUBSIDIARY" if and when such
Subsidiary commences the conduct of business, acquires assets (other than
insubstantial and immaterial assets), or incurs liabilities (other than
insubstantial and immaterial liabilities).

         "INCREMENTAL COMMITMENT" means any of the Incremental Revolving
Commitments or Incremental Term Commitments.

         "INCREMENTAL COMMITMENT TERMINATION DATE" means 5:00 p.m. (Boston,
Massachusetts time) on the third anniversary of the Effective Date.

         "INCREMENTAL FACILITIES" has the meaning specified in Section 2.15(a).

         "INCREMENTAL FACILITY AMENDMENT" has the meaning specified in Section
2.15(c).

         "INCREMENTAL LOAN" means any Incremental Revolving Loan or Incremental
Term Loan by any Lender or Additional Lender.

         "INCREMENTAL LOAN NOTE" has the meaning specified in Section 2.2(b).

         "INCREMENTAL REVOLVING COMMITMENT" means, with respect to any Lender or
Additional Lender, the commitment, if any, of such Lender to make Incremental
Revolving Loans pursuant to the terms of an Incremental Facility Amendment.

         "INCREMENTAL REVOLVING FACILITY" has the meaning specified in Section
2.15(a).

         "INCREMENTAL REVOLVING LOAN" means any Loan made pursuant to any
Incremental Revolving Facility.

         "INCREMENTAL TERM COMMITMENT" means, with respect to any Lender or
Additional Lender, the commitment, if any, of such Lender to make an Incremental
Term Loan pursuant to the terms of an Incremental Facility Amendment.

         "INCREMENTAL TERM FACILITY" has the meaning specified in Section
2.15(a).

         "INCREMENTAL TERM LOAN" means any Loan made pursuant to an Incremental
Term Facility.

         "INDEBTEDNESS" of any Person means, without duplication: (a) all
indebtedness for borrowed money; (b) all obligations issued, undertaken or
assumed as the deferred purchase price of Property or services (other than (i)
trade payables entered into in the ordinary course of business pursuant to
ordinary terms, and (ii) ordinary course purchase price adjustments); (c) all

<PAGE>
                                      -18-

reimbursement or payment obligations with respect to letters of credit or
reimbursement or other payment obligations with respect to bankers' acceptances,
surety bonds and other similar documents; (d) all obligations evidenced by
promissory notes, bonds, debentures or other similar Instruments, including
obligations so evidenced incurred in connection with the acquisition of Property
or businesses; (e) all indebtedness created or arising under any conditional
sale or other title retention agreements or Sales of accounts receivable, in any
such case, with respect to Property acquired by such Person (even though the
rights and remedies of the seller or lender under such agreements in the event
of default are limited to repossession or Sale of such Property); (f) all
Capital Lease Obligations; (g) all net obligations with respect to Hedge
Agreements; (h) all indebtedness referred to in clause (a) through clause (g)
secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien upon or in Property
(including accounts and contracts rights) owned by such Person, even though such
Person has not assumed or become liable for the payment of such Indebtedness (in
which event the amount of such indebtedness shall not be deemed to exceed the
Fair Market Value of such Property); and (i) all Guaranty Obligations in respect
of indebtedness and obligations of the kinds referred to in clause (a) through
clause (h) above.

         "INDEMNITEE" has the meaning specified in Section 12.5.

         "INDEMNIFIED TAXES" means Taxes, other (in any case) than Excluded
Taxes.

         "INDEPENDENT PUBLIC ACCOUNTANT" means any one of the so-called
"big-four" firms of certified public accountants or any other firm of certified
public accountants of recognized standing selected by the Principal Companies.

         "INSOLVENCY PROCEEDING" means (a) any case, action or proceeding before
any court or other Governmental Authority relating to bankruptcy,
reorganization, insolvency, liquidation, receivership, dissolution, winding-up
or relief of debtors, or (b) any general assignment for the benefit of
creditors, composition, marshalling of assets for creditors, or other similar
arrangements in respect of its creditors, generally; in each case, undertaken
under U.S. Federal, State or foreign law, including the Bankruptcy Code.

         "INSTRUMENT" means any contract, agreement, indenture, mortgage or
other document or writing (whether a formal agreement, letter or otherwise)
under which any obligation is evidenced, assumed or undertaken, or any right to
any Lien is granted or perfected.

         "INTEREST ELECTION REQUEST" means any request by the Borrower to
convert or continue a Borrowing in accordance with Section 2.4.

         "INTEREST PAYMENT DATE" means (a) with respect to each Base Rate Loan,
the last day of each calendar quarter and also the Maturity Date, and (b) with
respect to each Eurodollar Loan, the last day of each Interest Period applicable
to such Eurodollar Loan and also the date on which such Eurodollar Loan shall be
repaid or prepaid; provided, however, that, if any Interest Period for any
Eurodollar Loan exceeds three (3) months, then also the date which falls three
(3) months after the beginning of such Interest Period, and, if applicable, the
last day of each three-month interval thereafter, shall also be an "INTEREST
PAYMENT DATE".

         "INTEREST PERIOD" means, in relation to any Eurodollar Loan, the period
commencing on the applicable Borrowing Date or any Conversion Date or
Continuation Date with respect thereto and ending on the date one, two, three,
six or twelve months thereafter, as selected or deemed to

<PAGE>
                                      -19-

be selected by the Borrower in its Borrowing Request or Interest Election
Request; provided, however, that: (a) if any Interest Period would otherwise end
on a day which is not a Business Day, then 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;
(b) any Interest Period that begins on the last Business Day of a calendar month
(or on a day for which there is no numerically corresponding day in the calendar
month at the end of such Interest Period) shall end on the last Business Day of
the calendar month which is one, two, three, six or twelve months, as the case
may be, after the calendar month in which such Interest Period began; and (c) no
Interest Period for any Loan shall extend beyond the Maturity Date.

         "INVESTMENT" means, in relation to any Person: (a) any loan, advance or
other extension of credit made by such Person to any other Person; (b) the
creation of any Guaranty Obligation of such Person to support any of the
Indebtedness of any other Person; or (c) any capital contribution by such Person
to, or purchase by such Person of any Equity Interests or other Securities of,
any other Person, or any other investment evidencing an ownership or other
similar interest of such Person in any other Person; provided, however, that the
term "INVESTMENT" shall not mean or include any transaction or series of related
transactions constituting an Acquisition (as that term is defined herein).

         "ISSUING LENDER" means Fleet National Bank, in its capacity as issuer
of one or more Letters of Credit pursuant to this Agreement.

         "JS GROUP" means, collectively, the following Persons and each of their
Affiliates (other than the Parent Company and its Subsidiaries) taken as a
whole: (a) Terry S. Jacobs; (b) William L. Stakelin; and (c) each of the other
Persons who is at the time a party to or otherwise bound by the Stockholder
Agreement as a "Stockholder" thereunder.

         "LEAD ARRANGER" means Fleet Securities Inc., in its capacity as lead
arranger for the Agents, the Issuing Lender and the Lenders under this
Agreement.

         "LENDER AFFILIATE" means, with respect to any Lender, (a) any Affiliate
of such Lender, or (b) any Approved Fund.

         "LENDER COUNTERPARTIES" means, collectively, Lenders and Affiliates of
Lenders that are from time to time party to any of the Specified Hedge
Agreements.

         "LENDERS" means, collectively, (a) the Persons listed on Schedule 2
annexed to this Agreement, and (b) each of the other Persons that shall have
become a party hereto as a Lender hereunder pursuant to an Assignment and
Acceptance or (as the case may be) pursuant to an Incremental Facility
Amendment, other (in any case) than any such Person that ceases to be a party
hereto as a Lender hereunder pursuant to an Assignment and Acceptance or
otherwise.

         "LENDING OFFICE" means, with respect to any Lender, the office or
offices of such Lender specified as ITS "LENDING OFFICE", "DOMESTIC LENDING
OFFICE" or "EURODOLLAR LENDING OFFICE", as the case may be, on Schedule 1, or
such other office or offices of such Lender as such Lender may from time to time
specify in a written notice to the Borrower and the Administrative Agent.

<PAGE>
                                      -20-

         "LETTER OF CREDIT" means any letter of credit issued or to be issued by
the Issuing Lender pursuant to Article III.

         "LETTER OF CREDIT AMENDMENT APPLICATION" means any application form for
amendment of outstanding standby or commercial documentary letters of credit as
shall from time to time be specified by the Issuing Lender.

         "LETTER OF CREDIT APPLICATION" means any application form for issuances
of standby or commercial documentary letters of credit as shall from time to
time be specified by the Issuing Lender.

         "LETTER OF CREDIT BORROWING" means any extension of credit (other than
any Revolving Loan) resulting from any drawing under any Letter of Credit which
shall not have been reimbursed by the Borrower on the Disbursement Date when
made.

         "LETTER OF CREDIT COMMITMENT" means the commitment of the Issuing
Lender hereunder to issue Letters of Credit. The Letter of Credit Commitment
shall be in the initial maximum amount of $35,000,000, and such amount shall be
subject to reduction from time to time pursuant to and in accordance with this
Agreement. The Letter of Credit Obligations shall not exceed in aggregate amount
at any time the LESSER of (a) the Aggregate Revolving Commitment in effect at
such time, or (b) the amount of the Letter of Credit Commitment in effect at
such time.

         "LETTER OF CREDIT FEES" has the meaning specified in Section 3.8.

         "LETTER OF CREDIT OBLIGATIONS" means, at any time of determination, the
SUM of (a) the aggregate undrawn amount of all Letters of Credit then
outstanding, PLUS (b) the aggregate amount of all Letter of Credit Borrowings
then outstanding.

         "LETTER OF CREDIT RELATED DOCUMENTS" means, collectively, the Letters
of Credit, the Letter of Credit Applications, the Letter of Credit Amendment
Applications and any other Instruments or documents relating to any Letters of
Credit, including the Issuing Lender's standard form documents for letter of
credit issuances.

         "LIEN" means any interest in any Property which secures payment or
performance of any obligation or liability, and shall include any lien
(statutory, judgment or otherwise), pledge, encumbrance or other security
interest of any kind, whether arising under a Security Instrument or as a matter
of law, judicial process or otherwise, including the retained security title of
a conditional vendor or lessor.

         "LINES OF BUSINESS" means, collectively, (a) the businesses conducted
by the Principal Companies or by any of their Subsidiaries on and as of the
Effective Date, and (b) any businesses involving the ownership, management or
operation in the United States of any Media Assets, together (in each case) with
any businesses related thereto.

         "LOAN" means any extension of credit by any Lender to the Borrower
pursuant to Article II and shall include any Revolving Loan, Term Loan or
Incremental Loan.

         "LOAN DOCUMENTS" means, collectively, this Agreement, the Notes, the
Guaranty Agreement, the Collateral Documents and all other agreements,
Instruments, certificates or other

<PAGE>
                                      -21-

documents (a) evidencing or securing all or any part of any of the Obligations
or other liabilities of the Borrower or the Parent Company or of any of their
Subsidiaries under this Agreement, the Notes, the Guaranty Agreement, the
Collateral Documents or any of the other Loan Documents, or (b) otherwise
executed and/or delivered by the Borrower or the Parent Company or by any of
their Subsidiaries pursuant to or in connection with this Agreement, the Notes,
any of the Collateral Documents or any of the other Loan Documents.

         "MAIN STATION LICENSES" has the meaning specified in Section 6.22.

         "MARGIN STOCK" means "margin stock" as such term is defined in
Regulation T, U or X of the Federal Reserve Board.

         "MATERIAL CONTRACT" means any contract or other arrangement to which
the Parent Company, the Borrower or any of their Subsidiaries is a party (other
than any of the Loan Documents) for which breach, nonperformance, cancellation
or failure to renew has had or could reasonably be expected to have a Materially
Adverse Effect.

         "MATERIAL EVENT OF DEFAULT" means any of the following events occurring
or existing at any time on or after the Effective Date: (a) any Events of
Default of the kind described in any of Sections 9.1.1, 9.1.2, 9.1.5, 9.1.10 and
9.1.13 shall occur and shall be continuing for more than seven (7) days; or (b)
any Events of Default of the kind described in any of Sections 9.1.6, 9.1.7,
9.1.9, 9.1.11 and 9.1.12 shall at any time occur, arise or (as the case may be)
develop.

         "MATERIAL INDEBTEDNESS" means, collectively, Indebtedness (other than
the Obligations), and obligations in respect of one or more Hedge Agreements, of
the Principal Company, the Borrower or any of their Subsidiaries in an aggregate
principal amount exceeding $5,000,000. For purposes of determining "MATERIAL
INDEBTEDNESS", the "principal amount" at any particular time of the obligations
of the Parent Company, the Borrower or any of their Subsidiaries in respect of
any Hedge Agreement shall be the maximum aggregate amount (giving effect to any
netting agreements) that the Parent Company, the Borrower or any of their
Subsidiaries would be required to pay if such Hedge Agreement were terminated at
such time.

         "MATERIALLY ADVERSE EFFECT" means, in relation to any event, occurrence
or development of whatsoever nature (including any adverse determination in any
litigation, arbitration or governmental investigation or proceeding): (a) any
materially adverse effect on the business, Property, results of operations or
condition, financial or otherwise, of the Parent Company, the Borrower and their
Subsidiaries, taken as a whole; (b) any materially adverse effect on the ability
of the Parent Company or the Borrower to perform any of its payment or other
material Obligations under any of the Loan Documents to which it is a party; or
(c) any material impairment of the validity or enforceability of any of the Loan
Documents or any material impairment of any of the material rights or remedies
available to any of the Agents, the Issuing Lender or the Lenders under any of
the Loan Documents.

         "MATURITY DATE" means December 31, 2010.

         "MEASUREMENT PERIOD" means any period of four consecutive Fiscal
Quarters of the Parent Company.

<PAGE>
                                      -22-

         "MEDIA ASSETS" means, collectively, (a) Radio Stations, (b) television
stations, (c) newspaper publication assets and related Properties, and (d)
billboard assets and other outdoor advertising Properties.

         "MOODY'S" means Moody's Investors Service, Inc., and its successors.

         "MULTIEMPLOYER PLAN" means a "multiemployer plan" as defined in Section
4001(a)(3) of ERISA.

         "NET CASH PROCEEDS" means, in connection with any Asset Sale or
Recovery Event, the cash proceeds (including any cash payments received by way
of deferred payment pursuant to a promissory note, receivable or otherwise, but
only as and when received in cash) of such Asset Sale or Recovery Event, net of
(a) reasonable transaction costs (including any underwriting, brokerage or other
selling commissions and reasonable legal, advisory and other fees and expenses,
including title and recording expenses, associated therewith), (b) required debt
payments (other than pursuant hereto), (c) taxes reasonably estimated to be
payable as a result of such Asset Sale or Recovery Event, and (d) any portion of
such cash proceeds which the Borrower determines in good faith should be
reserved for post-closing adjustments or liabilities.

         "NET ISSUANCE PROCEEDS" means, with respect to the issuance or Sale by
the Parent Company, the Borrower or any of their Subsidiaries of any Permitted
Equity Interests of the Parent Company (otherwise than in connection with
employee benefit plans) to any Person or Persons other than the Borrower or any
of its Subsidiaries (each such issuance or sale of any Permitted Equity
Interests being herein called a "FINANCING Event"): (a) the gross cash proceeds
received in connection with such issuance or Sale, as and when received; MINUS
(b) all of the reasonable transaction costs (including legal, investment banking
and other fees and disbursements) payable or incurred in connection therewith.

         "NOTES" means, collectively, the Revolving Credit Notes, the Term Notes
and the Incremental Loan Notes.

         "OBLIGATIONS" means, collectively, any and all Indebtedness,
obligations and other liabilities of the Parent Company, the Borrower or any of
their Subsidiaries to any of the Lenders, the Issuing Lender, the Lender
Counterparties or the Agents, whether direct or indirect, absolute or
contingent, joint or several, matured or unmatured, due or to become due, now
existing or hereafter created, incurred or arising, under or with respect to:
(a) any of this Agreement, the Collateral Documents, the other Loan Documents or
the Specified Hedge Agreements; (b) the unpaid principal of any of the Loans,
Letter of Credit Borrowings or other Credit Extensions under any of the Loan
Documents or Specified Hedge Agreements, and any and all reimbursement or other
payment obligations under or with respect to any of the Letters of Credit; (c)
interest on any obligations or liabilities described in this definition, and all
fees, costs, expenses (including Attorney Costs), indemnities, reimbursements
and other amounts from time to time required to be paid under this Agreement,
the other Loan Documents or the Specified Hedge Agreements (whether or not any
of the claims for any such interest, fees, costs, expenses or other amounts are
incurred or otherwise accrue after the commencement of any such Insolvency
Proceeding, and whether or not all or any portion of any such claims are allowed
claims in any such proceeding); and (d) claims by any of the Lenders, the
Issuing Lender, the Lender Counterparties or the Agents against any of the
Credit Parties under any of the Collateral Documents or the Guaranty Agreement
(whether or not any of such claims are made against any of the Credit Parties
after the commencement of any Insolvency Proceeding, and whether or not

<PAGE>
                                      -23-

all or any portion of any of such claims are allowed claims in any such
proceeding); provided, however, that (i) Obligations of any of the Credit
Parties under any Specified Hedge Agreements shall be secured and guaranteed
pursuant to the Collateral Documents and the Guaranty Agreement only to the
extent that, and only for so long as, the other Obligations are so secured and
guaranteed, and (ii) any release of Collateral or Guarantors effected in the
manner permitted by this Agreement or any of the other Loan Documents shall not
require the consent of any of the holders of Obligations under Specified Hedge
Agreements.

         "OTHER TAXES" means any and all present or future recording, stamp,
documentary, excise, transfer, sales, property or similar taxes, charges or
levies arising from any payment made under any Loan Document or from the
execution, delivery or enforcement of, or otherwise with respect to, any Loan
Document.

         "PARENT COMPANY" has the meaning specified in the Preamble hereto.

         "PARTICIPANT" has the meaning specified in Section 11.5.

         "PBGC" means the Pension Benefit Guaranty Corporation or any entity
succeeding to any of its principal functions under ERISA.

         "PENDING ACQUISITIONS" means, collectively, (a) the Acquisition of
Radio Stations KARS-FM and KKPL-FM upon the terms of that certain Asset Purchase
Agreement, dated as of August 22, 2002 (as amended from time to time), by and
among Brill Media Company, LLC, the Parent Company and certain other Persons
party thereto; and (b) the Acquisition of Radio Stations WKRI-FM, WYNG-FM,
WGBF-AM, WDKS-FM and WGBF-FM upon the terms of that certain Asset Exchange
Agreement, dated as of February 25, 2003 (as amended from time to time), among
Clear Channel Broadcasting, Inc., the Parent Company and certain other Persons
party thereto.

         "PERMITTED ACQUISITIONS" means, collectively: (a) any Acquisitions by
the Parent Company, the Borrower or any of the Subsidiary Guarantors of any
Media Assets; provided, however, that, with respect to each Acquisition of Media
Assets, each of the applicable Permitted Acquisition Conditions with respect to
such Acquisition shall have been satisfied; and (b) the Pending Acquisitions.

         "PERMITTED ACQUISITION CONDITIONS" means, collectively, in relation to
any particular Acquisition:

         (a) If the Amount ( as defined in the last paragraph of this
definition) of any such Acquisition shall NOT exceed $50,000,000, then each of
the following conditions shall constitute "PERMITTED ACQUISITION CONDITIONS"
applicable to such Acquisition:

            (i) both immediately before and immediately after giving effect to
such Acquisition, no Default shall be continuing or shall result therefrom;

            (ii) the Principal Companies, Subsidiaries of the Principal
Companies and/or the entities to be acquired, as appropriate, shall have
furnished to the Administrative Agent, within five (5) Business Days after the
consummation of such Acquisition, (A) such Instruments and other documents as
shall be required pursuant to Section 7.12, or (B) commitments, reasonably
satisfactory in form and substance to the Agent, to deliver to the Agent
promptly after

<PAGE>
                                      -24-

the completion of such Acquisition, such Instruments and other documents as
shall be required pursuant to Section 7.12;

            (iii) all transactions relating to such Acquisition shall be
completed in accordance with Applicable Laws;

            (iv) if, after giving effect to such Acquisition, the Consolidated
Leverage Ratio as of the then most recent Covenant Determination Date, as
determined on a Pro Forma Basis for such Acquisition, shall be greater than
5.00:1.00, then the SUM of (A) the Amount (as defined in the last paragraph of
this definition) of such Acquisition, PLUS (B) the aggregate Amount (as defined
in the last paragraph of this definition) of all of the other Acquisitions
completed at any time after the Effective Date, shall not exceed $75,000,000;

            (v) if, after giving effect to such Acquisition, the Consolidated
Leverage Ratio as of the then most recent Covenant Determination Date, as
determined on a Pro Forma Basis for such Acquisition, shall be equal to or less
than 5.00:1.00, then the SUM of (A) the Amount (as defined in the last paragraph
of this definition) of such Acquisition, PLUS (B) the aggregate Amount (as
defined in the last paragraph of this definition) of all of the other
Acquisitions completed at any time after the Effective Date, shall not exceed
$125,000,000; and

            (vi) the Consolidated Adjusted EBITDA of the Parent Company and its
Subsidiaries as of the then most recent Covenant Determination Date derived from
all Lines of Business other than the operation of Radio Stations, all as
determined on a Pro Forma Basis after giving effect to such Acquisition, shall
not exceed ten percent (10%) of the Consolidated Adjusted EBITDA of the Parent
Company and its Subsidiaries as of the then most recent Covenant Determination
Date derived from all Lines of Business (including the operation of Radio
Stations), all as determined on a Pro Forma Basis after giving effect to such
Acquisition.

         (b) If the Amount (as defined in the last paragraph of this definition)
of any such Acquisition shall exceed $10,000,000, then each of the following
conditions (in addition to, and not in lieu of, the conditions set forth in
paragraph(a)) shall ALSO constitute "PERMITTED ACQUISITION CONDITIONS"
applicable to such Acquisition:

            (i) after giving effect on a Pro Forma Basis to such Acquisition,
the Principal Companies shall not be in violation of any of the financial
covenants contained in Section 8.4 as of the then most recent Covenant
Determination Date;

            (ii) the Principal Companies shall have furnished to the
Administrative Agent true and complete copies of the Acquisition Documentation
for such Acquisition and all material related documentation as soon as
practicable prior to the consummation of such Acquisition;

            (iii) the Administrative Agent shall have received evidence,
reasonably satisfactory in form and substance to the Agent, that all material
consents and approvals required to be obtained from any Governmental Authorities
in connection with such Acquisition (including initial consents required to be
obtained from the FCC with respect to the transfer of Main Station Licenses)
shall have been obtained; and

            (iv) the Principal Companies shall have delivered to the
Administrative Agent a Compliance Certificate duly executed by an Authorized
Officer of each Principal

<PAGE>
                                      -25-

Company, which certificate shall contain (A) financial information, reasonably
satisfactory to the Administrative Agent, showing that after giving effect on a
Pro Forma Basis to such Acquisition, the Principal Companies shall not be in
violation of any of the financial covenants contained in Section 8.4 as of the
Covenant Determination Date most recent to the date of such Compliance
Certificate, (B) reasonably detailed information relating to all of the
Consolidated Investment Capital Expenditures made in connection with, or
otherwise budgeted to be made within 365 days after the completion of, such
Acquisition, and (C) a statement that no Default is then continuing or will be
continuing immediately after giving effect to such Acquisition.

         (c) If the Amount (as defined below) of any such Acquisition shall
exceed $50,000,000, then the Principal Companies shall have obtained the prior
written approval of the Required Lenders for such Acquisition.

         The term "AMOUNT" shall have the meaning specified in Section 1.1, but,
as used in paragraphs (a) (including clauses (iv) and (v) thereof), (b) and (c)
of this definition with respect to any particular Acquisition, shall be subject
to the following adjustments: (A) the Amount of any Acquisition shall in any
event include all Consolidated Investment Capital Expenditures made in
connection with, or otherwise budgeted to be made within 365 days after the
completion of, such Acquisition, and (B) the Amount of any Acquisition shall NOT
in any event include any consideration paid in respect of such Acquisition in
the form of Permitted Equity Interests of the Parent Company; and the term
"AMOUNT" shall, for purposes ONLY of clause (iv) and clause (v) of paragraph (a)
of this definition, be subject to the following additional adjustments: (A) the
Amount of any Acquisition shall NOT in any event include any consideration in
respect of (1) any Radio Swap Transactions to the extent paid in the form of
Radio Stations and related business assets or Properties (except as provided in
(clause (B) below), or (2) any of the Pending Acquisitions, and (B) the Amount
of any Acquisition shall in any event include all consideration in respect of
any Radio Swap Transactions to the extent paid in the form of cash, Cash
Equivalents, promissory notes or other evidences of Indebtedness.

         "PERMITTED ACQUISITION DEBT" means, collectively, any Indebtedness of
the Parent Company, the Borrower or any of the Subsidiary Guarantors incurred,
created, issued or assumed as the deferred purchase price of any Property
(including Equity Interests) acquired by the Parent Company, the Borrower or any
of the Subsidiary Guarantors in connection with any Acquisition permitted by
Section 8.6; provided, however, that: (a) the aggregate principal amount of all
of such Indebtedness outstanding (determined on a consolidated basis) shall not
at any time exceed the LESSER of (i) $10,000,000, or (ii) an amount otherwise
permitted by the last sentence of Section 8.2; (b) no part of such Indebtedness
shall be secured by any security interests in or Liens on any Property
(including Equity Interests) of the Parent Company, the Borrower or any of their
Subsidiaries other than the Property acquired in connection with such
Acquisition; and (c) both before and after giving effect on a Pro Forma Basis to
the incurrence of any such Indebtedness: (i) the Principal Companies shall not
be in violation of any of the financial covenants contained in Section 8.4 as of
the then most recent Covenant Determination Date; and (ii) no Default shall be
continuing or shall result therefrom.

         "PERMITTED DISPOSITION" means: (a) any Sale by the Parent Company, the
Borrower or any of their Subsidiaries of any of its inventory or other Property
in the ordinary course of its business; (b) any Sale by the Parent Company, the
Borrower or any of their Subsidiaries in the ordinary course of its business of
its equipment or other Property that is obsolete or no longer useful in or
necessary to its business; (c) any Sale by the Parent Company, the Borrower or
any of their Subsidiaries in the ordinary course of its business, and in a
manner consistent with its

<PAGE>
                                      -26-

customary and usual cash management and other similar investment practices, of
its Permitted Investments; (d) any Sale by any Subsidiary of the Parent Company
or the Borrower of all or any part of its Property to the Borrower or to any
Wholly-Owned Subsidiary of the Borrower that is a Subsidiary Guarantor; (e) any
Sale by the Parent Company, the Borrower or any of their Subsidiaries, in the
ordinary course of its business and in a manner consistent with its usual and
customary business practices, of Property to the Borrower or to any of the
Subsidiary Guarantors; (f) the creation or incurrence by the Parent Company, the
Borrower or any of their Subsidiaries of any Liens expressly permitted by
Section 8.3; and (g) any Sales by the Parent Company, the Borrower or any of
their Subsidiaries completed in connection with and related to any of the
Pending Acquisitions.

         "PERMITTED EQUITY INTERESTS" means, with respect to any Person, any of
the Equity Interests of such Person on account of or with respect to which such
Person shall have no obligations at any time prior to the first anniversary of
the Maturity Date to (a) declare or pay any dividends on or with respect to any
of such Equity Interests, (b) make (except upon liquidation of such Person) any
payments or other distributions on account of any redemption, repurchase,
retirement or other acquisition for value of any of such Equity Interests,
whether through a Subsidiary of such Person or otherwise (other than de minimis
cash payments in connection with conversion of Indebtedness of such Person into
Equity Interests of such Person), (c) make (except upon liquidation of such
Person) any return of capital to the holder thereof with respect to any of such
Equity Interests, or (d) make (except upon liquidation of such Person) any other
distributions of any kind on account of any of such Equity Interests, EXCEPT, in
the case of each of clauses (a), (b), (c) and (d), any payments or distributions
in the form of Equity Interests that constitute Permitted Equity Interests of
such Person.

         "PERMITTED INDEBTEDNESS" means any of the following Indebtedness:

         (a) Indebtedness of the Parent Company, the Borrower or any of their
Subsidiaries: (i) in respect of taxes, assessments, levies or other governmental
charges, and Indebtedness of any such Person in respect of accounts payable or
other Indebtedness to trade creditors incurred in the ordinary course of
business or in respect of claims against it for labor, materials or supplies;
(ii) secured by Liens of carriers, warehousemen, mechanics, landlords,
materialmen, laborers, suppliers and the like that constitute Permitted Liens
under clause (a) of the definition thereof; or (iii) in respect of judgments or
awards which have been in force for less than the applicable appeal period so
long as (A) (in each case) such Person shall at the time in good faith be
prosecuting an appeal or proceedings for review and execution thereof shall have
been effectively stayed pending such appeal or review, and (B) the aggregate
principal amount of all such Indebtedness under this clause (iii) outstanding at
any time (determined on a consolidated basis in accordance with GAAP) shall not
exceed $5,000,000;

         (b) Indebtedness under or in respect of Guaranty Obligations of the
Parent Company, the Borrower or any of their Subsidiaries in respect of letters
of credit or bankers' acceptances or surety or other bonds issued in the
ordinary course of business of such Person in connection with Liens that
constitute Permitted Liens under clause (a) of the definition thereof;

         (c) Indebtedness of the Parent Company, the Borrower or any of the
Subsidiary Guarantors under or in respect of Hedge Agreements permitted by
Section 8.8;

<PAGE>
                                      -27-

         (d) Indebtedness of the Parent Company, the Borrower or any of
their Subsidiaries that (i) is existing on the Closing Date, and (ii) is
specifically identified as Existing Indebtedness in Section 6.10(a) of the
Disclosure Schedule;

         (e) Permitted Acquisition Debt;

         (f) any Indebtedness of the Parent Company, the Borrower or any of
their Subsidiaries extending, renewing, refinancing, replacing or refunding any
Indebtedness of the kind described in clause (d) or clause (e) of this
definition; provided, however, that the initial principal amount of any such
Indebtedness described in this clause (f) shall not exceed the principal amount
of, plus accrued and unpaid interest on, the Indebtedness so extended, renewed,
refinanced, replaced or refunded (plus the amount of reasonable fees and
expenses incurred in connection therewith).

         "PERMITTED INVESTMENTS" means any of the following Investments by the
Parent Company, the Borrower or any of their Subsidiaries:

         (a) Investments that (i) are owned or held by the Parent Company, the
Borrower or any of their Subsidiaries on the Closing Date, and (ii) are
identified, unless immaterial and insubstantial, in Section 6.10(c) to the
Disclosure Schedule;

         (b) Investments in cash or in Cash Equivalents;

         (c) Investments in the form of accounts receivable or in the form of
notes receivable arising in the ordinary course of business;

         (d) Investments in the form of advances or prepayments to suppliers or
other vendors made in the ordinary course of business and in all material
respects consistent with the Parent Company's or the Borrower's usual and
customary business practices;

         (e) Investments in the form of advances to directors, managers,
officers or employees in the ordinary course of business and in all material
respects consistent with the Parent Company's or the Borrower's usual and
customary business practices for travel expenses, entertainment expenses,
relocation expenses, drawing accounts or other similar business-related
expenses;

         (f) Investments by the Borrower or any of its Subsidiaries made in the
ordinary course of its business in Capital Assets (subject always to the
limitations set forth in Sections 8.2 and 8.3); and

         (g) other Investments (other than Acquisitions) by the Parent Company,
the Borrower or any of their Subsidiaries made in any Person or Persons (other
than the Borrower or any of its Affiliates or Subsidiaries) from time to time
after the date hereof and not otherwise described in any of clauses (a) through
(f) of this definition; provided, however, that the aggregate amount of all of
such Investments so made from time to time during the period from the Effective
Date to the Maturity Date shall not exceed $5,000,000, such aggregate amount to
be determined on a consolidated basis (exclusive of any consideration in the
form of Permitted Equity Interests of the Parent Company) and on the basis of
the original cost of each of such Investments and determined before giving any
effect to any write-offs or write-downs of any of

<PAGE>
                                      -28-

such Investments or to any decreases or losses (whether partial or complete) in
the Fair Market Value thereof.

         "PERMITTED LIENS" means any of the following Liens:

         (a) (i) Liens to secure taxes, assessments, levies or other
governmental charges imposed upon the Parent Company, the Borrower or any of
their Subsidiaries, and Liens to secure claims against the Parent Company, the
Borrower or any of their Subsidiaries for labor, materials or supplies; (ii)
deposits or pledges made by the Parent Company, the Borrower or any of their
Subsidiaries in the ordinary course of its business (A) in connection with, or
to secure payment or performance of, (1) workers' compensation, unemployment
insurance or other forms of governmental insurance or benefits, or (2) liability
to insurance carriers under insurance or self-insurance arrangements, (B) to
secure the performance of bids, tenders, statutory obligations, leases,
contracts (other than contracts relating to borrowed money) or other obligations
of like nature, or (C) to secure surety, appeal, indemnity or performance bonds,
in each case, in the ordinary course of the business of such Person; (iii) Liens
in respect of judgments or awards against the Parent Company, the Borrower or
any of their Subsidiaries to the extent that such judgments or awards constitute
Permitted Indebtedness under clause (a) of the definition thereof; (iv) Liens of
carriers, warehousemen, mechanics, landlords, materialmen, laborers, suppliers
and the like incurred in the ordinary course of the business of the Parent
Company, the Borrower or any of their Subsidiaries, in each case, for sums not
overdue or being contested in good faith by appropriate proceedings, and for
which appropriate reserves with respect thereto have been established and
maintained on the consolidated books of the Parent Company and its Subsidiaries
in accordance with GAAP to the extent required by GAAP; and (v) easements,
rights-of-way, zoning and other similar restrictions and covenants and other
similar encumbrances or title defects which, in the aggregate, are not
substantial in amount, and which do not in any case materially detract from or
interfere with the ordinary conduct of the business of the Parent Company, the
Borrower or any of their Subsidiaries;

         (b) Liens that are in existence on the Closing Date and are disclosed
in Section 6.10(b) to the Disclosure Schedule;

         (c) Liens securing Permitted Acquisition Debt;

         (d) extensions, renewals and replacements of Liens described in clause
(b) or clause (c) of this definition or of Liens permitted by clause (c) or by
clause (d) of Section 8.3; provided, however, that (i) each such extension,
renewal or replacement Lien is limited to the Property covered by the Lien so
extended, renewed or replaced, and (ii) does not secure any Indebtedness other
than (A) Indebtedness that constitutes Permitted Indebtedness under clause (d)
or clause (e) of the definition thereof, or (as the case may be) (B)
Indebtedness permitted by clause (h) or clause (i) of Section 8.2; and

         (e) Liens arising by virtue of statutory, common law or contractual
provisions relating to bankers' Liens, rights of set-off and similar remedies as
to deposit or similar accounts.

         "PERSON" means any natural person, corporation, firm, limited liability
company, partnership, business trust, association, government, Governmental
Authority, or any other entity, whether acting in an individual, fiduciary or
other capacity.

<PAGE>
                                      -29-

         "PLAN" means any employee pension benefit (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code
or Section 302 of ERISA, and in respect of which the Borrower or any ERISA
Affiliate is (or, if such plan were terminated, would under Section 4069 of
ERISA be deemed to be) an "employer" as defined in Section 3(5) of ERISA..

         "PLEDGE AGREEMENT" means the Pledge Agreement, in or substantially in
the form of Exhibit D.

         "PLEDGED COLLATERAL" has the meaning specified in the Pledge Agreement
for the defined term "COLLATERAL".

         "PRINCIPAL COMPANIES" means, collectively, the Parent Company and the
Borrower.

         "PRO FORMA BASIS" means, with respect to compliance with any test or
covenant for any period hereunder, compliance with such test or covenant after
giving effect to any proposed Acquisition, disposition, incurrence of
Indebtedness or other action which requires compliance on a pro forma basis,
giving effect (among other things) to adjustments to increase Consolidated
Adjusted EBITDA, and using, for purposes of determining such compliance, the
historical financial statements of all entities or assets so acquired or to be
acquired and the consolidated financial statements of the Parent Company and its
Subsidiaries which shall be reformulated (a) as if such Acquisition,
disposition, incurrence of Indebtedness or other action, and any other such
action which has been consummated during such period, and any Indebtedness or
other liabilities incurred in connection with any such actions, had been
consummated at the beginning of such period (and assuming that such Indebtedness
bears interest during any portion of the applicable measurement period prior to
the relevant action at the weighted average of the interest rates applicable to
outstanding Loans during such period), and (b) otherwise in conformity with such
reasonable procedures as may be agreed upon between Administrative Agent and the
Principal Companies; provided, however, that all of the calculations referred to
herein shall be in reasonable detail and shall be in form and substance
reasonably satisfactory to Administrative Agent in all material respects.

         "PROPERTY" means any interest in any kind of property or asset, whether
real, personal or mixed, and whether tangible or intangible.

         "PURCHASE MONEY LIENS" has the meaning specified in Section 8.3(c).

         "RADIO STATIONS" means and includes, collectively, (a) all of the AM
and FM radio stations owned and operated by the Parent Company, the Borrower or
any of their Subsidiaries as of the Effective Date, and (b) all radio stations
from time to time acquired after the Effective Date by the Parent Company, the
Borrower or any of their Subsidiaries.

         "RADIO SWAP TRANSACTION" means, in relation to any Person, any
transaction, or any series of related transactions, in which such Person, or any
of its Affiliates, shall acquire one or more Radio Stations and related business
assets and Properties in exchange (whether in whole or in part) for one or more
Radio Stations and related business assets and Properties owned by such Person
or any of its Affiliates.

         "REAL PROPERTY" of any Person means all of the right, title and
interest of such Person in and to any land, improvements and fixtures, including
leaseholds.

<PAGE>
                                      -30-

         "RECOVERY EVENT" means the receipt by the Parent Company, the Borrower
or any of their Subsidiaries of any insurance or other cash proceeds that (a)
are payable by reason of any theft, loss, physical destruction, condemnation or
damage or any other similar event with respect to any Property of the Parent
Company, the Borrower or any of their Subsidiaries, and (b) exceed, with respect
to any such event or occurrence, $100,000 in the aggregate.

         "REGISTER" has the meaning specified in Section 11.3.

         "REINVESTMENT ASSETS" means, collectively, (a) any Capital Assets or
other Property to be used or otherwise employed by the Parent Company, the
Borrower or any of their Subsidiaries in any Lines of Business, and (b) any
Acquisition permitted by Section 8.6.

         "REINVESTMENT ELECTION" has the meaning specified in each of Section
2.7(b)(i) and (ii).

         "REINVESTMENT EVENT" means any Asset Sale, Financing Event or Recovery
Event in respect of which either or both of the Principal Companies shall have
made a Reinvestment Election by delivering a Reinvestment Notice with respect
thereto.

         "REINVESTMENT NOTICE" means a written notice duly executed by an
Authorized Officer of either or both of the Principal Companies stating that (a)
on and as of the date of such notice, no Event of Default is continuing, and (b)
the Principal Companies reasonably expect to use or to cause Subsidiaries of the
Principal Companies to use Net Cash Proceeds of an Asset Sale or Recovery Event
or Net Issuance Proceeds of a Financing Event to purchase, construct or
otherwise acquire Reinvestment Assets.

         "REINVESTMENT PERIOD" means, with respect to any Reinvestment Election,
the period commencing on the date of the Reinvestment Event to which such
Reinvestment Election relates and terminating on the later to occur of (a) the
expiration of the period of 365 days commencing on the date of such Reinvestment
Event, or (b) if, prior to the expiration of such 365-day period, the Parent
Company, the Borrower or any of their Subsidiaries shall have entered into a
binding agreement to reinvest all or any part of the Anticipated Reinvestment
Amounts relating thereto in Reinvestment Assets, then the expiration of the
period of 635 days commencing on the date of such Reinvestment Event.

         "REINVESTMENT PREPAYMENT AMOUNT" means, with respect to any
Reinvestment Election, the amount, if any, on any Reinvestment Prepayment Date
relating thereto, by which (a) the Anticipated Reinvestment Amounts in respect
of such Reinvestment Election EXCEED (b) the aggregate amount thereof which the
Parent Company, the Borrower or any of their Subsidiaries have expended or have
entered into legal and binding commitments to expend prior to such date to
acquire Reinvestment Assets.

         "REINVESTMENT PREPAYMENT DATE" means, with respect to any Reinvestment
Election, the earliest to occur of: (a) the date, if any, upon which the
Administrative Agent, upon the request of the Required Lenders, shall have
delivered a written termination notice to the Principal Companies; provided,
however, that such notice may only be given by the Administrative Agent to the
Principal Companies while any Material Event of Default shall be continuing; (b)
the last day of the relevant Reinvestment Period; or (c) the date on which the
Parent Company or the Borrower shall have determined not to, or shall have
otherwise ceased to, proceed with the purchase, construction or other
acquisition of Reinvestment Assets with all or any part of the related
Anticipated Reinvestment Amounts.
<PAGE>
                                      -31-

         "RELATED PARTIES" means, with respect to any specified Person, such
Person's Affiliates and the respective directors, officers, employees, agents
and advisors of such Person and such Person's Affiliates.

         "REQUIRED LENDERS" means, at any time, Lenders holding more than 50% of
the SUM of (a) the aggregate unused amount of all of the Commitments of all
Lenders in effect at such time, PLUS (b) the aggregate principal amount of all
of the Loans and (as a result of participations pursuant to Section 3.3(a) and
Section 3.3(d)) Letter of Credit Obligations outstanding at such time.

         "RESTRICTED PAYMENTS" means, in relation to the Parent Company, the
Borrower and their Subsidiaries: (a) any payment, prepayment, distribution,
loan, advance, Investment or Sale by the Borrower or by any of its Subsidiaries
which constitutes an Affiliate Transaction described in clause (a), (b), (c),
(d), (e), (f) or (g) of the definition "AFFILIATE TRANSACTION"; (b) any
declaration or payment by the Borrower or by any of its Subsidiaries of any
dividends or other distributions on account of, or any payment or other
distribution by the Borrower or by any of its Subsidiaries on account of the
purchase, repurchase, redemption, retirement or other acquisition for value of,
any Capital Stock of or any other Equity Interests in the Borrower; and (c) any
declaration or payment by the Parent Company or by any of its Subsidiaries of
any dividends or other distributions on account of, or any payment or other
distribution by the Parent Company or by any of its Subsidiaries on account of
the purchase, repurchase, redemption, retirement or other acquisition for value
of, any Capital Stock of or any other Equity Interests in the Parent Company.

         "REVOLVING COMMITMENT" means, for each Lender, the amount set forth
opposite such Lender's name under the caption "REVOLVING COMMITMENT" on Schedule
2, as such amount may be reduced from time to time pursuant to and in accordance
with the provisions hereof.

         "REVOLVING COMMITMENT FEES" has the meaning specified in Section
2.9(a).

         "REVOLVING CREDIT NOTE" has the meaning specified in Section 2.2(b).

         "REVOLVING LENDER" means any Lender with a Revolving Commitment, or, if
the Revolving Commitments have terminated or expired, any Lender holding
Revolving Loans or (as a result of participations pursuant to Section 3.3(a) and
3.3(d)), Letter of Credit Obligations.

         "REVOLVING LOAN" means any Loan by a Lender to the Borrower under
Section 2.1(b), which may be a Eurodollar Loan or a Base Rate Loan.

         "S&P" means Standard & Poor's Ratings Group, a division of The
McGraw-Hill Companies, Inc., and its successors.

         "SALE" means any sale, conveyance, exchange, swap, trade, transfer or
other disposition of any Property, including any sale, transfer or other
disposition of copyrights, trademarks and other intellectual Property made by or
through license agreements or other similar arrangements.

         "SECURED PARTIES" means, collectively: (a) the Lenders and the Agents
from time to time party to this Agreement or any of the other Loan Documents;
and (b) the Lender Counterparties.

<PAGE>
                                      -32-

         "SECURITIES" means any Equity Interests, bonds, debentures, promissory
notes or other evidences of Indebtedness, secured or unsecured, convertible,
subordinated or otherwise, or, in general, any Instruments commonly known as
"securities".

         "SECURITY AGREEMENT" means the Security Agreement, in or substantially
in the form of Exhibit E, pursuant to which each of the Parent Company, the
Borrower and their Subsidiaries from time to time party thereto shall grant to
the Collateral Agent security interests in and to tangible and intangible
personal Property of such Person in accordance with the terms thereof.

         "SECURITY AGREEMENT COLLATERAL" has the meaning specified in the
Security Agreement.

         "SECURITY INSTRUMENT" means any security agreement, assignment, pledge
agreement, financing or other similar statement or notice, continuation
statement, other agreement or Instrument, or any amendment or supplement to any
thereof, creating, governing or providing for, evidencing or perfecting any
security interest or Lien.

         "SHAREHOLDER AGREEMENTS" has the meaning specified in Section
5.1.10(a).

         "SPECIFIED HEDGE AGREEMENT" means any Hedge Agreement (a) entered into
by and between (i) the Borrower or any of the Subsidiary Guarantors, and (ii)
the Administrative Agent or any of the Lenders or any Affiliates of any of the
Lenders, as counterparty, and (b) that has been designated in a written notice
from the counterparty to the Administrative Agent and the Borrower as a
Specified Hedge Agreement for purposes of this Agreement. The designation of any
Hedge Agreement as a Specified Hedge Agreement shall not create in favor of any
Person that is a counterparty thereto any rights in connection with the
creation, perfection, management, enforcement or release of any Collateral or in
connection with the management, enforcement or release of any of the Obligations
of any Guarantor under the Guaranty Agreement.

         "STOCKHOLDER AGREEMENT" means the Third Amended and Restated
Stockholders' Agreement, dated as of December 13, 1999, among the Parent
Company, Terry S. Jacobs, William L. Stakelin, and each of the several other
Persons from time to time party thereto as a "Stockholder" thereunder, as
amended, modified or otherwise supplemented from time to time.

         "SUBSIDIARY" means, in relation to any Person (in this paragraph called
the "PARENT") at any time, any corporation, limited liability company,
partnership or other Person (a) of which shares of Capital Stock or other Equity
Interests having ordinary voting power to elect a majority of the board of
directors or other managers of such corporation, limited liability company,
partnership or other Person, or representing a majority of the Equity Interests
in such corporation, limited liability company, partnership or other Person, are
at the time owned, controlled or held, directly or indirectly, by the parent, or
(b) the management of which is otherwise controlled, directly or indirectly, by
the parent.

         "SUBSIDIARY GUARANTORS" means, collectively, each of the Domestic
Subsidiaries of the Parent Company or the Borrower identified in Section 6.12 to
the Disclosure Schedule as a "SUBSIDIARY GUARANTOR", and each of the other
Subsidiaries of the Parent Company or the Borrower that at any time after the
Effective Date shall become a party to and bound by the Guaranty Agreement. For
purposes of this Agreement and the other Loan Documents, the Borrower shall not
be deemed to be a Subsidiary Guarantor.

<PAGE>
                                      -33-

         "SYNDICATION AGENT" means US Bank, National Association, in its
capacity as syndication agent for the Agents, the Issuing Lender and the Lenders
under this Agreement and the other Loan Documents, and any successor to such
syndication agent.

         "TAXES" means any and all present or future taxes, levies, imposts,
duties, deductions, charges or withholdings imposed by any Governmental
Authority.

         "TERM COMMITMENT" means, for each Lender, the amount set forth opposite
such Lender's name under the caption "TERM COMMITMENT" on Schedule 2, as such
amount may be reduced from time to time pursuant to and in accordance with the
provisions hereof.

         "TERM LENDER" means any Lender with a Term Commitment or an outstanding
Term Loan.

         "TERM LOAN" means any Loan by a Lender to the Borrower under Section
2.1(a), which may be a Eurodollar Loan or a Base Rate Loan.

         "TERM NOTE" has the meaning specified in Section 2.2(b).

         "TOTAL REVOLVER UTILIZATION" means, at any time of determination, the
SUM of (a) the aggregate principal amount of all outstanding Revolving Loans
(other than Revolving Loans made for the purpose of reimbursing the Issuing
Lender for any amounts drawn under any Letters of Credit, but not yet so
applied), PLUS (b) the Letter of Credit Obligations then outstanding.

         "TRANSACTIONS" means, collectively, (a) the entering into of the Loan
Documents and the borrowing of Loans on the Closing Date, (b) the termination of
the Existing Credit Facilities and the repayment in full of all loans and notes
under or with respect to the Existing Credit Facilities, and (c) the payment of
fees and expenses in connection with the foregoing.

         "USAGE" means, in relation to the Aggregate Revolving Commitment for
any period, the average for such period of the quotient, determined daily, of
the Total Revolver Utilization from time to time outstanding during such period,
divided by the Aggregate Revolver Commitment from time to time in effect during
such period.

         "VOTING INTERESTS" means, in relation to any Person at any particular
date, any Capital Stock or other Equity Interests of the class or classes having
general voting power under ordinary circumstances to elect the board of
directors, managers or trustees (or any other Persons performing similar
functions) of such Person (irrespective of whether or not at the time Capital
Stock or other Equity Interests of any other classes shall have or might have
voting power by reason of the happening of any contingency).

         "WHOLLY-OWNED SUBSIDIARY" means, in relation to any Person, any
Subsidiary of such Person, all of the Equity Interests in which (other than
directors' qualifying shares) are owned by such Person or by another
Wholly-Owned Subsidiary of such Person.

         1.2. USE OF DEFINED TERMS. Terms for which meanings are provided in
this Agreement shall, unless otherwise defined or the context otherwise
requires, have such meanings when used in the Notes, the Schedules and Exhibits,
each of the other Loan Documents, and each notice or other communication
delivered from time to time in connection with this Agreement or any Instrument
executed pursuant hereto.

<PAGE>
                                      -34-

         1.3. CROSS-REFERENCES. Unless otherwise specified, references in this
Agreement or in any of the other Loan Documents to any Schedule, Exhibit,
Article or Section are references to such Schedule, Exhibit, Article or Section
of this Agreement or of such other Loan Document, as the case may be, and,
unless otherwise specified, references in any Schedule, Exhibit, Article,
Section or definition to any paragraph or clause are references to such
paragraph or clause of such Schedule, Exhibit, Article, Section or definition.

         1.4. ACCOUNTING AND FINANCIAL DETERMINATIONS. Where the character or
amount of any asset or liability or item of income of expense is required to be
determined, or any accounting computation is required to be made, for the
purposes of this Agreement or any of the other Loan Documents, such
determination or calculation shall, to the extent applicable, be made in
accordance with generally accepted accounting principles, as consistently
applied by each of the Principal Companies ("GAAP").

         1.5. GENERAL PROVISIONS RELATING TO DEFINITIONS. Terms for which
meanings are defined in this Agreement shall apply equally to the singular and
plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The term
"INCLUDING" means including, without limiting the generality of any description
preceding such term. References to any Instrument defined in this Agreement or
any of the other Loan Documents refer to such Instrument as originally executed,
or, if subsequently amended or supplemented from time to time, as so amended or
supplemented and in effect at the relevant time of reference thereto. Each
reference herein to any Person shall include a reference to such Person's
successors and assigns.

                                   ARTICLE II.

                              THE CREDIT FACILITIES

         2.1. AMOUNTS AND TERMS OF COMMITMENTS.

         (a) TERM LOANS. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make Term Loans (not to exceed its Term
Commitment) to the Borrower on the Closing Date, which shall not exceed for all
Lenders $65,000,000 in aggregate original principal amount. Amounts borrowed as
a Term Loan which are repaid or prepaid by the Borrower may not be reborrowed.

         (b) REVOLVING LOANS. Each Lender severally agrees, on the terms and
conditions hereinafter set forth, to make Revolving Loans to the Borrower from
time to time on any Business Day during the period from the Closing Date to the
Maturity Date, in an aggregate amount not to exceed at any time outstanding the
amount of such Lender's Revolving Commitment and in a combined amount for all
Lenders not to exceed at any time outstanding $85,000,000; provided, however,
that, immediately after giving effect to any Borrowing of Revolving Loans, the
sum of the aggregate principal amount of all of the outstanding Revolving Loans,
PLUS the aggregate amount of all of the outstanding Letter of Credit Obligations
shall not exceed the Aggregate Revolving Commitment then in effect. Within such
limits, and subject to the other terms and conditions hereof, the Borrower may
borrow Revolving Loans under this Section 2.1(b), prepay Revolving Loans
pursuant to Section 2.6 or 2.7 and reborrow Revolving Loans pursuant to this
Section 2.1(b).

<PAGE>
                                      -35-

         2.2. LOAN ACCOUNTS; NOTES. (a) The Loans made by each Lender shall be
evidenced by one or more loan accounts maintained by such Lender and by the
Administrative Agent in the ordinary course of business. The loan accounts
maintained by the Administrative Agent shall, in the event of any discrepancy
between the entries in the Administrative Agent's books and any Lender's books
relating to such loan accounts, be controlling and, absent manifest error, shall
be prima facie evidence of the amount of the Loans made by the Lenders to the
Borrower, the principal and interest payments thereon and any other amounts
owing in respect of this Agreement or any of the other Loan Documents. Any
failure to make a notation in any such loan account or any error in doing so
shall not limit or otherwise affect the Obligations of the Borrower hereunder to
pay any amounts owing with respect to the Loans.

         (b) If requested by any Lender, the Borrower shall execute and
deliver to such Lender (and deliver a copy thereof to the Administrative Agent)
one or more promissory notes evidencing the Loans owing to such Lender pursuant
to this Agreement. Each such note evidencing Revolving Credit Loans shall be in
or substantially in the form of Exhibit A (as amended, endorsed, replaced or
otherwise modified from time to time, a "REVOLVING CREDIT NOTE"). Each such note
evidencing Term Loans shall be in or substantially in the form of Exhibit B (as
amended, endorsed, replaced or otherwise modified from time to time, a "TERM
NOTE"). Each such note evidencing Incremental Loans shall be substantially in
the form of the Revolving Credit Notes or the Term Notes with such conforming
changes thereto as shall be specified by the Administrative Agent (as amended,
endorsed, replaced or otherwise modified from time to time, an "INCREMENTAL LOAN
NOTE"). All of the Notes shall be entitled to all of the rights and benefits of
this Agreement, the other Loan Documents and the Collateral.

         2.3. REQUESTS FOR BORROWINGS. (a) To request any Borrowing (other than
a Borrowing of Revolving Loans pursuant to Section 3.3(b)), the Borrower shall
notify the Administrative Agent of such request by telephone (i) in the case of
a Borrowing of Eurodollar Loans, not later than 12:00 a.m., Boston,
Massachusetts time, three (3) Business Days before the date of the proposed
Borrowing, or (ii) in the case of a Borrowing of Base Rate Loans, not later than
11:00 a.m., Boston, Massachusetts time, on the date of the proposed Borrowing.
Each such telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by telecopy to the Administrative Agent of a written
Borrowing Request in a form approved by the Administrative Agent and signed by
the Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with this Section 2.3:

                  (A) the amount of the Borrowing, which shall be in a minimum
         aggregate principal amount of $500,000 or any multiple of $500,000 in
         excess thereof;

                  (B) the requested Borrowing Date, which shall be a Business
         Day;

                  (C) whether the Borrowing is to be comprised of Eurodollar
         Loans or Base Rate Loans; and

                  (D) in the case of a Eurodollar Loan, the duration of the
         Interest Period to be applicable to such Eurodollar Loan. If the
         Borrowing Request shall fail to specify the duration of the Interest
         Period for any Eurodollar Loan which is part of any Borrowing, such
         Interest Period shall be of three (3) months' duration.

         (b) Upon receipt of a Borrowing Request, the Administrative Agent
will promptly notify each Lender thereof and of each such Lender's proportionate
share thereof.
<PAGE>
                                      -36-

         (c) Each Lender will make its proportionate share of each
Borrowing available to the Administrative Agent for the account of the Borrower
at the Administrative Agent's Office by 2:00 p.m., Boston, Massachusetts time,
on the Borrowing Date requested by the Borrower in funds immediately available
to the Administrative Agent. Unless any applicable condition of Article V has
not been satisfied, the proceeds of all Loans comprising such Borrowing will
then be made available to the Borrower by the Administrative Agent by wire
transfer in accordance with written instructions provided to the Administrative
Agent by the Borrower.

         (d) During the continuation of any Material Event of Default, the
Borrower may not elect to have any Loan made as a Eurodollar Loan.

         (e) After giving effect to any Borrowing, there shall not be more
than ten (10) different Interest Periods in effect in respect of all Loans which
are Eurodollar Loans.

         2.4. INTEREST ELECTIONS FOR ALL BORROWINGS. (a) The Borrower may upon
irrevocable notice to the Administrative Agent in accordance with paragraph (b):

                  (i) elect to convert on any Business Day, any Base Rate Loans
         (or any part thereof in an amount of not less than $500,000 or an
         integral multiple of $500,000 in excess thereof) into Eurodollar Loans;

                  (ii) elect to convert on the last day of any Interest Period
         with respect thereto, any Eurodollar Loans (or any part thereof in an
         amount of not less than $500,000 or an integral multiple of $500,000 in
         excess thereof) into Base Rate Loans; or

                  (iii) elect to continue on the last day of any Interest Period
         with respect thereto, any Eurodollar Loans (or any part thereof in an
         amount of not less than $500,000 or an integral multiple of $500,000 in
         excess thereof) as Eurodollar Loans;

provided, however, that, if any Borrowing comprised of Eurodollar Loans shall
have been reduced, by payment, prepayment or conversion, to an amount that is
less than $1,000,000 then the Eurodollar Loans comprising such Borrowing shall
automatically convert into Base Rate Loans on the last day of the then-current
Interest Period relating thereto.

         (b) The Borrower shall deliver to the Administrative Agent by
telephone not later than (i) 12:00 p.m., Boston, Massachusetts time, not less
than three (3) Business Days in advance of the Conversion Date or Continuation
Date, if the Loans are to be converted into or continued as Eurodollar Loans,
and (ii) 12:00 p.m., Boston, Massachusetts time, not less than one (1) Business
Day in advance of the Conversion Date, if the Loans are to be converted into
Base Rate Loans, specifying:

                  (A) the proposed Conversion Date or Continuation Date, which
         shall in each case be a Business Day;

                  (B) the aggregate principal amount of all Loans to be
         converted or continued;

                  (C) the nature of the proposed conversion or continuation; and

                  (D) the duration of the requested Interest Periods, if
         applicable.

<PAGE>
                                      -37-

Each such telephonic Interest Election Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a
written Interest Election Request in a form approved by the Administrative Agent
and signed by the Borrower.

         (c) If, upon the expiration of any Interest Periods applicable to
any Eurodollar Loans, the Borrower shall have failed to select on a timely basis
new Interest Periods to be applicable thereto, such Eurodollar Loans shall
automatically convert into Base Rate Loans upon the expiration of such periods.

         (d) Upon receipt of an Interest Election Request, the
Administrative Agent will promptly notify each Lender thereof, or, if no timely
notice is provided by the Borrower, the Administrative Agent will promptly
notify each Lender of the details of any automatic conversion. All conversions
and continuations shall be made pro rata according to the respective outstanding
principal amounts of the Loans with respect to which the notice was given.

         (e) During the continuation of any Material Event of Default, the
Borrower may not elect to have any Loan converted into or continued as a
Eurodollar Loan.

         (f) Notwithstanding any other provisions contained in this
Agreement, after giving effect to any conversion or continuation of any Loans,
there shall not be more than ten (10) different Interest Periods in effect in
respect of all Loans which are Eurodollar Loans.

         2.5. REDUCTION AND TERMINATION OF COMMITMENTS. (a) Each of the
Revolving Commitments shall in any event automatically and permanently terminate
in full on the Maturity Date. The Borrower may, upon not less than three (3)
Business Days' prior written notice to the Administrative Agent, permanently
terminate the Aggregate Revolving Commitment (including the Letter of Credit
Commitment) or permanently reduce the Aggregate Revolving Commitment (including
the Letter of Credit Commitment), without premium or penalty, by a minimum
aggregate amount of $1,000,000 or any multiple of $500,000 in excess thereof;
provided, however, that no such reduction or termination shall be permitted if,
immediately after giving effect thereto and to any prepayment of Revolving Loans
made on the effective date thereof, (i) the then outstanding principal amount of
the Revolving Loans, PLUS the then outstanding Letter of Credit Obligations,
will exceed the Aggregate Revolving Commitment then in effect, or (ii) the then
outstanding Letter of Credit Obligations will exceed the Letter of Credit
Commitment then in effect; and, provided, further, that once reduced in
accordance with this Section 2.5, the Aggregate Revolving Commitment (including
the Letter of Credit Commitment) may not be increased.

         (b) Each of the Aggregate Revolving Commitment and the Letter of
Credit Commitment shall be automatically and permanently reduced on the
following dates ("COMMITMENT REDUCTION DATES") in the amounts (collectively, the
"COMMITMENT REDUCTION AMOUNTS") set forth below opposite such dates:

<TABLE>
<CAPTION>
                                                    AGGREGATE                     LETTER OF CREDIT
              COMMITMENT                       REVOLVING COMMITMENT             COMMITMENT REDUCTION
            REDUCTION DATE                       REDUCTION AMOUNT                      AMOUNT
            --------------                     --------------------             --------------------

<S>                                                 <C>                             <C>
               06/30/05                             $1,275,000
               09/30/05                             $1,275,000
               12/31/05                             $1,275,000
</TABLE>

<PAGE>
                                      -38-

<TABLE>
<CAPTION>
                                                    AGGREGATE                     LETTER OF CREDIT
              COMMITMENT                       REVOLVING COMMITMENT             COMMITMENT REDUCTION
            REDUCTION DATE                       REDUCTION AMOUNT                      AMOUNT
            --------------                     ---------------------            --------------------

<S>                                                 <C>                              <C>
               03/31/06                             $1,275,000
               06/30/06                             $2,337,500                       $3,000,000
               09/30/06                             $2,337,500
               12/31/06                             $2,337,500

               03/31/07                             $2,337,500
               06/30/07                             $3,400,000                       $4,000,000

               09/30/07                             $3,400,000
               12/31/07                             $3,400,000

               03/31/08                             $3,400,000
               06/30/08                             $4,887,500                       $6,000,000
               09/30/08                             $4,887,500
               12/31/08                             $4,887,500

               03/31/09                             $4,887,500
               06/30/09                             $5,312,500                       $2,000,000
               09/30/09                             $5,312,500
               12/31/09                             $5,312,500

               03/31/10                             $5,312,500                       $4,000,000
               06/30/10                             $5,312,500                       $6,000,000
               09/30/10                             $5,312,500                       $5,000,000
               12/31/10                             $5,525,000                       $5,000,000
</TABLE>

The Aggregate Revolving Commitment and the Revolving Commitments of the Lenders,
and the Letter of Credit Commitment of the Issuing Lender, shall in any event
terminate in full on the Maturity Date and shall be of no further force or
effect whatsoever from and after that date.

         (c) On each date on which the Borrower shall become obligated to
prepay any principal of the Revolving Loans pursuant to Section 2.7(b) or
Section 2.7(c), all as provided by Section 2.7(e), then the Aggregate Revolving
Commitment shall be automatically and permanently reduced on each such date by
an amount equal to the aggregate principal amount of all of the Revolving Loans
so required to be prepaid on such date pursuant to Section 2.7(e). Each
mandatory reduction of the Aggregate Revolving Commitment pursuant to this
paragraph (c) shall be applied towards reduction of the remaining Commitment
Reduction Amounts applicable to the Aggregate Revolving Commitment on a pro rata
basis in accordance with the then remaining balance of each of such Commitment
Reduction Amounts. Upon each reduction of the remaining Commitment Reduction
Amounts applicable to the Aggregate Revolving Commitment pursuant to this
paragraph (c), the then remaining Commitment Reduction Amounts applicable to the
Letter of Credit Commitment shall also be simultaneously automatically and
permanently reduced on a proportional basis; provided, however that the Letter
of Credit Commitment shall not, except as otherwise provided in paragraph (d),
at any time be automatically reduced below $20,000,000.

<PAGE>
                                      -39-

         (d) The Letter of Credit Commitment shall be automatically and
permanently terminated in full upon termination of the Aggregate Revolving
Commitment. If the Letter of Credit Commitment shall at any time exceed the
Aggregate Revolving Commitment then in effect, then the Letter of Credit
Commitment shall immediately be automatically and permanently reduced to the
amount of the Aggregate Revolving Commitment then in effect.

         (e) Each reduction of the Aggregate Revolving Commitment pursuant
to this Section 2.5 shall be applied pro rata to each Revolving Lender's
Revolving Commitment in accordance with such Lender's proportionate share of
such Commitments. The amount of any reduction of the Aggregate Revolving
Commitment shall not be applied to the Letter of Credit Commitment unless
otherwise specified by the Borrower or unless otherwise required by the terms of
Section 2.5(c). All accrued Fees to the effective date of each reduction or
termination of the Aggregate Revolving Commitment shall be paid on the effective
date of each such reduction or termination. The Administrative Agent shall
promptly notify the Revolving Lenders of each reduction or termination of the
Aggregate Revolving Commitment.

         (f) The Aggregate Term Commitment shall terminate in full on the
Closing Date, upon making of the Term Loans on such date. Each of the Term
Commitments shall in any event automatically and permanently terminate in full
at 5:00 p.m. (Boston, Massachusetts time) on August 31, 2003 if the Term Loans
have not been made to the Borrower on or prior to that date.

         2.6. VOLUNTARY PREPAYMENTS. (a) The Borrower may, upon at least three
(3) Business Days' prior written notice by the Borrower to the Administrative
Agent in the case of Eurodollar Loans, and upon at least one (1) Business Day's
prior written notice by the Borrower to the Administrative Agent in the case of
Base Rate Loans, ratably prepay any Class or Classes of Loans, as the Borrower
may elect, in whole or in part, in amounts of $500,000 or an integral multiple
of $500,000 in excess thereof.

         (b) Any notice of prepayment delivered pursuant to this Section
2.6 shall be irrevocable and shall specify the date and amount of such
prepayment and the Classes and types of Loans to be prepaid, including whether
such prepayment is of Base Rate Loans or Eurodollar Loans or any combination
thereof. The Administrative Agent will promptly notify each Lender thereof and
of such Lender's applicable percentage of such prepayment. If any such notice is
given by the Borrower, the Borrower shall be absolutely and unconditionally
obligated to make such prepayment, and the prepayment amount specified in such
notice shall become and be due and payable on the date specified therein,
together with accrued interest to such date on the amount prepaid and the
amounts, if any, required to be paid by the Borrower pursuant to Section 4.4.

         (c) Each prepayment of Term Loans pursuant to this Section 2.6
shall be applied to the remaining scheduled installments of the Term Loans
pursuant to Section 2.8(b), in each case pro rata (based on the principal amount
then remaining unpaid of each of the scheduled installments of the Term Loans).

         2.7. MANDATORY PREPAYMENTS. (a) If, on any date, the SUM of (i) the
aggregate unpaid principal amount of all Revolving Loans then outstanding, PLUS
(ii) all of the Letter of Credit Obligations then outstanding (to the extent not
Cash Collateralized pursuant to the next sentence below or as provided for in
Section 3.7) shall exceed the Aggregate Revolving Commitment then in effect, the
Borrower shall immediately prepay principal of the Revolving Loans in the amount
of such excess. If, on any date, the aggregate amount of all Letter of Credit
Obligations then

<PAGE>
                                      -40-

outstanding shall exceed the Letter of Credit Commitment then in effect, the
Borrower shall Cash Collateralize on such date such Letter of Credit Obligations
in an amount equal to such excess.

         (b)(i) If on any date the Parent Company, the Borrower or any of their
Subsidiaries shall receive Net Cash Proceeds from any Asset Sale or Recovery
Event, then an amount equal to 100% of the Net Cash Proceeds from such Asset
Sale or Recovery Event shall be applied upon receipt to prepay principal of the
outstanding Loans, all as provided by Section 2.7(e); provided, however, that
the Parent Company, the Borrower and their Subsidiaries shall be required to
apply Net Cash Proceeds received from any Asset Sale or Recovery Event towards
prepayment of principal as provided above only (A) if any Event of Default shall
be continuing at the time of the receipt of such Net Cash Proceeds, or (B) if
and to the extent that such Net Cash Proceeds, when added to the aggregate
amount of all other Net Cash Proceeds received from Asset Sales or Recovery
Events in the same Fiscal Year, shall exceed $5,000,000; and provided, further,
that the requirements for mandatory prepayment set forth above in this clause
(i) shall be reduced if and to the extent that either or both of the Principal
Companies elect, as hereinafter provided, to cause all or part of such Net Cash
Proceeds to be reinvested by the Parent Company or the Borrower or by one or
more of their Subsidiaries in Reinvestment Assets on or prior to the end of the
applicable Reinvestment Period (herein called a "REINVESTMENT ELECTION"). The
Principal Companies may exercise the Reinvestment Election with respect to any
Asset Sale or Recovery Event only if (1) no Event of Default shall be continuing
at the time of such Asset Sale or Recovery Event, and (2) either or both of the
Principal Companies deliver a Reinvestment Notice with respect to such Asset
Sale or Recovery Event to the Administrative Agent not later than ninety (90)
days following the date of such Reinvestment Event.

         (ii) If the Parent Company, the Borrower or any of their Subsidiaries
shall at any time receive Net Issuance Proceeds from any Financing Event, then
an amount equal to 100% of the Net Issuance Proceeds from such Financing Event
shall be applied upon receipt to prepay principal of the outstanding Loans, all
as provided by Section 2.7(e); provided, however, that the Parent Company, the
Borrower and their Subsidiaries shall be required to apply all or any part of
any such Net Issuance Proceeds towards prepayment of principal as provided above
only if and to the extent that such Net Issuance Proceeds, when added to the
aggregate amount of all other such Net Issuance Proceeds received from time to
time after the Effective Date shall exceed $10,000,000; and provided, further,
that the requirements for mandatory prepayment set forth above in this clause
(ii) shall be reduced: (A) if and to the extent that either or both of the
Principal Companies make an election (herein called a "REINVESTMENT ELECTION"),
as hereinafter provided, to cause all or any part of such Net Issuance Proceeds
to be reinvested by the Parent Company, the Borrower or one or more of their
Subsidiaries in Reinvestment Assets on or prior to the end of the applicable
Reinvestment Period; and (B) if and to the extent that the aggregate amount of
the Net Issuance Proceeds not covered by any such Reinvestment Election exceeds
the aggregate principal amount (if any) of the outstanding Loans that would need
to be prepaid in order to cause the Consolidated Leverage Ratio, determined as
of the most recent Covenant Determination Date on a Pro Forma Basis after giving
effect to any such Financing Event and any such prepayment, to be not greater
than 4.00:1.00. Either or both of the Principal Companies may exercise the
Reinvestment Election with respect to such Net Issuance Proceeds from any such
Financing Event only if (1) no Event of Default shall be continuing at the time
of such Financing Event, and (2) either or both of the Principal Companies
deliver a Reinvestment Notice with respect to the Net Issuance Proceeds from
such Financing Event to the Administrative Agent not later than ninety (90) days
following the date of such Reinvestment Event.

<PAGE>
                                      -41-

         (iii) Nothing in this paragraph (b) shall be construed as a consent
for, or be deemed to permit, any Asset Sale or Financing Event not otherwise
permitted by this Agreement.

         (iv) On the Reinvestment Prepayment Date with respect to any
Reinvestment Election made pursuant to clause (i) or (ii), an amount equal to
the Reinvestment Prepayment Amount, if any, for such Reinvestment Election shall
be applied as a mandatory prepayment of principal of the outstanding Loans, all
as provided by Section 2.7(e).

         (c) On each Excess Cash Flow Application Date (commencing with the
Excess Cash Flow Application Date falling on April 30, 2005), an amount equal to
50% of the Consolidated Excess Cash Flow for the Fiscal Year last ended shall be
applied as a mandatory prepayment of principal of the outstanding Loans, all as
provided by Section 2.7(e); provided, however, that if the Consolidated Leverage
Ratio as of the last day of such Fiscal Year is less than 5.00:1.00, then no
payment in respect of the Consolidated Excess Cash Flow for such Fiscal Year
shall be required pursuant to this Section 2.7(c).

         (d) The Borrower shall pay, together with each principal
prepayment under this Section 2.7, accrued interest on the amount prepaid and
any amounts required pursuant to Section 4.4. Any prepayments pursuant to this
Section 2.7 made on any day other than an Interest Payment Date for any Loan
shall be applied: FIRST, to any Base Rate Loans then outstanding; and, THEN, to
Eurodollar Loans with the shortest Interest Periods remaining; provided,
however, that, so long as no Event of Default shall then be continuing, the
Administrative Agent shall, upon the request of the Borrower, apply any such
prepayments to Eurodollar Loans only on the last day of each of the respective
Interest Periods relating thereto, and, until such application of any such
prepayments, the Administrative Agent shall hold the amount thereof as cash
Collateral for the Obligations upon the terms contained in the Collateral
Documents.

         (e) Each prepayment of principal of the outstanding Loans required
pursuant to Section 2.7(b) or 2.7(c) shall be applied to principal of the Loans
on a pro rata basis in accordance with the respective aggregate principal
amounts thereof outstanding at the time of prepayment.

         (f) Each prepayment of principal of the outstanding Term Loans
required pursuant to Section 2.7(b), 2.7(c) or 2.7(e) shall be applied to the
remaining scheduled installments of the Term Loans pursuant to Section 2.8(b),
in each case pro rata (based on the principal amount then remaining unpaid of
each of the scheduled installments of the Term Loans).

         2.8. REPAYMENTS OF PRINCIPAL.

         (a) REVOLVING LOANS. The Borrower shall repay to the Lenders in full on
the Maturity Date the entire unpaid principal amount of each of the Revolving
Loans outstanding on the Maturity Date.

<PAGE>
                                      -42-

         (b) TERM LOAN. The Borrower shall repay the Term Loans in twenty-five
(25) installments, payable on the principal payment dates specified in the table
below, in an amount for each such scheduled installment equal to the amount set
forth opposite the scheduled principal payment date for such scheduled
installment in the table below:

<TABLE>
<CAPTION>
             PRINCIPAL PAYMENT DATE                      AMOUNT
             -----------------------                     ------
<S>                 <C>                               <C>
                    12/31/04                            $ 812,500

                    03/31/05                            $ 812,500
                    06/30/05                            $ 812,500
                    09/30/05                            $ 812,500
                    12/31/05                           $1,300,000

                    03/31/06                           $1,300,000
                    06/30/06                           $1,300,000

                    09/30/06                           $1,300,000
                    12/31/06                           $2,275,000

                    03/31/07                           $2,275,000
                    06/30/07                           $2,275,000
                    09/30/07                           $2,275,000
                    12/31/07                           $3,087,500

                    03/31/08                           $3,087,500
                    06/30/08                           $3,087,500
                    09/30/08                           $3,087,500
                    12/31/08                           $3,900,000

                    03/31/09                           $3,900,000
                    06/30/09                           $3,900,000
                    09/30/09                           $3,900,000
                    12/31/09                           $3,900,000

                    03/31/10                           $3,900,000
                    06/30/10                           $3,900,000
                    09/30/10                           $3,900,000
                    12/31/10                           $3,900,000
</TABLE>

         (c) MATURITY DATE. Anything herein express or implied to the contrary
notwithstanding, there shall become and be absolutely and unconditionally due
and payable on the Maturity Date, and the Borrower hereby promises to pay on the
Maturity Date, the entire principal of each of the Revolving Loans and the Term
Loans then remaining unpaid, all of the unpaid interest accrued thereon, all of
the unpaid Fees accrued thereon and all other unpaid sums and other Obligations
owing under this Agreement or any of the other Loan Documents with respect to
the Revolving Commitments, the Revolving Loans and the Term Loans.

<PAGE>
                                      -43-

         2.9. FEES. In addition to the fees described in Section 3.8:

         (a) COMMITMENT FEES. The Borrower shall pay to the Administrative Agent
for the ratable account of each Revolving Lender, on the last day of each March,
June, September and December in each year and on the earlier of the Maturity
Date or the date on which the Aggregate Revolving Commitment shall terminate in
full, commitment fees ("REVOLVING COMMITMENT FEES") equal to the product of (i)
the average of the daily EXCESS of the Aggregate Revolving Commitment from time
to time in effect from and after the Effective Date, OVER the Total Revolver
Utilization from time to time outstanding from and after the Effective Date,
TIMES (ii) the Applicable Commitment Fee Percentage. The Revolving Commitment
Fees shall begin to accrue on the Effective Date and shall cease to accrue on
the earlier of the Maturity Date or the date on which the Aggregate Revolving
Commitment shall terminate in full.

         (b) OTHER FEES. The Principal Companies shall pay to the Administrative
Agent such fees, in such amounts and on such dates as have been agreed or may be
agreed between the Parent Company or the Borrower and the Administrative Agent
from time to time, including the fees payable to the Administrative Agent
pursuant to the Fee Letter of May 15, 2003 among the Principal Companies, the
Lead Arranger and the Administrative Agent.

         2.10. COMPUTATION OF FEES AND INTEREST. (a) All computations of
interest payable in respect of Base Rate Loans based upon the Base Rate shall be
made on the basis of a year of 365 or 366 days, as the case may be, and actual
days elapsed. All other computations of fees and interest under this Agreement
shall be made on the basis of a 360-day year and actual days elapsed. Interest
and fees shall accrue during each period during which interest or fees are
computed from the first day thereof to the last day thereof.

         (b) The Administrative Agent will promptly notify the Borrower and the
Lenders of each determination of the Eurodollar Rate; provided, however, that
any failure to do so shall not relieve the Borrower of any liability hereunder.
Any change in the interest rate or any fees resulting from a change in the
Applicable Margin or (as the case may be) in the Applicable Commitment Fee
Percentage shall become effective as of the opening of business on the relevant
date of such change. The Administrative Agent will promptly notify the Borrower
and the Lenders of the effective date and the amount of each such change;
provided, however, that any failure to do so shall not relieve the Borrower of
any liability hereunder.

         (c) Each determination of interest rates or fees by the Administrative
Agent shall be conclusive and binding on the Parent Company, the Borrower and
the Lenders in the absence of manifest error.

         2.11. INTEREST. (a) Except as and to the extent otherwise expressly
provided by this Agreement, each Loan shall bear interest on the unpaid
principal amount thereof from the date made through maturity (whether by
acceleration or otherwise) thereof as follows:

                  (i) if a Base Rate Loan, at the Alternate Base Rate PLUS the
         Applicable Margin for Base Rate Loans; or

                  (ii) if a Eurodollar Loan, at the Eurodollar Rate PLUS the
         Applicable Margin for Eurodollar Loans.

<PAGE>
                                      -44-

         (b) Interest on each Loan shall be paid in arrears on each Interest
Payment Date. Interest shall also be paid on the date of any prepayment of any
principal of Loans for the principal of such Loans so prepaid. During the
continuation of any Events of Default, interest shall be paid on demand.

         (c) So long as any one or more of the Material Events of Default shall
be continuing, the Borrower shall, if and to the extent that Required Lenders
shall so request, pay interest (after as well as before judgment) (i) on the
entire unpaid principal amount of all of the Loans from time to time outstanding
at the applicable rate per annum provided in paragraph (a) of this Section 2.11
PLUS 2%, and (ii) on all other unpaid amounts (including interest) from time to
time overdue, at a rate per annum equal to the Alternate Base Rate PLUS the
Applicable Margin for Base Rate Loans PLUS 2%.

         2.12.  PAYMENTS BY THE BORROWER; PRO RATA TREATMENT; ETC.

         (a) All payments (including prepayments) required to be made by the
Parent Company, the Borrower or any other Credit Party on account of principal,
interest, drawings under Letters of Credit, Fees and other amounts required to
be paid under this Agreement or any of the other Loan Documents shall be made
without set-off or counterclaim and shall, except as otherwise expressly
provided with respect to drawings under Letters of Credit and elsewhere in the
Loan Documents, be made to the Administrative Agent for the ratable account of
the Lenders at the Administrative Agent's Office, and shall be made in Dollars
and in immediately available funds, no later than 12:00 p.m. (Boston,
Massachusetts time) on the date specified in this Agreement or (as the case may
be) in any of the other Loan Documents. The Administrative Agent will promptly
distribute to each Lender its pro rata share, if any, of such principal,
interest, Fees or other amounts, in like funds as received. Any payment which is
received by the Administrative Agent later than 12:00 p.m. (Boston,
Massachusetts time) shall be deemed to have been received on the immediately
succeeding Business Day, and any applicable interest or Fees shall continue to
accrue until such payment shall be deemed to have been received.

         (b) Whenever any payment under this Agreement or any other Loan
Document hereunder shall be stated to be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of interest
or Fees, as the case may be (subject to the provisions set forth in the
definition of the term of "INTEREST PERIOD").

         (c) Unless the Administrative Agent shall have received notice from the
Parent Company, the Borrower or any other Credit Party prior to the date on
which any payment is due to the Lenders under this Agreement or any other Loan
Document that such Credit Party will not make such payment in full, the
Administrative Agent may assume that such Credit Party will make such payment in
full to the Administrative Agent on such date in immediately available funds, as
required by the Loan Documents, and the Administrative Agent may (but shall not
be so required), in reliance upon such assumption, cause to be distributed to
each Lender on such due date an amount equal to the amount then due such Lender.
If and to the extent that the Parent Company, the Borrower or (as the case may
be) such Credit Party shall not have made such payment in full to the
Administrative Agent, each Lender shall repay to the Administrative Agent on
demand such amount distributed to such Lender, together with interest thereon
for each day from the date such amount is distributed to such Lender until the
date such Lender repays such amount to the Administrative Agent, at the Federal
Funds Rate as in effect for each such day.

<PAGE>
                                      -45-

         (d) Each Borrowing by the Borrower from the Lenders hereunder, and any
reduction of the Commitments of the Lenders, shall be made pro rata according to
the respective Commitments of the relevant Lenders. Each payment in respect of
principal or interest in respect of the Loans, each payment in respect of Fees
payable hereunder and each payment in respect of Letter of Credit Obligations,
shall be applied to the amounts of such Obligations owing to the Lenders pro
rata according to the respective amounts then due and owing to the Lenders.

         2.13.  PAYMENTS BY LENDERS TO THE ADMINISTRATIVE AGENT.

         (a) Unless the Administrative Agent shall have received notice from any
Lender, at least one (1) Business Day prior to the date of any proposed
Borrowing of Eurodollar Loans, and by 1:00 p.m., Boston, Massachusetts time, on
the Borrowing Date of any Base Rate Loans, that such Lender will not make
available to the Administrative Agent for the account of the Borrower the amount
of such Lender's pro rata share of such Borrowing in accordance with its
Commitment, the Administrative Agent may assume that such Lender has made such
amount available to the Administrative Agent as required hereunder on the
Borrowing Date, and the Administrative Agent may (but shall not be so required),
in reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If and to the extent that any Lender shall not have made
its full amount available to the Administrative Agent in immediately available
funds and the Administrative Agent in such circumstances has made available to
the Borrower such amount, such Lender shall immediately make such amount
available to the Administrative Agent, together with interest at the Federal
Funds Rate from the date of such Borrowing to the date on which the
Administrative Agent recovers such amount from such Lender or the Borrower. A
notice from the Administrative Agent submitted to any Lender with respect to
amounts owing under this Section 2.13(a) shall be conclusive, absent manifest
error. If such amount is so made available, such payment to the Administrative
Agent shall constitute such Lender's Loan on the Borrowing Date for all purposes
of this Agreement. If such amount is not made available to the Administrative
Agent on the next Business Day following such Borrowing Date, the Administrative
Agent shall notify the Borrower of such failure to fund and, upon demand by the
Administrative Agent, the Borrower shall pay such amount to the Administrative
Agent for the Administrative Agent's account, together with interest thereon for
each day elapsed since such Borrowing Date, at a rate per annum equal to the
interest rate applicable at the time to the Loans comprising such Borrowing.

         (b) The failure of any Lender to make any Loan on any Borrowing Date
shall not relieve any other Lender of any obligation hereunder to make a Loan on
such Borrowing Date, but no Lender shall be responsible for the failure of any
other Lender to make the Loan to be made by such other Lender on any Borrowing
Date.

         2.14. SHARING OF PAYMENTS; ETC. (a) If, except as and to the extent
otherwise expressly provided elsewhere in this Agreement or in any of the other
Loan Documents, any Lender shall obtain on account of any of the Obligations
owing to it any payment (whether voluntary, involuntary, through the exercise of
any right of set-off, or otherwise) in excess of its relevant pro rata share of
any payments on account of Obligations of the same kind obtained by other
Lenders, all as determined in accordance with Section 2.12(d) and other
applicable provisions of this Agreement or other Loan Documents, such Lender
shall forthwith (i) notify the Administrative Agent of such fact, and (ii)
purchase from other affected Lenders such participations in such Obligations
held by them as shall be necessary to cause such purchasing Lender to share the
excess payment ratably with each of them; provided, however, that if all or any
portion of such excess payment is thereafter recovered from the purchasing
Lender, such purchase shall to that

<PAGE>
                                      -46-

extent be rescinded and each other affected Lender shall repay to the purchasing
Lender the purchase price paid therefor, together with an amount equal to such
paying Lender's pro rata share (according to the proportion of (x) the amount of
such paying Lender's required repayment, to (y) the total amount so recovered
from the purchasing Lender) of any interest or other amount paid or payable by
the purchasing Lender in respect of the total amount so recovered. The
Administrative Agent will keep records (which shall be conclusive and binding in
the absence of manifest error) of participations purchased pursuant to this
Section 2.14 and will, in each case, notify the Lenders following any such
purchases.

         (b) Each of the Principal Companies agrees that any Lender so
purchasing a participation from another Lender pursuant to this Section 2.14
may, to the fullest extent permitted by Applicable Law, exercise all of its
rights of payment (including all rights of set-off) with respect to such
participation as fully as if such Lender were the direct creditor of each of the
Parent Company and the Borrower in the amount of such participation.

         2.15. INCREMENTAL FACILITIES.

         (a) The Borrower may, at any time and from time to time prior to the
third anniversary of the Effective Date, by written notice to the Administrative
Agent (whereupon the Administrative Agent shall promptly deliver a copy thereof
to each of the Lenders), request the addition of one or more new credit
facilities (collectively, the "INCREMENTAL FACILITIES") consisting of a new
tranche of term loans (an "INCREMENTAL TERM FACILITY") or a new tranche of
revolving loans (an "INCREMENTAL REVOLVING FACILITY"), or a combination thereof;
provided, however, that, at the time of any such request by the Borrower and
upon the effectiveness of any Incremental Facility Amendment referred to below,
no Event of Default shall exist, and the Borrower shall be in compliance with
Section 8.4, determined on a Pro Forma Basis as if such Incremental Facility had
been outstanding as of the then most recent Covenant Determination Date.

         (b) The Incremental Facilities shall together be in an aggregate
original principal amount not exceeding $100,000,000, and each Incremental
Facility shall be in an aggregate original principal amount not less than
$20,000,000. Each Incremental Facility: (i) shall rank pari passu in right of
payment with the Revolving Loans and the Term Loans and shall be equally and
ratably secured by the Collateral; (ii) shall not mature earlier than six (6)
months after the Maturity Date (but may, subject to clause (iii) below, have
amortization and commitment reductions prior to such date); (iii) shall have a
weighted-average life that is longer than that of the Revolving Commitments and
the Term Loans, taken as a whole; and (iv) for purposes of prepayments, shall be
treated substantially the same as (and in any event no more favorably than) the
Term Loans, in the case of the Incremental Term Facilities, or the Revolving
Loans, in the case of the Incremental Revolving Facilities; provided, however,
that (A) the terms and conditions applicable to any Incremental Facilities
maturing after the Maturity Date may provide for material additional or
different financial or other covenants applicable only during periods after the
Maturity Date, and (B) the Incremental Facilities may be priced differently than
the Term Loans and the Revolving Loans.

         (c) Any such written notice from the Borrower shall set forth the
requested amount and terms of the relevant Incremental Facilities. The Borrower
may arrange for one or more banks or other financial institutions, each of which
shall be reasonably satisfactory to the Administrative Agent and the Borrower
(any such bank or other financial institution being herein called an "ADDITIONAL
LENDER"), to extend commitments under the Incremental Facilities, and

<PAGE>
                                      -47-

each existing Lender shall be afforded an opportunity, but shall not be
required, to provide a portion of any such Incremental Facilities. Commitments
in respect of Incremental Facilities shall become Commitments under this
Agreement, and each Additional Lender shall become a Lender under this
Agreement, pursuant to an amendment (an "INCREMENTAL FACILITY AMENDMENT") to
this Agreement and, as appropriate, the other Loan Documents, executed by the
Parent Company, the Borrower, each (if any) existing Lender agreeing to provide
such Commitment, each (if any) Additional Lender, and the Administrative Agent.

         (d) Each Incremental Facility Amendment shall, without the consent of
any of the other Lenders, effect such amendments to this Agreement and the other
Loan Documents as may be necessary or appropriate, in the reasonable
determination of the Administrative Agent, to effect the provisions of this
Section 2.15, and each such Incremental Facility Amendment shall be binding upon
all of the parties to this Agreement.

         (e) The effectiveness of each Incremental Facility Amendment shall be
subject to the satisfaction on the date thereof of each of the conditions set
forth in Section 5.2. The proceeds of the Incremental Facilities will be used to
finance Permitted Acquisitions, for working capital and for other general
corporate purposes.

         (f) Anything in this Section 2.15 express or implied to the contrary
notwithstanding: (i) the Administrative Agent and the Lead Arranger shall have
the exclusive rights to allocate Incremental Commitments among the Lenders and
Additional Lenders providing the Incremental Facilities; (ii) no Incremental
Facilities and no Incremental Commitments may become effective on or after the
Incremental Commitment Termination Date; (iii) the Aggregate Incremental
Commitment shall not exceed $100,000,000, and the aggregate principal amount of
all Incremental Loans from time to time outstanding shall not at any time exceed
$100,000,000, and (iv) except as otherwise provided or contemplated by the
forgoing paragraphs of this Section 2.15, the Incremental Facilities, the
Incremental Commitments and the Incremental Loans shall be subject to and
governed by all of the terms and conditions contained herein.

                                  ARTICLE III.

                              THE LETTERS OF CREDIT

         3.1. LETTER OF CREDIT SUBFACILITY.

         (a) On the terms and conditions set forth herein (i) the Issuing Lender
agrees (A) from time to time, on any Business Day during the period from the
Effective Date to the date which is thirty (30) days prior to the Maturity Date
to issue Letters of Credit for the account of the Borrower, and to amend or
renew Letters of Credit previously issued by it, in accordance with Sections
3.2(b) and Section 3.2(d), and (B) to honor drafts under the Letters of Credit;
and (ii) the Revolving Lenders severally agree to participate in Letters of
Credit issued for the account of the Borrower; provided, however, that the
Issuing Lender shall not issue any Letter of Credit if as of the date of, and
immediately after giving effect to, the issuance of such Letter of Credit: (1)
there shall be continuing any Event of Default of which the Issuing Lender shall
have received written notice from any of the Credit Parties or the
Administrative Agent; (2) the aggregate amount of all Letter of Credit
Obligations, PLUS the aggregate principal amount of all Revolving Loans, shall
exceed the Aggregate Revolving Commitment then in effect; or (3) the Letter of
Credit Obligations shall exceed the Letter of Credit Commitment then in effect.

<PAGE>
                                      -48-

         (b) The Issuing Lender shall be under no obligation to issue any Letter
of Credit if:

             (i) any order, judgment or decree of any Governmental Authority
         shall by its terms purport to enjoin or restrain the Issuing Lender
         from issuing such Letter of Credit, or any Applicable Law or any
         request or directive (whether or not having the force of law) from any
         Governmental Authority with jurisdiction over the Issuing Lender shall
         prohibit, or request that the Issuing Lender refrain from, the issuance
         of letters of credit generally or such Letter of Credit in particular
         or shall impose upon such Issuing Lender with respect to such Letter of
         Credit any restriction, reserve or capital requirement (for which the
         Issuing Lender is not otherwise compensated hereunder) not in effect on
         the Effective Date or shall impose upon the Issuing Lender any
         unreimbursable loss, cost or expense which was not applicable on the
         Effective Date and which the Issuing Lender reasonably deems material
         to it;

             (ii) the Issuing Lender shall have received written notice from any
         Lender or from any Credit Party, on or prior to the requested date of
         issuance of such Letter of Credit, that one or more of the applicable
         conditions precedent contained in Article V is not then satisfied;

             (iii) the expiry date of any requested Letter of Credit (A) is more
         than one (1) year after the date of issuance, unless the Administrative
         Agent and the Issuing Lender have approved such expiry date in writing,
         or (B) is later than the Maturity Date;

             (iv) any requested Letter of Credit is not in form and substance
         reasonably acceptable to the Issuing Lender, or the issuance of a
         Letter of Credit shall violate any applicable policies of the Issuing
         Lender; or

             (v) such Letter of Credit is in a face amount less than $50,000 or
         to be denominated in a currency other than Dollars.

         3.2. ISSUANCE, AMENDMENT AND RENEWAL OF LETTERS OF CREDIT.

         (a) Each Letter of Credit shall be issued upon (x) the irrevocable
written request of the Borrower received by the Issuing Lender (with a copy sent
by the Borrower to the Administrative Agent) at least four (4) Business Days (or
such shorter time as the Issuing Lender may agree in a particular instance in
its sole discretion) prior to the proposed date of issuance, and (y) approval by
the Administrative Agent of such request. Each request by the Borrower for
issuance of a Letter of Credit shall be by facsimile, confirmed promptly in an
original writing, in the form of a Letter of Credit Application, and shall
specify in form and detail reasonably satisfactory to the Issuing Lender: (i)
the proposed date of issuance of the Letter of Credit (which shall be a Business
Day); (ii) the face amount of the Letter of Credit; (iii) the expiry date of the
Letter of Credit; (iv) the name and address of the beneficiary thereof; (v) the
documents to be presented by the beneficiary of the Letter of Credit in case of
any drawing thereunder; (vi) the full text of any certificate to be presented by
the beneficiary in case of any drawing thereunder; and (vii) such other matters
as the Issuing Lender may reasonably require.

         (b) From time to time while a Letter of Credit is outstanding and prior
to the Maturity Date, the Issuing Lender will, upon the written request of the
Borrower received by the Issuing Lender (with a copy sent by the Borrower to the
Administrative Agent) at least four (4) Business Days (or such shorter time as
the Issuing Lender may agree in a particular instance in its

<PAGE>
                                      -49-

sole discretion) prior to the proposed date of amendment, upon approval by the
Administrative Agent of such request, amend any Letter of Credit issued by it.
Each such request by the Borrower for amendment of a Letter of Credit shall be
made by facsimile, confirmed promptly in an original writing, in the form of a
Letter of Credit Amendment Application and shall specify in form and detail
reasonably satisfactory to the Issuing Lender: (i) the Letter of Credit to be
amended; (ii) the proposed date of amendment of the Letter of Credit (which
shall be a Business Day); (iii) the nature of the proposed amendment; and (iv)
such other matters as the Issuing Lender may reasonably require. The Issuing
Lender shall be under no obligation to amend any Letter of Credit if (A) the
Issuing Lender would have no obligation at such time to issue such Letter of
Credit in its amended form under the terms of this Agreement; or (B) the
beneficiary of any such Letter of Credit does not accept the proposed amendment
to the Letter of Credit.

         (c) The Administrative Agent will promptly notify the Revolving Lenders
of the receipt by it of any Letter of Credit Application or Letter of Credit
Amendment Application.

         (d) The Issuing Lender and the Revolving Lenders agree that, while a
Letter of Credit is outstanding and prior to the Maturity Date, at the option of
the Borrower and upon the written request of the Borrower received by the
Issuing Lender (with a copy sent by the Borrower to the Administrative Agent) at
least four (4) Business Days (or such shorter time as the Issuing Lender may
agree in a particular instance in its sole discretion) prior to the proposed
date of notification of renewal, the Issuing Lender shall be entitled to
authorize the automatic renewal of any Letter of Credit issued by it. Each such
request for renewal of a Letter of Credit shall be made by facsimile, confirmed
promptly in an original writing, in the form of a Letter of Credit Amendment
Application, and shall specify in form and detail reasonably satisfactory to the
Issuing Lender: (i) the Letter of Credit to be renewed; (ii) the proposed date
of notification of renewal of the Letter of Credit (which shall be a Business
Day); (iii) the revised expiry date of the Letter of Credit; and (iv) such other
matters as the Issuing Lender may reasonably require. The Issuing Lender shall
be under no obligation to renew any Letter of Credit if the Issuing Lender would
have no obligation at such time to issue or amend such Letter of Credit in its
renewed form under the terms of this Agreement. If any outstanding Letter of
Credit shall provide that it shall be automatically renewed unless the
beneficiary thereof receives notice from the Issuing Lender that such Letter of
Credit shall not be renewed, and if at the time of renewal the Issuing Lender
would be entitled to authorize the automatic renewal of such Letter of Credit in
accordance with this Section 3.2(d) upon the request of the Borrower but the
Issuing Lender shall not have received any Letter of Credit Amendment
Application from the Borrower with respect to such renewal or other written
direction from the Borrower with respect thereto, the Issuing Lender shall
nonetheless be permitted to allow such Letter of Credit to be renewed, and the
Borrower and the Revolving Lenders hereby irrevocably authorize each such
renewal, and, accordingly, the Issuing Lender shall be deemed to have received a
Letter of Credit Amendment Application from the Borrower requesting such
renewal.

         (e) This Agreement shall control in the event of any conflict with any
Letter of Credit Related Document (other than any Letter of Credit, the
provisions of which shall control in any event). The Issuing Lender will also
deliver to the Administrative Agent, concurrently or promptly following its
delivery of a Letter of Credit, or any amendment to or renewal of a Letter of
Credit, to a beneficiary, a true and complete copy of each such Letter of Credit
or amendment to or renewal of a Letter of Credit.

<PAGE>
                                      -50-

         3.3. PARTICIPATIONS, DRAWINGS AND REIMBURSEMENT.

         (a) Immediately upon the issuance of each Letter of Credit, each
Revolving Lender shall be deemed to, and hereby irrevocably and unconditionally
agrees to, purchase from the Issuing Lender a participation in such Letter of
Credit and each drawing thereunder in an amount equal to the PRODUCT of (i) the
percentage equivalent of such Lender's proportionate share of all Revolving
Commitments then in effect, TIMES (ii) the maximum amount available to be drawn
under such Letter of Credit and the amount of such drawing, respectively.

         (b) In the event of any request for a drawing under a Letter of Credit
by the beneficiary or transferee thereof, the Issuing Lender will promptly
notify the Borrower. The Borrower shall reimburse the Issuing Lender prior to
12:00 p.m. (Boston, Massachusetts time), on each date that any amount is paid by
the Issuing Lender under any Letter of Credit (each such date, a "DISBURSEMENT
DATE"), in an amount equal to the amount so paid by the Issuing Lender, provided
that if such drawing occurs after 12:00 p.m. (Boston, Massachusetts time), the
Disbursement Date shall be deemed to be the day following the date of such
drawing. In the event that the Borrower shall fail to reimburse the Issuing
Lender for the full amount of any drawing under any Letter of Credit by 12:00
p.m. (Boston, Massachusetts time) on the Disbursement Date, the Issuing Lender
will promptly notify the Administrative Agent and the Administrative Agent will
promptly notify each Revolving Lender thereof, and the Borrower shall be deemed
to have requested that Revolving Loans consisting of Base Rate Loans be made by
the Revolving Lenders (and the Borrower hereby irrevocably consents to such
deemed request) pursuant to Section 2.1(a) to be disbursed on the Disbursement
Date under such Letter of Credit, SUBJECT ALWAYS to the satisfaction of the
conditions set forth in Section 5.2. Any notice given by the Issuing Lender or
the Administrative Agent pursuant to this Section 3.3(b) may be oral if
immediately confirmed in writing (including by facsimile); provided, however,
that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.

         (c) Each Revolving Lender shall upon receipt of any notice pursuant to
Section 3.3(b) make available to the Administrative Agent for the account of the
Issuing Lender an amount in Dollars and in immediately available funds equal to
its pro rata share of the amount of the drawing, whereupon the participating
Lenders shall (subject to Section 3.3(d)) each be deemed to have made a
Revolving Loan consisting of a Base Rate Loan to the Borrower in that amount. If
any Lender so notified shall fail to make available to the Administrative Agent
for the account of the Issuing Lender the amount of such Lender's pro rata share
of the amount of the drawing by no later than 1:00 p.m. (Boston, Massachusetts
time) on the Disbursement Date, then interest shall accrue on such Lender's
obligation to make such payment, from the Disbursement Date to the date such
Lender makes such payment, at a rate per annum equal to (i) the Federal Funds
Rate in effect from time to time during the period commencing on the
Disbursement Date and ending on the date three (3) Business Days thereafter, and
(ii) thereafter, at the Alternate Base Rate as in effect from time to time. The
Administrative Agent will promptly give notice of each Disbursement Date to each
Revolving Lender, but failure of the Administrative Agent to give any such
notice on the Disbursement Date or in sufficient time to enable any Revolving
Lender to effect such payment on such date shall not relieve such Revolving
Lender from its obligations under this Section 3.3; provided, however, that
interest shall accrue, as provided in the immediately preceding sentence, on
such Revolving Lender's obligations not from the Disbursement Date, but instead
from the date on which such Revolving Lender receives such notice from the
Administrative Agent.

<PAGE>
                                      -51-

         (d) With respect to any unreimbursed drawing which is not converted
into Revolving Loans consisting of Base Rate Loans because the applicable
conditions precedent set forth in Section 5.2 cannot be satisfied, the Borrower
shall be deemed to have obtained from the Issuing Lender a Letter of Credit
Borrowing in the amount of such drawing, which Letter of Credit Borrowing shall
be absolutely and unconditionally due and payable on demand by the Issuing
Lender (together with interest) and shall bear interest at a rate per annum
equal to the Alternate Base Rate, PLUS the Applicable Margin for Base Rate
Loans, PLUS, in the case of any Letter of Credit Borrowing outstanding after the
Disbursement Date, 2% per annum, and each Lender's payment to the Issuing Lender
pursuant to Section 3.3(c) shall be deemed a payment in respect of its
participation in such Letter of Credit Borrowing.

         (e) Each Revolving Lender's obligation in accordance with this
Agreement to make Revolving Loans or to fund its participation in Letter of
Credit Borrowings, as contemplated by this Section 3.3, as a result of any
drawing under a Letter of Credit shall be absolute, unconditional irrevocable
and without recourse to the Issuing Lender and shall not be affected by any
circumstance, including: (i) any set-off, counterclaim, defense or other right
which such Revolving Lender may have against the Issuing Lender, the Borrower or
any other Person for any reason whatsoever; (ii) the occurrence or continuation
of any Default or any Materially Adverse Effect; or (iii) any other
circumstance, happening or event whatsoever, whether or not similar to any of
the foregoing.

         3.4. REPAYMENT OF PARTICIPATION.

         (a) Upon (and only upon) receipt by the Administrative Agent for the
account of the Issuing Lender of funds from the Borrower (i) in reimbursement of
any payment made by the Issuing Lender under the Letter of Credit with respect
to which any Revolving Lender has paid the Administrative Agent for the account
of the Issuing Lender for such Revolving Lender's participation in the Letter of
Credit pursuant to Section 3.3, or (ii) in payment of interest on amounts
described in clause (i), the Administrative Agent will pay to each Revolving
Lender, in the same funds as those received by the Administrative Agent for the
account of the Issuing Lender, the amount of such Revolving Lender's pro rata
share of such funds, and the Issuing Lender shall receive the amount of the pro
rata share of such funds of any Revolving Lender that did not so pay the
Administrative Agent for the account of the Issuing Lender.

         (b) If the Administrative Agent or the Issuing Lender is required at
any time to return to the Borrower, or to any trustee, receiver, liquidator,
custodian or any other similar official in any Insolvency Proceeding, any
portion of the payments made by the Borrower to the Administrative Agent for the
account of the Issuing Lender pursuant to Section 3.4(a) in reimbursement of a
payment made under the Letter of Credit or interest or fees thereon, each
Revolving Lender shall, on demand of the Administrative Agent, forthwith return
to the Administrative Agent or such Issuing Lender the amount of its pro rata
share of any amounts so returned by the Administrative Agent or the Issuing
Lender plus interest thereon, from the date such demand is made to the date such
amounts are returned by such Revolving Lender to the Administrative Agent or the
Issuing Lender, at a rate per annum equal to the Federal Funds Rate in effect
from time to time.

         3.5. ROLE OF ISSUING LENDER.

         (a) Each Revolving Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, the Issuing Lender shall not have any
responsibility to obtain any

<PAGE>
                                      -52-

document (other than any sight draft and certificates expressly required by the
Letter of Credit) or to ascertain or inquire as to the validity or accuracy of
any such document or the authority of the Person executing or delivering any
such document.

         (b) Neither the Issuing Lender nor any of the respective
correspondents, participants or assignees of the Issuing Lender shall be liable
to any Revolving Lender or the Borrower for: (i) any action taken or omitted in
connection herewith at the request or with the approval of the Required Lenders;
(ii) any action taken or omitted in the absence of gross negligence or willful
misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any Letter of Credit Related Document.

         (c) The Borrower hereby irrevocably assumes all risks of the acts or
omissions of any beneficiary or transferee with respect to its use of any Letter
of Credit. Neither the Issuing Lender nor any of the respective correspondents,
participants or assignees of the Issuing Lender shall be liable or responsible
for any of the matters described in clauses (a) through (f) of Section 3.6;
provided, however, that the Borrower may have a claim against the Issuing
Lender, and the Issuing Lender may be liable to the Borrower, to the extent, but
only to the extent, of any direct, as opposed to consequential or exemplary,
damages suffered by the Borrower which the Borrower shall prove were caused by
the Issuing Lender's willful misconduct or gross negligence or the Issuing
Lender's willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of such Letter of Credit. In
furtherance and not in limitation of the foregoing: (i) the Issuing Lender may
accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary; and (ii) the Issuing Lender shall not be
responsible for the validity or sufficiency of any Instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, which may prove
to be invalid or ineffective for any reason.

         3.6. OBLIGATIONS ABSOLUTE. The Obligations of the Borrower under this
Agreement and any Letter of Credit Related Document to reimburse the Issuing
Lender for each drawing under each Letter of Credit, to repay each Letter of
Credit Borrowing and to repay each drawing under a Letter of Credit converted
into Revolving Loans, shall be absolute, unconditional and irrevocable, and
shall be paid strictly in accordance with the terms of this Agreement and each
such other Letter of Credit Related Document under all circumstances, including
the following:

         (a) any lack of validity or enforceability of this Agreement or any
Letter of Credit Related Document;

         (b) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations of the Borrower in respect of any
Letter of Credit or any other amendment or waiver of or any consent to departure
from all or any of the Letter of Credit Related Documents;

         (c) the existence of any claim, set-off, defense or other right that
the Borrower may have at any time against any beneficiary or any transferee of
any Letter of Credit (or any Person for whom any such beneficiary or any such
transferee may be acting), the Issuing Lender or any other Person, whether in
connection with this Agreement, the transactions contemplated hereby or by the
Letter of Credit Related Documents or any unrelated transactions;

<PAGE>
                                      -53-

         (d) any draft, demand, certificate or other document presented under
any Letter of Credit proving to be forged, fraudulent, invalid or insufficient
in any respect or any statement therein being untrue or inaccurate in any
respect; or any loss or delay in the transmission or otherwise of any document
required in order to make a drawing under any Letter of Credit;

         (e) any payment by the Issuing Lender under any Letter of Credit
against presentation of a draft or certificate that does not strictly comply
with the terms of such Letter of Credit; or any payment made by the Issuing
Lender under any Letter of Credit to any Person purporting to be a trustee in
bankruptcy, debtor-in-possession, assignee for the benefit of creditors,
liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of any Letter of Credit; or

         (f) any other circumstance or happening whatsoever, whether or not
similar to any of the foregoing, including any other circumstance that might
otherwise constitute a defense available to, or a discharge of, the Borrower or
any guarantor.

         3.7. CASH COLLATERAL PLEDGE. Upon (a) the request of the Administrative
Agent, (i) if the Issuing Lender has honored any full or partial drawing request
on any Letter of Credit, and such drawing has resulted in a Letter of Credit
Borrowing hereunder, or (ii) if, as of the Maturity Date, any Letters of Credit
shall for any reason remain outstanding and partially or wholly undrawn, or (b)
the occurrence of any of the circumstances described in Section 2.7(a) requiring
the Borrower to Cash Collateralize Letters of Credit, then the Borrower shall
immediately Cash Collateralize the Letter of Credit Obligations in an amount
equal to such Letter of Credit Obligations (or in the case of clause (b) above,
the excess amount required pursuant to Section 2.7(a)), and such cash will be
held as security for all Obligations of the Borrower to the Agents, the Issuing
Lender and the Revolving Lenders hereunder in a cash collateral account to be
established by the Administrative Agent, and, during the continuation of any
Event of Default, the Administrative Agent may, and upon the request of the
Required Lenders shall, apply such amounts so held to the payment of such
outstanding Obligations; provided, however, that on a date upon which no Letter
of Credit Obligations remain outstanding, and so long as no Defaults are then
continuing the Administrative Agent, at the request and expense of the Borrower,
will duly release the cash held as Cash Collateral pursuant to this Section 3.7
and shall assign, transfer and deliver to the Borrower (without recourse and
without any representation or warranty) such cash as is then being released and
has not theretofore been applied or released pursuant to this Agreement.

         3.8. LETTER OF CREDIT FEES.

         (a) The Borrower shall pay to the Administrative Agent, for the ratable
account of each Revolving Lender, letter of credit fees ("LETTER OF CREDIT
FEES") with respect to all Letters of Credit equal to (i) the Applicable Margin
for Revolving Loans that are Eurodollar Loans, TIMES (ii) the average daily
Letter of Credit Obligations outstanding (determined as of the close of business
on any date of determination), and such Letter of Credit Fees shall be due and
payable in arrears on each Interest Payment Date for Base Rate Loans.

         (b) The Borrower shall pay directly to the Issuing Lender, for the
Issuing Lender's own account, Letter of Credit fronting fees for all Letters of
Credit issued by the Issuing Lender equal to 0.125% per annum TIMES the
aggregate daily amount available to be drawn under all Letters of Credit from
time to time outstanding (determined as of the close of business on any date of
determination). Such Letter of Credit fronting fees shall be due and payable in
arrears on each Interest Payment Date for Base Rate Loans.

<PAGE>
                                      -54-

         (c) The Borrower shall also pay directly to the Issuing Lender from
time to time, on demand by the Issuing Lender and for its own account, such
other reasonable issuance, presentation, payment, amendment, transfer and other
processing fees, and other standard and reasonable charges, of the Issuing
Lender relating to letters of credit as are in accordance with the Issuing
Lender's standard schedule for such fees and charges in effect from time to
time.

                                   ARTICLE IV.

                     TAXES, YIELD PROTECTION AND ILLEGALITY

         4.1. TAXES. (a) Any and all payments by or on account of any Obligation
of the Borrower or any other Credit Party hereunder or under any other Loan
Document shall be made free and clear of and without deduction for any
Indemnified Taxes or Other Taxes; provided, however, that if the Borrower or any
other Credit Party shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 4.1) the Administrative
Agent, Lender or Issuing Lender (as the case may be) shall receive an amount
equal to the sum it would have received had no such deductions been made, (ii)
the Borrower shall make such deductions, and (iii) the Borrower shall pay the
full amount deducted to the relevant Governmental Authority in accordance with
Applicable Law.

         (b) In addition, the Borrower shall pay any Other Taxes to the relevant
Governmental Authority in accordance with Applicable Law.

         (c) The Borrower shall indemnify the Administrative Agent, each Lender
and the Issuing Lender, within ten (10) days after written demand therefor, for
the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Lender or the Issuing Lender, as the case may be, on
or with respect to any payment by or on account of any Obligation of the
Borrower or any other Credit Party hereunder or under any other Loan Document
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section 4.1) and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or Other Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority. A certificate as to
the amount of any such payment or liability delivered to the Borrower by any
Lender or the Issuing Lender, or by the Administrative Agent on its own behalf
or on behalf of any Lender or the Issuing Lender, shall be conclusive absent
manifest error.

         (d) As soon as practicable after any payment of Indemnified Taxes or
Other Taxes by the Borrower or any other Credit Party to any Governmental
Authority, the Borrower shall deliver to the Administrative Agent the original
or a certified copy of the receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

         (e) Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the
Borrower is located, or any treaty to which such jurisdiction is a party, with
respect to payments under this Agreement shall deliver to the Borrower (with a
copy to the Administrative Agent), at the time or times prescribed by Applicable

<PAGE>
                                      -55-

Law, such properly completed and executed documentation prescribed by Applicable
Law or reasonably requested by the Borrower as will permit such payments to be
made without withholding or at a reduced rate.

         (f) Each Lender agrees that it shall, at any time upon reasonable
advance request in writing by the Borrower or the Administrative Agent, promptly
deliver such certification or other documentation as may be required under
Applicable Law in any applicable jurisdiction and which such Lender is entitled
to submit to avoid or reduce withholding taxes on amounts to be paid by the
Parent Company, the Borrower or any other Credit Party and received by such
Lender pursuant to this Agreement or any of the other Loan Documents.

         (g) If the Administrative Agent or any Lender determines, in its sole
discretion, that it has received a refund of any Taxes or Other Taxes as to
which it has been indemnified by the Borrower or with respect to which the
Borrower has paid additional amounts pursuant to this Section 4.1, it shall pay
over such refund to the Borrower (but only to the extent of indemnity payments
made, or additional amounts paid, by the Borrower under this Section 4.1 with
respect to the Taxes or Other Taxes giving rise to such refund), net of all
reasonable out-of-pocket expenses actually incurred or sustained by the
Administrative Agent or such Lender and without interest (other than any
interest paid by the relevant Governmental Authority with respect to such
refund); provided that the Borrower, upon the request of the Administrative
Agent or such Lender, agrees to repay the amount paid over to the Borrower (plus
any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender in the event that the
Administrative Agent or such Lender is required to repay such refund to such
Governmental Authority. This paragraph (g) shall not be construed to require the
Administrative Agent or any Lender to make available its tax returns (or any
other information relating to its taxes which it deems confidential) to the
Borrower or any other Person.

         (h) If the Parent Company, the Borrower or any other Credit Party is
required to pay additional amounts to any Lender, Issuing Lender or Agent
pursuant to Section 4.1, then such Lender, Issuing Lender or Agent shall, upon
such Credit Party's request, use its reasonable best efforts (consistent with
policy considerations of such Lender, Issuing Lender or Agent) to change the
jurisdiction of its Lending Office or other office so as to reduce or eliminate
any such additional payment which may thereafter accrue if such change, in the
reasonable judgment of such Lender, Issuing Lender or Agent is not otherwise
disadvantageous to such Person.

         (i) Each of the Lenders, the Issuing Lender and the Agents agrees that
it will (A) take all reasonable actions reasonably requested by the Borrower
(consistent with policy considerations of such Person) to maintain all
exemptions, if any, available to it from withholding taxes (whether available by
treaty or existing administrative waiver), and (B) to the extent reasonable,
otherwise cooperate with Principal Companies and other Credit Parties to
minimize any amounts payable by the Parent Company, the Borrower or other Credit
Parties under this Section 4.1, in any case described in the preceding clauses
(A) and (B), however, only if such action or cooperation is not disadvantageous
to such Person in the reasonable judgment of such Person.

         4.2. ILLEGALITY.

         (a) If any Lender shall determine that (i) the introduction of any
Applicable Law, or any change in any Applicable Law, or in the interpretation or
administration thereof, has made it unlawful, or (ii) any central bank or other
Governmental Authority has asserted that it is unlawful, for such Lender or its
Lending Office to make a Eurodollar Loan or to convert any Base

<PAGE>
                                      -56-

Rate Loan to a Eurodollar Loan, then, on notice thereof by such Lender to the
Borrower through the Administrative Agent, the obligation of such Lender to make
or convert any such Loan shall be suspended, and any such Loan to be made or
converted by such Lender shall instead be made or converted as a Base Rate Loan,
until such Lender shall have notified the Administrative Agent and the Borrower
that the circumstances giving rise to such determination no longer exist.

         (b) If any Lender shall determine that it is unlawful for such Lender
to maintain any Eurodollar Loan, all Eurodollar Loans of such Lender then
outstanding shall be automatically converted to Base Rate Loans, either on the
last day of each of the Interest Periods applicable thereto if such Lender may
lawfully continue to maintain such Eurodollar Loans to such day, or immediately,
if such Lender may not lawfully continue to maintain such Eurodollar Loans, and
the Borrower shall pay any amounts required to be paid in connection therewith
pursuant to Section 4.4.

         (c) Before giving any notice to the Administrative Agent pursuant to
this Section 4.2, the affected Lender shall designate a different Lending Office
with respect to its Eurodollar Loans if such designation will avoid the need for
giving such notice or making such demand and will not, in the reasonable
judgment of such Lender, be illegal, inconsistent with the policies of such
Lender or otherwise disadvantageous to such Lender.

         4.3. INCREASED COSTS AND REDUCTIONS OF RETURN.

         (a) If any Lender or the Issuing Lender shall determine that, due to
either (i) the introduction of or any change in or in the interpretation or
administration of any Applicable Law (other than any Applicable Law relating to
taxes, including those relating to Taxes or Other Taxes) after the Effective
Date, or (ii) the compliance with any guideline or request from any central bank
or other Governmental Authority (whether or not having the force of law) made
after the Effective Date, there shall be any increase in the cost to such Lender
of agreeing to make or making, funding or maintaining any Eurodollar Loans or
participating in any Letter of Credit Obligations, or any increase in the cost
to the Issuing Lender of agreeing to issue, issuing or maintaining any Letter of
Credit or of agreeing to make or making, funding or maintaining any unpaid
drawing under any Letter of Credit, then the Borrower shall be liable for, and
shall from time to time, within thirty (30) days after receipt of any written
request therefor from such Lender or the Issuing Lender, as the case may be
(accompanied by a written statement describing such increased costs in
reasonable detail) (with a copy of such request to the Administrative Agent),
pay to the Administrative Agent, for the account of such Lender or the Issuing
Lender, all such additional amounts as are sufficient to compensate such Lender
or such Issuing Lender for such increased costs.

         (b) If any Lender or the Issuing Lender shall determine that (i) the
introduction of any Capital Adequacy Regulation after the Effective Date, (ii)
any change in any Capital Adequacy Regulation after the Effective Date, (iii)
any change in the interpretation or administration of any Capital Adequacy
Regulation by any central bank or other Governmental Authority charged with the
interpretation or administration thereof after the Effective Date, or (iv)
compliance by any Lender (or its Lending Office) or the Issuing Lender, as the
case may be, or any corporation controlling such Lender or the Issuing Lender,
as the case may be, with any Capital Adequacy Regulation adopted after the
Effective Date, affects or would affect the amount of capital required or
expected to be maintained by such Lender or the Issuing Lender or any
corporation controlling such Lender or the Issuing Lender and (taking into
consideration such Lender's, the Issuing Lender's or such corporation's policies
with respect to capital adequacy and

<PAGE>
                                      -57-

the Lender's, such Issuing Lender's or such corporation's desired return on
capital) determines that the amount of such capital is (or is required to be)
increased as a consequence of its Commitments, Loans, participations in Letters
of Credit, or obligations under this Agreement, then, within thirty (30) days
after receipt of any written request therefor from such Lender or the Issuing
Lender (accompanied by a written statement describing such increase) (with a
copy of such request to the Administrative Agent), the Borrower shall be liable
for and shall immediately pay to such Lender or the Issuing Lender, from time to
time as specified by such Lender or the Issuing Lender, additional amounts
sufficient to compensate such Lender or the Issuing Lender for such increase.

         4.4. FUNDING LOSSES. Each of the Parent Company and the Borrower shall
reimburse each Lender for, and shall hold each Lender harmless from, each loss,
cost or expense which such Lender shall sustain or incur as a consequence of:

         (a) any failure by the Borrower to make any payment of principal of or
interest on any Eurodollar Loan punctually when such principal shall become due
and payable in accordance with the terms hereof (whether at maturity, upon
acceleration, or otherwise);

         (b) any failure by the Borrower to borrow a Eurodollar Loan, continue a
Eurodollar Loan or convert a Base Rate Loan to a Eurodollar Loan after the
Borrower has given a Borrowing Request or an Interest Election Request, as the
case may be;

         (c) any failure by the Borrower to make any payment of principal of or
interest on any Eurodollar Loan punctually when such principal and interest
shall become subject to prepayment in accordance with any notice of prepayment
given by the Borrower in accordance with the terms hereof; or

         (d) any payment or prepayment of principal of any Eurodollar Loan for
any reason whatsoever (whether pursuant to Section 2.6 or Section 2.7 or upon
acceleration, or otherwise) on a day which is not the last day of the Interest
Period, applicable thereto;

including any such loss, cost or expense arising from the liquidation or
reemployment of funds obtained by such Lender to maintain any Eurodollar Loan
hereunder or arising from fees payable by such Lender to terminate deposits from
which such funds were obtained.

         4.5. INABILITY TO DETERMINE RATES. Notwithstanding any provisions
herein to the contrary, if, in relation to any Eurodollar Loan, (a) the
Administrative Agent shall determine (which determination shall be conclusive
and binding upon all parties hereto) that by reason of circumstances affecting
the interbank markets adequate and fair means do not exist for ascertaining the
Eurodollar Rate to be applicable to such Eurodollar Loan, or (b) the
Administrative Agent shall receive notice from the Required Lenders that the
Eurodollar Rate determined or to be determined for any Interest Period
applicable to any Eurodollar Loans will not adequately and fairly reflect the
cost to the Lenders of making or maintaining the affected Eurodollar Loans
during such affected Interest Period, then, the obligation of the Lenders to
make, continue or maintain Eurodollar Loans or to convert Base Rate Loans into
Eurodollar Loans shall be suspended until the Administrative Agent, upon the
instruction of the Required Lenders, as applicable, revokes such notice in
writing. If, notwithstanding the provisions of this Section 4.5, any Lender has
made available to the Borrower its pro rata share of any such proposed
Eurodollar Loan, then the Borrower shall immediately repay the amount so made

<PAGE>
                                      -58-

available to it by such Lender, together with accrued interest thereon, if any,
or shall convert such proposed Eurodollar Loan to a Base Rate Loan.

         4.6. RESERVES ON EURODOLLAR LOANS. The Borrower shall pay to each
Lender, if and so long as such Lender shall be required under regulations of the
Federal Reserve Board to maintain reserves with respect to liabilities or assets
consisting of or including Eurocurrency funds or deposits (currently known as
"EUROCURRENCY LIABILITIES"), additional costs on the unpaid principal amount of
each Eurodollar Loan equal to costs of such reserves allocated to such Loan by
such Lender (as determined by such Lender, which determination shall be
conclusive absent manifest error), payable on each date on which interest is
payable on such Loan.

         4.7. CERTIFICATES OF LENDERS. Any Lender or the Issuing Lender claiming
reimbursement or compensation pursuant to this Article IV shall deliver to the
Borrower (with a copy to the Administrative Agent) a certificate setting forth
in reasonable detail the amount payable to such Person hereunder and such
certificate shall be conclusive and binding on each of the Parent Company, the
Borrower and the other Credit Parties in the absence of manifest error.

         4.8. CHANGE OF LENDING OFFICE. Each Lender agrees that, upon the
occurrence of any event giving rise to the operation of Section 4.2 or Section
4.3 with respect to such Lender, it will, if so requested by the Borrower, use
reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to designate a different Lending Office for any Loans affected by
such event with the object of avoiding the consequence of the event giving rise
to the operation of such Section; provided, however, that such designation would
not, in the sole judgment of such Lender, be otherwise disadvantageous to such
Lender. Nothing in this Section 4.8 shall operate so as to affect, diminish or
postpone any of the Obligations of the Parent Company, the Borrower or any other
Credit Parties or any of the rights of any Lender provided in Section 4.2 or
Section 4.3.

                                   ARTICLE V.

                              CONDITIONS PRECEDENT

         5.1. CONDITIONS TO MAKING FIRST CREDIT EXTENSIONS. The obligations of
each of the Lenders and the Issuing Lender to make its first Credit Extensions
hereunder on the Closing Date are subject to the fulfillment of each of the
following conditions precedent prior to or simultaneously with the making of the
first Credit Extensions on the Closing Date:

         5.1.1. EXECUTION AND DELIVERY OF THIS AGREEMENT AND NOTES. The
Administrative Agent shall have received (a) counterparts of this Agreement,
dated as of the Effective Date, duly executed and delivered by each of the
Principal Companies, the Agents, the Issuing Lender and the Lenders (or, in the
case of any party from which an executed counterpart shall not have been
received, the Administrative Agent shall have received in form reasonably
satisfactory to it a facsimile or other written confirmation from such party of
the execution and delivery of a counterpart hereof by such party), and (b) for
the account of each Lender that has made a request therefor, such Lender's Term
Note and Revolving Credit Note, each dated as of the Effective Date, duly
executed and delivered by the Borrower and containing appropriate insertions and
conforming to the requirements of Section 2.2.

         5.1.2. GUARANTY AGREEMENT; COLLATERAL DOCUMENTS. The Administrative
Agent shall have received counterparts of each of the Guaranty Agreement, the
Pledge Agreement and the
<PAGE>
                                      -59-

Security Agreement, each dated as of the Effective Date, each duly executed and
delivered by each of the Credit Parties, together with:

         (a) executed copies of financing statements (Form UCC-1) in appropriate
form for filing under the Uniform Commercial Code of each jurisdiction as may be
necessary to perfect the security interests and Liens purported to be created by
the Pledge Agreement and the Security Agreement;

         (b) evidence that all other action necessary or, in the reasonable
opinion of the Collateral Agent, desirable to perfect and protect the security
interests and Liens purported to be created by the Pledge Agreement or the
Security Agreement have been properly taken by the Credit Parties.

Any other action, including the taking of possession of specific Collateral by
the Collateral Agent, reasonably required by the Collateral Agent to create a
perfected security interest and Lien in the Collateral described in the
Collateral Documents shall have been properly taken in order to create such a
perfected security interest and Lien.

         5.1.3. OTHER LOAN DOCUMENTS; ETC. Each of the other Loan Documents
shall have been duly and properly authorized, executed and delivered by the
respective party or parties thereto and shall be in full force and effect. The
Administrative Agent shall have received original counterparts of each Loan
Document (other than the Notes) in sufficient number for distribution to each
Lender. Each such Loan Document shall, where applicable, be substantially in the
form of an Exhibit attached hereto, and all of such other Loan Documents shall
be in form and substance reasonably satisfactory to the Administrative Agent.
All exhibits, schedules or other attachments to any of the Collateral Documents
or other Loan Documents shall be in form and substance reasonably satisfactory
to the Administrative Agent.

         5.1.4. TERMINATION OF EXISTING CREDIT FACILITIES; ETC.

         (a) Concurrently with the making of the first Credit Extensions
hereunder on the Closing Date, all of the commitments in respect of the Existing
Credit Facilities shall be terminated, and all loans and notes with respect
thereto shall be repaid in full, together with interest thereon, all letters of
credit issued thereunder shall be terminated, and all other amounts (including
premiums) owing pursuant to the Existing Credit Facilities shall have been
repaid in full, and all Instruments in respect of the Existing Credit Facilities
and all guarantees with respect thereto shall have been terminated (except as to
indemnification provisions which may survive to the extent provided therein) and
shall be of no further force and effect.

         (b) On the Closing Date and after giving effect to the Transactions
completed on or prior to the Closing Date, the Parent Company, the Borrower and
their Subsidiaries shall have no Indebtedness outstanding other than (i) the
Loans, and (ii) the Existing Indebtedness identified in Section 6.10(a) of the
Disclosure Schedule. On and as of the Closing Date, all of the Existing
Indebtedness shall remain outstanding after giving effect to the Transactions
contemplated hereby without any default or event of default existing thereunder
or arising as a result of the Transactions contemplated hereby (except to the
extent amended or waived by the parties thereto on terms and conditions
reasonably satisfactory to the Administrative Agent).

         5.1.5. FINANCIAL STATEMENTS. The Parent Company shall have furnished to
each of the Lenders: (a) the unaudited consolidated financial statements of the
Parent Company and its

<PAGE>
                                      -60-

Subsidiaries for the period ending March 31, 2003, which shall have been
prepared in accordance with GAAP (except for the absence of footnotes and
subject to normal year-end adjustments); and (b) the financial projections
identified in Section 6.8(b).

         5.1.6. CERTIFICATES OF INSURANCE. The Administrative Agent shall have
received certificates of insurance from the insurance brokers for the Principal
Companies, or other evidence reasonably satisfactory to the Administrative
Agent, dated as of a recent date, identifying insurers, types of insurance,
insurance limits and policy terms, and otherwise describing all of the insurance
required to be maintained by the Principal Companies and the Subsidiary
Guarantors in accordance with the terms the Loan Documents, and certifying that
the Administrative Agent has been named as additional insured or (as the case
may be) loss payee under all of such insurance.

         5.1.7. RESOLUTIONS; ETC. The Administrative Agent shall have received:

         (a) from each of the Credit Parties, a certificate, dated as of the
Closing Date, of its secretary or any assistant secretary as to:

                (i) resolutions of its board of directors or (as the case may
         be) managers or general partners then in full force and effect
         authorizing the execution, delivery and performance of, in each case,
         to the extent such Credit Party is a party thereto, this Agreement and
         each of the other Loan Documents;

                (ii) the incumbency and signatures of the Authorized Officers of
         each such Credit Party authorized to act with respect to (in each case,
         to the extent such Credit Party is a party thereto) this Agreement and
         each of the other Loan Documents (upon which certificate each of the
         Agents, the Issuing Lender and the Lenders may conclusively rely until
         the Administrative Agent shall have received a further certificate of
         such Credit Party canceling or amending such prior certificate, which
         further certificate shall be reasonably satisfactory to the
         Administrative Agent); and

                (iii) each Governing Document of such Credit Party; and

         (b) such other similar documents (certified as of a recent date) as the
Administrative Agent may reasonably request with respect to any matter relevant
to this Agreement, the other Loan Documents, the Ancillary Documents or the
Transactions contemplated hereby.

Each of such documents shall be in form and substance reasonably satisfactory to
the Administrative Agent.

         5.1.8. CERTIFICATES OF GOOD STANDING; ETC. The Administrative Agent
shall have received: (a) the Governing Documents and other organizational
documents of each of the Principal Companies as in effect on the Effective Date,
certified as of a recent date by the Secretary of State (or other similar
applicable Governmental Authority) of the jurisdiction of incorporation or
organization of such Credit Party; and (b) a good standing certificate as of a
recent date for each Credit Party from the Secretary of State of the
jurisdiction of incorporation or organization of such Credit Party and each
State or other jurisdiction where the failure of such Credit Party to be
qualified to do business as a foreign corporation or other entity could
reasonably be expected to have a Materially Adverse Effect.

<PAGE>
                                      -61-

         5.1.9. NO MATERIALLY ADVERSE EFFECT; ETC.

         (a) No events or developments shall have occurred since March 31, 2003
which, individually or in the aggregate, have had or could reasonably be
expected to have a Materially Adverse Effect.

         (b) On or prior to the Closing Date, all necessary governmental and
third party approvals and/or consents in connection with the Transactions
completed or to be completed on or prior to the Closing Date and the other
transactions contemplated by the Loan Documents and otherwise referred to herein
shall have been obtained and remain in effect, and all applicable waiting
periods with respect thereto shall have expired without any action being taken
by any competent Governmental Authority which restrains, prevents or imposes
materially adverse conditions upon the consummation of such Transactions or the
other transactions contemplated by the Loan Documents or otherwise referred to
herein or therein.

         5.1.10. ANCILLARY DOCUMENTS; AFFILIATE TRANSACTIONS; ETC.

         (a) On or prior to the Effective Date, there shall have been delivered
to the Administrative Agent true, correct and complete copies, certified as true
and complete by an Authorized Officer of each Principal Company, of: (i) the
Stockholder Agreement and all other similar material agreements (other than
registration rights agreements or other similar agreements) entered into by the
Parent Company, the Borrower or any of their Subsidiaries governing the terms
and relative rights of its Equity Interests (collectively, the "SHAREHOLDER
AGREEMENTS"); all of which Shareholders Agreements shall be in form and
substance reasonably satisfactory to the Administrative Agent.

         (b) AFFILIATE TRANSACTIONS. Since March 31, 2003, no Credit Party shall
have made any Restricted Payments or entered into, performed or completed any
Affiliate Transactions, EXCEPT the payments and transactions described in
Section 6.11 to the Disclosure Schedule.

         (c) CHANGE OF CONTROL, ETC. No Change of Control shall have occurred
since March 31, 2003. Since March 31, 2003, neither of the Principal Companies
nor any of their Subsidiaries shall have (i) merged or consolidated with any
other Person, or (ii) sold, transferred or otherwise disposed of all or any
substantial part of its Property otherwise than in the ordinary course of
business.

         5.1.11. MINIMUM CONSOLIDATED ADJUSTED EBITDA; COMPLIANCE CERTIFICATE.
The Consolidated Adjusted EBITDA of the Parent Company and its Subsidiaries for
the period of twelve (12) consecutive fiscal months ended May 31, 2003,
determined on a Pro Forma Basis after giving effect to all Acquisitions
completed during such period, shall not be less than $17,000,000. The
Administrative Agent shall have received (with copies for each Lender) a duly
executed and completed Compliance Certificate, dated as of the Closing Date, in
or substantially in the form of Exhibit F.

         5.1.12. FEES AND EXPENSES. The Administrative Agent shall have received
from the Borrower on the Effective Date payment in full of all of the Fees
required to be paid on or prior to the Effective Date in accordance with Section
2.9 and (as the case may be) in accordance with Fee Letter referred to in
Section 12.8, and the Administrative Agent shall have received from the Borrower
payment in full of all of its actual and reasonable out-of-pocket costs and
expenses
<PAGE>
                                      -62-

(including Attorney Costs) payable in accordance with Section 12.4 for which
invoices shall have been submitted at least one (1) Business Day prior to the
Effective Date.

         5.1.13. LEGAL OPINIONS OF COUNSEL. The Administrative Agent shall have
received legal opinions, dated the Closing Date, addressed to the Administrative
Agent, from (a) special counsel to the Principal Companies, in or substantially
in the form of Exhibit H, and otherwise in form and substance reasonably
satisfactory to the Administrative Agent, and (b) Latham & Watkins, special FCC
counsel to the Principal Companies, in or substantially in the form of Exhibit
I, and otherwise in form and substance reasonably satisfactory to the
Administrative Agent.

         5.2. ALL CREDIT EXTENSIONS. The obligations of each of the Lenders and
the Issuing Lender to make each of its Credit Extensions hereunder (including
its first Credit Extensions to be made on the Closing Date) shall also be
subject to the satisfaction of each of the additional following conditions
precedent set forth in this Section 5.2.

         5.2.1. COMPLIANCE WITH WARRANTIES; NO DEFAULT; ETC. The representations
and warranties of each of the Parent Company, the Borrower and the Subsidiary
Guarantors set forth in Article VI, in the Collateral Documents and in the other
Loan Documents shall have been true and correct in all material respects on and
as of each of the respective dates made; and, both immediately before and
immediately after giving effect to each of such Credit Extensions: (a) such
representations and warranties shall be true and correct in all material
respects with the same full force and effect as if then made (except for any
such representation or warranty that relates solely to a prior date); and (b) no
Default shall have occurred and then be continuing.

         5.2.2. BORROWING REQUEST; INTEREST ELECTION REQUEST. The Administrative
Agent shall have received a Borrowing Request in compliance with Section 2.3 or
an Interest Election Request, as the case may be, for such Credit Extension. The
delivery of such Borrowing Request or such Interest Election Request shall
constitute a representation and warranty by each of the Parent Company and the
Borrower that, on and as of the requested date of such Credit Extension, and
both immediately before and immediately after giving effect to such Credit
Extension, all representations and warranties required by Section 5.2.1 are true
and correct.

         5.2.3. LEGALITY OF TRANSACTIONS. It shall not be unlawful (a) for the
Administrative Agent, the Issuing Lender or any Lender to perform any of its
obligations under any of the Loan Documents, or (b) for any Credit Party to pay
or perform any of its Obligations under any of the Loan Documents.

         5.2.4. SATISFACTORY LEGAL FORM; ETC. All Instruments and other
documents executed and delivered or submitted pursuant hereto by or on behalf of
any of the Credit Parties shall be reasonably satisfactory in form and substance
to the Administrative Agent and its special counsel; the Administrative Agent
and its special counsel shall have received all such information, and such
counterpart originals or such certified or other copies of all such other
materials, as the Administrative Agent or its special counsel shall have
reasonably requested; and all legal matters incident to the transactions
contemplated by this Agreement shall be reasonably satisfactory to the
Administrative Agent and its special counsel.

<PAGE>
                                      -63-

                                   ARTICLE VI.

                         REPRESENTATIONS AND WARRANTIES

         Each of the Principal Companies, jointly and severally, represents and
warrants to each of the Lenders, the Issuing Lender and the Agents as set forth
below in this Article VI:

         6.1. CORPORATE EXISTENCE AND POWER; ETC. Each of the Principal
Companies and the Subsidiary Guarantors:

         (a) is a duly organized and validly existing corporation, partnership
or limited liability company, as the case may be, and is in good standing under
the laws of the jurisdiction of its organization;

         (b) has the power and authority, and the legal right, to own or hold
under lease its Property, conduct its business and execute, deliver and perform
its Obligations under each of the Loan Documents to which it is or is to become
a party as contemplated hereby;

         (c) is duly qualified to do business as a foreign entity, and is
licensed and in good standing, under the Applicable Laws of each jurisdiction
where its ownership, lease or operation of Property or the nature or conduct of
its business requires such qualification or license, EXCEPT (in each case) where
the failure so to be qualified or licensed has not had and could not reasonably
be expected to have a Materially Adverse Effect; and

         (d) is in all material respects in compliance with all Applicable Laws,
EXCEPT (in each case) to the extent that the failure to comply therewith has not
had and could not reasonably be expected to have a Materially Adverse Effect.

         6.2. CORPORATE AUTHORIZATION; ETC. The execution, delivery and
performance by each of the Principal Companies and the Subsidiary Guarantors of
each of the Loan Documents to which it is or is to become a party as
contemplated hereby, and, in the case of the Borrower, to make the Borrowings
contemplated hereby, have been duly authorized by all necessary corporate,
limited liability company or partnership action, as the case may be, and do not
and will not:

         (a) contravene in any material respect any of the terms or other
provisions of any of the Governing Documents of any such Person;

         (b) conflict in any material respect with or result in any material
breach or contravention of, or the creation of any Liens under, any Instrument
or other document creating, governing or evidencing any material Contractual
Obligation to which such Person is a party or by which such Person or any of its
Property is bound or any order, injunction, writ or decree of any Governmental
Authority to which such Person or any of its Property is subject; or

         (c) violate any Applicable Law in any material respect.

         6.3. GOVERNMENTAL AUTHORIZATION. No order, consent, approval, license,
authorization or validation of, or filing, recording or registration with
(except filings necessary to perfect the Liens granted pursuant to the
Collateral Documents, except filings required under Federal securities laws, and
except such other filings as will have been obtained or made on or prior to the

<PAGE>
                                      -64-

Closing Date), or exemption by, any Governmental Authority, or any subdivision
thereof, is required to authorize, or is required in connection with, (a) the
execution, delivery or performance of any Loan Document, or (b) the legality,
validity, binding effect or enforceability of any Loan Document, EXCEPT where
the failure to so obtain or make could not reasonably be expected to have a
Materially Adverse Effect; provided, however, that: (i) subsequent to the date
of execution of the Loan Documents, copies of certain of the Loan Documents are
required to be filed with the FCC; (ii) the Parent Company and its Subsidiaries
will be required from time to time to obtain certain authorizations of, or to
make certain filings with, the FCC that are required in connection with the
ordinary course of business of the Parent Company and its Subsidiaries; (iii)
under the Communications Act and the FCC rules, FCC approval is required prior
to the transfer of control of the Parent Company, the Borrower or any of their
Subsidiaries or the assignment of any of the FCC Authorizations or prior to the
exercise of any voting rights or management authority over the Parent Company,
the Borrower or any of their respective Subsidiaries; and (iv) prior to the
exercise of certain rights or remedies under the Collateral Documents by the
Agents or the Lenders, or their respective successors and assigns, FCC consents
and notifications with respect to such exercise may be required to be timely
obtained or made.

         6.4. BINDING EFFECT. Each of the Principal Companies has duly executed
and delivered this Agreement, the Guaranty Agreement, the Security Agreement,
the Pledge Agreement and each of the other Loan Documents required to be
executed and delivered by such Principal Company in accordance with the terms
hereof. Each of the Parent Company's Subsidiaries (other than Inactive
Subsidiaries of the Parent Company) will, by the Closing Date, have duly
executed and delivered the Guaranty Agreement, the Security Agreement, the
Pledge Agreement and each of the other Loan Documents required to be executed
and delivered by it in accordance with the terms hereof. Each of the Loan
Documents to which the Parent Company, the Borrower or any of the Subsidiary
Guarantors is a party constitutes, and each of the other Loan Documents upon
execution and delivery thereof by any Credit Party, will constitute, the legal,
valid and binding Obligations of each Credit Party thereto, enforceable against
each such Credit Party in accordance with its terms, EXCEPT (in each case) as
enforceability may be limited by applicable bankruptcy, insolvency or other
similar Applicable Laws affecting the enforcement of creditors' rights generally
or by equitable principles of general applicability.

         6.5. COLLATERAL DOCUMENTS. The provisions of the Collateral Documents
will, from and after the execution and delivery thereof by each Credit Party
party thereto, be effective to create in favor of the Collateral Agent, for the
benefit of each of the Lenders, the Issuing Lender and the Agents, legal, valid
and enforceable security interests in and Liens upon the Property of such Credit
Party constituting Collateral described therein and in the proceeds thereof. The
representations and warranties made by each of the Credit Parties in the
Collateral Documents, including representations and warranties relating to the
perfection of security interests in and Liens upon the Collateral described
therein and representations and warranties relating to the priority of such
security interests and Liens, will, from the date on which such representations
and warranties are made, be true and correct in all material respects with the
same full force and effect as if set forth in full herein.

         6.6. NO DEFAULT. No Default is continuing, and no Default will result
from the making of any Credit Extensions to the Borrower. None of the Principal
Companies or any of their Subsidiaries is in default under or with respect to
any Contractual Obligations in any respect which, individually or together with
all such defaults, has had or could reasonably be expected to have a Materially
Adverse Effect.

<PAGE>
                                      -65-

         6.7. USE OF PROCEEDS; MARGIN REGULATIONS. The proceeds of each of the
Credit Extensions are intended to be and shall be used (a) solely for the
purposes set forth in and permitted by Section 7.10, and (b) in compliance with
Section 8.16.

         6.8. FINANCIAL STATEMENTS; ETC.

         (a) All balance sheets, statements of operations and other financial
data which have been or shall from time to time hereafter be furnished by the
Principal Companies or any of their Subsidiaries to any of the Agents or Lenders
for the purposes of or in connection with this Agreement or any of the
transactions contemplated hereby do and will present fairly, in all material
respects, the financial condition of the Persons involved as of the dates
thereof and the results of their operations for the periods covered thereby.

         (b) The projected consolidated statements of operations and of cash
flows of the Parent Company and its Subsidiaries for each of Fiscal Years 2003
through 2010, all of which have been delivered to each of the Lenders and the
Agents prior to the date of this Agreement, have been prepared on the basis of
the reasonable assumptions accompanying them and reflect, as of the date of
preparation, the good faith estimates made on a reasonable basis by the Parent
Company and the Borrower of the performance of the Parent Company and its
Subsidiaries for the periods covered thereby based on such assumptions. Nothing
in this paragraph (b) shall be deemed a representation or assurance that such
projections will, in fact, be achieved.

         6.9. MATERIALLY ADVERSE EFFECT.

         (a) For purposes of the Credit Extensions to be made on the Closing
Date, no events or developments have occurred since March 31, 2003 which,
individually or in the aggregate, have had or could reasonably be expected to
have any Materially Adverse Effect.

         (b) For purposes of each Credit Extension requested to be made after
the Closing Date, no events or developments have occurred since the Closing Date
which, individually or in the aggregate, have had or could reasonably be
expected to have any Materially Adverse Effect.

         6.10. EXISTING INDEBTEDNESS, LIENS AND INVESTMENTS; ETC.

         (a) The Indebtedness of each of the Parent Company and its Subsidiaries
as of the Closing Date (after giving effect to the Transactions completed on or
prior to the Closing Date) is identified in Section 6.10(a) of the Disclosure
Schedule (all of the Indebtedness so described (other than Indebtedness under
the Loan Documents) being herein called, collectively, the "EXISTING
INDEBTEDNESS"). With respect to each item of Existing Indebtedness identified in
Section 6.10(a) of the Disclosure Schedule, the outstanding principal amount of
which is $5,000,000 or more on or as of the Closing Date, the Parent Company has
delivered or otherwise made available to the Administrative Agent a true and
complete copy of each Instrument evidencing such Existing Indebtedness or
pursuant to which such Existing Indebtedness was issued or secured (including
each amendment, consent, waiver or other Instrument executed and/or delivered in
respect thereof), as the same is in effect on or as of the Closing Date. Except
as otherwise disclosed in Section 6.10(a) of the Disclosure Schedule, neither
the Parent Company nor any of its Subsidiaries is in default in the payment of
any Existing Indebtedness, which payments, in the aggregate, exceed $1,000,000,
or in default or breach, in any material respect, in the performance of any
other material obligation under any Instrument evidencing or governing any
Existing Indebtedness (in an aggregate amount exceeding $5,000,000) or pursuant
to which

<PAGE>
                                      -66-

any such Existing Indebtedness (in an aggregate amount exceeding $5,000,000) was
issued or secured.

         (b) Section 6.10(b) of the Disclosure Schedule identifies all of the
Liens upon Property of the Parent Company or of any of its Subsidiaries that
secure Existing Indebtedness of the Parent Company or of any of its Subsidiaries
and that are in existence on or as of the Closing Date and either (i) are known
to the Parent Company or to any of its Subsidiaries on or as of the Closing
Date, or (ii) are of record on and as of the Closing Date.

         (c) Section 6.10(c) of the Disclosure Schedule also identifies each
Investment of the Parent Company or the Borrower or of any of their Subsidiaries
that is owned or held or is outstanding or in effect on or as of the Closing
Date, other than insubstantial and immaterial Investments and other than
Investments of the kind described in any of clauses (b) through (e) or in clause
(g) of the definition of the term "PERMITTED INVESTMENTS".

         6.11. TRANSACTIONS WITH AFFILIATES. Section 6.11 of the Disclosure
Schedule identifies (a) all (if any) Indebtedness of the Parent Company, the
Borrower or any of their Subsidiaries to any Affiliate of the Borrower on or as
of the Closing Date, material Contractual Obligations of the Borrower or of any
of their Subsidiaries to any Affiliate of the Borrower on or as of the Closing
Date, and Investments in the Parent Company, the Borrower or any of their
Subsidiaries owned, held or controlled by any Affiliate of the Borrower on or as
of the Closing Date, and (b) all (if any) Indebtedness of any Affiliate of the
Borrower to the Parent Company or to any of their Subsidiaries on or as of the
Closing Date, material Contractual Obligations of any Affiliate of the Borrower
to the Parent Company or to any of their Subsidiaries on or as of the Closing
Date, and Investments in any Affiliate of the Borrower owned, held or controlled
by the Parent Company or by any of its Subsidiaries on or as of the Closing
Date.

         6.12. CORPORATE STRUCTURE; ETC.

         (a) Section 6.12(a) of the Disclosure Schedule identifies, as of the
Effective Date, each Subsidiary of the Parent Company and of the Borrower, each
Subsidiary Guarantor and each Inactive Subsidiary. Section 6.12(a) of the
Disclosure Schedule identifies, with respect to each of the Principal Companies
and its Subsidiaries identified in Section 6.12(a) of the Disclosure Schedule,
as of the Effective Date, (i) the State or other jurisdiction of organization of
each such Person, (ii) the number of authorized and outstanding shares of each
class of Capital Stock and all other Equity Interests of each such Person, and
(iii) with respect to each Subsidiary of the Parent Company or the Borrower, (A)
each Person which owns or controls (whether legally or beneficially) any of the
Capital Stock or other Equity Interests of each such Subsidiary, and (B) the
number of shares or units of each class or kind of Capital Stock or other Equity
Interests so owned or controlled by each such Person.

         (b) Except as set forth in Section 6.12(b) of the Disclosure Schedule,
the Parent Company engages in no business activities and has no significant
assets or Property (other than Equity Interests in the Borrower and Permitted
Investments) or liabilities (other than its Guaranty provided in the Guaranty
Agreement, its obligations in respect of certain of the Existing Indebtedness
and such other liabilities as are otherwise permitted or contemplated by this
Agreement).

         6.13. TITLE TO PROPERTIES. Each of the Parent Company, the Borrower and
their Subsidiaries has good record and marketable title in fee simple to, or
valid leasehold interests in,

<PAGE>
                                      -67-

all Real Property necessary or used in the ordinary conduct of its businesses.
None of such Real Property is subject to any Liens, EXCEPT for Permitted Liens,
other Liens permitted by Section 8.3, and such defects in title as, individually
or in the aggregate, have not had and could not reasonably be expected to have a
Materially Adverse Effect.

         6.14. INTELLECTUAL PROPERTY RIGHTS; ETC. Each of the Parent Company,
the Borrower and their Subsidiaries owns (or is licensed to use) and possesses
all trademarks, trademark rights, tradenames, tradename rights, servicemarks,
servicemark rights, copyrights, patents and patent rights necessary or used in
the ordinary conduct of its businesses without any infringement upon any rights
of any other Persons, EXCEPT for such infringements as, individually or in the
aggregate, have not had and could not reasonably be expected to have a
Materially Adverse Affect.

         6.15. LITIGATION. There are no actions, suits, proceedings, claims or
disputes pending or, to the knowledge of the Principal Companies, threatened at
law, in equity, in arbitration or before any Governmental Authority, against the
Parent Company, the Borrower, any of their Subsidiaries or any of their
Properties which:

         (a) purport to affect or pertain to this Agreement or any of the other
Loan Documents or any of the transactions contemplated hereby; or

         (b) have had or could reasonably be expected to have a Materially
Adverse Effect.

No injunction, writ, temporary restraining order or any other order of any
nature has been issued by any Governmental Authority purporting to enjoin or
restrain the execution, delivery or performance of this Agreement or any of the
other Loan Documents, or directing that any transaction provided for herein or
therein not be consummated as herein provided.

         6.16. COMPLIANCE WITH APPLICABLE LAW; ETC. All transactions
contemplated by this Agreement and the other Loan Documents comply in all
material respects with (a) Regulations T, U and X of the Federal Reserve Board,
and (b) all other Applicable Law, EXCEPT where any failure to comply, in the
case of this clause (b), has not had and could not reasonably be expected to
have a Materially Adverse Effect.

         6.17. GOVERNMENTAL REGULATION. None of the Principal Companies or any
of their Subsidiaries is an "investment company" within the meaning of the
Investment Company Act of 1940, as amended, or a "holding company," or a
"subsidiary company" of a "holding company," or an "affiliate" of a "holding
company" or of a "subsidiary company of a holding company," within the meaning
of the Public Utility Holding Company Act of 1935, as amended.

         6.18. TAXES. None of the Principal Companies or any of their
Subsidiaries is delinquent in the filing of any Federal or other tax returns and
reports required to be filed by it and each such Person has paid the tax thereon
shown to be due, and has paid all other material taxes, assessments, fees or
other charges levied or imposed upon it or its Properties or income, EXCEPT (in
each case) those which are being contested in good faith by appropriate
proceedings and for which adequate reserves have been provided in accordance
with GAAP. To the best knowledge of the Principal Companies or any of their
Subsidiaries, no claim is being asserted by any Governmental Authority with
respect to any tax, fee or other charge, and there is no proposed tax
assessment, against the Parent Company, the Borrower or any of their
Subsidiaries which,

<PAGE>
                                      -68-

individually or in the aggregate, has had or could reasonably be expected to
have a Materially Adverse Effect.

         6.19. ERISA. No ERISA Event has occurred or is reasonably expected to
occur with respect to the Parent Company or any of its Subsidiaries that, when
taken together with all other such ERISA Events for which liability is
reasonably expected to occur, has resulted or could reasonably be expected to
result in a Materially Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial statements of the Parent Company reflecting such
amounts, exceed the fair market value of the assets of such Plan by a material
amount, and the present value of all accumulated benefit obligations of all
underfunded Plans (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the date of the most
recent financial statements of the Parent Company reflecting such amounts,
exceed the fair market value of the assets of all such underfunded Plans by a
material amount.

         6.20. ENVIRONMENTAL LIABILITIES. None of the Principal Companies or any
of their Subsidiaries (a) has failed to comply in any material respect with any
Environmental Laws or to obtain, maintain or comply in any material respect with
any material permit, license or other approval required under any Environmental
Laws, or (b) has become subject to, has received written notice of, or knows of
any basis for, any Environmental Liability which, individually or together with
all other Environmental Liabilities, has had or could reasonably be expected to
have a Materially Adverse Effect.

         6.21. LABOR CONTROVERSIES. There are no labor controversies pending or,
to the knowledge of the Principal Companies, threatened against the Parent
Company, the Borrower or any of their Subsidiaries which, individually or in the
aggregate, have had or could reasonably be expected to have a Materially Adverse
Affect.

         6.22. FCC AUTHORIZATIONS. The Parent Company and its Subsidiaries hold
such validly issued FCC main station and associated auxiliary, translator and
booster licenses and authorizations (collectively, the "FCC Authorizations"), as
are necessary to operate the Radio Stations as they are currently operated, each
of which is in full force and effect. The FCC main station licenses for Radio
Stations held or to be held on and as of the Closing Date by the Parent Company,
the Borrower or any of their Subsidiaries (collectively, the "Main Station
Licenses") are listed in Section 6.22(a) of the Disclosure Schedule, each of
which Main Station Licenses has the expiration date indicated in Section 6.22(a)
of the Disclosure Schedule. Each Radio Station is operated by the Borrower or
its Subsidiaries in all material respects (i) in accordance with the material
terms and conditions of the FCC Authorizations applicable to it, and (ii) in
accordance with the rules and regulations of the FCC and the Communications Act
of 1934, as amended (the "Communications Act"). Except as otherwise described in
Section 6.22(b) of the Disclosure Schedule, no proceedings are pending or, to
the knowledge of the Parent Company or the Borrower, threatened which may
reasonably be expected to result in the revocation, modification, non-renewal or
suspension of any of the Main Station Licenses, the denial of any pending
applications, the issuance of any cease and desist orders or the imposition of
any material fines, forfeitures or other administrative actions by the FCC with
respect to the Radio Stations or their operation, other than proceedings
affecting the radio broadcasting industry in general. Except as otherwise
described in Section 6.22(c) of the Disclosure Schedule, neither the Parent
Company nor the Borrower has knowledge of any matters (A) which could reasonably
be expected to result in the suspension or revocation of or the refusal to renew
any of the Main Station Licenses or the

<PAGE>
                                      -69-

imposition of any material fines or forfeitures by the FCC upon any Credit
Party, or (B) which could reasonably be expected to result in the modification
or revocation of any Radio Stations' authorization to operate as currently
authorized under the rules and regulations of the FCC.

                                  ARTICLE VII.

                              AFFIRMATIVE COVENANTS

         Each of the Principal Companies, jointly and severally, agrees with
each of the Lenders and the Agents and warrants that, from and after the date of
this Agreement and until all of the Commitments, the Letter of Credit Commitment
and the Letters of Credit shall have terminated and all of the Obligations shall
have been paid and performed in full, each of the Principal Companies will, and
will cause each of the Subsidiary Guarantors to:

         7.1. FINANCIAL INFORMATION; ETC. Deliver to the Administrative Agent,
in form and detail reasonably satisfactory to the Administrative Agent, with
sufficient copies for each Lender:

         (a) as soon as available, but not later than 90 days after the end of
each Fiscal Year: (i) a copy of the audited consolidated balance sheet of the
Parent Company and its consolidated Subsidiaries as at the end of such year and
the related consolidated statements of operations, stockholders' equity and cash
flows for such Fiscal Year, setting forth in each case in comparative form the
figures for the previous Fiscal Year, and accompanied by the opinion of the
Independent Public Accountant, which opinion shall state that such consolidated
financial statements present fairly, in all material respects, the financial
position and the results of operations for the periods indicated in conformity
with GAAP applied on a basis consistent with prior years (except for changes
agreed upon by the Parent Company and such auditors which are disclosed and
described in such statements). Such opinion shall be issued by the Independent
Public Accountant without Impermissible Qualification; and (ii) copies of
consolidating balance sheets as at the end of such Fiscal Year, and related
consolidating statements of operations for such Fiscal Year of the Parent
Company and its Subsidiaries (with comparable information as at the end of and
for the previous Fiscal Year) certified as to fairness of presentation by the
chief financial officer of the Parent Company;

         (b) as soon as available, but not later than 45 days after the end of
each of the first three Fiscal Quarters of each Fiscal Year: (i) a copy of the
unaudited consolidated balance sheet of the Parent Company and its consolidated
Subsidiaries as at the end of such quarter and the related consolidated
statements of operations, stockholders' equity and cash flows for such quarter
and for the portion of the Fiscal Year then ended, and certified by the chief
financial officer of the Parent Company as being complete and correct in all
material respects and fairly presenting in all material respects, in accordance
with GAAP (except for the absence of footnotes and subject to normal year-end
adjustments), the financial position and the results of operations of the Parent
Company and its consolidated Subsidiaries; and (ii) copies of consolidating
balance sheets as at the end of such Fiscal Quarter, and related consolidating
statements of operations for such Fiscal Quarter and for the portion of the
Fiscal Year then ended of the Parent Company and its Subsidiaries (with
comparable information as at the end of and for the corresponding Fiscal Quarter
of the prior Fiscal Year and for the corresponding portion of such prior Fiscal
Year) certified as to fairness of presentation by the chief financial officer of
the Parent Company; and

         (c) not later than January 31 of each Fiscal Year of the Parent
Company, a copy of the annual business plan and budget for such Fiscal Year for
the Parent Company and its

<PAGE>
                                      -70-

Subsidiaries on a market-by-market basis, including, in each case, budgeted
results for each Fiscal Quarter and for the Fiscal Year as a whole, in each
case, on a market-by-market basis, together with an explanation of any
differences between the sum of the individual budgets and the consolidated
totals, and upon the delivery of any financial statements relating to any period
included in such budget, a summary comparing the actual financial performance of
the Parent Company and its Subsidiaries during such period to that provided for
in such budget.

         7.2. COMPLIANCE CERTIFICATES; OTHER INFORMATION. Furnish to the
Administrative Agent, in form and detail reasonably satisfactory to the
Administrative Agent, with sufficient copies for each Lender:

         (a) concurrently with the delivery of the financial statements referred
to in Section 7.1(a) and Section 7.1(b), a Compliance Certificate properly
completed in compliance with the terms hereof and duly executed by an Authorized
Officer of each Principal Company;

         (b) promptly after the same are first sent, true and complete copies of
all financial statements and other reports which the Parent Company shall send
to its shareholders; and, promptly after the same are first filed, copies of all
financial statements and regular, periodic or special reports which the Parent
Company shall make to, or file with, the Securities and Exchange Commission; and

         (c) promptly, such additional business, financial and other information
with respect to the Parent Company, the Borrower or any of their Subsidiaries as
the Administrative Agent, at the request of any Lender, may from time to time
reasonably request.

         7.3. NOTICES. Upon any Authorized Officer of the Parent Company or the
Borrower first obtaining knowledge thereof, give written notice (accompanied by
a reasonably detailed written explanation with respect thereto) promptly to the
Administrative Agent of:

         (a) the occurrence of any Default;

         (b) any litigation, arbitration or governmental investigation or
proceeding not previously disclosed by the Parent Company or the Borrower to the
Administrative Agent which has been instituted or, to the best knowledge of the
Principal Companies, has been threatened against the Parent Company, the
Borrower or any of their Subsidiaries or to which any of their Properties is
subject and (i) which has had or could reasonably be expected to have a
Materially Adverse Effect, or (ii) which seeks to enjoin, limit or restrict the
performance by any of the Credit Parties of any of its Obligations under, or
challenges the validity, binding effect or enforceability of, this Agreement,
any of the other Loan Documents or any of the transactions contemplated hereby
or thereby;

         (c) any development which shall have occurred in any litigation,
arbitration or governmental investigation or proceeding previously disclosed by
the Principal Companies to the Administrative Agent and which has had or could
reasonably be expected to have a Materially Adverse Effect;

         (d) any of the following events affecting the Parent Company, the
Borrower or any ERISA Affiliate: (i) any ERISA Event; or (ii) if any of the
representations and warranties in Section 6.19 shall cease to be true and
correct in any material respect; or

<PAGE>
                                      -71-

         (e) the occurrence of any Change of Control.

         7.4. MAINTENANCE OF CORPORATE EXISTENCE; ETC. Cause to be done at all
times all things necessary to maintain and preserve its separate existence as a
corporation, limited liability company or partnership, as the case may be,
EXCEPT, in each case, as and to the extent otherwise expressly permitted by
Section 8.5.

         7.5. FOREIGN QUALIFICATION; ETC. Cause to be done at all times all
things necessary to maintain and preserve its material rights and franchises and
to be duly qualified to do business and to be in good standing as a foreign
corporation or (as the case may be) foreign limited liability company, foreign
partnership or other foreign entity in each jurisdiction where the nature of
such business makes such qualification necessary and where the failure so to
maintain and preserve its material rights and franchises or so to qualify will
have or could reasonably be expected to have a Materially Adverse Effect.

         7.6. PAYMENT OF TAXES; ETC. Pay and discharge, as the same become due
and payable or before the same become delinquent, as the case may be, all
material federal, state and local taxes, assessments and other governmental
charges or levies against or on any of its income, profits or Property, as well
as all material claims of any kind, which, if unpaid, might become a Lien upon
any of its Properties, and pay (before they become delinquent) all other
material obligations and liabilities; provided, however, that the foregoing
shall not require the Parent Company, the Borrower or any of their Subsidiaries
to pay or discharge any such tax, assessment, charge, levy, Lien, obligation or
liability (a) so long as it shall contest the validity thereof in good faith by
appropriate proceedings and shall have set aside on its books adequate reserves
in accordance with GAAP with respect thereto, or (b) if the failure to make such
payment or to effect such discharge will not have and could not reasonably be
expected to have a Materially Adverse Effect.

         7.7. MAINTENANCE OF PROPERTY; INSURANCE. Keep all of its material
tangible Property, systems and facilities that are useful and necessary in its
business in such condition as is sufficient for the operation of its business in
the ordinary course, ordinary wear and tear and obsolescence excepted, and
maintain with financially sound and reputable insurance companies insurance on
all of its Property in at least such amounts and against at least such risks as
are usually insured against by companies engaged in the same or similar
businesses.

         7.8. COMPLIANCE WITH LAWS; ETC.

         (a) Obtain all such material approvals and take all such other action
with respect to any Governmental Authority (including the FCC) as shall from
time to time be required for the execution, delivery or performance by the
Parent Company or the Borrower or by any of the Subsidiary Guarantors of this
Agreement or any of the other Loan Documents, and duly perform and comply in all
material respects with all of the material terms and conditions of all approvals
so obtained.

         (b) Comply in all material respects with all Applicable Laws,
including, without limitation, all Environmental Laws, the Communications Act,
all rules and regulations promulgated by the FCC and all FCC Authorizations,
EXCEPT, in each case, where the failure so to comply will not have and could not
reasonably be expected to have a Materially Adverse Effect and could not
reasonably be expected to result in the loss, cancellation, rescission,
termination or revocation of any material FCC Authorization granted to the
Parent Company, the Borrower or

<PAGE>
                                      -72-

any of their Subsidiaries. The Principal Companies shall from time to time make
all (if any) necessary filings with the FCC in connection with the execution,
delivery and performance of the Loan Documents or the transactions contemplated
thereby, including, without limitation, the applicable FCC filings identified
and described in Section 6.3 of this Agreement.

         7.9. BOOKS AND RECORDS. Keep proper books and records reflecting all of
its material business affairs and transactions in accordance with GAAP and
Applicable Law, and permit the Administrative Agent or any of its
representatives, and each of the Lenders and their representatives, upon
reasonable notice at reasonable times and intervals during ordinary business
hours, to visit and inspect any of its offices and Properties, discuss financial
matters relating to the Parent Company, the Borrower or any of their
Subsidiaries with any of their officers and the Independent Public Accountant
(and each of the Principal Companies hereby irrevocably authorizes the
Independent Public Accountant to discuss financial matters pertaining to the
Principal Companies with the Administrative Agent or any of the Administrative
Agent's representatives), and examine and make abstracts or photocopies from any
of its books or other corporate records. Except as otherwise provided by the
last sentence of this Section 7.9, all costs and expenses incurred by the
Administrative Agent or any of its representatives or by the Lenders or their
representatives shall be for the account of the Person incurring such cost or
expense unless any Event of Default shall be continuing, in which event all of
such reasonable costs and expenses shall be for the account of the Parent
Company and the Borrower. The Administrative Agent shall have the right to
perform a collateral audit at the offices and at the business and Property
locations of each of the Parent Company, the Borrower and the Subsidiary
Guarantors once during each Fiscal Year so long as no Events of Default shall be
continuing, and, if any Events of Default shall be continuing, at such
additional time or times during each Fiscal Year as the Administrative Agent
shall in its sole discretion determine to be necessary or appropriate. All of
the reasonable out-of-pocket costs and expenses incurred or sustained by the
Administrative Agent in connection with the conduct of such collateral audits
shall be for the account of the Parent Company and the Borrower; provided,
however, that the Parent Company and the Borrower shall not be responsible for
the costs and expenses of more than one (1) such collateral audit per Fiscal
Year conducted by the Administrative Agent while no Events of Default are
continuing.

         7.10. USE OF PROCEEDS. Use the proceeds of the Loans: (a) for working
capital and general corporate requirements of the Borrower and its Subsidiaries,
including Capital Expenditures; (b) to repay obligations under the Existing
Credit Facilities; and (c) to finance Acquisitions and the repurchase of
Permitted Equity Interests of the Parent Company and to pay fees and expenses
incurred in connection therewith, in all cases, if and to the extent permitted
hereunder.

         7.11. INTEREST RATE PROTECTION. Enter into by December 31, 2003 and
maintain in effect for a period of not less than two (2) consecutive years
thereafter, one or more Hedge Agreements providing interest rate protection
reasonably satisfactory to the Administrative Agent with respect to an aggregate
notional amount of principal that shall at no time during such two (2) year
period be less than fifty percent (50%) of the aggregate principal amount of all
of the Term Loans and Incremental Term Loans from time to time outstanding. Each
of the Hedge Agreements entered into by the Borrower from time to time pursuant
to this Section 7.11 shall contain terms and conditions reasonably satisfactory
to the Administrative Agent.

<PAGE>
                                      -73-

         7.12. IDENTIFICATION OF SUBSIDIARIES; PROVISION OF COLLATERAL.

         (a) If and whenever any direct or indirect Subsidiary of the Parent
Company or the Borrower (other than any Inactive Subsidiary) shall be created,
formed or acquired by the Parent Company or the Borrower or by any of their
Subsidiaries at any time after the date hereof, and if and whenever any Inactive
Subsidiary shall cease to be an Inactive Subsidiary:

             (i) furnish promptly to the Administrative Agent a written notice
         identifying such Subsidiary and setting forth with respect to such
         Subsidiary the information required by Section 6.12 with respect to the
         Subsidiaries of the Parent Company or the Borrower as of the Closing
         Date; and

             (ii) promptly comply with, and cause such Subsidiary to comply
         with, the applicable terms of paragraph (b).

         (b) Promptly after the consummation of any Acquisition or the creation,
formation or acquisition of any new Subsidiary of the Parent Company or the
Borrower (other than any Inactive Subsidiary), and promptly after any Inactive
Subsidiary shall cease to be an Inactive Subsidiary:

             (i) in the case of any acquisition of Equity Interests of any such
         Subsidiary by the Parent Company or the Borrower or by any of their
         Subsidiaries, whether in connection with the creation, formation or
         acquisition of a Subsidiary or otherwise: (A) comply with the terms of
         the Collateral Documents applicable to the creation and perfection of
         security interests in such Equity Interests; (B) cause such Subsidiary
         to execute and deliver to the Administrative Agent (1) joinder
         agreements in form and substance reasonably satisfactory to the
         Administrative Agent upon the terms of which such Subsidiary shall
         become a party to and bound by each of the Guaranty Agreement and the
         Collateral Documents, the effect of which shall be that, as of the date
         set forth in such joinder agreements, such Subsidiary shall become a
         party to each such Instrument and be bound by the terms thereof, and
         (2) such Uniform Commercial Code financing statements as shall be
         required to perfect the security interests and Liens in Collateral
         being pledged and assigned by such Subsidiary pursuant to the
         Collateral Documents; and (C) cause such Subsidiary to comply with the
         terms of the Collateral Documents applicable to the creation and
         perfection of security interests in Property of such Subsidiary;

             (ii) in the case of any Acquisition of tangible or intangible
         personal Property by the Parent Company, the Borrower or any of their
         Subsidiaries, (A) deliver or cause to be delivered to the
         Administrative Agent, duly executed by the Persons acquiring such
         Property, such Uniform Commercial Code financing statements as shall be
         required to perfect the security interest and Liens in the Property so
         acquired, and (B) cause the Persons acquiring such Property to comply
         with the terms of the Collateral Documents applicable to the creation
         and perfection of security interests in the Property so acquired; and

             (iii) in each such case, provide to the Administrative Agent all
         such other documentation, including, without limitation, one or more
         opinions of counsel reasonably satisfactory to the Administrative
         Agent, Governing Documents, and resolutions, as the

<PAGE>
                                      -74-

         Administrative Agent shall reasonably deem necessary or advisable in
         connection with such Acquisition of Property or the creation, formation
         or acquisition of such Subsidiary.

         (c) Each of the Principal Companies understands and agrees that time is
of the essence of the covenants of each of the Principal Companies under
paragraphs (a) and (b) of this Section 7.12, and, accordingly, each of the
Principal Companies covenants that it will, and will cause its Subsidiaries to,
comply in all material respects with each reasonable request or requirement of
the Administrative Agent made pursuant to such paragraphs of this Section 7.12,
each such request or requirement to be complied with promptly but, in any event,
within sixty (60) days after the date on which the Parent Company or the
Borrower shall have first received from the Administrative Agent written notice
of such request or requirement.

         7.13. FURTHER ASSURANCES. Make, execute, endorse, acknowledge, file
and/or deliver to the Administrative Agent or (as the case may be) the
Collateral Agent from time to time all such other schedules, confirmatory
assignments, financing statements, transfer endorsements, powers of attorney,
certificates, reports and other assurances or Instruments and take all such
further steps relating to this Agreement or any of the other Loan Documents or
(as the case may be) relating to any of the Collateral covered by any of the
Collateral Documents as the Administrative Agent or the Collateral Agent may
from time to time reasonably request in order to effect the purposes of this
Agreement, the Collateral Documents and the other Loan Documents.

                                  ARTICLE VIII.

                               NEGATIVE COVENANTS

         Each of the Principal Companies, jointly and severally, agrees and
covenants with each of the Lenders, the Issuing Lender and the Agents and
warrants that, from and after the date of this Agreement and until all of the
Commitments, the Letter of Credit Commitment and Letters of Credit shall have
terminated and all of the Obligations shall have been paid and performed in
full, neither of the Principal Companies will, and neither of the Principal
Companies will cause or permit any of the Subsidiary Guarantors to:

         8.1. LIMITATIONS ON LINES OF BUSINESS. At any time undertake, conduct
or transact, directly or indirectly, any businesses EXCEPT businesses which are
primarily in the Lines of Business.

         8.2. INDEBTEDNESS. Incur or permit to exist, or otherwise assume or
become or be liable in respect of or be responsible for, any Indebtedness;
EXCEPT:

         (a) Indebtedness of the Parent Company, the Borrower or any of their
Subsidiaries under any of the Loan Documents or in respect of any of the Credit
Extensions or any of the other Obligations;

         (b) Permitted Indebtedness;

         (c) Indebtedness of the Parent Company or the Borrower consisting of
dividends or other distributions on or with respect to its Equity Interests
declared but yet not paid, but only if and to the extent that such dividends or
other distributions are, at the time of declaration, expressly permitted by
Section 8.7;

<PAGE>
                                      -75-

         (d) Indebtedness of any of the Subsidiary Guarantors to the Borrower or
to any of the other Subsidiary Guarantors;

         (e) Indebtedness of the Borrower to any of the Subsidiary Guarantors;

         (f) Indebtedness of the Borrower or of any of the Subsidiary Guarantors
to the Parent Company; provided, however, that: (i) such Indebtedness shall be
evidenced and governed by a promissory note or other Instrument, satisfactory in
form and substance to the Administrative Agent, which shall be pledged to the
Collateral Agent pursuant to and upon the terms contained in the Collateral
Documents; (ii) neither the Borrower nor any of its Subsidiaries shall at any
time be obligated or otherwise required to make any Restricted Payments of or on
account of any such Indebtedness; and (iii) no part of such Indebtedness shall
be secured by any security interests or Liens on any Property of the Borrower or
any of its Subsidiaries;

         (g) Hedge Agreements entered into by the Borrower pursuant to Section
7.11;

         (h) Indebtedness (including Capital Lease Obligations) created or
incurred by the Borrower or any of the Subsidiary Guarantors from time to time
after the date hereof in connection with the acquisition, lease, construction or
improvement by such Person from time to time after the date hereof and in the
ordinary course of business of Property used or to be used in the ordinary
course of the business of the Borrower or any of its Subsidiaries; provided,
however, that (i) any Liens on such Property securing any such Indebtedness of
any such Person constitute Liens permitted by clause (c) of Section 8.3; and
(ii) in the case of Indebtedness described in this clause (h), the aggregate
amount of all of such Indebtedness of the Borrower or any of the Subsidiary
Guarantors (determined on a consolidated basis) shall not at any time exceed the
LESSER of (A) $10,000,000, or (B) the amount otherwise permitted by the last
sentence of this Section 8.2; and

         (i) other Indebtedness of the Parent Company, the Borrower or any of
the Subsidiary Guarantors not otherwise permitted by any of the other clauses of
this Section 8.2; provided, however, that the aggregate amount of all of such
other Indebtedness of the Parent Company, the Borrower and the Subsidiary
Guarantors (determined on a consolidated basis) incurred pursuant to this clause
(i) shall not at any time exceed the LESSER of (A) $5,000,000, or (B) the amount
otherwise permitted by the last sentence of this Section 8.2.

The provisions of clause (h) and clause (i) of this Section 8.2 and the
provisions of the definition of the term "PERMITTED ACQUISITION DEBT" are
subject to the additional limitations that the Principal Companies shall not,
and shall not cause or permit any of the Subsidiary Guarantors to, incur or
permit to exist, or otherwise assume or become or be liable in respect of, or be
responsible for, any Indebtedness of the kind described in clause (h) or clause
(i) of this Section 8.2 or any Permitted Acquisition Debt if and to the extent
that the aggregate amount of all of such Indebtedness of the Parent Company, the
Borrower and the Subsidiary Guarantors (determined on a consolidated basis)
shall at any time exceed $20,000,000.

         8.3. LIENS. Create, incur or assume, or permit to exist, any Liens upon
any of its Property (including any Equity Interests of any of its Subsidiaries),
whether now owned or hereafter created, arising or acquired; EXCEPT:

<PAGE>
                                      -76-

         (a) Liens created by any of the Collateral Documents or other Loan
Documents and securing the payment or performance of any of the Credit
Extensions or any of the other Obligations;

         (b) Permitted Liens;

         (c) Liens created or incurred by the Borrower or any of the Subsidiary
Guarantors from time to time after the date hereof to secure the payment of the
cost of Property acquired, leased, constructed or improved by such Person from
time to time after the date hereof and in the ordinary course of business, and
which Liens are created or incurred substantially contemporaneously with or
within 360 days after the acquisition, lease, construction or improvement of the
Property subject thereto (all Liens of the type described in this clause (c)
being hereinafter called "PURCHASE MONEY LIENS"); provided, however, that:

             (i) any Property subject to any such Purchase Money Lien created or
         incurred by any such Person shall be used in the ordinary course of
         business of the Borrower or any of its Subsidiaries; and

             (ii) no such Purchase Money Lien on any such Property shall extend
         to or cover any other Property, except, as and to the extent usual and
         customary in such financing arrangements, other Property constituting
         additions, attachments, accessions and accessories thereto and
         replacements and substitutions therefor and other Property related to
         any of the foregoing, and all proceeds of any thereof, and including
         all proceeds of insurance thereon;

provided, further, however, that, in the case of the Liens described in this
clause (c) the aggregate amount of all of the Indebtedness (including Capital
Lease Obligations) from time to time secured by any of such Liens (determined on
a consolidated basis) shall at no time exceed the amounts permitted by clause
(h) of Section 8.2; and

         (d) other Liens; provided, however, that, in the case of the Liens
described in this clause (d) of Section 8.3, the aggregate amount of all of the
Indebtedness (including Capital Lease Obligations) of the Borrower and the
Subsidiary Guarantors (determined on a consolidated basis) from time to time
secured by any of such Liens shall not at any time exceed the amount permitted
by clause (i) of Section 8.2.

         8.4.  FINANCIAL COVENANTS.

         (a) MAXIMUM LEVERAGE RATIO. Permit the Consolidated Leverage Ratio as
of the last day of any Fiscal Quarter ending during or on the last day of any
period identified below to exceed the ratio set forth opposite such period
below:

<TABLE>
<CAPTION>
         PERIOD                                                             RATIO
         ------                                                             -----
<S>                                                                          <C>
         Effective Date through 06/30/04                                     6.25:1.00
         07/01/04 through 12/31/04                                           6.00:1.00
         01/01/05 through 06/30/05                                           5.75:1.00
         07/01/05 through 09/30/05                                           5.50:1.00
         10/01/05 through 12/31/05                                           5.25:1.00
</TABLE>

<PAGE>

                                      -77-

<TABLE>
<CAPTION>
         PERIOD                                                             RATIO
         ------                                                             -----
<S>                                                                          <C>
         01/01/06 through 06/30/06                                           5.00:1.00
         07/01/06 through 12/31/06                                           4.75:1.00
         01/01/07 through 06/30/07                                           4.50:1.00
         07/01/07 and thereafter                                             4.25:1.00
</TABLE>

         (b) MINIMUM INTEREST COVERAGE RATIO. Permit the Consolidated Interest
Coverage Ratio as of the last day of any Fiscal Quarter ending during or on the
last day of any period identified below to be less than the ratio set forth
opposite such period below:

<TABLE>
<CAPTION>
         PERIOD                                                                 RATIO
         ------                                                                 -----

<S>                                                                           <C>
         Effective Date through 09/30/04                                      2.00:1.00
         10/01/04 through 12/31/04                                            2.25:1.00
         01/01/05 and thereafter                                              2.50:1.00
</TABLE>

         (c) MINIMUM FIXED CHARGE COVERAGE RATIO. Permit the Consolidated Fixed
Charge Coverage Ratio as of the last day of any Fiscal Quarter ending during any
period identified below to be less than the ratio set forth opposite such period
identified below:

<TABLE>
<CAPTION>
         PERIOD                                                              RATIO
         ------                                                              -----

<S>                                                                          <C>
         Effective Date through the Maturity Date                            1.10:1.00
</TABLE>

         8.5. CONSOLIDATIONS, MERGERS, SALES; ETC. Wind up, liquidate or
dissolve, or consolidate or amalgamate with or merge into or with any other
Person, or engage in any Sale of all or any part of its Property (whether in one
transaction or in a series of related transactions); EXCEPT:

         (a) any Subsidiary Guarantor may merge with or into, or may be
dissolved or liquidated into the Borrower, so long as (i) the Borrower is the
surviving Person of any such merger, dissolution or liquidation, and (ii) the
security interests granted to the Collateral Agent pursuant to the Collateral
Documents in the Property of such Subsidiary Guarantor shall remain in full
force and effect and perfected (to at least the same extent as in effect
immediately prior to such merger, dissolution or liquidation);

         (b) any Subsidiary Guarantor may merge with or into, or may be
dissolved or liquidated into, any other Subsidiary Guarantor, so long as (i) a
Subsidiary Guarantor is the surviving Person of any such merger, dissolution or
liquidation and, immediately after giving effect thereto, the Borrower continues
to own the same percentage of all of the Equity Interests of the surviving
Subsidiary Guarantor as the percentage owned by the Borrower immediately prior
to completion of such merger, dissolution or liquidation, and (ii) the security
interests granted to the Collateral Agent pursuant to the Collateral Documents
in the Property of such Subsidiary Guarantor shall remain in full force and
effect and perfected (to at least the same extent as in effect immediately prior
to such merger, dissolution or liquidation);

         (c) any Subsidiary Guarantor may merge with or into another Person in
connection with the completion of an Acquisition of such Person permitted by
Section 8.6 so long as the security interests granted to the Collateral Agent
pursuant to the Collateral Documents in the

<PAGE>
                                      -78-

Property of such Subsidiary Guarantor shall remain in full force and effect and
perfected (to at least the same extent as in effect immediately prior to such
merger);

         (d) any Permitted Dispositions;

         (e) Asset Sales by the Parent Company, the Borrower or any of the
Subsidiary Guarantors, in a single transaction or in a series of related
transactions, for an Amount not exceeding $5,000,000 in the aggregate; provided,
however, that: (i) the aggregate Amount received (exclusive of the aggregate
Amount received in the Pending Acquisitions) by the Parent Company, the Borrower
or any of their Subsidiaries for all of such Sales pursuant to this clause (e)
(determined on a consolidated basis) during any Fiscal Year shall not exceed
$10,000,000; (ii) after giving effect on a Pro Forma Basis to each such Asset
Sale, the Principal Companies shall not be in violation of any of the financial
covenants contained in Section 8.4 as of the then most recent Covenant
Determination Date; and (iii) both immediately before and immediately after
giving effect to any such Acquisition, no Defaults shall then be continuing or
shall result therefrom; and

         (f) Asset Sales; provided, however, that (i) the portion of the
Consolidated Adjusted EBITDA attributable to all of the Properties of the Parent
Company, the Borrower or any of their Subsidiaries (including Equity Interests
of Subsidiaries) sold pursuant to this clause (f) (A) in any Fiscal Year, shall
not exceed 15% of Consolidated Adjusted EBITDA, as determined on a Pro Forma
Basis for the Measurement Period as of the then most recent Covenant
Determination Date after giving effect to all of such Sales in such Fiscal Year,
and (B) during the period from the Effective Date through the Maturity Date,
shall not exceed 30% of Consolidated Adjusted EBITDA, as determined on a Pro
Forma Basis for the Measurement Period as of the then most recent Covenant
Determination Date after giving effect to all of such Sales in such period, (ii)
if the aggregate Amount of any such Asset Sale shall exceed $10,000,000, then at
least five (5) Business Days prior to completion of any such Sale, the Principal
Companies shall have delivered to the Administrative Agent a Compliance
Certificate duly executed by an Authorized Officer of each Principal Company,
which certificate shall contain (A) financial information, reasonably
satisfactory to the Administrative Agent, showing that after giving effect on a
Pro Forma Basis to such Asset Sale, the Principal Companies shall not be in
violation of any of the financial covenants contained in Section 8.4 as of the
then most recent Covenant Determination Date, and (B) a statement that no
Default is then continuing or will be continuing immediately after giving effect
to such Asset Sale, and (iii) both immediately before and immediately after
giving effect thereto, no Defaults shall then be continuing or shall result
therefrom.

         For purposes of calculating the Consolidated Adjusted EBITDA
attributable to all of the Properties of the Parent Company, the Borrower or any
of their Subsidiaries sold pursuant to paragraph (f) during any particular
period, there shall be deducted from (or otherwise netted against) the
Consolidated Adjusted EBITDA attributable to the Properties so sold during such
period, all of the Consolidated Adjusted EBITDA attributable to all of the
Properties acquired by the Parent Company, the Borrower or any of their
Subsidiaries in all Radio Swap Transactions completed during the same period.

         8.6. INVESTMENTS AND ACQUISITIONS. Make, incur or assume, or permit to
exist, or make any offer or commitment to make, or enter into any agreement to
make, any Investments in any other Person or any Acquisitions; EXCEPT:

         (a) Permitted Investments;

<PAGE>
                                      -79-

         (b) Investments by any Subsidiary Guarantor in the Borrower or in any
other Subsidiary Guarantor;

         (c) subject always to the restrictions and limitations contained in
Section 8.2(f), Investments (including capital contributions) by the Parent
Company in the Borrower or any Subsidiary Guarantor, and Investments by the
Borrower in any Subsidiary Guarantor;

         (d) Permitted Acquisitions;

         (e) Acquisitions (including Acquisitions of Equity Interests) by the
Borrower or any of the Subsidiary Guarantors, in a single transaction or in a
series of related transactions, for an Amount (exclusive of consideration paid
in the form of Permitted Equity Interests of the Parent Company) not exceeding
$5,000,000 in the aggregate for any such single transaction or series of related
transactions; provided, however, that: (i) the aggregate Amount paid (exclusive
of consideration paid in the form of Permitted Equity Interests of the Parent
Company, and exclusive of the consideration paid in the Pending Acquisitions) by
the Parent Company or the Borrower or by any of their Subsidiaries for all of
such Acquisitions pursuant to this clause (e) (determined on a consolidated
basis) during any Fiscal Year shall not exceed $5,000,000; and (ii) both
immediately before and immediately after giving effect to any such Acquisition,
no Defaults shall then be continuing or shall result therefrom; and

         (f) any Acquisition by the Borrower or by any of its Subsidiaries, if
not less than eighty-five percent (85%) of the aggregate Fair Market Value of
the Amount payable for any such Acquisition is in the form of Permitted Equity
Interests of the Parent Company; provided, however, that (i) at least five (5)
Business Days prior to completion of any such Acquisition, the Principal
Companies shall have delivered to the Administrative Agent (A) true and complete
copies of all Acquisition Documentation relating to such Acquisition, and (B) a
Compliance Certificate duly executed by an Authorized Officer of each Principal
Company, which certificate shall contain (1) financial information, reasonably
satisfactory to the Administrative Agent, showing that, after giving effect on a
Pro Forma Basis to such Acquisition, the Principal Companies shall not be in
violation of any of the financial covenants contained in Section 8.4 as of the
then most recent Covenant Determination Date, and (2) a statement that no
Default is then continuing or will be continuing immediately after giving effect
to such Acquisition, and (ii) both immediately before and immediately after
giving effect to any such Acquisition, no Defaults shall then be continuing or
shall result therefrom.

         8.7. RESTRICTED PAYMENTS. Make, extend or enter into any offer or
commitment to make, or enter into any agreement to make, any Restricted
Payments; EXCEPT:

         (a) the declaration and payment by the Parent Company of dividends or
other distributions on its Equity Interests in the form of Permitted Equity
Interests of the Parent Company;

         (b) the declaration and payment by the Borrower of dividends or other
distributions on its Equity Interests in the form of Permitted Equity Interests
of the Borrower;

         (c) Restricted Payments in the form of cash dividends declared or paid
by the Borrower on its Equity Interests:

<PAGE>
                                      -80-

             (i) for the purpose of paying, so long as all of the proceeds
         thereof are promptly used by the Parent Company to pay, its operating
         expenses incurred in the ordinary course of its business and other
         corporate overhead costs and expenses (including, without limitation,
         legal and accounting expenses and other similar expenses);

             (ii) for the purpose of paying, so long as all of the proceeds
         thereof are promptly used by the Parent Company to pay, franchise taxes
         and federal, state and local income taxes and interest, and penalties
         with respect thereto, payable by the Parent Company; and

             (iii) for the purpose of making, so long as all of the proceeds
         thereof are promptly used by the Parent Company to make, payments by
         the Parent Company on account of the redemption, repurchase or other
         acquisition for value of the Permitted Equity Interests of the Parent
         Company, but only if and to the extent that such payments by the Parent
         Company are, when made, permitted by clause (d) of this Section 8.7;

provided, however, that at the time of the declaration of any such cash
dividends the proceeds of which are to be used for any of the purposes
identified in clause (i), (ii), or (iii), no Defaults shall be continuing or
shall result therefrom;

         (d) cash payments by the Parent Company on account of the redemption,
repurchase or other acquisition for value of the Permitted Equity Interests of
the Parent Company; provided, however, that: (i) the aggregate amount of all of
the cash payments so made by the Parent Company during the period from the
Effective Date through the Maturity Date shall not exceed $10,000,000; (ii) the
Consolidated Leverage Ratio as of the then most recent Covenant Determination
Date, as determined on a Pro Forma Basis after giving effect to any such cash
payments and any related increases in Consolidated Total Debt, shall not exceed
5.50:1.00; and (iii) both immediately before and after giving effect to any of
such cash payments, no Defaults shall then be continuing or shall result
therefrom;

         (e) cash payments by the Parent Company, the Borrower or any of the
Subsidiary Guarantors to any then present or former director, manager, officer
or employee of the Parent Company, the Borrower or any of the Subsidiary
Guarantors in connection with the repurchase of Equity Interests of the Parent
Company from any such Person made in the ordinary course of business and on
terms and conditions that are in all material respects consistent with the
Parent Company's usual and customary business practices; provided, however,
that: (i) the aggregate amount of all of such cash payments made in any Fiscal
Year shall not exceed $2,500,000; (ii) the Consolidated Leverage Ratio as of the
then most recent Covenant Determination Date, as determined on a Pro Forma Basis
after giving effect to any such cash payments and any related increases in
Consolidated Total Debt, shall not exceed 5.50:1.00; (iii) after giving effect
on a Pro Forma Basis to any such cash payments, the Principal Companies shall
not be in violation of any of the financial covenants contained in Section 8.4
as of the then most recent Covenant Determination Date; and (iv) both
immediately before and immediately after giving effect to any such cash
payments, no Defaults shall then be continuing or shall result therefrom;

         (f) the declaration and payment by any Subsidiary of the Borrower of
dividends and other distributions on the Equity Interests of such Subsidiary;
and

         (g) payments, not otherwise permitted by any of the other clauses of
this Section 8.7 and not otherwise prohibited by any of the other covenants in
this Article VIII or by any of the

<PAGE>
                                      -81-

other provisions contained in this Agreement, by the Borrower or any of its
Subsidiaries to any Affiliates of the Borrower, but, in each case, only to the
extent expressly permitted by Section 8.10.

         8.8. LIMITATIONS ON HEDGE AGREEMENTS. Enter into or cause or permit to
exist or become effective any Hedge Agreements, other than (a) Hedge Agreements
entered into in the ordinary course of business of the Parent Company, the
Borrower or any of the Subsidiary Guarantors to hedge or mitigate risks to which
any such Person shall from time to time be exposed in the conduct of its
business or the management of its liabilities, and (b) Hedge Agreements entered
into in order to effectively exchange interest rates (from floating to fixed
rates or otherwise) with respect to any interest-bearing liability of any such
Person.

         8.9. LIMITATIONS ON RESTRICTIVE AGREEMENTS.

         (a) Enter into or cause or permit to exist or become effective any
Instrument which prohibits or limits the ability of the Parent Company, the
Borrower or any of their Subsidiaries to create, incur, assume or permit to
exist any Liens in favor of the Administrative Agent or the Collateral Agent in
connection with this Agreement or the Collateral Documents upon any of its
Property or revenues, whether now owned or from time to time hereafter created,
arising or acquired, EXCEPT for (i) this Agreement and the other Loan Documents,
and (ii) any agreements governing any Purchase Money Liens (as defined in
Section 8.3(c) or Capital Lease Obligations otherwise permitted hereby (in which
case, any such prohibition or limitation shall only be permitted hereunder to
the extent it affects the Property financed thereby).

         (b) Enter into or cause or permit to exist or become effective any
consensual encumbrance or restriction on the ability of any Subsidiary of the
Parent Company or the Borrower to (i) make any dividends or other distributions
in respect of any Equity Interests of such Subsidiary held by, or pay any
Indebtedness owed to, the Parent Company, the Borrower or any of their
Subsidiaries, (ii) make Investments in the Parent Company, the Borrower or any
of their Subsidiaries, or (iii) transfer any of its Property to the Parent
Company, the Borrower or any of their Subsidiaries, EXCEPT for any such
encumbrances or restrictions existing under or by reason of: (A) any
restrictions under the Loan Documents; (B) any restrictions with respect to any
Subsidiary of the Borrower imposed pursuant to an agreement which has been
entered into in connection with the Sale of all or substantially all of the
Equity Interests or Property of such Subsidiary; (C) any restrictions with
respect to any Subsidiary of the Borrower imposed pursuant to an agreement which
has been entered into in connection with any joint venture involving such
Subsidiary, provided that any such restrictions, together with all other similar
restrictions applicable to Subsidiaries of the Borrower, shall not have, and
could not reasonably be expected to have, any Materially Adverse Effect; and (D)
any restrictions on the ability of the Borrower or any of its Subsidiaries to
transfer any such Property imposed by the provisions of the documentation
pursuant to which there shall have been created a Lien on such Property
expressly permitted by Section 8.3.

         8.10. TRANSACTIONS WITH AFFILIATES. Enter into, engage in or perform
any Affiliate Transaction or any transaction or series of related transactions
(whether or not in the ordinary course of business) with any Affiliate (other
than the Borrower and the Subsidiary Guarantors) of the Parent Company, make any
offer or commitment to do so, or enter into any agreement to do so; EXCEPT:

<PAGE>
                                      -82-

         (a) Restricted Payments by the Parent Company or by the Borrower, if
and only to the extent expressly permitted by Section 8.7;

         (b) loans or advances to any director, manager, officer or employee of
the Parent Company, the Borrower or any of the Subsidiary Guarantors made in the
ordinary course of business and on terms and conditions that are in all material
respects consistent with the Parent Company's or the Borrower's usual and
customary business practices; provided, however, that the aggregate principal
amount of all of such loans or advances from time to time outstanding shall not
exceed $500,000 at any time;

         (c) customary fees, indemnification and reimbursement of expenses paid
by the Parent Company to its directors, and executive compensation paid by the
Parent Company to its executive officers and other senior management;

         (d) Investments by the Parent Company if and to the extent permitted by
Section 8.2 or by Section 8.6, and Permitted Investments of the kind described
in paragraph (f) of the definition of the term "PERMITTED INVESTMENTS";

         (e) each of the Affiliate Transactions described in Section 6.11 of the
Disclosure Schedule;

         (f) any other Affiliate Transaction not otherwise permitted by any of
the other provisions of this Section 8.10; provided, however, that (i) such
Affiliate Transaction is not otherwise expressly prohibited by the terms of this
Agreement or any of the other Loan Documents; (ii) such Affiliate Transaction is
made or undertaken strictly in the ordinary course of business by the Borrower
or by any of its Subsidiaries and on terms and conditions that are in all
material respects consistent with the Borrower's usual and customary business
practices; (iii) the terms of such Affiliate Transaction, taken as a whole, are
no less favorable to the Borrower or to any of its Subsidiaries than would be
the case if such Affiliate Transaction had been entered into on an arm's length
basis with a Person that is not an Affiliate of the Borrower; and (iv) both
immediately before and immediately after giving effect thereto, no Defaults
shall then be continuing or shall result therefrom; and

         (g) any other transaction between the Parent Company, on the one hand,
and one or more of its Affiliates (other than the Borrower and the Subsidiary
Guarantors), on the other hand, not otherwise permitted by any of the other
provisions of this Section 8.10; provided, however, that (i) such transaction is
not otherwise prohibited by the terms of this Agreement or any of the other Loan
Documents; (ii) such transaction is made or undertaken strictly in the ordinary
course of business by the Parent Company and on terms and conditions that are in
all material respects consistent with the Parent Company's usual and customary
business practices; (iii) the terms of such transaction, taken as a whole, are
no less favorable to the Parent Company than would be the case if such
transaction had been entered into on an arm's length basis by the Parent Company
with a Person that is not an Affiliate of the Parent Company; and (iv) at the
time of the completion of such transaction, and immediately after giving effect
thereto, no Default shall occur or be continuing.

         8.11. SALE OF CAPITAL STOCK; ETC. Issue, sell, transfer or otherwise
dispose of any shares of any Capital Stock or other Equity Interests of the
Parent Company, the Borrower or any of their Subsidiaries; EXCEPT:

<PAGE>
                                      -83-

         (a) the pledge from time to time, in accordance with the terms of this
Agreement and the Collateral Documents, of Capital Stock and other Equity
Interests now owned or from time to time hereafter acquired by the Parent
Company, the Borrower or any of their Subsidiaries;

         (b) the issuance and Sale by the Parent Company or by any of its
Subsidiaries of Permitted Equity Interests of the Parent Company as
consideration in, or in connection with the formation of any acquisition vehicle
to be used in, any Acquisition permitted by Section 8.6;

         (c) the issuance and Sale by any Subsidiary of the Borrower of any of
its Permitted Equity Interests in connection with the implementation of any
Asset Sale then permitted pursuant to Section 8.5(e);

         (d) any issuance and Sale by the Parent Company of its Permitted Equity
Interests; provided, however, that any such issuance and Sale shall be permitted
by this clause (d) only if no Event of Default under Section 9.1.10 shall result
therefrom; and

         (e) the issuance by the Parent Company of Permitted Equity Interests
pursuant to the exercise of options, warrants, and other convertible securities.

         8.12. CHANGE OF CONTROL. Enter into or undertake any transaction,
arrangement or agreement (whether a consolidation, merger, issue or Sale of
Capital Stock or other Securities, reorganization, voting agreement or
otherwise) that will result or could reasonably be expected to result in an
Event of Default under Section 9.1.10.

         8.13. LIMITATIONS ON OPTIONAL PAYMENTS; ETC. Make or offer to make any
optional or voluntary payment, prepayment, repurchase or redemption of, or
otherwise voluntarily or optionally defease, any Permitted Acquisition Debt or
any other Indebtedness governed or otherwise evidenced by any Ancillary
Documents, or segregate funds for any such payment, prepayment, repurchase,
redemption or defeasance, or amend, modify or otherwise change, or consent or
agree to any amendment, modification, waiver or other change to, any of the
terms governing the payment, prepayment, repurchase or redemption of any
Permitted Acquisition Debt or any other Indebtedness governed or otherwise
evidenced by any Ancillary Documents (other than any such amendment,
modification, waiver or other change which would extend the maturity or reduce
the amount of any payment of principal thereof, reduce the rate or extend the
date for payment of interest thereon or relax any covenant or other restriction
applicable to the Parent Company or any of its Subsidiaries).

         8.14. MODIFICATION OF OTHER ANCILLARY DOCUMENTS; ETC. Consent to or
enter into or permit any material amendment, supplement or other modification of
any of the Governing Documents of the Parent Company or any of its Subsidiaries
or any of the other Ancillary Documents, if such amendment, supplement or
modification (a) shall have, or (as the case may be) could reasonably be
expected to have, any Materially Adverse Effect, or (b) shall include any term,
covenant or other provision, or shall otherwise effect any change, that
conflicts with or otherwise contravenes any of the terms, covenants or other
provisions of this Agreement or any of the other Loan Documents. The covenant of
each of the Principal Companies in Section 8.13 is separate from and in addition
to the covenant in this Section 8.14.

         8.15. MAINTENANCE OF SEPARATENESS. Fail at any time to satisfy
customary corporate formalities, including the holding of regular board of
directors' and shareholders' meetings and the maintenance of corporate records,
or take any action or conduct its affairs in any manner

<PAGE>
                                      -84-

which is likely to result in the corporate existence of the Parent Company being
ignored, or in the assets and liabilities of the Borrower or of any of its
Subsidiaries being substantively consolidated with those of the Parent Company
in any Insolvency Proceeding.

         8.16. USE OF CREDITS; COMPLIANCE WITH MARGIN REGULATIONS. Use all or
any portion of the proceeds of any of the Loans, other Credit Extensions or
Letters of Credit, directly or indirectly, to purchase or carry Margin Stock
other than in compliance with Regulations T, U and X of the Federal Reserve
Board. At no time shall the value of the Margin Stock owned by the Parent
Company, the Borrower and their Subsidiaries (as determined in accordance with
Regulation U of the Federal Reserve Board) exceed 25% of the aggregate value (as
determined in accordance with Section 221.2(g)(2) of Regulation U of the Federal
Reserve Board) of all of the Property of the Parent Company, the Borrower and
their Subsidiaries.

                                   ARTICLE IX.

                                EVENTS OF DEFAULT

         9.1. EVENTS OF DEFAULT. The term "EVENT OF DEFAULT" shall mean any of
the following events set forth in this Section 9.1 occurring or existing at any
time on or after the Effective Date:

         9.1.1. NON-PAYMENT OF OBLIGATIONS. The Parent Company, the Borrower or
any of the Subsidiary Guarantors shall default:

         (a) in the payment or prepayment when due under this Agreement or the
Notes of any principal of any of the Loans, Letter of Credit Obligations or
other Obligations, and any such default shall continue unremedied for a period
of more than one (1) Business Day;

         (b) in the payment or prepayment when due under this Agreement, the
Notes or any of the other Loan Documents of (i) any interest on any of the
Loans, Letter of Credit Obligations or other Obligations, or (ii) any Fees
payable under this Agreement or any of the other Loan Documents, and any such
default under subclause (i) or (ii) of this clause (b) shall continue unremedied
for a period of more than five (5) Business Days; or

         (c) in the payment when due under this Agreement or any of the other
Loan Documents of any other sum (other than any sum referred to in clause (a) or
(b)), and any such default shall continue unremedied for a period of more than
seven (7) Business Days.

         9.1.2. NON-PERFORMANCE OF CERTAIN OBLIGATIONS. The Parent Company or
the Borrower shall default in the due performance or observance of any of its
Obligations under any of the following Sections: Section 7.3(a), Section 7.12 or
Article VIII (including Sections 8.1 through 8.16, inclusive).

         9.1.3. NON-PERFORMANCE OF OTHER OBLIGATIONS. The Parent Company, the
Borrower or any of the Subsidiary Guarantors shall default in the due
performance or observance of any of its Obligations under any of the Loan
Documents (other than any of the Obligations specified in Section 9.1.1 or
9.1.2), and any such default shall continue unremedied for more than thirty (30)
days after written notice thereof shall have been given to the Parent Company or
the Borrower by the Administrative Agent.

<PAGE>
                                      -85-

         9.1.4. BREACH OF REPRESENTATION OR WARRANTY. Any material
representation or warranty by the Parent Company or the Borrower or by any of
the Subsidiary Guarantors at any time made or deemed to be made in any Loan
Document, or which is contained in any certificate, document or financial or
other statement furnished by or on behalf of the Parent Company, the Borrower or
any of the Subsidiary Guarantors at any time pursuant to any of the Loan
Documents or in connection with any of the Credit Extensions, shall prove to
have been untrue or incorrect in any material respect on or as of the date made
or deemed made.

         9.1.5. CROSS-DEFAULT. The Parent Company, the Borrower or any of the
Subsidiary Guarantors (a) shall fail to make any payment (whether of principal,
interest or any other sum, and regardless of amount) when due under or with
respect to any Material Indebtedness (whether such payment is due by reason of
scheduled maturity, required prepayment, acceleration, demand, or otherwise),
and any such failure shall continue after the applicable grace or notice period,
if any, specified in the Instrument relating thereto on the date of such
failure; or (b) shall fail to perform or observe any other condition or
covenant, or any other event shall occur or condition shall exist, under any
Instrument relating to any Material Indebtedness, and (i) such failure shall
continue after the applicable grace or notice period, if any, specified in the
Instrument relating thereto on the date of such failure, and (ii) the effect of
such failure, event or condition shall be to cause, or to permit the holder or
holders of such Material Indebtedness or the beneficiary or beneficiaries of
such Material Indebtedness (or a trustee or agent on behalf of such holder or
holders or beneficiary or beneficiaries) to cause, such Material Indebtedness to
be declared to be due and payable prior to its stated maturity.

         9.1.6. INSOLVENCY; VOLUNTARY PROCEEDINGS. The Parent Company, the
Borrower or any of the Subsidiary Guarantors: (a) shall commence any Insolvency
Proceeding with respect to itself or any of its Subsidiaries that is a
Subsidiary Guarantor; or (b) shall take any action to effectuate or authorize
any of the foregoing.

         9.1.7. INVOLUNTARY PROCEEDINGS. (a) Any involuntary Insolvency
Proceeding shall be commenced or filed against the Parent Company, the Borrower
or any of the Subsidiary Guarantors, or any writ, judgment, warrant of
attachment, execution or other similar process shall be issued or levied against
any substantial part of the Properties of the Parent Company, the Borrower or
any of the Subsidiary Guarantors, and any such Insolvency Proceeding shall not
be dismissed, or any such writ, judgment, warrant of attachment, execution or
other similar process shall not be released, vacated or fully bonded, within
sixty (60) days after commencement, filing, issuance or levy; (b) the Parent
Company, the Borrower or any of the Subsidiary Guarantors shall admit the
material allegations of a petition against it in any Insolvency Proceeding, or
an order for relief (or any similar order under non-U.S. law) shall be ordered
in any Insolvency Proceeding; or (c) the Parent Company, the Borrower or any of
the Subsidiary Guarantors shall acquiesce in the appointment of any receiver,
trustee, custodian, conservator, liquidator, mortgagee in possession (or agent
therefor) or any other similar Person for itself or for any substantial portion
of its Property or business.

         9.1.8. ERISA. Any ERISA Event shall occur which, when taken together
with all other ERISA Events that shall have occurred, shall result or, in the
opinion of the Administrative Agent, could reasonably be expected to result in a
Materially Adverse Effect.

         9.1.9. JUDGMENTS. One or more judgments, orders or decrees shall be
entered against the Parent Company, the Borrower or any of the Subsidiary
Guarantors involving in the aggregate liabilities as to any single or related
series of transactions, incidents or conditions of $5,000,000

<PAGE>
                                      -86-

or more, and the same shall remain unsatisfied, unvacated or unstayed pending
appeal for a period of more than sixty (60) consecutive days after the entry
thereof.

         9.1.10. CHANGE OF CONTROL. Any Change of Control shall occur.

         9.1.11. GUARANTY AGREEMENT. Except as otherwise provided or permitted
by or pursuant to the terms of this Agreement or the Guaranty Agreement, the
Guaranty Agreement or any material provision thereof shall for any reason cease
to be in full force and effect or valid and binding on and enforceable against
any Credit Party, or any Credit Party shall so state in writing to the
Administrative Agent or any Lender, or any Credit Party shall bring an action to
limit its Obligations or liabilities thereunder.

         9.1.12. COLLATERAL DOCUMENTS. Otherwise (in any case) than in
accordance with the terms of this Agreement or any of the other Loan Documents,
any Collateral Documents or any material provisions of any of the Collateral
Documents shall cease to be in full force and effect or shall cease to create
valid security interests in and Liens upon the Collateral (other than in an
insubstantial or immaterial portion of the Collateral) purported to be covered
thereby, or such security interests and Liens shall cease to be a valid and
perfected security interests and Liens (subject only to Permitted Liens) as
required from time to time by the Collateral Documents; provided, however, that
if the Credit Parties have complied with all of their agreements and obligations
under the Collateral Documents, including with respect to perfection of security
interests, and the cessation of the validity or perfection of a security
interest is due to the action or inaction of the Administrative Agent and/or any
other Lender, such cessation of the validity or perfection of a security
interest shall not be an Event of Default.

         9.1.13. MAIN STATION LICENSES. (a) Any Main Station License necessary
for the ownership or essential for the operation of any of the Radio Stations by
the Parent Company, the Borrower or any of the Subsidiary Guarantors shall
expire, and, on or prior to such expiration, the same shall not have been or be
in the process of being renewed or replaced by another Main Station License
authorizing substantially the same operation of such Radio Station by the Parent
Company, the Borrower or any of the Subsidiary Guarantors; or

         (b) (i) any Main Station License necessary for the ownership or
essential for the operation of any of the Radio Stations by the Parent Company,
the Borrower or any of the Subsidiary Guarantors (A) shall be cancelled,
revoked, terminated, rescinded, annulled, suspended or modified in any
materially adverse respect, or (B) shall no longer be in full force and effect
and shall not be in the process of renewal or replacement, or (ii) the grant or
the effectiveness of any such Main Station License shall have been stayed,
vacated, reversed or set aside, and, in each case, such action shall no longer
be subject to further administrative or judicial review; or

         (c) in any renewal or revocation proceeding involving any Main Station
License necessary for the ownership or essential for the operation of any of the
Radio Stations, any administrative law judge of the FCC (or any successor to the
functions of an administrative law judge of the FCC) shall have issued an
initial decision to the effect that the Parent Company, the Borrower or any of
the Subsidiary Guarantors lacks the qualifications to hold any Main Station
License, and such initial decision shall not have been timely appealed or shall
otherwise have become an order that is final and no longer subject to further
administrative or judicial review, or such administrative law judge shall issue
a favorable determination on such matters, which determination shall
subsequently be reversed on appeal;

<PAGE>
                                      -87-

provided, however, that none of the foregoing events described in this Section
9.1.13 shall constitute an Event of Default if, assuming final non-appealable
loss by the Parent Company, the Borrower or any of the Subsidiary Guarantors of
any such Main Station License at the conclusion of all legal proceedings
incident thereto, such loss would, individually or in the aggregate with all
such other losses after Effective Date, not result in the loss of Main Station
Licenses for Radio Stations which generate in the aggregate in excess of five
percent (5%) of the Consolidated Broadcast Cash Flow of the Parent Company and
its Subsidiaries, provided that such percentage shall be calculated for the
Measurement Period ended immediately prior to the date on which any such loss of
an Main Station License occurs and each such quarterly calculation shall be
aggregated with all such other percentage calculations with respect to each of
the other Main Station Licenses lost from and after the Effective Date.

         9.2. REMEDIES. If any Event of Default shall at any time occur and
shall be continuing, the Administrative Agent shall at the request of, or may
with the consent of, the Required Lenders:

         (a) declare all of the Commitments of the Lenders and the Letter of
Credit Commitment of the Issuing Lender to be terminated in full, whereupon all
of such Commitments and such Letter of Credit Commitment shall forthwith be
terminated in full;

         (b) declare the unpaid principal amount of all of the outstanding
Loans, Letter of Credit Obligations and other Obligations, all interest accrued
and unpaid thereon, and all of the other Obligations owing or payable under any
of the Loan Documents to be immediately due and payable in full, without
presentment, demand, protest or other notice of any kind, all of which are
hereby expressly and irrevocably waived by each of the Parent Company and the
Borrower;

         (c) demand that the Borrower immediately Cash Collateralize all of the
Letter of Credit Obligations to the extent of outstanding and wholly or
partially undrawn Letters of Credit, whereupon the Borrower shall so Cash
Collateralize all of such Letters of Credit to that extent;

         (d) exercise on behalf of itself, the other Agents, the Issuing Lender
and the Lenders all or any of the rights and remedies available to it, the other
Agents, the Issuing Lender and the Lenders under the Loan Documents or
Applicable Law or with respect to all or any part of the Collateral;

         (e) apply cash collateral to the payment of outstanding Obligations,
all as provided by Section 3.7; and/or

         (f) take any action to enforce all or any of the rights and remedies of
the Administrative Agent or the Collateral Agent under the Collateral Documents
and other Loan Documents and with respect to all or any part of the Collateral;

provided, however, that, upon the occurrence of any Event of Default specified
above in Section 9.1.6 or in Section 9.1.7, the obligations of each Lender to
make Loans and the obligation of the Issuing Lender to issue Letters of Credit
shall in any event automatically terminate, and the unpaid principal amount of
all of the outstanding Loans, Letter of Credit Obligations and other Obligations
and all interest and other amounts as aforesaid shall automatically become and
be immediately due and payable in full without any further act or notice by the
Administrative Agent, the Issuing Lender or any Lender, all of which are hereby
expressly and irrevocably waived by each of the Parent Company and the Borrower.

<PAGE>
                                      -88-

                                   ARTICLE X.

                    THE ADMINISTRATIVE AGENT AND OTHER AGENTS

         10.1. APPOINTMENT AND AUTHORIZATION.

         (a) Each of the Lenders and the Issuing Lender hereby irrevocably
appoints, designates and authorizes each of the Administrative Agent and the
Collateral Agent to take such action on its behalf under the provisions of this
Agreement and each other Loan Document and in relation to the Collateral, and to
exercise such powers and perform such duties, as are expressly delegated to it
by the terms of this Agreement or any other Loan Document, and to exercise such
other powers as are reasonably incidental thereto. Notwithstanding any provision
to the contrary contained elsewhere in this Agreement or in any other Loan
Document, neither the Administrative Agent nor the Collateral Agent shall have
any duties or responsibilities, except those expressly set forth herein or
therein, nor shall the Administrative Agent or the Collateral Agent have or be
deemed to have any fiduciary relationship with any Lender or the Issuing 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 or the Collateral Agent.

         (b) Unless the context otherwise requires, the term "ADMINISTRATIVE
AGENT", as used in this Article X shall mean and include the Collateral Agent.

         (c) The Issuing Lender shall have all of the benefits and immunities
(i) provided to the Administrative Agent in this Article X with respect to any
acts taken or omissions suffered by the Issuing Lender in connection with
Letters of Credit issued by it or proposed to be issued by it and the Letter of
Credit Applications pertaining to such Letters of Credit, in each case, as fully
as if the term "ADMINISTRATIVE AGENT" as used in this Article X, included the
Issuing Lender with respect to such acts or omissions, and (ii) as additionally
provided in this Agreement with respect to the Issuing Lender.

         (d) The relationship between the Administrative Agent and each of the
Lenders is that of an independent contractor. The use of the term
"ADMINISTRATIVE AGENT" is for convenience only and is used to describe, as a
form of convention, the independent contractual relationship between the
Administrative Agent and each of the Lenders. Nothing contained in this Credit
Agreement or the other Loan Documents shall be construed to create an agency,
trust or other fiduciary relationship between the Administrative Agent and any
of the Lenders.

         (e) As an independent contractor empowered by the Lenders to exercise
certain rights and perform certain duties and responsibilities hereunder and
under the other Loan Documents, the Administrative Agent is nevertheless a
"representative" of the Lenders, as that term is defined in Article 1 of the
Uniform Commercial Code, for purposes of actions for the benefit of the Lenders
and the Administrative Agent with respect to all Collateral and Guaranties
contemplated by the Loan Documents. Such actions include the designation of the
Administrative Agent as "secured party", "mortgagee" or the like on all
financing statements and other documents and Instruments, whether recorded or
otherwise, relating to the attachment, perfection, priority or enforcement of
any security interests, mortgages or deeds of trust in collateral security
intended to secure the payment or performance of any of the Obligations, all for
the benefit of the Lenders, the Administrative Agent and the other Secured
Parties.

<PAGE>
                                      -89-

         10.2. DELEGATION OF DUTIES. The Administrative Agent may execute any of
its duties under this Agreement or any other Loan Document or any of the
Collateral by or through agents, employees or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such duties.
The Administrative Agent shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects with reasonable
care.

         10.3. LIABILITY OF ADMINISTRATIVE AGENT. None of the Administrative
Agent, its Affiliates or any of their officers, directors, employees, agents or
attorneys-in-fact (collectively, "ADMINISTRATIVE AGENT-RELATED PERSONS") shall
(a) be liable for any action taken or omitted to be taken by any of them under
or in connection with this Agreement, any of the other Loan Documents or the
Collateral (except for their own gross negligence or willful misconduct), or (b)
be responsible in any manner to any of the Lenders or the Issuing Lender for any
recital, statement, representation or warranty made by the Parent Company, the
Borrower or any Subsidiary or Affiliate thereof, or any officer thereof,
contained in this Agreement or in 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 under or in connection with, this
Agreement or any other Loan Document or any of the Collateral, or for the
validity, effectiveness, genuineness, enforceability or sufficiency of this
Agreement or any other Loan Document or any of the Collateral, or for any
failure of the Parent Company, the Borrower or any other party to any Loan
Document to perform its obligations hereunder or thereunder. No Administrative
Agent-Related Person shall be under any obligation to any Lender, the Issuing
Lender or any of the other Agents to ascertain or to inquire as to the
observance or performance of any of the Obligations or any of the other
agreements contained in, or conditions of, this Agreement or any other Loan
Document, or to inspect any of the Collateral or any of the Properties, books or
records of the Parent Company, the Borrower or any of their Subsidiaries or
Affiliates.

         10.4. RELIANCE BY ADMINISTRATIVE AGENT.

         (a) Each of the Lenders, the Issuing Lender and the other Agents agree
that the Administrative Agent shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone message,
statement 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 counsel to the
Principal Companies), independent accountants and other experts selected by the
Administrative Agent. Each of the Lenders, the Issuing Lender and the other
Agents agrees that the Administrative Agent shall be fully justified in failing
or refusing to take any action under this Agreement or any other Loan Document
or with respect to any Collateral unless it shall first receive all such advice
or concurrence of the Required Lenders or, as required by Section 12.1, all of
the Lenders as the Administrative Agent deems appropriate and, if it so
requests, the Administrative Agent shall first be indemnified to its
satisfaction by each of the Lenders and the Issuing Lender against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. The Administrative Agent shall in all cases
be fully protected in acting, or in refraining from acting, under this Agreement
or any other Loan Document or with respect to any Collateral in accordance with
any request or consent of the Required Lenders or, as required by Section 12.1,
all of the Lenders, and such request or consent and any action taken or failure
to act pursuant thereto shall be binding upon all of the Lenders, the Issuing
Lender and the other Agents.

         (b) For purposes of determining compliance with the conditions
specified in Section 5.1 as it relates to the initial Borrowing and issuances of
Letters of Credit on the Closing Date,

<PAGE>
                                      -90-

each Lender that has executed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with each document or other matter
either sent by the Administrative Agent to such Lender for consent, approval,
acceptance or satisfaction, or required by the terms hereof to be consented to
or approved by or to be acceptable or satisfactory to such Lender, unless an
officer of the Administrative Agent responsible for the transactions
contemplated by the Loan Documents shall have received written notice from such
Lender prior to the initial Borrowing and issuances of Letters of Credit on the
Closing Date specifying in reasonable detail its objection thereto and either
such objection shall not have been withdrawn by written notice to the
Administrative Agent to that effect or such Lender shall not have made available
to the Administrative Agent such Lender's ratable portion of such Borrowing.

         10.5. NOTICE OF DEFAULT. The Administrative Agent shall not be deemed
to have knowledge or notice of the occurrence of any Default or Event of
Default, except with respect to Defaults in the payment of principal, interest
and fees required to be paid to the Administrative Agent for the account of the
Lenders or the Issuing Lender, unless the Administrative Agent shall have
received written notice from a Lender, the Parent Company or the 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 written notice, the Administrative Agent
shall give notice thereof to the Lenders and the Issuing Lender. The
Administrative Agent shall take such action with respect to such Default or
Event of Default as shall be requested by the Required Lenders or, as may be
required by Section 12.1, all of the Lenders; provided, however, that, unless
and until the Administrative Agent shall have received any such request, 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 the Administrative Agent shall deem advisable or in the best
interests of the Lenders and the Issuing Lender.

         10.6. CREDIT DECISIONS. Each of the Lenders, the Issuing Lender and the
other Agents expressly acknowledges that none of the Administrative
Agent-Related Persons has made any representation or warranty to it and that no
act by the Administrative Agent hereinafter taken, including any review of the
affairs of the Parent Company or the Borrower or of any of their Subsidiaries,
shall be deemed to constitute any representation or warranty by the
Administrative Agent to any of the Lenders, the Issuing Lender or the other
Agents. Each of the Lenders, the Issuing Lender and the other Agents represents
to the Administrative Agent that it has, independently and without reliance upon
the Administrative Agent, and based on such documents and information as it has
deemed appropriate, made its own appraisal of and investigation into the
Collateral and the business, prospects, operations, Property, financial and
other condition and creditworthiness of the Parent Company, the Borrower and
their Subsidiaries, and all Applicable Laws relating to the transactions
contemplated thereby, and made its own decision to enter into this Agreement and
extend credit to the Borrower hereunder. Each of the Lenders, the Issuing Lender
and the other Agents also represents that it will, independently and without
reliance upon the Administrative Agent, 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 or with respect to any of the
Collateral, and to make such investigations as it deems necessary to inform
itself as to the business, prospects, operations, Property, financial and other
condition and creditworthiness of the Parent Company, the Borrower and their
Subsidiaries and the Collateral. Except for notices, reports and other documents
expressly herein required to be furnished to the Lenders, the Issuing Lender or
the other Agents by the Administrative Agent, the Administrative Agent shall not
have any duty or responsibility to provide any of the Lenders, the Issuing
Lender or the other
<PAGE>
                                      -91-

         Agents with any credit or other information concerning the Collateral
or the business, prospects, operations, Property, financial or other condition
or creditworthiness of the Parent Company, the Borrower or of any of their
Subsidiaries which may come into the possession of any of the Administrative
Agent-Related Persons.

         10.7. INDEMNIFICATION. Whether or not any of the transactions
contemplated hereby shall be consummated, each of the Lenders shall indemnify,
upon demand, each of the Administrative Agent-Related Persons (to the extent not
reimbursed by or on behalf of the Parent Company or the Borrower, and without
limiting the Obligations of Parent Company or the Borrower to do so), ratably
from and against any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses and disbursements of any
kind whatsoever which may at any time (including at any time following the
expiration of the Letters of Credit and the repayment of the Loans and the
resignation of the Administrative Agent) be imposed on, incurred by or asserted
against any such Person in any way relating to or arising out of this Agreement,
any other Loan Document, any document contemplated by or referred to herein or
therein, the Collateral, or the transactions contemplated hereby or thereby or
any action taken or omitted by any such Person under or in connection with any
of the foregoing; provided, however, that none of the Lenders shall be liable
for the payment to any of the Administrative Agent-Related Persons of any
portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements to the extent arising from
such Person's gross negligence or willful misconduct. Without limitation of the
foregoing, each of the Lenders shall reimburse the Administrative Agent upon
demand for such Lender's ratable share of any fees, costs or out-of-pocket
expenses (including Attorney Costs) incurred by the Administrative Agent in
connection with the administration, modification, amendment or enforcement
(whether through negotiations, legal proceedings or otherwise) of, or legal
advice in respect of rights or responsibilities under, this Agreement, any other
Loan Document, any document contemplated by or referred to herein or any of the
Collateral, in each case, to the extent that the Administrative Agent is not
reimbursed for such expenses by or on behalf of the Parent Company or the
Borrower. Without limiting the generality of the foregoing, if the U.S. Internal
Revenue Service or any other Governmental Authority of the United States or any
other jurisdiction asserts a claim that the Administrative Agent did not
properly withhold tax from amounts paid to or for the account of any Lender
(because the appropriate form was not delivered or was not properly executed, or
because such Lender failed to notify the Administrative Agent of a change in
circumstances which rendered the exemption from, or reduction of, withholding
tax ineffective, or for any other reason), such Lender shall indemnify the
Administrative Agent fully for all amounts paid as a result thereof, directly or
indirectly, by the Administrative Agent as tax or otherwise, including penalties
and interest, and including any taxes imposed by any jurisdiction on the amounts
payable to the Administrative Agent under this Section 10.7, together with all
related fees, costs and expenses (including Attorney Costs). The obligations of
each of the Lenders in this Section 10.7 shall survive the payment of all of the
Obligations hereunder.

         10.8. ADMINISTRATIVE AGENT IN ITS INDIVIDUAL CAPACITY. Fleet National
Bank and its Affiliates may make loans to, issue letters of credit for the
account of, accept deposits from, acquire Equity Interests in and generally
engage in any kind of banking, trust, financial advisory or other business with,
the Parent Company, the Borrower and their Subsidiaries and Affiliates as though
Fleet National Bank were not the Administrative Agent, the Collateral Agent or
the Issuing Lender hereunder and without notice to or consent of the Lenders or
other Agents. With respect to its Loans and its participations in Letters of
Credit, Fleet National Bank shall have the same rights and powers under this
Agreement and the other Loan Documents as any other Lender and may exercise the
same as though it were not the Administrative Agent, the Collateral Agent
<PAGE>
                                      -92-

or the Issuing Lender; and the terms "LENDER" and "LENDERS" shall include Fleet
National Bank, acting in its individual capacity as a Lender hereunder.

         10.9. SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may
resign as Administrative Agent upon not less than thirty (30) days' prior
written notice to the Lenders and the Borrower, such notice to specify the
effective date of resignation. If the Administrative Agent shall resign as
Administrative Agent under this Agreement, the Required Lenders shall appoint
from among the Lenders a successor agent for the Lenders and the Issuing Lender,
which successor agent shall be subject to the approval of the Borrower if no
Event of Default is continuing, such approval not to be unreasonably withheld or
delayed. If no successor agent is appointed prior to the effective date of
resignation of the Administrative Agent, the Administrative Agent may appoint,
after consulting with the Lenders, and subject to the approval of the Borrower
if no Event of Default is continuing, such approval not to be unreasonably
withheld or delayed, a successor agent from among the Lenders or any Lender
Affiliate. Any successor Administrative Agent appointed under this Section 10.9
shall be a commercial bank organized under the laws of the United States or any
State thereof, and having a combined capital and surplus of at least
$500,000,000. Upon the acceptance of its appointment as successor agent
hereunder, such successor agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent; and the term "ADMINISTRATIVE AGENT"
shall mean such successor agent, and the retiring Administrative Agent's
appointment, powers and duties as Administrative Agent shall be terminated.
After any retiring Administrative Agent's resignation hereunder as
Administrative Agent, the provisions of this Article X and Sections 12.4 and
12.5 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 Collateral
Agent. If no successor agent has accepted appointment as Administrative Agent by
the effective date of resignation specified in the retiring Administrative
Agent's written notice of resignation, the retiring Administrative Agent's
resignation shall nevertheless become effective upon the effective date of
resignation so specified, and the Lenders shall perform all of the duties of the
Administrative Agent under the Loan Documents until such time, if any, as the
Required Lenders appoint a successor agent as provided for above.

         10.10. COLLATERAL DOCUMENTS AND GUARANTY AGREEMENT.

         (a) Each of the Lenders, the Issuing Lender and the other Agents hereby
further authorizes the Administrative Agent, on behalf of and for the benefit of
Lenders, the Issuing Lender and the other Agents, to be the agent for and
representative of Lenders, the Issuing Lender and the other Agents with respect
to the Guaranty Agreement, the Collateral and the Collateral Documents.

         (b) Anything herein express or implied to the contrary notwithstanding,
without any notice to or consent, approval or authorization from any of the
Lenders, the Issuing Lender or the Agents, the Administrative Agent may at any
time or from time to time execute any Instruments necessary to (i) release any
Liens encumbering any item of Collateral, or (as the case may be) release from
the Guaranty Agreement any Subsidiary Guarantor, that is (in each such case) the
subject of a Sale or (as the case may be) Disposition permitted by any of the
Loan Documents or to which Required Lenders (or such other Lenders as may be
required to give such consent under Section 12.1) have otherwise consented, or
(ii) release any Subsidiary Guarantor from the Guaranty Agreement if and to the
extent that such release is otherwise permitted by the terms of the Loan
Documents.

<PAGE>
                                      -93-

         (c) Anything contained in any of the Loan Documents to the contrary
notwithstanding, the Administrative Agent, each of the Lenders, the Issuing
Lender and the other Agents hereby agree that (i) none of the Lenders or the
Issuing Lender shall have any rights individually to realize upon any of the
Collateral or to enforce the Guaranty Agreement, it being understood and agreed
that all of the powers, rights and remedies with respect to the Collateral and
the Guaranty Agreement may be exercised solely by the Administrative Agent for
the benefit of the Lenders, the Issuing Lender and the Agents in accordance with
the terms hereof and thereof, and (ii) in the event of any foreclosure by the
Administrative Agent on any of the Collateral pursuant to a public or private
Sale, the Administrative Agent or any Lender may be the purchaser of any or all
of such Collateral at any such Sale, and the Administrative Agent, as agent for
and representative of the Lenders (but not any Lender or Lenders in its or their
respective individual capacities, unless the Required Lenders shall otherwise
agree in writing), shall be entitled, for the purpose of bidding and making
settlement or payment of the purchase price for all or any portion of the
Collateral sold at any such Sale, to use and apply any of the Obligations as a
credit on account of the purchase price payable by the Administrative Agent for
any Collateral at such Sale.

         10.11. OTHER AGENTS. None of the Syndication Agent, in such capacity,
the Documentation Agents, in such capacity, or the Lead Arranger, in such
capacity, shall have any duties or responsibilities, or shall incur any
obligations or liabilities, under this Agreement or any of the other Loan
Documents. Each Lender acknowledges that it has not relied, and will not rely,
on any of the Syndication Agent, Documentation Agents or the Lead Arranger in
deciding to enter into this Agreement or in making any Credit Extensions
hereunder.

                                   ARTICLE XI.

                             SUCCESSORS AND ASSIGNS

         11.1. GENERAL CONDITIONS. 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 none of the Principal
Companies may assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of each Lender, and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder EXCEPT
(a) to an Eligible Assignee in accordance with the provisions of Section 11.2,
(b) by way of participation in accordance with the provisions of Section 11.4,
or (c) by way of pledge or assignment of a security interest subject to the
restrictions of Section 11.6 (and any other attempted assignment or transfer by
any party hereto 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, their respective successors and assigns permitted hereby, Participants
to the extent provided in Section 11.4 and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent and the Lenders)
any legal or equitable right, remedy or claim under or by reason of this
Agreement or any of the other Loan Documents.

         11.2. ASSIGNMENTS. Any Lender may at any time assign to one or more
Eligible Assignees all or any portion of its rights and obligations under this
Agreement (including all or any portion of its Commitments and the Loans at the
time owing to it); provided that (a) except in the case of an assignment of the
entire remaining amount of the assigning Lender's Commitments and the Loans at
the time owing to it, or in the case of an assignment to a Lender or a Lender
Affiliate, the aggregate amount of the Commitments (which for this purpose
includes Loans outstanding thereunder) or, if the applicable Commitments are not
then in effect, the principal

<PAGE>
                                      -94-

outstanding balance of the Loans of the assigning Lender subject to each such
assignment (determined as of the date on which the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative Agent) shall
not be less than $3,000,000 unless each of the Administrative Agent and, so long
as no Default or Event of Default has occurred and is continuing, the Borrower
otherwise consents (each such consent not to be unreasonably withheld or
delayed); (b) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender's rights and obligations under
this Credit Agreement with respect to the Term Loans, Revolving Loans, Letter of
Credit Obligations and Revolving Commitments assigned, it being understood that
non-pro rata assignments of or among any of the Revolving Commitments, the
Revolving Loans, Letter of Credit Obligations, and Term Loans are not permitted;
and (c) 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. Subject to acceptance and recording thereof by the Administrative
Agent pursuant to Section 11.3, from and after the effective date specified in
each Assignment and Acceptance, the Eligible Assignee thereunder shall be a
party to this Agreement 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 Sections 4.1, 4.3, 4.4, 12.4 and 12.5 with
respect to facts and circumstances occurring prior to the effective date of such
assignment. Any assignment or transfer by a Lender of rights or obligations
under this Agreement that does not comply with this Section 11.2 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 Section 11.4.

         11.3. REGISTER. The Administrative Agent, acting solely for this
purpose as an agent of the Principal Companies, shall maintain at the
Administrative Agent's Office 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 Commitments of, and principal amounts 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, and the Principal Companies, 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 Principal Companies and any
Lender, at any reasonable time and from time to time upon reasonable prior
notice.

         11.4. PARTICIPATIONS. Any Lender may at any time, without the consent
of, or notice to, the Principal Companies or the Administrative Agent, sell
participations to any Person (other than a natural person) (each, a
"PARTICIPANT") in all or any portion of such Lender's rights and/or obligations
under this Agreement (including all or any portion of its Commitments and/or the
Loans owing to it); provided that (a) such Lender's obligations under this
Agreement shall remain unchanged, (b) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations,
and (c) the Principal Companies, 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
approve any amendment, modification or waiver

<PAGE>
                                      -95-

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 that would reduce the principal
of or the interest rate on any Loans, extend the term or increase the amount of
the Commitments of such Lender as it relates to such Participant, reduce the
amount of any fees to which such Participant is entitled or extend any regularly
scheduled payment date for principal or interest. Subject to Section 11.5, each
of the Principal Companies agrees that each Participant shall be entitled to the
benefits of Sections 4.1, 4.3, 4.4, 12.4 and 12.5 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to Section
11.2. To the extent permitted by law, each Participant also shall be entitled to
the benefits of Section 12.7 as though it were a Lender; provided such
Participant agrees to be subject to Section 12.7 as though it were a Lender.

         11.5. PAYMENTS TO PARTICIPANTS. A Participant shall not be entitled to
receive any greater payment under any of Section 4.1, 4.3 or 4.4 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 Borrower's prior written consent.

         11.6. MISCELLANEOUS ASSIGNMENT PROVISIONS. A Lender may at any time
grant a security interest in all or any portion of its rights under this
Agreement to secure obligations of such Lender, including, without limitation,
(a) any pledge or assignment to secure obligations to any of the twelve Federal
Reserve Banks organized under Section 4 of the Federal Reserve Act, 12 U.S.C.
Section 341, and (b) with respect to any Lender that is a Fund, to any lender or
any trustee for, or any other representative of, holders of obligations owed or
securities issued by such Fund as security for such obligations or securities or
any institutional custodian for such Fund or for such lender; provided that no
such grant shall release such Lender from any of its obligations hereunder,
provide any voting rights hereunder to the secured party thereof, substitute any
such secured party for such Lender as a party hereto or affect any rights or
obligations of the Principal Companies or Administrative Agent hereunder.

         11.7. ASSIGNEE OR PARTICIPANT AFFILIATED WITH THE PRINCIPAL COMPANIES.
If any assignee Lender is an Affiliate of either of the Principal Companies,
then any such assignee Lender shall have no right to vote as a Lender hereunder
or under any of the other Loan Documents for purposes of granting consents or
waivers or for purposes of agreeing to amendments or other modifications to any
of the Loan Documents or for purposes of making requests to the Administrative
Agent pursuant to Section 9.1 or Section 9.2, and the determination of the
Required Lenders shall for all purposes of this Agreement and the other Loan
Documents be made without regard to such assignee Lender's interest in any of
the Loans or Letter of Credit Obligations. If any Lender sells a participating
interest in any of the Loans or Letter of Credit Obligations to a Participant,
and such Participant is a Principal Company or an Affiliate of a Principal
Company, then such transferor Lender shall promptly notify the Administrative
Agent of the sale of such participation. A transferor Lender shall have no right
to vote as a Lender hereunder or under any of the other Loan Documents for
purposes of granting consents or waivers or for purposes of agreeing to
amendments or modifications to any of the Loan Documents or for purposes of
making requests to the Administrative Agent pursuant to Section 9.1 or Section
9.2 to the extent that such participation is beneficially owned by a Principal
Company or any Affiliate of a Principal Company, and the determination of the
Required Lenders shall for all purposes of this Agreement and the other Loan
Documents be made without regard to the interest of such transferor Lender in
the Loans or Letter of Credit Obligations to the extent of such participation.

<PAGE>
                                      -96-

         11.8. NEW NOTES. Upon its receipt of an Assignment and Acceptance
executed by the parties to such assignment, together with each Note subject to
such assignment, the Administrative Agent shall (a) record the information
contained therein in the Register, and (b) give prompt notice thereof to the
Borrower and the Lenders (other than the assigning Lender). Within five (5)
Business Days after receipt of such notice, the Borrower, at its own expense,
shall execute and deliver to the Administrative Agent, in exchange for each
surrendered Note, a new Note to the order of such Assignee in an amount equal to
the amount assumed by such Assignee pursuant to such Assignment and Acceptance
and, if the assigning Lender has retained some portion of its obligations
hereunder, a new Note to the order of the assigning Lender in an amount equal to
the amount retained by it hereunder. Such new Notes shall provide that they are
replacements for the surrendered Notes, shall be in an aggregate principal
amount equal to the aggregate principal amount of the surrendered Notes, shall
be dated the effective date of such Assignment and Acceptance and shall
otherwise be in substantially the form of the assigned Notes. Within twenty (20)
Business Days after issuance of any new Notes pursuant to this Section 11.8, the
Borrower shall deliver, upon the request of the assignee Lender, an opinion of
counsel, addressed to the Lenders and the Administrative Agent, relating to the
due authorization, execution and delivery of such new Notes and the legality,
validity and binding effect thereof, in form and substance satisfactory to the
Lenders. The surrendered Notes shall be cancelled and returned to the Borrower.

         11.9. SPECIAL PURPOSE FUNDING VEHICLE. Notwithstanding anything to the
contrary contained in this Section 11, any Lender (a "GRANTING LENDER") may
grant to a special purpose funding vehicle (an "SPC") of such Granting Lender,
identified as such in writing from time to time delivered by the Granting Lender
to the Administrative Agent and the Borrower, the option to provide to the
Borrower all or any part of any Loan that such Granting Lender would otherwise
be obligated to make to the Borrower pursuant to this Agreement; provided,
however, that (a) nothing herein shall constitute a commitment to make any Loan
by any SPC; (b) the Granting Lender's obligations under this Agreement shall
remain unchanged; (c) the Granting Lender shall retain the sole right to enforce
this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; and (d) if any SPC elects not to exercise such
option or otherwise fails to provide all or any part of such Loan, the Granting
Lender shall be obligated to make such Loan pursuant to the terms hereof. The
making of any Loan by an SPC hereunder shall utilize the Commitment of the
Granting Lender to the same extent, and as if, such Loan were made by the
Granting Lender. Each party hereto hereby agrees that no SPC shall be liable for
any expense reimbursement, indemnity or similar payment obligation under this
Agreement (all liability for which shall remain with the Granting Lender). In
furtherance of the foregoing, each party hereto hereby agrees (which agreement
shall survive the termination of this Agreement) that, prior to the date that is
one year and one day after the later of (i) the payment in full of all
outstanding senior indebtedness of any SPC, and (ii) the Maturity Date, it will
not institute against, or join any other person in instituting against, such SPC
any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings or similar proceedings under the laws of the United States of
America or any State thereof. In addition, notwithstanding anything to the
contrary contained in this Section 11.9, any SPC may (A) with notice to, but
(except as specified below) without the prior written consent of, the Principal
Companies or the Administrative Agent and without paying any processing fee
therefor, assign all or any portion of its interests in any Loans to its
Granting Lender or to any financial institutions (consented to by the
Administrative Agent and, so long as no Default has occurred and is continuing,
the Borrower, which consents shall not be unreasonably withheld or delayed)
providing liquidity and/or credit facilities to or for the account of such SPC
to fund the Loans made by such SPC or to support the securities (if any) issued
by such SPC to fund such Loans, and (B) disclose on a

<PAGE>
                                      -97-

confidential basis any non-public information relating to its Loans (other than
financial statements referred to in Section 6.8, 7.1 or 7.2) to any rating
agency, commercial paper dealer or provider of a surety, guarantee or credit or
liquidity enhancement to such SPC. In no event shall the Principal Companies be
obligated to pay to any SPC that has made any Loan any greater amount than the
Principal Companies would have been obligated to pay under this Agreement if the
Granting Lender had made such Loan. An amendment to this Section 11.9 without
the written consent of an SPC shall be ineffective insofar as it alters the
rights and obligations of such SPC.

                                  ARTICLE XII.

                                  MISCELLANEOUS

         12.1. AMENDMENTS AND WAIVERS.

         (a) Except as otherwise provided by any of paragraph (b), (c) or (d) of
this Section 12.1 or by Section 2.15, no amendment, termination or waiver of any
provision of this Agreement or of any of the other Loan Documents, and no
consent with respect to any departure by the Parent Company or the Borrower or
by any other Credit Party therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Required Lenders, and then such
amendment, termination, waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given.

         (b) No such amendment, termination, waiver or consent shall be
effective to: (i) increase the Commitment of any Lender without the written
consent of such Lender; (ii) reduce the principal amount of any Loan or Letter
of Credit Obligation or reduce the rate of interest thereon, or reduce any fees
payable hereunder, without the written consent of each Lender affected thereby;
(iii) postpone the maturity of any Loan, or postpone any scheduled date of
payment of the principal amount of any Term Loan under Section 2.8, or postpone
any scheduled reduction in the aggregate principal amount of the Revolving
Commitments under Section 2.5, or postpone the required date of reimbursement of
any Letter of Credit Obligation, or postpone any date for the payment of any
interest or fees payable hereunder, or reduce the amount of or otherwise waive
or excuse any such payment or reduction, or postpone the scheduled date of
expiration of any Commitment, without the written consent of each Lender
affected thereby; (iv) change Section 2.12(d), Section 2.14 or Section 3.14 in
any manner that would alter the pro rata sharing of payments required thereby,
without the written consent of each Lender; (v) change any of the provisions of
this Section 12.1 or the percentage set forth in the definition of "REQUIRED
LENDERS" or any other provisions of any Loan Document specifying the number or
percentage of Lenders (or Lenders of any Class) required to waive, amend or
modify any rights thereunder or make any determination or grant any consent
thereunder, without the written consent of each Lender (or each Lender of such
Class, as the case may be); (vi) release the Parent Company or any Subsidiary
Guarantor from its Guaranty under the Guaranty Agreement (except as otherwise
provided in or permitted by this Agreement, the Guaranty Agreement or any of the
other Loan Documents in connection with any Disposition or Sale permitted by
Section 8.5), without the written consent of each Lender; (vii) release all or
substantially all of the Collateral from the Liens of the Collateral Documents,
without the written consent of each Lender; or (viii) change any provisions of
any Loan Document in a manner that by its terms adversely affects the rights in
respect of payments due to Lenders holding Loans of any Class differently than
those holding Loans of any other Class, without the written consent of Lenders
holding a majority in interest of the outstanding Loans and unused Commitments
of each affected Class (in addition to any

<PAGE>
                                      -98-

consent required under any other clause of this Section 12.1); provided,
further, that any waiver, amendment or modification of this Agreement or any
other Loan Document that by its terms affects the rights or duties under this
Agreement with respect to any Class of Loans, but not any of the other Classes
of Loans, may be effected by an agreement or agreements in writing entered into
by the Principal Companies and requisite percentage in interest of the affected
Class of Lenders that would be required to consent thereto under this Section
12.1 if such Class of Lenders were the only Class of Lenders hereunder at the
time.

         (c) No such amendment, termination or waiver of any provision of any of
the Loan Documents, or consent to any departure by any Credit Party therefrom,
shall in any event be effective to: (i) amend, terminate or waive any provision
of Article X as the same applies to any Agent, or any other provision of any of
the Loan Documents as the same applies to the rights or obligations of any
Agent, in each case, without the consent of such Agent; (ii) affect the rights
or duties of the Issuing Lender under this Agreement or any of the Letter of
Credit Related Documents, in each case, without the consent of the Issuing
Lender; (iii) affect the rights or duties of the Administrative Agent under this
Agreement or any of the other Loan Documents, in each case, without the consent
of the Administrative Agent; (iv) affect the rights or duties of the Collateral
Agent under any of the Collateral Documents or any of the other Loan Documents,
in each case, without the consent of the Administrative Agent; or (v) amend,
terminate or waive any obligations of the Revolving Lenders relating to the
purchase of participations in Letters of Credit as provided in Article III,
without the consent of each of the Administrative Agent and the Issuing Lender.

         (d) Notwithstanding the foregoing, any provision of this Agreement may
be amended by an agreement in writing entered into by the Principal Companies,
the Required Lenders and the Administrative Agent (and, if its rights or
obligations are affected thereby, the Issuing Lender) if (i) by the terms of
such agreement the Commitment of each Lender not consenting to the amendment
provided for therein shall terminate upon the effectiveness of such amendment,
and (ii) at the time such amendment becomes effective, each Lender not
consenting thereto receives payment in full of the principal of and interest
accrued on each Loan made by it and all other amounts owing to it or accrued for
its account under this Agreement.

         (e) The Administrative Agent may, but shall have no obligation to, with
the concurrence of any Lender, execute amendments, waivers or consents for and
on behalf of such Lender. Any waiver or consent under this Agreement or any of
the other Loan Documents shall in any event be effective only in the specific
instance and for the specific purpose for which it was given. No notice to or
demand on any Credit Party in any case shall entitle any Credit Party to any
other or further notice or demand in similar or other circumstances. Any
amendment, termination, waiver or consent effected in accordance with this
Section 12.1 shall be binding upon each Lender at the time a party to this
Agreement, each future Lender and, if signed by a Credit Party, on such Credit
Party.

         12.2. NOTICES.

         (a) All notices, requests and other communications provided for
hereunder shall be in writing (including, unless the context expressly otherwise
provides, facsimile transmission) and mailed, transmitted by facsimile or
delivered: (i) if to the Parent Company or the Borrower, to the address or
facsimile number specified for notices on the applicable signature page hereof;
(ii) if to the Administrative Agent, the Issuing Lender or any Lender, to the
notice address set forth on Schedule 1; or (iii) if to the Parent Company or the
Borrower or to the Administrative

<PAGE>
                                      -99-

Agent, to such other address as shall be designated by such party in a written
notice to each of the other parties, and if to any other party, to such other
address as shall be designated by such party in a written notice to the Borrower
and the Administrative Agent.

         (b) All such notices, requests and communications shall be effective
when received or (as the case may be) transmitted by facsimile; provided,
however, that any matter transmitted by facsimile (i) shall be immediately
confirmed by a telephone call to the recipient at the number specified on the
applicable signature page hereof or on Schedule 1, and (ii) shall be followed
promptly by a hard copy of the original thereof; EXCEPT that notices to the
Administrative Agent shall not be effective until actually received by the
Administrative Agent, and notices pursuant to Article III to the Issuing Lender
shall not be effective until actually received by the Issuing Lender.

         (c) Each of the Principal Companies acknowledges and agrees that any
agreement of the Administrative Agent, the Issuing Lender and the Lenders set
forth in Articles II and III herein to receive certain notices by telephone and
facsimile is solely for the convenience and at the request of the Borrower. The
Administrative Agent, the Issuing Lender and the Lenders shall be entitled to
rely on the authority of any Person purporting to be a Person authorized by the
Borrower to give such notice, and the Administrative Agent, the Issuing Lender
and the Lenders shall not have any liability to the Borrower, the Parent Company
or any other Person on account of any action taken or not taken by any of the
Administrative Agent, the Issuing Lender or the Lenders in reliance upon any
such telephonic or facsimile notice. The Obligations of the Borrower to repay
the Loans, Letter of Credit Borrowings and other Credit Extensions shall not be
affected in any way or to any extent by any failure by any of the Administrative
Agent, the Issuing Lender or the Lenders to receive written confirmation of any
telephonic or facsimile notice or the receipt by any of the Administrative
Agent, the Issuing Lender or the Lenders of a confirmation which is at variance
with the terms understood by the Administrative Agent, the Issuing Lender or the
Lenders to be contained in the telephonic or facsimile notice.

         12.3. NO WAIVER; CUMULATIVE REMEDIES. No failure to exercise and no
delay in exercising, on the part of the Administrative Agent, any of the
Lenders, the Issuing Lender or any of the other Agents, any right, remedy, power
or privilege under any of the Loan Documents shall operate as a waiver thereof;
nor shall any single or partial exercise by any such Person of any right,
remedy, power or privilege under any of the Loan Documents preclude any other or
further exercise thereof by such Person or by any of the other such Persons or
the exercise of any other right, remedy, power or privilege by any of such
Persons. The rights, powers and remedies given to each of the Administrative
Agent, the Lenders, the Issuing Lender and the other Agents hereby are
cumulative and shall be in addition to and independent of all rights, powers and
remedies existing by virtue of any statute or rule of law or in any of the other
Loan Documents or any of the Specified Hedge Agreements.

         12.4. COSTS AND EXPENSES. The Parent Company and the Borrower shall,
whether or not any of the transactions contemplated by this Agreement or any of
the other Loan Documents shall be consummated:

         (a) pay or reimburse, on demand, all reasonable costs and expenses
actually incurred or sustained by the Administrative Agent from time to time in
connection with the development, preparation, delivery or syndication of the
Commitments under, or execution and delivery of, or any amendment, supplement,
waiver or modification to (in each case, whether or not consummated), this
Agreement, any of the other Loan Documents, any of the Collateral or any of

<PAGE>
                                     -100-

the other Instruments or documents prepared in connection herewith or therewith,
or the consummation of any of the transactions contemplated hereby or thereby,
including the Attorney Costs actually incurred or sustained by the
Administrative Agent in connection therewith or with respect thereto;

         (b) pay or reimburse each of the Lenders, the Issuing Lender and the
Agents, on demand, for all reasonable costs and expenses actually incurred or
sustained by them from time to time in connection with the enforcement,
attempted enforcement or preservation of any rights or remedies (including in
connection with any "workout" or restructuring relating to the Loans or any of
the Obligations or Collateral, and including in connection with any Insolvency
Proceedings involving the Parent Company, the Borrower or any of their
Subsidiaries) under this Agreement, any of the other Loan Documents or any of
such other Instruments or documents, or in relation to any of the Collateral,
including Attorney Costs and all of the reasonable fees, costs and expenses of
any consultants actually incurred by the Administrative Agent or by any of the
Lenders; and

         (c) pay or reimburse the Administrative Agent and the Issuing Lender,
on demand, for all reasonable appraisal (including, without duplication, the
allocated cost of internal appraisal services), audit, environmental inspection
and review (including, without duplication, the allocated costs of such internal
services), search and filing fees, costs and expenses, actually incurred or
sustained by the Administrative Agent from time to time in connection with any
of the matters referred to under paragraphs (a) or (b) of this Section 12.4.

         12.5. INDEMNITY.

         (a) Each of the Principal Companies, jointly and severally, shall
indemnify the Administrative Agent, the Issuing Lender and each Lender, and each
Related Party of any of the foregoing Persons (each such Person being herein
called an "INDEMNITEE") against, and hold each Indemnitee harmless from, any and
all losses, claims, damages, liabilities and related expenses, including the
fees, charges and disbursements of any counsel for any Indemnitee, incurred by
or asserted against any Indemnitee arising out of, in connection with, or as a
result of (i) the execution or delivery of any Loan Document or any other
agreement or Instrument contemplated hereby, the performance by the parties to
the Loan Documents of their respective obligations thereunder or the
consummation of any of the Transactions or any other transactions contemplated
hereby, (ii) any Loan or Letter of Credit or the use of any of the proceeds
therefrom (including any refusal by the Issuing Lender to honor a demand for
payment under any Letter of Credit if the documents presented in connection with
such demand do not strictly comply with the terms of such Letter of Credit),
(iii) any actual or alleged presence or release of Hazardous Materials on or
from any Property currently or formerly owned or operated by the Principal
Companies or any of their Subsidiaries, or any Environmental Liability related
in any way to the Principal Companies or any of their Subsidiaries, or (iv) any
claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory and regardless of whether
any Indemnitee is a party thereto; provided that such indemnity shall not, as to
any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee.

         (b) To the extent that the Principal Companies shall fail to pay any
amount required to be paid by the Principal Companies to the Administrative
Agent or the Issuing Lender under

<PAGE>
                                     -101-

Section 12.4 or paragraph (b) of this Section 12.5, each Lender severally agrees
to pay to the Administrative Agent or the Issuing Lender, as the case may be,
such Lender's pro rata share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted
against the Administrative Agent or the Issuing Lender in its capacity as such.
For purposes hereof, a Lender's "pro rata share" shall be determined on the
basis of its proportionate share of the sum of all outstanding Loans, unused
Commitments and Letter of Credit Obligations at the time.

         (c) To the extent permitted by Applicable Law, each of the Principal
Companies hereby unconditionally agrees that the Principal Companies shall not
assert, and each of the Principal Companies hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or
punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any other Loan Document,
agreement or Instrument contemplated hereby, the Transactions, any Loan or
Letter of Credit or the use of any of the proceeds thereof.

         (d) All amounts due under this Section 12.5 shall be payable promptly
by the Principal Companies after written demand therefor.

         12.6. CONFIDENTIALITY. Each Lender shall hold all non-public
information obtained pursuant to the requirements hereof which has been
identified as confidential by Parent Company or the Borrower in accordance with
such Lender's customary procedures for handling confidential information of this
nature and in accordance with prudent banking practices, it being understood and
agreed by the Principal Companies that, in any event, a Lender may make
disclosures to Affiliates of such Lender or disclosures reasonably required by
any bona fide or potential assignee, transferee or participant in connection
with the contemplated assignment, transfer or participation by such Lender of
any Loans or any participations therein or disclosures required or requested by
any Governmental Authority or representative thereof or pursuant to legal
process; provided, however, unless specifically prohibited by Applicable Law or
court order, each Lender shall notify the Borrower of any request by any
Governmental Authority or representative thereof (other than any such request in
connection with any examination of such Lender by such Governmental Authority)
for disclosure of any such non-public information prior to disclosure of such
information; and, provided further, in no event shall any Lender be obligated or
required to return any materials furnished by the Borrower or by the Parent
Company or any of their Subsidiaries.

         12.7. SET-OFF. In addition to any other rights and remedies of the
Lenders provided by law, and regardless of the adequacy of any Collateral, if
any Event of Default shall be continuing, each Lender is authorized at any time
and from time to time, without prior notice to the Parent Company or the
Borrower, any such notice being irrevocably waived by each of the Principal
Companies to the fullest extent permitted by law, to set off and apply, to the
fullest extent permitted by Applicable Law, any and all deposits (general or
special, time or demand, provisional or final) at any time held by, and other
indebtedness at any time owing by, such Lender to or for the credit or the
account of the Parent Company or the Borrower against any and all Obligations
owing to such Lender, now or at any time hereafter created, arising or existing,
irrespective of whether or not the Administrative Agent or such Lender shall
have made demand under this Agreement or any other Loan Document and although
such Obligations may be contingent or unmatured. Each Lender agrees promptly to
notify the Parent Company, the

<PAGE>
                                     -102-

Borrower and the Administrative Agent after any such set-off and application
made by such Lender; provided, however, that the failure to give any such notice
shall not affect the validity of such set-off and application. The rights of
each Lender under this Section 12.7 are in addition to all of the other rights
and remedies (including other rights of set-off) which such Lender may have.

         12.8. SURVIVAL OF REPRESENTATIONS, WARRANTIES AND AGREEMENTS. All
representations, warranties and agreements made herein shall survive the
execution and delivery hereof and the making of each Credit Extension.
Notwithstanding anything herein or implied by law to the contrary, the
agreements of each Credit Party set forth in Sections 4.1, 4.3, 4.4, 12.4, 12.5
and 12.7 shall survive the payment of the Loans, the cancellation or expiration
of the Letters of Credit and the reimbursement of any amounts drawn thereunder,
and the termination hereof. The agreements of the Parent Company set forth in
the Fee Letter, dated as of May 15, 2003, by and among the Parent Company, Fleet
National Bank and Fleet Securities Inc., shall survive the execution and
delivery of this Agreement and the making of each Credit Extension.

         12.9. MARSHALLING; PAYMENTS SET ASIDE. Neither the Administrative Agent
nor any Lender shall be under any obligation to marshal any assets in favor of
any Credit Party or any other Person or against or in payment of any or all of
the Obligations. To the extent that any Credit Party makes any payment or
payments to the Administrative Agent or Lenders (or to the Administrative Agent
for the benefit of Lenders), or the Administrative Agent or the Lenders enforce
any security interests or exercise their rights of setoff, and such payment or
payments or the proceeds of such enforcement or setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
and/or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, any other state or federal law, common law or any equitable
cause, then, to the extent of such recovery, the Obligations or part thereof
originally intended to be satisfied, and all Liens, rights and remedies therefor
or related thereto, shall be revived and continued in full force and effect as
if such payment or payments had not been made or such enforcement or set-off had
not occurred.

         12.10. OBLIGATIONS SEVERAL; INDEPENDENT NATURE OF LENDERS' RIGHTS. The
obligations of the Lenders hereunder are several, and no Lender shall be
responsible for the obligations or Commitments of any other Lender hereunder.
Nothing contained herein or in any other Loan Document, and no action taken by
the Lenders pursuant hereto or thereto, shall be deemed to constitute the
Lenders as a partnership, an association, a joint venture or any other kind of
entity. The amounts payable at any time hereunder to each Lender shall, except
as otherwise expressly provided hereby, be a separate and independent debt, and
each Lender shall be entitled to protect and enforce its rights arising out of
this Agreement and the other Loan Documents, and it shall not be necessary for
any other Lender to be joined as an additional party in any proceeding for such
purpose.

         12.11. NOTIFICATION OF ADDRESSES, LENDING OFFICES; ETC. Each Lender
shall notify the Administrative Agent in writing of any changes in the address
to which notices to such Lender should be directed, of addresses of its Lending
Office, of payment instructions in respect of all payments to be made to it
hereunder and of such other administrative information as the Administrative
Agent shall reasonably request.

         12.12. COUNTERPARTS. This Agreement may be executed by one or more of
the parties to this Agreement in any number of separate counterparts, each of
which, when so executed, shall be deemed an original, and all of said
counterparts taken together shall be deemed to constitute but

<PAGE>
                                     -103-

one and the same Instrument. A set of the copies of this Agreement signed by all
of the parties shall be lodged with the Borrower and the Administrative Agent.

         12.13. SEVERABILITY. The illegality or unenforceability of any
provision of this Agreement or any Instrument required hereunder shall not in
any way affect or impair the legality or enforceability of the remaining
provisions of this Agreement or any Instrument required hereunder.

         12.14. NO THIRD PARTIES BENEFITED. This Agreement is made and entered
into for the sole protection and legal benefit of the parties hereto and their
permitted successors and assigns, and no other Person shall be a direct or
indirect legal beneficiary of, or have any direct or indirect cause of action or
claim in connection with, this Agreement or any of the other Loan Documents.
None of the Administrative Agent, the Issuing Lender or any the Lenders shall
have any obligations to any Person not a party to this Agreement or any other
Loan Document.

         12.15. GOVERNING LAW AND JURISDICTION; WAIVER OF TRIAL BY JURY.

         (A) GOVERNING LAW. THIS AGREEMENT AND EACH OF THE OTHER LOAN DOCUMENTS
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
COMMONWEALTH OF MASSACHUSETTS.

         (B) JURISDICTION. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENTS MAY BE BROUGHT IN THE COURTS OF THE
COMMONWEALTH OF MASSACHUSETTS OR OF THE UNITED STATES FOR THE DISTRICT OF
MASSACHUSETTS, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE
PARENT COMPANY AND THE BORROWER CONSENTS, FOR ITSELF AND IN RESPECT OF ITS
PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EACH OF THE PARENT COMPANY AND THE BORROWER
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE
OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT
OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR OTHER DOCUMENT RELATED HERETO.
EACH OF THE PARENT COMPANY AND THE BORROWER WAIVES PERSONAL SERVICE OF ANY
SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS
PERMITTED BY MASSACHUSETTS LAW.

         (C) WAIVER OF JURY TRIAL. THE PARTIES HERETO EACH WAIVE THEIR
RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR
PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE. THE
PARTIES HERETO EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED
BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING,

<PAGE>
                                     -104-

THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY IS
WAIVED BY OPERATION OF THIS SECTION 12.15 AS TO ANY ACTION, COUNTERCLAIM OR
OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY
PROVISIONS HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS.

         12.16. INTEREST RATE LIMITATION. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan, together with
all fees, charges and other amounts which are treated as interest on such Loan
under Applicable Law (collectively, the "Charges"), shall exceed the maximum
lawful rate (the "Maximum Rate") which may be contracted for, charged, taken,
received or reserved by the Lender holding such Loan in accordance with
Applicable Law, then the rate of interest payable in respect of such Loan
hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate, and, to the extent lawful, the interest and Charges
that would have been payable in respect of such Loan but were not payable as a
result of the operation of this Section 12.16 shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or periods
shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Rate to
the date of repayment, shall have been received by such Lender.

         12.17. DELIVERY BY FACSIMILE. Delivery of the signature pages to this
Agreement by facsimile shall be as effective as delivery of manually executed
counterparts of this Agreement.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                          ***SIGNATURE PAGES FOLLOW***

<PAGE>
                                     -105-

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

                                       THE BORROWER:

                                       REGENT BROADCASTING,
                                         INC., as the Borrower

100 East RiverCenter Boulevard
9th Floor                              By: /s/ ANTHONY A. VASCONCELLOS
Covington, Kentucky  41011                 ----------------------------
                                           Name:  Anthony A. Vasconcellos
                                           Title: Senior Vice President and
                                                  Chief Financial Officer

                                       THE PARENT COMPANY:

                                       REGENT COMMUNICATIONS,
                                         INC., as the Parent Company
100 East RiverCenter Boulevard
9th Floor
Covington, Kentucky  41011             By: /s/ ANTHONY A. VASCONCELLOS
                                           ---------------------------
                                           Name:  Anthony A. Vasconcellos
                                           Title: Senior Vice President and
                                                  Chief Financial Officer

                     **SIGNATURE PAGE TO CREDIT AGREEMENT**

                          ***SIGNATURE PAGES FOLLOW***

<PAGE>
                                     -106-

                                       THE AGENTS AND LENDERS:

OFFICE ADDRESS:                        FLEET NATIONAL BANK, as the
                                        Administrative Agent, the Issuing Lender
100 Federal Street                      and a Lender
Boston, MA 02110
                                       By: /s/ LISA M. PELLOW
                                           ------------------
                                           Name:   Lisa M. Pellow
                                           Title:  Managing Director

                                       US BANK, NATIONAL ASSOCIATION,
                                        as the Syndication Agent and a Lender

                                       By: /s/ CHRISTIAN J. BUGYIS
                                           -----------------------------------
                                           Name:  Christian J. Bugyis
                                           Title: Vice President

                                       WACHOVIA BANK, NATIONAL ASSOCIATION,
                                        as a Co-Documentation Agent and a Lender

                                       By: /s/ RUSSELL J. LYONS
                                           -----------------------------------
                                           Name:  Russell J. Lyons
                                           Title: Vice President

                                       SUNTRUST BANK, as a
                                        Co-Documentation Agent and a
                                        Lender

                                       By: /s/ J. ERIC MILLHAM
                                           -----------------------------------
                                           Name:  J. Eric Millham
                                           Title: Director

                     **SIGNATURE PAGE TO CREDIT AGREEMENT**

                          ***SIGNATURE PAGES FOLLOW***

<PAGE>
                                     -107-

                                       THE LENDERS:

                                       ING CAPITAL LLC, as a Lender

                                       By: /s/ WILLIAM C. JAMES
                                           -----------------------------------
                                           Name:  William C. James
                                           Title: Managing Director

                                       KEY CORPORATE CAPITAL INC.,
                                              as a Lender

                                       By: /s/ JASON R. WEAVER
                                           -----------------------------------
                                           Name:  Jason R. Weaver
                                           Title: Senior Vice President

                                       WELLS FARGO BANK,
                                           NATIONAL ASSOCIATION,
                                           as a Lender

                                       By: /s/ KYLE HOLTZ
                                           -----------------------------------
                                           Name:  Kyle Holtz
                                           Title: Assistant Vice President

                                       THE BANK OF NEW YORK,
                                           as a Lender

                                       By: /s/ VINCENT L. PACILIO
                                           -----------------------------------
                                           Name:  Vincent L. Pacilio
                                           Title: Senior Vice President

                     **SIGNATURE PAGE TO CREDIT AGREEMENT**Senior Facilities Agreement, as amended and restated 11 November, 2002

 EXHIBIT 4.1 
  

CONFORMED COPY 
  
 Dated 11 November, 2002 
  
 YELL GROUP plc 
 as the Parent and
certain of its subsidiaries as Borrowers and/or Guarantors 
  
 CIBC WORLD MARKETS plc 
 as Mandated Lead Arranger of the Tranche C3 Term Facility 
  
 CREDIT SUISSE FIRST BOSTON 
 as Joint Lead Arranger of the Tranche C3 Term Facility 
  
 BARCLAYS CAPITAL, DEUTSCHE BANK AG LONDON 
 and MERRILL LYNCH INTERNATIONAL 
 as Arrangers of the Tranche C3 Term Facility 
  
 CIBC WORLD MARKETS plc and CREDIT SUISSE FIRST BOSTON

 as Joint Bookrunners of the Tranche C3 Term Facility 
  
 CIBC WORLD MARKETS plc 
 as Syndication Agent of the Tranche C3 Term Facility 
  
 THE BANKS AND FINANCIAL INSTITUTIONS NAMED HEREIN 
 as Original Tranche C3 Banks 
  
 - and - 
  
 DEUTSCHE BANK AG LONDON 
 as Facility Agent and Security Agent 
  

  
 SIXTH AMENDMENT AGREEMENT 
 relating to a 
 FACILITIES AGREEMENT
dated 25 May 2001 
  

  
 SHEARMAN & STERLING 
 London

  
 [GRAPHIC APPEARS HERE] 

 CONTENTS 
  

	Clause

	  	Page

			
	 1.
	  	DEFINITIONS	  	2
			
	 2.
	  	EFFECT	  	2
			
	 3.
	  	ACCESSION OF NEW SENIOR FINANCE PARTIES	  	2
			
	 5.
	  	STATUS OF FACILITIES AGREEMENT AND INTERCREDITOR AGREEMENT	  	3
			
	 7.
	  	REPRESENTATIONS AND WARRANTIES OF THE OBLIGORS	  	3
			
	 8.
	  	CONFIRMATION	  	5
			
	 9.
	  	MISCELLANEOUS	  	5
			
	 10.
	  	COUNTERPARTS	  	5
			
	 11.
	  	THIRD PARTIES	  	6
		
	 SCHEDULE 1
	  	7
			
	 	  	The Obligors	  	7
		
	 SCHEDULE 2
	  	8
			
	 	  	The Original Tranche C3 Banks	  	8
		
	 SCHEDULE 3
	  	9
			
	 	  	Conditions Precedent	  	9
		
	 SCHEDULE 4
	  	1
			
	 	  	Amended and Restated Facilities Agreement	  	1
	 	  	1. INTERPRETATION	  	2

  

 i 

 THIS AMENDMENT AGREEMENT is made on 11 November, 2002 
  
 BETWEEN: 
  

	(1)	 	YELL GROUP plc (a limited liability company incorporated in England and Wales with registered number 4180320) (the “Parent”); 

  

	(2)	 	THE COMPANIES identified in Schedule 1 as Borrowers and/or Guarantors; 

  

	(3)	 	YELL LIMITED (formerly known as Castaim Limited) a limited liability company incorporated in England and Wales with registered no. 4205228 (the “UK Principal
Borrower”); 

  

	(4)	 	CIBC WORLD MARKETS plc as mandated lead arranger of the Tranche C3 Term Facility (the “Tranche C3 Mandated Lead Arranger”); 

  

	(5)	 	CREDIT SUISSE FIRST BOSTON as joint lead arranger of the Tranche C3 Term Facility (the “Tranche C3 Joint Lead Arranger”); 

  

	(6)	 	BARCLAYS CAPITAL (THE INVESTMENT BANKING DIVISION OF BARCLAYS BANK PLC), DEUTSCHE BANK AG LONDON and MERRILL LYNCH INTERNATIONAL as arrangers of the Tranche C3
Term Facility (the “Tranche C3 Arrangers”); 

  

	(7)	 	CIBC WORLD MARKETS plc and CREDIT SUISSE FIRST BOSTON as joint bookrunners of the Tranche C3 Term Facility (the “Tranche C3 Joint Bookrunners”);

  

	(6)	 	CIBC WORLD MARKETS plc as syndication agent of the Tranche C3 Term Facility (the “Tranche C3 Syndication Agent”); 

  

	(7)	 	THE BANKS AND FINANCIAL INSTITUTIONS identified in Schedule 2 as original banks under the Tranche C3 Term Facility (the “Original Tranche C3 Banks”); and

  

	(8)	 	DEUTSCHE BANK AG LONDON as Facility Agent and Security Agent. 

  
 WHEREAS: 
  

	A.	 	The Parent, certain of its Subsidiaries and certain of the Senior Finance Parties entered into a Facilities Agreement dated 25 May 2001 (as amended and restated by amendment
agreements dated 22 June 2001, 10 July 2001, 1 August 2001, 13 March 2002, 12 April 2002 and 31 May 2002) pursuant to which the Original Facilities Banks agreed to make available to certain borrowers term loan facilities and a revolving credit
facility (the “Facilities Agreement”); 

  

	B.	 	The Issuer issued certain Bridge Notes on or about 15 April 2002 the proceeds of which were utilised to fund in part the McLeod Acquisition and pay a portion of the McLeod
Transaction Costs. The Issuer intends to redeem the Bridge Notes in full and the UK Principal Borrower wishes to borrow a senior secured facility in the maximum aggregate amount of up to $123,500,000 (the “Tranche C3 Term Facility”)
for the purpose of partially funding such redemption; 

  

	C.	 	The Original Tranche C3 Banks have agreed to provide the Tranche C3 Term Facility to the Tranche C3 Borrower on the terms and conditions set forth in this Amendment Agreement by way
of an increase of the existing senior secured term loan facilities provided to the Borrowers under the Facilities Agreement for the purposes of financing in part the Bridge Note Refinancing and discharging in part the Bridge Note Refinancing
Transaction Costs; 

	D.	 	The Parent, the UK Principal Borrower, each other Obligor, the Tranche C3 Mandated Lead Arranger, the Tranche C3 Joint Lead Arranger, each Tranche C3 Joint Bookrunner, each Tranche
C3 Arranger, the Tranche C3 Syndication Agent, each Original Tranche C3 Bank, the Facility Agent and the Security Agent have agreed to enter into this Amendment Agreement in order to amend the terms of the Facilities Agreement in the manner set out
below; and 

  

	E.	 	The Majority Banks have confirmed to the Facility Agent that they are in agreement with the terms of the Facilities Agreement as amended and restated in accordance with this
Amendment Agreement, and accordingly the Facility Agent has agreed to execute this Amendment Agreement on behalf of the Banks. 

  
 NOW IT IS HEREBY AGREED:- 
  

	1.	 	DEFINITIONS 

  
 In this Amendment Agreement:- 
  

	1.1	 	words and expressions defined in the Facilities Agreement (in the form set out in Schedule 4 hereto) shall bear the same meaning when used herein and, in addition, the following
expressions shall have the following meaning when used in this Amendment Agreement: 

  
 “Effective Date” means the date upon which all conditions precedent listed in Schedule 3 have been received by the Facility Agent in form
and substance satisfactory to it; and 
  
 “New Senior
Finance Parties” means collectively the Tranche C3 Mandated Lead Arranger, the Tranche C3 Joint Lead Arranger, each Tranche C3 Arranger, each Tranche C3 Joint Bookrunner, the Tranche C3 Syndication Agent and each Original Tranche C3 Bank.

  

	1.2	 	the provisions of Clauses 1.2 (Construction) and 1.3 (Other References) of the Facilities Agreement (in the form set out in Schedule 4 hereto) shall also apply in the
interpretation of this Amendment Agreement as if expressly set out herein with each reference to the “Agreement” being deemed to be a reference to this Amendment Agreement. 

  

	2.	 	EFFECT 

  

	2.1	 	The parties to this Amendment Agreement hereby agree for themselves and for their successors, transferees and assigns pursuant to the Facilities Agreement that, with effect from the
Effective Date the Facilities Agreement shall be read and construed and shall be deemed to take effect in the form set out in Schedule 4 hereto. 

  

	2.2	 	The Parent hereby agrees to deliver to the Facility Agent the documents and evidence listed in Schedule 3 in form and substance satisfactory to the Facility Agent as conditions
precedent to the occurrence of the Effective Date. 

  

	3.	 	ACCESSION OF NEW SENIOR FINANCE PARTIES 

  

	3.1	 	It is hereby agreed that with effect from the Effective Date, each of the New Senior Finance Parties shall become party to the Facilities Agreement (in the form set out in Schedule
4) in the capacity or capacities (as the case may be) of Tranche C3 Mandated Lead Arranger, Tranche C3 Joint Lead Arranger, Tranche C3 Arranger, Tranche C3 Joint Bookrunner, Tranche C3 Syndication Agent and Original Tranche C3 Bank.

  

	3.2	 	Each New Senior Finance Party confirms its agreement to become party to the Facilities Agreement with effect from the Effective Date in each of its relevant capacities and hereby
agrees that it will 

	 	 
assume from the Effective Date all of its rights and obligations as Tranche C3 Mandated Lead Arranger and/or, as the case may be, Tranche C3 Joint Lead
Arranger, Tranche C3 Arranger, Tranche C3 Joint Bookrunner, Tranche C3 Syndication Agent and/or Original Tranche C3 Bank under the Senior Finance Documents and undertakes with the Facility Agent (for and on behalf of itself and the other Senior
Finance Parties) and the other parties to the Facilities Agreement that it will be bound by the terms of each Senior Finance Document to which it is party in its relevant capacities as if it had been an original party thereto.

  

	3.3	 	Each of the Parent, the UK Principal Borrower and each other Obligor hereby confirms its agreement to the accession of the New Senior Finance Parties to the Facilities Agreement and
that the New Senior Finance Parties shall be Senior Finance Parties for all purposes of the Senior Finance Documents. 

  

	4.	 	STATUS OF FACILITIES AGREEMENT 

  

	4.1	 	Subject to the terms of this Amendment Agreement, the Facilities Agreement will remain in full force and effect and as from the Effective Date references in the Facilities Agreement
to “this Agreement” “hereunder”, “herein” and like terms or to any provision of the Facilities Agreement shall be construed as a reference to the Facilities Agreement, or such provision, as amended by this Amendment
Agreement. 

  

	4.2	 	This Amendment Agreement will constitute a Senior Finance Document for the purposes of the Facilities Agreement. 

  

	4.3	 	Except as otherwise provided in this Amendment Agreement, the Senior Finance Documents shall remain in full force and effect. 

  

	5.	 	REPRESENTATIONS AND WARRANTIES OF THE OBLIGORS 

  

	5.1	 	Each of the Parent, the UK Principal Borrower and each other Obligor represents and warrants to and for the benefit of the Senior Finance Parties on the date hereof in the terms set
out below:- 

  

	 	(a)	 	Incorporation/Status: It, and each of its Subsidiaries is duly incorporated and validly existing with limited liability under the laws of the place of its incorporation and
has the power to own its assets and carry on its business substantially as it is now being conducted. 

  

	 	(a)	 	Powers and authority: It and each of its Subsidiaries has the power to enter into and perform its obligations under this Amendment Agreement and the Facilities Agreement (as
amended and restated by this Amendment Agreement) and to carry out the transactions contemplated hereby and thereby. 

  

	 	(b)	 	Authority: All actions, conditions and things required to be taken, fulfilled and done by it in order: 

  

	 	(i)	 	to enable it and each of its Subsidiaries to enter into, exercise its and their respective rights under, and perform and comply with its obligations under, this Amendment Agreement
and the Facilities Agreement (as amended and restated by this Amendment Agreement) and to carry out the transactions contemplated hereby and thereby; and 

  

	 	(ii)	 	to ensure that those obligations are valid, legally binding and, subject to reservations, enforceable; and 

	 	(iii)	 	to make this Amendment Agreement and the Facilities Agreement (as amended and restated by this Amendment Agreement) admissible in evidence in the courts of the jurisdiction to which
it has submitted hereunder and thereunder, 

  
 have
been taken, fulfilled and done. 
  

	 	(c)	 	Consents and Filings: All consents and filings (if any) required:- 

  

	 	(i)	 	for its and each of its Subsidiaries’ entry into, exercise of its and their respective rights, and performance and compliance with its and their respective obligations under,
this Amendment Agreement and the Facilities Agreement (as amended and restated by this Amendment Agreement); 

  

	 	(ii)	 	for it and each of its Subsidiaries to carry out the transactions contemplated by this Amendment Agreement and the Facilities Agreement (as amended and restated by this Amendment
Agreement), 

  
 have been obtained or made and are
in full force and effect save for (1) any consents and filings required in connection with the entry into, exercise of its rights, and performance and compliance with its obligations under, each of the Bridge Note Refinancing Transaction Documents
to which it is then party and for it to carry out the transactions contemplated by the Bridge Note Refinancing Transaction Documents which in each case will be obtained or made and be in full force and effect prior to the Bridge Note Refinancing
Date and (2) Minor Authorisations, Consents and Filings. 
  

	 	(d)	 	Non-Conflict: Its and each of its Subsidiaries’ entry into, exercise of its and their respective rights under and performance and compliance with its and their
respective obligations under, this Amendment Agreement and the Facilities Agreement (as amended and restated by this Amendment Agreement) to which it is and they are party and the carrying out of the transactions contemplated by this Amendment
Agreement and the Facilities Agreement (as amended and restated by this Amendment Agreement) do not:- 

  

	 	(i)	 	contravene any law, directive, judgment or order to which it or any of its Subsidiaries is subject; 

  

	 	(ii)	 	contravene its or their memorandum or articles of association or other Constitutional Documents; 

  

	 	(iii)	 	breach in any material respect any agreement or any material consent to which it or any of its Subsidiaries is a party or which is binding upon it or any of its Subsidiaries or any
of its or their respective assets; or 

  

	 	(iv)	 	oblige it, or any of its Subsidiaries, to create any security or result in the creation of any security over its or their respective assets other than under the Security Documents.

  

	 	(e)	 	Obligations Binding: Its and each of its Subsidiaries’ obligations under this Amendment Agreement and the Facilities Agreement (as amended and restated by this Amendment
Agreement) are valid, legally binding and, subject to reservations, enforceable in accordance with the terms thereof. 

	5.2	 	Each of the Parent, the UK Principal Borrower and each other Obligor hereby confirms that the representations and warranties contained in the following clauses of the Facilities
Agreement (as amended and restated by this Agreement): 

  

	 	(a)	 	Clause 15.1(q)(iii) (Latest Accounts) and Clause 15.1(dd) (Tranche C3 Term Facility); 

  

	 	(b)	 	Clause 15.1(r)(iii)(A)-15.1(iii)(D) (Information Package) in respect of the Agreed Financial Projections (in the agreed form); 

  

	 	(c)	 	Clause 15.1(r)(iii)(E) solely to the extent it relates to the Bridge Note Refinancing Memorandum; and 

  

	 	(d)	 	Clauses 15.1(g) (Winding-up) and 15.1(x) (Holding Company) in each case in relation to Drawings under the Tranche C3 Term Facility, 

  
 are true and correct as at the date hereof. 
  

	6.	 	CONFIRMATION 

  
 Each of the Parent, the UK Principal Borrower and the other Obligors hereby confirms that: 
  

	 	(a)	 	the security created by the Security Documents extends and will extend to the liabilities and obligations of the Obligors under the Facilities Agreement (as extended and amended and
restated by this Amendment Agreement) and that the obligations of the Obligors arising under or in connection with this Amendment Agreement and the Facilities Agreement (as extended and amended and restated by this Amendment Agreement) form part of
(but do not limit) the nature of the obligations secured under the Security Documents; and 

  

	 	(b)	 	the guarantee given by each Guarantor of the obligations and liabilities of the other Obligors to the Senior Finance Parties on the terms of the Facilities Agreement extends where
it purports to do so (save to the extent any such guarantee is specifically limited by the terms of the Facilities Agreement (as amended and restated by this Amendment Agreement)) to the liabilities and obligations of the Obligors to the Senior
Finance Parties under the Facilities Agreement (as extended and amended and restated by this Amendment Agreement) and such guarantees continue in full force and effect in accordance with their terms. 

  

	7.	 	MISCELLANEOUS 

  
 Clauses 22 (Notices, Confidentiality and Certificates), 23.5 (No Implied Waivers), 24 (Indemnities), 25 (Partial Invalidity)
and 26 (Governing Law and Submission to Jurisdiction) of the Facilities Agreement in the form set out in Schedule 4 shall be deemed incorporated in this Amendment Agreement (with such conforming amendments as the context requires) as if set
out in full herein. 
  

	8.	 	COUNTERPARTS 

  

	8.1	 	This Amendment Agreement may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same agreement.

  

	8.2	 	Failure by one or more parties (“Non-Signatories”) to execute this Amendment Agreement on the date hereof will not invalidate the provisions of this Amendment
Agreement as between the other parties who do execute this Amendment Agreement. Such Non-Signatories may execute this Amendment Agreement (or a counterpart thereof) on a subsequent date and will become bound by its provisions. Any person who
improperly executes this Amendment Agreement may also re-execute this Amendment Agreement (or a counterpart thereof) on a subsequent date for the purposes of ratifying its 

	 	 
original execution of this Amendment Agreement and confirming that it continues to be bound by its provisions. 

  

	9.	 	THIRD PARTIES 

  
 Unless expressly provided to the contrary in any Senior Finance Document, a person who is not a party to this Amendment Agreement has no right under the
Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any terms of this Amendment Agreement. 
  
 AS WITNESS the hands of the duly authorised representatives of the parties hereto the day and year first above written. 

 SCHEDULE 1 
  

The Obligors 
  
 Part A—The Borrowers 
  
 UK Principal Borrower (Yell Ltd) 
 US Principal Borrower (Yellow Book Holdings, Inc.) 
 Yellow Book USA, Inc. 
 Tranche D Borrower
(Yellow Book/McLeod Holdings, Inc.) 
 McLeodUSA Media Group, Inc. 
  
 Part B—The Guarantors 
  
 The Subordinated Guarantor (Yellow Pages Ltd) 
 UK Newco 3 (Yell Holdings 2 Limited) 
 UK Newco 5 (YH Ltd) 
 US Newco 1 (Yellow Book Group, Inc) 
 US Principal Borrower 
 Yellow Book USA, Inc. 
 Yellow Book of New York,
Inc. 
 Yellow Book of Pennsylvania, Inc. 
 UK Principal Borrower 
 Yellow Pages Sales Limited 
 General Art Services Limited 
 Luxco (Yell S.àr.l) 
 Tranche D Borrower 
 McLeodUSA Media Group, Inc.

 Consolidated Communications Directories Inc. 
 McLeodUSA Publishing Company 

 SCHEDULE 2 
  
 The Original Tranche C3 Banks 
  

	 Name of Bank

	  	Tranche C3 Term
Facility Commitments

	 CIBC World Markets plc
	  	US$47,856,250
	 Credit Suisse First Boston
	  	US$47,856,250
	 Barclays Bank PLC
	  	US$9,262,500
	 Deutsche Bank AG London
	  	US$9,262,500
	 Merrill Lynch Capital Corporation
	  	US$9,262,500
	 	  	

	 TOTAL
	  	US$123,500,000
	 	  	

 SCHEDULE 3 
  
 Conditions Precedent 
  

	1.	 	This Amendment Agreement in the agreed form duly executed and delivered by all parties to this Amendment Agreement to the satisfaction of the Facility Agent.

  

	2.	 	Certified copies of resolutions of the board of directors of the relevant Obligors approving the terms of this Amendment Agreement and each of the Transaction Documents referred to
in Part C of Schedule 3 of the Facilities Agreement (in the form set out in Schedule 4) to which such Obligor is party. 

 SCHEDULE 4 
  

Amended and Restated Facilities Agreement 
  
 Dated 25th May 2001 (as
amended and restated on 22 June 2001, 10 July 2001, 1 August 2001, 13 March 2002, 
 12 April 2002 , 31 May 2002 and 11 November 2002) 
  
 YELL GROUP plc 
 as the Parent and certain of its subsidiaries as Borrowers and/or Guarantors

  
 MERRILL LYNCH INTERNATIONAL 
 as Mandated Lead Arranger of the Original Facilities 
  
 CIBC WORLD MARKETS plc 
 as Mandated Lead
Arranger of the Tranche C3 Term Facility and of the Tranche D Term Facility 
  
 CIBC WORLD MARKETS plc and DEUTSCHE BANK AG LONDON 
 as Joint Lead Arrangers of the Original
Facilities 
  
 CREDIT SUISSE FIRST BOSTON 
 as Joint Lead Arranger of the Tranche C3 Term Facility and of the Tranche D Term Facility 
  
 THE BANKS AND FINANCIAL INSTITUTIONS NAMED HEREIN 
 as Arrangers, Senior Co-Arrangers and Co-Arrangers of the Original Facilities, of the Tranche C3 Term Facility 
 and of the Tranche D Term Facility 
  
 MERRILL LYNCH INTERNATIONAL 
 as Syndication Agent of the Original Facilities 
  
 CIBC WORLD MARKETS plc 
 as Syndication Agent of the Tranche C3 Term Facility and of the Tranche D Term Facility and Documentation 
 Agent 
  
 MERRILL LYNCH CAPITAL CORPORATION, CIBC WORLD MARKETS plc and 
 DEUTSCHE
BANK AG LONDON 
 as Original Banks under the Original Facilities 
  
 THE BANKS AND FINANCIAL INSTITUTIONS NAMED HEREIN 
 as Original Banks under each of the Tranche C3 Facility and the Tranche D Term Facility 
  
 MERRILL LYNCH INTERNATIONAL and CIBC WORLD MARKETS plc 
 as Joint Bookrunners of the Original Facilities 
  
 CIBC WORLD MARKETS plc and CREDIT SUISSE FIRST BOSTON 
 as Joint Bookrunners of the Tranche C3
Term Facility and of the Tranche D Term Facility 
  
 DEUTSCHE
BANK AG LONDON 
 as Facility Agent and Security Agent 
  

 SENIOR CREDIT FACILITIES 
 for the Yell Group 
  

  
 Shearman & Sterling 
 London 
  
 [GRAPHIC APPEARS HERE] 

 CONTENTS 
  

	Clause

	  	Page

			
	 1.
	  	INTERPRETATION	  	2
			
	 2.
	  	THE FACILITIES	  	43
			
	 3.
	  	PARTICIPATION OF BANKS	  	46
			
	 4.
	  	CONDITIONS PRECEDENT	  	49
			
	 5.
	  	DRAWINGS	  	52
			
	 6.
	  	INTEREST	  	54
			
	 7.
	  	REPAYMENT	  	58
			
	 8.
	  	PREPAYMENT	  	60
			
	 9.
	  	CANCELLATION	  	66
			
	 10.
	  	FEES	  	68
			
	 11.
	  	CURRENCY OPTION	  	71
			
	 12.
	  	TAXES AND OTHER DEDUCTIONS	  	72
			
	 13.
	  	CHANGE IN CIRCUMSTANCES	  	75
			
	 14.
	  	PAYMENTS	  	78
			
	 15.
	  	REPRESENTATIONS AND WARRANTIES	  	80
			
	 16.
	  	UNDERTAKINGS	  	95
			
	 17.
	  	EVENTS OF DEFAULT	  	132
			
	 18.
	  	GUARANTEES	  	137
			
	 19.
	  	THE AGENTS AND THE OTHER SENIOR FINANCE PARTIES	  	141
			
	 20.
	  	ASSIGNMENTS AND TRANSFERS	  	147
			
	 21.
	  	PRO RATA PAYMENTS, RECEIPTS AND SET OFF	  	151
			
	 22.
	  	NOTICES, CONFIDENTIALITY AND CERTIFICATES	  	153
			
	 23.
	  	AMENDMENTS, WAIVERS AND CONSENTS	  	155
			
	 24.
	  	INDEMNITIES	  	157
			
	 25.
	  	PARTIAL INVALIDITY	  	160
			
	 26.
	  	GOVERNING LAW AND SUBMISSION TO JURISDICTION	  	160
			
	 27.
	  	COUNTERPARTS	  	161
			
	 28.
	  	THIRD PARTIES	  	161

  
  

 i 

 THIS SENIOR FACILITIES AGREEMENT is dated 25 May 2001 (as amended and restated on 22 June 2001, 10 July 2001, 1
August 2001, 13 March 2002, 12 April 2002, 31 May 2002 and 11 November 2002) 
  
 BETWEEN: 
  

	(1)	 	YELL GROUP plc (formerly known as Tasktip Limited and Yell Group Limited) a limited liability company incorporated in England and Wales with registered no. 4180320 (the
“Parent”) and a direct wholly-owned Subsidiary of Topco; 

  

	(2)	 	YELL LIMITED (formerly known as Castaim Limited) a limited liability company incorporated in England and Wales with registered number 4205228 (the “UK Principal
Borrower”) and a direct wholly-owned Subsidiary of UK Newco 3; 

  

	(3)	 	YELLOW BOOK HOLDINGS, INC. (formerly known as Yasmin Two (US) Inc.) a company incorporated in Delaware (the “US Principal Borrower”) and a direct
wholly-owned Subsidiary of US Newco 1; 

  

	(4)	 	THE COMPANIES identified in Part A of Schedule 2 as Borrowers; 

  

	(5)	 	THE COMPANIES identified in Part B of Schedule 2 as Guarantors; 

  

	(6)	 	MERRILL LYNCH INTERNATIONAL as mandated lead arranger of the Original Facilities (the “Original Facilities Mandated Lead Arranger”) and CIBC WORLD MARKETS
plc and DEUTSCHE BANK AG LONDON as joint lead arrangers of the Original Facilities (the “ Original Facilities Joint Lead Arrangers”); 

  

	(7)	 	CIBC WORLD MARKETS plc as mandated lead arranger of the Tranche C3 Term Facility (the “Tranche C3 Mandated Lead Arranger”) and as mandated lead arranger of
the Tranche D Term Facility (the “Tranche D Mandated Lead Arranger”) and CREDIT SUISSE FIRST BOSTON as joint lead arranger of the Tranche C3 Term Facility (the “Tranche C3 Joint Lead Arranger”) and joint lead
arranger of the Tranche D Term Facility (the “Tranche D Joint Lead Arranger”); 

  

	(8)	 	BARCLAYS BANK PLC, BAYERISCHE HYPO-UND VEREINSBANK AG LONDON BRANCH, BNP PARIBAS LONDON BRANCH, GOLDMAN SACHS INTERNATIONAL BANK, THE INDUSTRIAL BANK OF JAPAN, LIMITED, MIZUHO
NEDERLAND N.V. and SCOTIABANK EUROPE PLC as arrangers of the Original Facilities (the “Original Facilities Arrangers”); 

  

	(9)	 	BARCLAYS CAPITAL (THE INVESTMENT BANKING DIVISION OF BARCLAYS BANK PLC), DEUTSCHE BANK AG LONDON and MERRILL LYNCH INTERNATIONAL as arrangers of the Tranche C3 Term
Facility (the “Tranche C3 Arrangers”); 

  

	(10)	 	BARCLAYS CAPITAL (THE INVESTMENT BANKING DIVISION OF BARCLAYS BANK PLC), DEUTSCHE BANK AG LONDON, HSBC INVESTMENT BANK PLC, MERRILL LYNCH INTERNATIONAL and THE ROYAL BANK
OF SCOTLAND PLC as arrangers of the Tranche D Term Facility (the “Tranche D Arrangers”); 

  

	(11)	 	BEAR, STEARNS INTERNATIONAL LIMITED and HSBC INVESTMENT BANK PLC as senior co-arrangers of the Original Facilities (the “ Original Facilities Senior
Co-Arrangers”); 

  

	(11)	 	BAYERISCHE HYPO-UND VEREINSBANK AG LONDON BRANCH and BEAR, STEARNS INTERNATIONAL LIMITED as senior co-arrangers of the Tranche D Term Facility (the “Tranche D
Senior Co-Arrangers”); 

  

 1 

	(12)	 	THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND, ALLIED IRISH BANKS, PLC, CREDIT INDUSTRIEL ET COMMERCIAL, FORTIS PROJECT FINANCE LIMITED and LLOYDS TSB BANK PLC as
co-arrangers of the Tranche D Term Facility (the “Tranche D Co-Arrangers”); 

  

	(13)	 	MERRILL LYNCH INTERNATIONAL as syndication agent of the Original Facilities (the “Original Facilities Syndication Agent”); 

 

	(14)	 	CIBC WORLD MARKETS plc as syndication agent of the Tranche C3 Term Facility (the “Tranche C3 Syndication Agent”), syndication agent of the Tranche D Term
Facility (the “Tranche D Syndication Agent”) and as documentation agent (the “Documentation Agent”); 

  

	(15)	 	MERRILL LYNCH CAPITAL CORPORATION, CIBC WORLD MARKETS plc and DEUTSCHE BANK AG LONDON as original banks under the Original Facilities (the “Original
Facilities Banks”); 

  

	(16)	 	THE BANKS AND FINANCIAL INSTITUTIONS NAMED IN SCHEDULE 1 as original banks under the Tranche C3 Term Facility (the “Original Tranche C3 Banks”) and as
original banks under the Tranche D Term Facility (the “Original Tranche D Banks”); 

  

	(17)	 	MERRILL LYNCH INTERNATIONAL and CIBC WORLD MARKETS plc as joint bookrunners of the Original Facilities (the “Original Facilities Joint Bookrunners”);

  

	(18)	 	CIBC WORLD MARKETS plc and CREDIT SUISSE FIRST BOSTON as joint bookrunners of the Tranche C3 Term Facility (the “Tranche C3 Joint Bookrunners”) and as
joint bookrunners of the Tranche D Term Facility (the “Tranche D Joint Bookrunners”); and 

  

	(19)	 	DEUTSCHE BANK AG LONDON as the Facility Agent and the Security Agent. 

  

NOW IT IS HEREBY AGREED as follows: 
  

	1.	 	INTERPRETATION 

  

	1.1	 	Definitions: 

  
 In this Agreement, unless the context otherwise requires the following expressions shall have the following meanings: 
  
 “Accession Document” means an agreement substantially in
the form set out in Schedule 7 pursuant to which a member of the Group becomes a Borrower and/or a Guarantor; 
  
 “Accounting Quarter” means each period in respect of which quarterly consolidated management accounts are required to be prepared by the
Parent being in each case a period of approximately thirteen weeks ending on or about 31 March, 30 June, 30 September and 31 December of each Financial Year; 
  

“Acquiring Company” means a member of the Group (not being an Excluded Group Member) established for the purposes of acquiring
Acquisition Assets; 
  
 “Acquisition
Assets” has the meaning given thereto in the definition of Permitted Acquisitions; 
  
 “Acquisition Consideration” means, in relation to Acquisition Assets, the aggregate of the consideration (including any non-cash consideration) paid and payable (whether contingent or 
  

 2 

 otherwise) and the gross liabilities in respect of Financial Indebtedness assumed or to be assumed or
refinanced or which remains subsisting in respect of such assets following their acquisition; 
  
 “Acquisition Documents” means the Yell Acquisition Documents and the McLeod Acquisition Documents; 
  
 “Additional Costs Rate” means in relation to an Advance or unpaid sum the rate per annum notified by any Bank to the Facility Agent to be
the cost to that Bank of compliance with all reserve asset, liquidity or cash margin or other like requirements of the Bank of England, the Financial Services Authority, the European Central Bank or in relation to Regulation D of the Board of
Governors of the Federal Reserve System of the United States of America and which in the case of the Bank of England, the Financial Services Authority and the European Central Bank shall be determined in accordance with Schedule 5 (Additional
Costs Rate); 
  
 “Additional Discount High Yield
Noteholders” means those persons who would have been entitled to subscribe for Additional Discount High Yield Notes if the Bridge Notes had not been refinanced on the Bridge Note Refinancing Date; 
  
 “Additional Discount High Yield Notes” means the high yield
discount notes which the Issuer would, subject to certain conditions, have been permitted to issue if the Bridge Notes had not been refinanced on the Bridge Note Refinancing Date; 
  
 “Additional Discount High Yield Notes Trustee” means the trustee appointed on behalf of the Additional
Discount High Yield Noteholders; 
  
 “Additional Equity
Contribution” means the cash subscription for equity share capital (not having creditor rights) in the Parent by Topco (which is to be made on or before the McLeod Completion Date directly or indirectly by the Equity Investors pursuant to
the Investor Documents as described in the McLeod Structure Document) the proceeds of which are contributed by way of subscription for share capital through all the relevant intermediate holding companies to UK Newco 3 and thereafter to any of the
Subsidiaries of UK Newco 3; 
  
 “Additional High Yield
Noteholders” means those persons who would have been entitled to subscribe for the Additional High Yield Notes if the Bridge Notes had not been refinanced on the Bridge Note Refinancing Date; 
  
 “Additional High Yield Notes” means the high yield notes
which the Issuer would, subject to certain conditions, have been permitted to issue if the Bridge Notes had not been refinanced on the Bridge Note Refinancing Date; 
  
 “Additional High Yield Notes Trustee” means the trustee appointed on behalf of the Additional High Yield
Noteholders; 
  
 “Additional Inter-Company Loan
Agreements” means the loan agreements, in the agreed terms, made between members of the Group pursuant to which, inter alia, the proceeds of the Bridge Notes, the balance of the Surplus Funding Account and the Additional Subordinated
Loan Stock are or are to be advanced on a subordinated basis to, and between, members of the Group on or before the McLeod Completion Date; 
  
 “Additional Subordinated Loan Stock” means the subordinated, unsecured and unguaranteed non-cash interest bearing loan notes
issued by the Parent on or before the McLeod Completion Date as described in the McLeod Structure Document in the agreed form; 
  

 3 

 “Additional Subordinated Loan Stock Documents” means the documents evidencing or
regulating the terms of the Additional Subordinated Loan Stock including, without limitation, the Additional Subordinated Loan Stock Instrument, the Intercreditor Agreement, the Subordination Agreement and all other documents evidencing the terms of
the Additional Subordinated Loan Stock and any other agreement or document that may be entered into or executed pursuant thereto or in connection therewith, in each case, in the agreed form; 
  
 “Additional Subordinated Loan Stock Instrument” means the
instrument dated on or before the McLeod Completion Date entered into by the Parent constituting the Additional Subordinated Loan Stock; 
  
 “Advance” means: 
  

	 	(a)	 	when designated “Tranche A”, the principal amount of each advance made or to be made under the Tranche A Term Facility 

  

	 	(b)	 	when designated “Tranche B”, the principal amount of each advance made or to be made under the Tranche B Term Facility; 

  

	 	(c)	 	when designated “Tranche C1”, the principal amount of each advance made or to be made under the Tranche C1 Term Facility; 

  

	 	(d)	 	when designated “Tranche C2”, the principal amount of each Tranche C2 Advance made or to be made under the Tranche C2 Term Facility; 

  

	 	(e)	 	when designated “Tranche C3”, the principal amount of the Tranche C3 Advance made or to be made under the Tranche C3 Term Facility; 

  

	 	(f)	 	when designated “Tranche D”, the principal amount of the Tranche D Advance made or to be made under the Tranche D Term Facility; 

  

	 	(g)	 	when designated “Revolving”, the principal amount of each advance made or to be made under the Revolving Facility; and 

  

	 	(h)	 	and without any such designation, a “Tranche A Advance”, “Tranche B Advance”, “Tranche C1 Advance”, “Tranche C2
Advance”, “Tranche C3 Advance”, “Tranche D Advance” and/or a “Revolving Advance”, as the context requires; 

  
 in each case as from time to time reduced by repayment or prepayment and in each case subject as provided in Clause 6
(Interest); 
  
 “Affiliate” means, with
respect to any person, any other person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such person. A person shall be deemed to control another person if such person possesses, directly or
indirectly, the power to direct or cause the direction of the management and policies of such other person, whether through the ownership of voting securities, by contract or otherwise. An “Affiliate” of an Original Equity Investor
shall exclude the Parent and any Subsidiary of the Parent; 
  
 “Agency Fees Letter” means the letter from the Facility Agent to the Parent dated 22 June 2001 (as amended on or before the McLeod Completion Date) setting out details of agency fees payable by the members of the Group in
connection with the Facilities and referred to in Clause 10.3 (Agency Fees); 
  

 4 

 “Agents” means collectively the Original Facilities Syndication Agent, the Tranche C3
Syndication Agent, the Tranche D Syndication Agent, the Documentation Agent, the Facility Agent, the Security Agent and, to the extent that the context requires, the Original Facilities Joint Bookrunners, the Tranche C3 Joint Bookrunners and the
Tranche D Joint Bookrunners; 
  
 “Agreed Financial
Projections” means the financial projections and forecast for the Business in the agreed form from time to time; 
  
 “Agreement” means this senior facilities agreement; 
  
 “Ancillary Bank” means a Revolving Bank in its capacity as provider of Ancillary Facilities; 
  
 “Ancillary Documents” means the documents setting out the
terms on which the Ancillary Facilities are made available; 
  
 “Ancillary Facilities” means working capital facilities made available by a Revolving Bank by redesignation of a portion of its Revolving Commitment in accordance with Clause 2.2 (Ancillary Facilities) and Schedule
8; 
  
 “Ancillary Limit” means, in relation to
an Ancillary Bank, the maximum amount (excluding accrued uncapitalised interest, fees and like charges) which it has agreed to make available by way of Ancillary Facilities as varied from time to time in accordance with this Agreement and the
relevant Ancillary Documents; 
  
 “Apax” means
Apax Partners Ltd (formerly known as Apax Partners & Co Ventures Limited); 
  
 “Applicable GAAP” means accounting principles, standards and practices generally accepted from time to time in the United Kingdom; 
  
 “Approved Bank” means any bank which has been approved by notice in writing to the Obligors’ Agent by
the Facility Agent for the purposes of this definition and which has been given, and has acknowledged, any and all notices required by the Security Documents; 
  

“Arranger Group” means collectively the Mandated Lead Arrangers, the Joint Lead Arrangers, the Arrangers, the Senior Co-Arrangers and
the Tranche D Co-Arrangers; 
  
 “Arrangers”
means collectively the Original Facilities Arrangers, the Tranche C3 Arrangers and the Tranche D Arrangers; 
  
 “Auditors” means PricewaterhouseCoopers or such other firm of accountants as may be appointed auditors of the Group in accordance with
Clause 16.6(c) (Appointment of Auditors); 
  
 “Availability Period” means: 
  

	 	(a)	 	in the case of the Tranche A Term Facility, the Tranche B Term Facility, the Tranche C1 Term Facility and the Tranche C2 Term Facility, the period commencing on the date of this
Agreement and ending on 6 August 2001; 

  

	 	(b)	 	in the case of the Tranche C3 Term Facility, the period commencing on the date of the Sixth Amendment Agreement and ending on 12 November 2002; 

  

 5 

	 	(c)	 	in the case of the Tranche D Term Facility, the period commencing on the date of the Fifth Amendment Agreement and ending on the earlier of 1 August 2002 and the McLeod Completion
Date; or 

  

	 	(d)	 	in the case of the Revolving Facility, the period commencing on the date of this Agreement and ending on the date which is one month prior to the Revolving Facility Repayment Date;

  
 “Bank” means: 
  

	 	(a)	 	when designated “Tranche A”, the Original Facilities Banks identified in Schedule 1 as participating in the Tranche A Term Facility; 

  

	 	(b)	 	when designated “Tranche B”, the Original Facilities Banks identified in Schedule 1 as participating in the Tranche B Term Facility; 

  

	 	(c)	 	when designated “Tranche C1”, the Original Facilities Banks identified in Schedule 1 as participating in the Tranche C1 Term Facility; 

  

	 	(d)	 	when designated “Tranche C2”, the Original Facilities Banks identified in Schedule 1 as participating in the Tranche C2 Term Facility; 

  

	 	(e)	 	when designated “Tranche C3”, the Original Tranche C3 Banks identified in Schedule 1 as participating in the Tranche C3 Term Facility; 

  

	 	(f)	 	when designated “Tranche D”, the Original Tranche D Banks identified in Schedule 1 as participating in the Tranche D Term Facility; 

  

	 	(g)	 	when designated “Revolving”, the Original Facilities Banks identified in Schedule 1 as participating in the Revolving Facility, 

  
 and in each case any Transferee to whom rights and/or obligations are or
have been assigned or transferred in accordance with Clause 20 (Assignments and Transfers) (until, in each case, its entire participation in the Facilities has been assigned or transferred in accordance with Clause 20 (Assignments and
Transfers)) (collectively the “Banks”); 
  
 “Bank Guarantee” means a guarantee issued or to be issued by an Issuing Bank under the Revolving Facility in the form provided for in Part II of Schedule 11 or in such other form as may be agreed between the Obligors’
Agent, the Facility Agent and such Issuing Bank; 
  
 “Borrowers” means each of the Principal Borrowers, the Tranche D Borrower and each of the other companies identified in Part A of Schedule 2 and each member of the Group which is permitted under Clause 2.4 (Additional
Borrowers) to become and becomes a borrower hereunder by executing an Accession Document and “Borrower” means any of them; 
  
 “Bridge Facility” means the bridge loan facility made available by the Bridge Facility Finance Parties under the terms of the Bridge
Facility Agreement; 
  
 “Bridge Facility
Agreement” means the bridge credit agreement dated 25 May 2001 made between, inter alios, the Bridge Facility Finance Parties, the Parent and the Subordinated Guarantor; 
  
 “Bridge Facility Finance Parties” means the Lenders, the Administrative Agent and the Arrangers (each as
defined in the Bridge Facility Agreement) and “Bridge Facility Finance Party” means any of them; 
  

 6 

 “Bridge Noteholders” means the purchasers of the Bridge Notes and any successor,
assignee or transferee of any such person; 
  
 “Bridge
Note Purchase Agreement” means the bridge note purchase agreement dated on or about the McLeod Completion Date pursuant to which one or more series of the Bridge Notes are purchased by the Bridge Noteholders; 
  
 “Bridge Note Refinancing” means the redemption in full of
the Bridge Notes; 
  
 “Bridge Note Refinancing Closing
Account” means an account or accounts with the Facility Agent or with a bank acceptable to the Facility Agent (acting reasonably) in each case opened for the purposes of collection of funds required to effect the Bridge Note Refinancing;

  
 “Bridge Note Refinancing Date” means the
date on which the Bridge Note Refinancing takes place; 
  
 “Bridge Note Refinancing Funds Flow Statement” means the funds flow statement in relation to the Bridge Note Refinancing and the payment of the Bridge Note Refinancing Transaction Costs; 
  
 “Bridge Note Refinancing Information Package” means the
Bridge Note Refinancing Memorandum and the Agreed Financial Projections (in the agreed form as at the Bridge Note Refinancing Date taking account of the Bridge Note Refinancing); 
  
 “Bridge Note Refinancing Memorandum” means the information memorandum issued by the Parent in respect of
the syndication of the Tranche C3 Term Facility as contemplated by Clause 3.6 (Syndication); 
  
 “Bridge Note Refinancing Transaction Costs” means all fees, costs and expenses and stamp, registration, notarial and similar taxes
incurred by members of the Group in connection with the Bridge Note Refinancing and its financing as set out in the Bridge Note Refinancing Funds Flow Statement; 
  
 “Bridge Note Refinancing Transaction Documents” means (i) the Senior Finance Documents, (ii) the
Constitutional Documents of each Excluded Group Member and each of the other Obligors, and (iii) the Tranche C3 Inter-Company Loan Agreements; 
  
 “Bridge Notes” means the bridge notes in the agreed form in an initial principal amount equal to the aggregate of their principal amount
(before deduction of fees and commissions) not exceeding US$250,000,000 to be issued on the McLeod Completion Date by the Issuer and subscribed for by the Bridge Noteholders in cash pursuant to the terms of the Bridge Notes Finance Documents and to
be redeemed in full on the Bridge Note Refinancing Date; 
  
 “Bridge Notes Finance Parties” means the arranger, the syndication and documentation agent, the joint bookrunners, the administrative agent (each of the foregoing expressions as defined in the Bridge Note Purchase
Agreement) and the Bridge Noteholders; 
  
 “BT
Vendor” means British Telecommunications PLC (a limited liability company incorporated in England and Wales with registered number 1800000); 
  
 “BT Vendor Group” means the BT Vendor and its Affiliates; 
  
 “Business” means the business of providing classified information for consumer and business needs in any
medium whatsoever, including, without limitation, in the form of printed directories, telephone information services and electronic media, including, without limitation, such business carried out under the names “Yellow Pages”,
“Business Pages”, “Talking Pages”, “The Business Database”, 
  

 7 

 “Yell.Com”, “Planet Pages”, “The Talking Phone Book” and all related
activities carried on at the Yell Completion Date by the BT Vendor Group and at the McLeod Completion Date by the McLeod Group and to be carried on thereafter by the Principal Borrowers and their respective Subsidiaries; 
  
 “Business Day” means a day (other than a Saturday or
Sunday) on which banks are open for general business in London and: 
  

	 	(a)	 	(in relation to any date for payment or purchase of a currency other than euro) the principal financial centre of the country of that currency; or 

  

	 	(b)	 	(in relation to any date for payment or purchase of euro) any TARGET Day. 

  
 “Cash Collateral Account” means any account with the Facility Agent or any Ancillary Bank opened or to be opened in the name of a
Borrower into which sums are to be paid in accordance with Clause 8 (Prepayment) or in the provision of cash cover and held as security for the obligations of such Borrower under the Senior Finance Documents and in relation to which such
Borrower shall have complied with the requirements of paragraph 6 (Cash Cover) of Schedule 9; 
  
 “Cash Equivalents” means: 
  

	 	(a)	 	securities issued by, or unconditionally guaranteed by, the United Kingdom Government, the United States Government or the government of any Specified Sovereign or issued by any
agency thereof and, as the case may be, guaranteed by the United Kingdom Government or backed by the full faith and credit of the United States Government or the government of any Specified Sovereign, in each case maturing within one year of the
date of acquisition; 

  

	 	(b)	 	commercial paper issued by any corporation organised under the laws of the United Kingdom, a state of the United States of America or a Specified Sovereign maturing no more than one
year from the date of acquisition thereof and, at the time of acquisition, having a rating of at least A-1 from Standard & Poor’s or at least P-1 from Moody’s Investor Services, Inc.; 

  

	 	(c)	 	certificates of deposit or bankers’ acceptances issued by any commercial bank organised under (i) the laws of the United Kingdom, (ii) the laws of a state of the United States
of America, (iii) the federal laws of the United States of America or (iv) the laws of a Specified Sovereign, maturing within one year from the date of acquisition thereof issued by any bank having a long term unsecured debt rating of at least A-1
from Standard & Poor’s or at least P-1 from Moody’s Investor Services, Inc.; 

  

	 	(d)	 	investments in money market funds which invest substantially all their assets in securities of the types described in paragraphs (a) to (c) above; and 

  

	 	(e)	 	any other cash equivalent securities approved in writing for the purposes of this definition by the Facility Agent; 

  
 “C-Don Partnership” means the partnership between R.H.
Donnelly-Proprietary East and Commonwealth Telecom Services, Inc. pursuant to which classified telephone directories are published and distributed, the details of which are set out in the C-Don partnership agreement dated 11 October 1991 (as amended
on 1 December 1997); 
  
 “CERCLIS” means the
Comprehensive Environmental Response, Compensation and Liability Information System maintained by the Environmental Protection Agency of the United States of America; 
  

 8 

 “Certificates of Title” means each certificate of title in the approved form prepared by
Allen & Overy in respect of certain real property located in the United Kingdom; 
  
 “Change of Control” has the meaning given in Clause 8.2 (Mandatory Prepayments on Change of Control or Sale); 
  
 “Commitment” means: 
  

	 	(a)	 	when designated “Tranche A”, in relation to an Original Facilities Bank and the Tranche A Term Facility, the amount set opposite its name in Schedule 1 in relation
to the Tranche A Term Facility and, in relation to any other Bank, the amount or the total amount of the Tranche A Commitments transferred to it under a Transfer Certificate or Transfer Certificates or other document pursuant to which it becomes
party to, or acquires rights under, this Agreement; 

  

	 	(b)	 	when designated “Tranche B”, in relation to an Original Facilities Bank and the Tranche B Term Facility, the amount set opposite its name in Schedule 1 in relation
to the Tranche B Term Facility and, in relation to any other Bank, the amount or the total amount of the Tranche B Commitments transferred to it under a Transfer Certificate or Transfer Certificates or other document pursuant to which it becomes
party to, or acquires rights under, this Agreement; 

  

	 	(c)	 	when designated “Tranche C1”, in relation to an Original Facilities Bank and the Tranche C1 Term Facility, the amount set opposite its name in Schedule 1 in
relation to the Tranche C1 Term Facility and, in relation to any other Bank, the amount or the total amount of the Tranche C1 Commitments transferred to it under a Transfer Certificate or Transfer Certificates or other document pursuant to which it
becomes party to, or acquires rights under, this Agreement; 

  

	 	(d)	 	when designated “Tranche C2”, in relation to an Original Facilities Bank and the Tranche C2 Term Facility, the amount set opposite its name in Schedule 1 in
relation to the Tranche C2 Term Facility and, in relation to any other Bank, the amount or the total amount of the Tranche C2 Commitments transferred to it under a Transfer Certificate or Transfer Certificates or other document pursuant to which it
becomes party to, or acquires rights under, this Agreement; 

  

	 	(e)	 	when designated “Tranche C3”, in relation to an Original Tranche C3 Bank and the Tranche C3 Term Facility, the amount set opposite its name in Schedule 1 in
relation to the Tranche C3 Term Facility and, in relation to any other Bank, the amount or the total amount of the Tranche C3 Commitments transferred to it under a Transfer Certificate or Transfer Certificates or other document pursuant to which it
becomes party to, or acquires rights under, this Agreement; 

  

	 	(f)	 	when designated “Tranche D”, in relation to an Original Tranche D Bank and the Tranche D Term Facility, the amount set opposite its name in Schedule 1 in relation
to the Tranche D Term Facility and, in relation to any other Bank, the amount or the total amount of the Tranche D Commitments transferred to it under a Transfer Certificate or Transfer Certificates or other document pursuant to which it becomes
party to, or acquires rights under, this Agreement; 

  

	 	(g)	 	when designated “Revolving”, in relation to an Original Facilities Bank and the Revolving Facility, the amount set opposite its name in Schedule 1 in relation to
the Revolving Facility 

  

 9 

 and, in relation to any other Bank, the amount or the total amount of the Revolving Commitments
transferred to it under a Transfer Certificate or Transfer Certificates or other document pursuant to which it becomes party to, or acquires rights under, this Agreement; 
  
 less, in any such case: 
  

	 	(a)	 	that part thereof transferred by it in accordance with Clause 20 (Assignments and Transfers); and 

  

	 	(b)	 	that part thereof which has been cancelled, reduced or terminated in accordance with this Agreement, 

  
 and without any such designation means “Tranche A Commitment”, “Tranche B Commitment”, “Tranche C1
Commitment”, “Tranche C2 Commitment”, “Tranche C3 Commitment”, “Tranche D Commitment” and/or “Revolving Commitment”, as the context may require; 
  
 “Completion Accounting Principles” means: 
  

	 	(a)	 	for the purposes of the preparation and/or audit of any audited financial statements (whether consolidated or unconsolidated) of any member of the Group, those accounting
principles, standards and practices which were utilised in the Latest Yell Audited Accounts; or 

  

	 	(b)	 	for the purposes of the preparation of management accounts (whether consolidated or unconsolidated) of any member of the Group, such accounting principles, standards and practices
as are consistent with the Completion Accounting Principles referred to in paragraph (a) above applied to the extent appropriate in the context of preparation of management accounts drawn up in accordance with good accounting practice;

  
 subject to any changes made in accordance with
Clause 16.6(i) (Completion Accounting Principles); 
  
 “Confidentiality Undertaking” means a confidentiality undertaking substantially in the recommended form of the Loan Market Association or in any other form agreed between the Obligors’ Agent and the Facility Agent;

  
 “Constitutional Documents” means the
constitutional documents of the Parent and each member of the Group as amended from time to time in accordance with the terms of this Agreement; 
  
 “Contingent Liability” means, at any time: 
  

	 	(a)	 	in relation to an Issuing Bank and a Letter of Credit or Bank Guarantee, the actual and/or contingent liability of that Issuing Bank under that Letter of Credit or Bank Guarantee at
that time; or 

  

	 	(b)	 	in relation to a Bank and a Letter of Credit or a Bank Guarantee, the actual and/or contingent liability of that Bank in relation to that Letter of Credit or Bank Guarantee at that
time as a result of the obligations assumed by it under paragraph 4(b) (Indemnity) of Schedule 9; 

  
 “Convertible UK Newco 3 Loan Note” means the loan note issued by UK Newco 3 to the Subordinated Guarantor on terms set out in the summary
term sheet contained within the Subordinated Guarantor/UK Newco 3 Initial Inter-Company Loan Agreement which represents an amendment of the terms set out in the Subordinated Guarantor/UK Newco 3 Convertible Initial Inter-Company Loan Agreement in
the form entered into on the Yell Completion Date; 
  

 10 

 “Discount High Yield Noteholders” means the subscribers for the Discount High
Yield Notes and any successor, assignee or transferee of any such person; 
  
 “Discount High Yield Notes” means the 131⁄2% senior discount US Dollar notes due 2011 issued by the Issuer in accordance with Clause 16.4(k) (Issue of High Yield Notes and Discount High
Yield Notes); 
  
 “Discount High Yield Notes
Trustee” means the trustee appointed on behalf of the Discount High Yield Noteholders; 
  
 “Dormant Company” means a member of the Group which during the most recently ended Financial Year was dormant within the meaning of
Section 250(3) of the Companies Act 1985 (which, for the purposes of this definition, shall be deemed to apply to any Subsidiary of the Parent wherever incorporated) and does not have assets with an aggregate value greater than £100,000 (or
its Other Currency Equivalent); 
  
 “Drawing”
means a drawing by a Borrower of the Tranche A Term Facility, the Tranche B Term Facility, the Tranche C1 Term Facility, the Tranche C2 Term Facility, the Tranche C3 Term Facility, the Tranche D Term Facility or the Revolving Facility, as the case
may be; 
  
 “Drawing Date” means, in relation to
a Drawing, the date for the making of such Drawing as specified by the relevant Borrower in the relevant Drawing Request; 
  
 “Drawing Request” means a notice requesting an Advance or issue of a Letter of Credit or Bank Guarantee in the form set out in Schedule
4; 
  
 “Environmental Action” means any action,
suit, demand, demand letter, claim, notice of non-compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating in any way to any Environmental Law, any Environmental
Permit or Hazardous Material or arising from alleged injury or threat to health, safety or the environment, including, without limitation, (a) by any governmental or regulatory authority for enforcement, cleanup, removal, response, remedial or other
actions or damages and (b) by any governmental or regulatory authority or third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief; 
  
 “Environmental Laws” means any applicable federal, state, local or foreign statute, law, ordinance, rule,
regulation, directive, code, order, writ, judgment, injunction, decree or judicial or agency interpretation or legally binding policy or guidance relating to pollution or protection of the environment, health, safety or natural resources;

  
 “Environmental Permit” means any permit,
approval, identification number, license or other authorisation required under any Environmental Law; 
  
 “Equity Investors” means the Partners (as defined in the Partnership Agreement) of Topco from time to time; 
  
 “ERISA” means the Employee Retirement Income Security Act
of 1974 of the United States of America as amended from time to time and any applicable regulations promulgated thereunder; 
  
 “ERISA Affiliate”, with respect to any Obligor, means any person that for the purposes of Title IV of ERISA is from time to time a member
of the controlled group of any Obligor, or under common 
  

 11 

 control with any Obligor within the meaning of Section 414 of the Internal Revenue Code of the United
States of America; 
  
 “ERISA Event” means
(a)(i) the occurrence of a reportable event, within the meaning of Section 4043(c) of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC or (ii) the requirements of Section
4043(b) of ERISA apply with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with
respect to such Plan within the following 30 days; (b) the application for a minimum funding waiver with respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan, pursuant to Section
4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of operations at a facility of any Obligor or any ERISA Affiliate in the circumstances described in Section
4062(e) of ERISA; (e) the withdrawal by any Obligor or any ERISA Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for imposition of a
lien under Section 302(f) of ERISA shall have been met with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the provision of security to such Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of
proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds for the termination of, or the appointment of a trustee to administer, such
Plan; 
  
 “EURIBOR” means, in relation to any
Advance in euro: 
  

	 	(a)	 	the applicable Screen Rate; or 

  

	 	(b)	 	(if no Screen Rate is available for the Interest Period of that Advance) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Facility Agent
at its request quoted by the Reference Banks to leading banks in the European interbank market, 

  
 as of 11 am Brussels time on the Quotation Day for the offering of deposits in euro for a period comparable to the Interest Period of the relevant
Advance; 
  
 “Euro”, “euro” or
“euros” means the single currency of Participating Member States; 
  
 “Event of Default” means any of the events specified in Clause 17.1 (Events of Default); 
  
 “Excess Cash Contribution” means the available cash balances of the Group which are surplus to the on-going working capital needs of the
Group and are in excess of the Required Cash Contribution, the proceeds of which the Parent has elected to use in connection with the Bridge Notes Refinancing and is permitted to do so by the terms of the Finance Documents, the amount of which is
notified to the Facility Agent and the Documentation Agent in the Drawing Request in respect of the Tranche C3 Term Facility and approved by the Facility Agent (acting on the instructions of the Tranche C3 Banks); 
  
 “Excess Cash Flow” has the meaning given in Clause 16.9
(Financial Definitions); 
  
 “Excluded Group
Members” means the Parent, the Issuer, the Subordinated Guarantor, UK Newco 3, UK Newco 5, Luxco, US Newco 1, the US Principal Borrower, the Tranche D Borrower and, following any acquisition of the SLPs by the Parent, the SLPs and each of
the companies, limited partnerships or other corporations which are, or were, a partner in any of the SLPs; 
  

 12 

 “Existing Undertakings” means the undertakings given by the BT Vendor to the Secretary
of State for Trade and Industry signed on 23 July, 1996, in the agreed form; 
  
 “Facilities” means the Term Facilities, the Revolving Facility and the Ancillary Facilities and “Facility” means any of them; 
  
 “Facility Agent” means Deutsche Bank AG London acting in
its capacity as agent for the Banks or such other agent for the Banks as shall be appointed pursuant to Clause 19.9 (Resignation of Agents); 
  
 “Facility Agent’s spot rate of exchange” with respect to any currency on any date means unless otherwise stated herein the spot rate
of exchange of the Facility Agent for the appropriate amount of such currency with such other currency as shall be specified in the London foreign exchange markets, save as otherwise provided herein, at or about 11.00 am for delivery two Business
Days thereafter (or, in the case of the calculation of the Sterling Amount of any Drawing hereunder made after the Yell Completion Date unless the Facility Agent otherwise agrees, three Business Days thereafter); 
  
 “Fees Letters” means the Original Fees Letters and the
Tranche D Fees Letter; 
  
 “Fifth Amendment
Agreement” means the agreement dated 12 April 2002 between, inter alios, the Parent, the other Obligors, the Tranche D Mandated Lead Arranger, the Tranche D Joint Lead Arranger, the Tranche D Arrangers, the Tranche D Senior
Co-Arrangers, the Tranche D Co-Arrangers, the Original Tranche D Banks and the Facility Agent pursuant to which the terms of this Agreement were amended and restated; 
  
 “Final Tranche A Repayment Date” means 31 March 2008; 
  
 “Final Tranche B Repayment Date” means 31 March 2009;

  
 “Final Tranche C1 Repayment Date” means 31
March 2010; 
  
 “Final Tranche C2 Repayment
Date” means 31 March 2010; 
  
 “Final Tranche C3
Repayment Date” means 31 March 2010; 
  
 “Final
Tranche D Repayment Date” means 31 March 2009; 
  
 “Finance Documents” means: 
  

	 	(a)	 	when designated “Senior”, this Agreement, each Security Document, the Intercreditor Agreement, the Reports Side Letters, Hedging Agreements, the Ancillary
Documents, each Accession Document, each Transfer Certificate, the Fees Letters and the Agency Fees Letter and any other agreements refinancing, replacing, amending or restructuring any of the foregoing (including by increasing the amount of
available borrowing thereunder) in whole or in part; 

  

	 	(b)	 	when designated “Senior Subordinated”, the Bridge Facility Finance Documents, the Bond Finance Documents and the Bridge Notes Finance Documents (to the extent in
force) collectively; 

  

	 	(c)	 	when designated “Bridge Facility”, means the Bridge Finance Documents (as such expression is defined in the Bridge Facility Agreement) in each case in the agreed
form; 

  

 13 

	 	(d)	 	when designated “Bridge Notes”, the Bridge Note Purchase Agreement, the Bridge Notes and any other agreement or document in the agreed form that may be entered into
or executed pursuant thereto or in connection therewith; 

  

	 	(e)	 	when designated “Bond”, the High Yield Notes Finance Documents and the Discount High Yield Notes Finance Documents together; 

  

	 	(f)	 	when designated “High Yield Notes”, the indentures dated 6 August 2001 (as amended on 18 January 2002 by the first supplemental indentures) pursuant to which the
High Yield Notes are issued, the High Yield Notes, and any other agreement or document evidencing the terms of the High Yield Notes (and the replacements therefor (substantially in the same form) on the exchange of the High Yield Notes for notes
that have substantially identical terms (other than exchange rights) pursuant to a registration of the initially issued High Yield Notes with the Securities and Exchange Commission of the United States) and any other agreement or document that may
be entered into or executed pursuant thereto or in connection therewith; 

  

	 	(g)	 	when designated “Discount High Yield Notes”, the indenture dated 6 August 2001 (as amended on 18 January 2002 by the first supplemental indenture) pursuant
to which the Discount High Yield Notes are issued, the Discount High Yield Notes, and any other agreement or document evidencing the terms of the Discount High Yield Notes (and the replacements therefor (substantially in the same form) on the
exchange of the Discount High Yield Notes for notes that have substantially identical terms (other than exchange rights) pursuant to a registration of the initially issued Discount High Yield Notes with the Securities and Exchange Commission of the
United States) and any other agreement or document that may be entered into or executed pursuant thereto or in connection therewith; and 

  

	 	(h)	 	without any such designation, the Senior Finance Documents and the Senior Subordinated Finance Documents; 

  
 “Financial Indebtedness” means any indebtedness in respect
of or arising under or in connection with: 
  

	 	(a)	 	moneys borrowed (including overdrafts); or 

  

	 	(b)	 	money raised including any debenture, bond (other than a performance bond issued in the ordinary course of trading by one member of the Group in respect of the obligations of
another member of the Group (other than an Excluded Group Member)), note or loan stock or other similar instrument; or 

  

	 	(c)	 	any acceptance or documentary credit; or 

  

	 	(d)	 	receivables sold or discounted (otherwise than on a non-recourse basis); or 

  

	 	(e)	 	the acquisition cost of any asset to the extent payable after the time of acquisition or possession by the person liable as principal obligor for the payment thereof where the
deferred payment is arranged primarily as a method of raising finance or financing or refinancing the acquisition of the asset acquired; or 

  

	 	(f)	 	the sale price of any asset to the extent paid before the time of sale or delivery by the person liable to effect such sale or delivery where the advance payment is arranged
primarily as a method of raising finance or financing or refinancing the manufacture, assembly, acquisition or holding of the asset to be sold; or 

  

 14 

	 	(g)	 	finance leases, credit sale or conditional sale agreements (whether in respect of land, buildings, plant, machinery, equipment or otherwise) which are treated as finance leases in
accordance with Applicable GAAP (but not including liabilities under operating leases); or 

  

	 	(h)	 	any agreement for managing or hedging currency and/or interest rate and/or commodity risk provided that where such agreement provides for netting to occur this paragraph (h) shall
include the net amount of the payment obligation outstanding from the relevant member of the Group thereunder after such netting-off has occurred; or 

  

	 	(i)	 	the amount payable under any put option or other arrangement whereby any member of the Group is liable, at the request of a third party, to purchase share capital or other
securities issued by it or any other member of the Group; or 

  

	 	(j)	 	the amount payable by any member of the Group in respect of the redemption of any share capital or other securities issued by it or any other member of the Group (if the share
capital or other securities are redeemable at the option of their holder or if the relevant member of the Group is otherwise obliged to redeem them); or 

  

	 	(k)	 	amounts raised under any other transaction required to be accounted for as a borrowing; or 

  

	 	(l)	 	any guarantee, indemnity or similar assurance against financial loss of any person in respect of any indebtedness falling within paragraphs (a) to (k) inclusive of this definition,

  
 and so that, where the amount of Financial
Indebtedness falls to be calculated, no amount shall be taken into account more than once in the same calculation; 
  
 “Financial Year” means each period ending on 31 March in respect of which audited consolidated financial statements of the Group
are required to be prepared; 
  
 “First Drawing
Date” means the date of the first Drawing of the Term Facilities; 
  
 “Flotation” means an Initial Public Offering or any other occasion on which there is an inclusion of any part of the share capital of the Parent, any Holding Company of the Parent or any other member
of the Group on any recognised investment exchange or any other exchange or market in any country; 
  
 “Further Equity Contribution” means any cash subscription for equity share capital (not having creditor rights) in the Parent by Topco
which occurs after the Yell Completion Date and the proceeds of which are contributed by way of subscription for share capital through all the relevant intermediate holding companies to UK Newco 3 or any of its Subsidiaries; 
  
 “Further High Yield Debt” means (i) unsecured Financial
Indebtedness which is subordinated to, or ranks pari passu with, the High Yield Notes and/or the Discount High Yield Notes and which is incurred by the Issuer (and guaranteed only by the Subordinated Guarantor) on substantially the same terms as, or
on terms no more favourable to the holders or creditors thereof than the terms of the High Yield Notes and/or the Discount High Yield Notes (including as set out in the Intercreditor Agreement) except in relation to interest where the interest rate
on such Financial Indebtedness may exceed the maximum interest rate specified for the High Yield Notes and/or the Discount High Yield Notes under Clause 16.4(k) (Issue of High Yield Notes and Discount High Yield Notes) by up to 0.50%, and in
each case having a scheduled maturity date no earlier than the scheduled maturity date of the High Yield Notes; and (ii) any other unsecured subordinated Financial Indebtedness the terms of which have been approved in writing by the Facility Agent
(acting on the instructions of the Majority Banks); 
  

 15 

 “Further Inter-Company Loan Agreements” means the loan agreements (other than the
Additional Inter-Company Loan Agreements), in the agreed terms, made between members of the Group pursuant to which the proceeds of any Further Subordinated Loan Stock, any permitted Flotation, any Further Equity Contribution, all or any part of the
Surplus Funding or any Further High Yield Debt are to be advanced on a subordinated basis to and between members of the Group; 
  
 “Further Subordinated Loan Stock” means any subordinated, unsecured and unguaranteed non-cash interest bearing loan notes issued
by the Parent on the same terms (including as set out in the Intercreditor Agreement) as the Initial Subordinated Loan Stock and having a scheduled maturity date at least one year after the later of the Final Tranche C1 Repayment Date and the Final
Tranche C2 Repayment Date and the holders of which accede to the Intercreditor Agreement as Equity Investors (as defined therein), in a manner and in accordance with documentation satisfactory to the Facility Agent; 
  
 “Further Subordinated Loan Stock Documents” means the
documents evidencing or regulating the terms of the Further Subordinated Loan Stock including, without limitation, the instrument constituting the Further Subordinated Loan Stock, the Intercreditor Agreement and all other documents evidencing the
terms of the Further Subordinated Loan Stock and any other agreement or document that may be entered into or executed pursuant thereto or in connection therewith, in each case, in the agreed form; 
  
 “Group” means the Parent and its Subsidiaries from time to
time and “member of the Group” means any one of them; 
  
 “Guarantors” means the Parent, each of the other companies identified in Part B of Schedule 2 and any other member of the Group which shall have become a guarantor hereunder by executing an Accession Document and
“Guarantor” means any of them; 
  
 “Hazardous Materials” means (a) petroleum or petroleum products, by-products or breakdown products, (b) radioactive materials, (c) asbestos-containing materials, (d) polychlorinated biphenyls and radon gas and (e) any other
chemicals, materials or substances designated, classified or regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law; 
  
 “Hedging Agreements” means agreements entered into with the Hedging Banks for the purpose of hedging interest rate risk in relation to
the Term Facilities; 
  
 “Hedging Bank” means
(i) any Bank or (ii) any Affiliate of a Bank which has acceded to the Intercreditor Agreement as a Hedging Bank and in either case as provider of interest rate hedging in relation to the Term Facilities under the Hedging Agreements; 
  
 “Hicks Muse” means Hicks, Muse, Tate & Furst Limited;

  
 “High Yield Noteholders” means the
subscribers for the High Yield Notes and any successor, assignee or transferee of any such person; 
  
 “High Yield Notes” means (i) the 103⁄4% senior Sterling notes due 2011 and (ii) the 103⁄4% senior US Dollar notes due 2011, in each
case issued by the Issuer in accordance with Clause 16.4(k) (Issue of High Yield Notes and Discount Notes); 
  
 “High Yield Notes Trustee” means the trustee appointed on behalf of the High Yield Noteholders; 
  
 “Holding Company” (save for the purposes of Clause 15.1(y)
(US Government Regulations) or as otherwise defined herein) means in relation to a person, a holding company of such person within the 
  

 16 

 meaning of section 736 of the Companies Act 1985, any parent undertaking of such person within the
meaning of section 258 of the Companies Act 1985 and any Affiliate of such person which controls directly or indirectly, such person; 
  
 “Initial Inter-Company Loan Agreements” means the loan agreements, in the agreed terms, made between members of the Group pursuant
to which, inter alia, the proceeds of the Vendor Loan Note, the High Yield Notes, the Discount High Yield Notes, the Bridge Facility and the Initial Subordinated Loan Stock are advanced on a subordinated basis to, and between, members of the
Group as modified on terms agreed by the Facility Agent and the Parent in accordance with the Recapitalisation; 
  
 “Initial Public Offering” has the meaning given thereto in Clause 8.2 (Mandatory Prepayment on Change of Control or Sale);

  
 “Initial Subordinated Loan Stock”
means the subordinated, unsecured and unguaranteed non-cash interest bearing loan notes issued on the Yell Completion Date in the principal amount of £549,000,000 by the Parent, and subscribed for by the SLPs, in the agreed form; 

 
 “Initial Subordinated Loan Stock Documents” means the
documents evidencing or regulating the terms of the Initial Subordinated Loan Stock including, without limitation, the Initial Subordinated Loan Stock Instrument, the Intercreditor Agreement, the Subordination Agreement and all other documents
evidencing the terms of the Initial Subordinated Loan Stock and any other agreement or document that may be entered into or executed pursuant thereto or in connection therewith, in each case, in the agreed form; 
  
 “Initial Subordinated Loan Stock Instrument” means the
instrument dated 22 June 2001 entered into by the Parent constituting the Initial Subordinated Loan Stock; 
  
 “Insufficiency” means, with respect to any Plan, the amount, if any, of its unfunded liabilities, as defined in Section 4001(a)(18) of
ERISA; 
  
 “Intellectual Property” means all
patents and patent applications, trade and service marks and trade and service mark applications (and all goodwill associated with such applications), all brand and trade names, all copyrights and rights in the nature of copyright (including,
without limitation, rights in computer software), all design rights, all registered designs and applications for registered designs, all trade secrets, know-how, rights in relation to databases and domain names and all other intellectual property
rights owned by members of the Group throughout the world or the interests of any member of the Group in any of the foregoing, and all rights under any agreements entered into by or for the benefit of any member of the Group relating to the use or
exploitation of any such rights; 
  
 “Inter-Company Loan
Agreements” means the Initial Inter-Company Loan Agreements, the Additional Inter-Company Loan Agreements, the Recapitalisation Inter-Company Loan Agreements, the Tranche C3 Inter-Company Loan Agreements and the Further Inter-Company Loan
Agreements; 
  
 “Intercreditor Agreement” means
the intercreditor deed, in the agreed terms, dated 22 June 2001 entered into between, inter alios, the Senior Finance Parties, the Bridge Notes Finance Parties, the Obligors, the Vendor Noteholder, the holders of Subordinated Loan Stock,
Topco and the Issuer; 
  
 “Interest Period”
means a period by reference to which interest is calculated and payable on an Advance or overdue sum; 
  
 “Internet Business” means the business of developing and/or researching and/or manufacturing and/or providing technology (including,
without limitation, hardware or software) which enables any person to 
  

 17 

 distribute information by electronic means, whether over the internet, by wireless application protocol
or any other technology or medium whether or not currently existing provided that any business whose principal business is to provide classified or categorised information for consumer or business needs in any medium whatsoever shall not constitute
an “Internet Business”; 
  
 “Investment
Agreement” means the subscription and shareholders agreement in the agreed terms dated 25 May 2001 between, inter alios, the Management, the Parent and Topco providing, inter alia, for the subscription of shares in the Parent;

  
 “Investor Documents” means (i) the
Constitutional Documents of each Excluded Group Member and each of the other Obligors, (ii) the Subordinated Loan Stock Documents, (iii) the Vendor Loan Note Documents, (iv) the Investment Agreement, (v) the Partnership Agreement, (vi) the
Shareholder Agreement and (vii) the Subordination Agreement; 
  
 “Investor Group” and “Investors” have the meanings given in Clause 8.2 (Mandatory Prepayments on Change of Control or Sale); 
  
 “Issuer” means Yell Finance B.V., a company incorporated under the laws of The Netherlands and which is a
direct wholly-owned Subsidiary of the Parent; 
  
 “Issuing Bank” means Deutsche Bank AG London in its capacity as issuer of any Letter of Credit or Bank Guarantee and/or any other Bank which agrees to issue a Letter of Credit and/or Bank Guarantee in accordance with Clause
5.6(c) (Issue of Letters of Credit/Bank Guarantees) in its capacity as issuer of such Letter of Credit or Bank Guarantee; 
  
 “Joint Lead Arrangers” means collectively the Original Facilities Joint Lead Arrangers, the Tranche C3 Joint Lead Arranger and the
Tranche D Joint Lead Arranger; 
  
 “Latest McLeod Audited
Accounts” means the audited accounts of McLeod prepared by Arthur Andersen for the financial year ended 31 December 2000; 
  
 “Latest McLeod Management Accounts” means the management accounts of McLeod for the month ended on or about 31 December 2001; 

 
 “Latest Tranche C3 Group Audited Accounts” means the
audited accounts of the Group for the Financial Year ended 31 March 2002; 
  
 “Latest Tranche C3 Group Management Accounts” means the management accounts for the Group for the month ended 31 August 2002; 
  
 “Latest Yell Audited Accounts” means the audited accounts of the Yell Business for the Financial Year ended
31 March 2001; 
  
 “Latest Yell Management
Accounts” means the management accounts of the Yell Business for the month ended on or about 30 April 2001; 
  
 “Lending Office” means, in relation to a Bank, the office through which it is acting for the purposes of this Agreement and any other
office which it has notified in accordance with Clause 3.2(b) (Lending Offices) is to be its Lending Office for the purposes of a particular Drawing or particular type of Drawing to be made available to an Obligor; 
  

 18 

 “Letter of Credit” means a letter of credit issued or to be issued by an Issuing Bank
under the Revolving Facility in the form set out in Part I of Schedule 11 or in such other form as may be agreed between the Obligors’ Agent, the Facility Agent and such Issuing Bank; 
  
 “Leverage Ratio” means the ratio of Total Net Debt to
EBITDA (each as defined in Clause 16.9 (Financial Definitions)) of the Group; 
  
 “LIBOR” means, in relation to any Advance in a currency other than Euro: 
  

	 	(a)	 	the applicable Screen Rate; or 

  

	 	(b)	 	(if no Screen Rate is available for the currency or Interest Period of that Advance) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the
Facility Agent at its request quoted by the Reference Banks to leading banks in the London interbank market; 

  
 as of 11 am London time on the Quotation Day for the offering of deposits in the currency of that Advance and for a period comparable to the Interest
Period of that Advance; 
  
 “Luxco” means Yell
SarL, a limited liability company incorporated under the laws of Luxembourg and a direct wholly-owned Subsidiary of UK Newco 5; 
  
 “Majority Banks” means, at any time: 
  

	 	(a)	 	Banks whose Commitments aggregate more than 66 2/3 per cent. of the Total Commitments (and for this purpose the amount of an Ancillary Bank’s Revolving Commitment shall not be
reduced by the amount of its Ancillary Limit); or 

  

	 	(b)	 	if the Total Commitments have been reduced to zero, Banks whose Commitments aggregated more than 66 2/3 per cent. of the Total Commitments immediately before the reduction;

  
 “Management” means John Davis
and John Condron; 
  
 “Mandated Lead Arrangers”
means the Original Facilities Mandated Lead Arranger, the Tranche C3 Mandated Lead Arranger and the Tranche D Mandated Lead Arranger; 
  
 “Margin” means: 
  

	 	(a)	 	in relation to the Tranche A Term Facility, 2.375 per cent. per annum; 

  

	 	(b)	 	in relation to the Tranche B Term Facility, 3.00 per cent. per annum; 

  

	 	(c)	 	in relation to the Tranche C1 Term Facility, 3.50 per cent. per annum; 

  

	 	(d)	 	in relation to the Tranche C2 Term Facility, 3.50 per cent. per annum; 

  

	 	(e)	 	in relation to the Tranche C3 Term Facility, 3.50 per cent. per annum; 

  

	 	(f)	 	in relation to the Tranche D Term Facility, 3.00 per cent. per annum; and 

  

	 	(g)	 	in relation to the Revolving Facility, 2.375 per cent. per annum; 

  

 19 

 subject, in the case of the Tranche A Term Facility and the Revolving Facility, to the provisions of
Clause 6.6 (Margin Adjustment); 
  
 “Material
Adverse Effect” means any effect, event, matter or circumstance: 
  
 (a) which in the reasonable opinion of the Majority Banks is materially adverse to: 
  

	 	(i)	 	the business, assets, financial condition or prospects of the Group (taken as a whole); or 

  

	 	(ii)	 	the ability of any member of the Group to perform any of its payment obligations in accordance with their terms under any of the Finance Documents or the ability of the Parent to
perform its obligations under Clause 16.7 (Financial Covenants); or 

  

	 	(b)	 	which results in any of the Senior Finance Documents not being legal, valid and binding on and, subject to reservations, enforceable against any party thereto and/or in the case of
any Security Documents not providing to the Security Agent security over the assets expressed to be secured under the Security Documents in each case in a manner or to an extent which the Majority Banks consider to be materially prejudicial to the
interests of any Senior Finance Party under the Senior Finance Documents; 

  
 “Material Contracts” means (i) in relation to the Yell Business, the contracts with RR Donnelley Limited relating to the printing and manufacture of directories and the contracts relating to pre-press
production with Pindar Set Limited and (ii) in relation to the McLeod Business, the McLeod Publishing, Operating and Branding Agreement, the contracts with RR Donnelly & Sons relating to the printing and manufacture of directories, the contracts
with Quebecor Printing Directory Sales Corporation relating to the production of certain directories and the licensing and services agreements entered into with AMDOCS Inc.; 
  
 “Material Group Company” means: 
  

	 	(a)	 	each Obligor and each other Excluded Group Member; and 

  

	 	(b)	 	any other Subsidiary of the Parent, the profit from ordinary activities before interest, taxation and exceptional items, turnover, gross assets or net assets of which exceeds 5% of
the profit from ordinary activities before interest, taxation and exceptional items, turnover, gross assets or net assets of the Group, and for this purpose the calculation of profit from ordinary activities before interest and exceptional items,
turnover, gross assets or net assets shall: 

  

	 	(i)	 	be made in accordance with Applicable GAAP; 

  

	 	(ii)	 	in the case of a company which itself has Subsidiaries, be made by using the consolidated profit from ordinary activities before interest, taxation and exceptional items, turnover,
gross assets or net assets, as the case may be, of it and its Subsidiaries; and 

  

	 	(iii)	 	be made by reference to the latest available quarterly financial information of the relevant Subsidiary and the Group; 

  
 provided that, in relation to the provision of security and/or guarantees,
(i) the aggregate profit from ordinary activities before interest, taxation and exceptional items, turnover, gross assets or net assets of Subsidiaries which are not Material Group Companies shall not exceed 10% (the “Requisite

  

 20 

 Percentage”) of the total profit from ordinary activities before interest, taxation and
exceptional items, turnover, gross assets or net assets of the Group and (ii) (for the purposes only of ensuring that at all times the Banks have the benefit of security and/or guarantees from the requisite Obligors) if at any time the Requisite
Percentage in respect of any of the same shall be exceeded the Facility Agent shall be entitled to declare any Subsidiary not then being a Material Group Company to be a Material Group Company until the test set out in this sentence is satisfied;

  
 “Material Intellectual Property” means
Intellectual Property which is material to a Material Group Company; 
  
 “Material Property” means (i) any freehold property interest acquired by any Obligor in England or Wales for use and occupation by the Business, (ii) any leasehold property owned or acquired by any Obligor in England or
Wales where either the length of the term of the lease is such that the title thereto is capable of substantive registration at HM Land Registry or where the principal rent on the date of this Agreement reserved by such lease exceeds £250,000
per annum or in the case of any future leases reserves an initial principal rent exceeding £250,000 per annum and (iii) the Mortgaged Property; 
  
 “Maturity Period” means the period from the date of this Agreement until the date on which all amounts (including amounts under Ancillary
Facilities) outstanding under the Senior Finance Documents have been paid or discharged in full and the Commitments of all the Banks have been cancelled; 
  
 “McLeod” means McLeodUSA Media Group, Inc., an Iowa corporation; 
  
 “McLeod Acquisition” means the acquisition of the entire issued share capital of McLeod pursuant to the
McLeod Acquisition Documents; 
  
 “McLeod Acquisition
Agreement” means the stock purchase agreement, in the agreed form, dated 19 January 2002 relating to the acquisition of the entire issued share capital of McLeod and made between, inter alios, the Parent as purchaser and the McLeod
Vendors as sellers; 
  
 “McLeod Acquisition
Documents” means the McLeod Acquisition Agreement and all other agreements executed pursuant to the terms of the McLeod Acquisition Agreements including, without limitation, the McLeod Transitional Services Agreement and the McLeod
Publishing, Branding and Operating Agreement; 
  
 “McLeod
Business” means that part of the Business carried on by the McLeod Group as at the McLeod Completion Date; 
  
 “McLeod Closing Account” means an account or accounts with the Facility Agent or with a bank acceptable to the Facility Agent (acting
reasonably) in each case opened for the purposes of collection of funds required to effect the McLeod Completion; 
  
 “McLeod Completion” means completion of the sale and purchase of McLeod pursuant to the McLeod Acquisition Agreement; 
  
 “McLeod Completion Date” means the date on which the McLeod
Completion takes place; 
  
 “McLeod Completion Funds Flow
Statement” means the funds flow statement in relation to the McLeod Completion and the payment of the McLeod Transaction Costs, in the agreed form; 
  
 “McLeod Group” means McLeod and its Subsidiaries; 
  

 21 

 “McLeod Information Package” means the McLeod Syndication Memorandum and the Agreed
Financial Projections (in the agreed form as at the McLeod Completion Date taking into account the McLeod Acquisition); 
  
 “McLeod Publishing, Branding and Operating Agreement” means the publishing, branding and operating agreement dated on or before the
McLeod Completion Date between McLeodUSA Publishing Company, McLeodUSA Incorporated and McLeodUSA Telecommunications Services, Inc; 
  
 “McLeod Reports” means: 
  

	 	(a)	 	the accountants’ reports on McLeod and the McLeod Business in the approved form prepared by PricewaterhouseCoopers; and 

  

	 	(b)	 	the legal due diligence report relating to the McLeod Business in the approved form prepared by Weil, Gotshal & Manges LLP; 

  
 “McLeod Reports Side Letter” means the letter, in the
agreed form, dated on or around the McLeod Completion Date addressed by Hicks Muse and Apax or their respective Affiliates to the Facility Agent, the Security Agent and the Parent in relation to the McLeod Reports; 
  
 “McLeod Structure Document” means the document in the
agreed form comprising, inter alia, diagrams of the Parent, its direct and indirect Holding Companies and its Subsidiaries (including the McLeod Group) before and after the McLeod Completion; confirmation that the proposed funds flow of the
Group to service its Financial Indebtedness, including without limitation, the Facilities, does not have adverse legal, tax or accounting consequences; and confirmation of the movement of funds which will take place on the McLeod Completion Date;

  
 “McLeod Syndication Memorandum” means the
information memorandum dated January 2002 issued by the Parent in respect of the syndication of the Tranche D Term Facility as contemplated by Clause 3.6 (Syndication); 
  
 “McLeod Transaction Costs” means all fees, costs and expenses and stamp, registration, notarial and similar
taxes incurred by members of the Group in connection with the McLeod Acquisition and its financing as set out in the McLeod Completion Funds Flow Statement; 
  
 “McLeod Transaction Documents” means (i) the Senior Finance Documents, (ii) the Bridge Notes Finance Documents (to the extent in force),
(iii) Constitutional Documents of each Excluded Group Member and each of the other Obligors, (iv) the Additional Subordinated Loan Stock Documents; (v) the Investment Agreement, (vi) the Partnership Agreement and (vii) the Shareholder Agreement,
(viii) the McLeod Acquisition Documents and (ix) the Additional Inter-Company Loan Agreements; 
  
 “McLeod Transitional Services Agreement” means the transitional services agreement dated on or before the McLeod Completion Date between
McLeodUSA Incorporated and the Parent; 
  
 “McLeod
Vendors” means McLeodUSA Incorporated, a Delaware corporation, and McLeodUSA Holdings, Inc., a Delaware corporation; 
  
 “Minor Authorisations, Consents and Filings” means: 
  

	 	(a)	 	any authorisation (other than corporate authorisations of any member of the Group), consent or filing required to be made following the Yell Completion Date for a member of the
Group to perform and comply with its obligations (other than the making of the Yell Acquisition, the 

  

 22 

	 	 
McLeod Acquisition or the Bridge Note Refinancing) under the Transaction Documents (other than the Senior Finance Documents) which if not obtained would not
breach the Senior Subordinated Finance Documents, would have no adverse effect on the Yell Acquisition, the McLeod Acquisition or the Bridge Note Refinancing or the funding thereof, would not adversely affect the exercise of any material right by
any member of the Group under the Transaction Documents (whether through causing a breach of the relevant Transaction Document or otherwise) and would not adversely affect the security created by the Security Documents; or

  

	 	(b)	 	in respect of leasehold property interests in the United Kingdom identified in the Weil Gotshal & Manges LLP reports described in paragraph (b) of the definition of Yell
Reports, the consent of the relevant lessor to the assignment of the relevant lease to the UK Principal Borrower; or 

  

	 	(c)	 	in respect of contracts relating to the Yell Business existing on the Yell Completion Date and in respect of contracts relating to the McLeod Business existing on the McLeod
Completion Date, the consent of the relevant counterparties to such contracts to, or the giving of notice to any such counterparty of, the novation, assignment or transfer of such contracts to a member of the Group, and which is not or are not
material to the business of any Material Group Company and which, if necessary, are capable of being replaced without undue delay by alternative contracts without a material adverse effect on such business; 

  
 “Mortgaged Property” means the real property acquired by
the Parent’s Subsidiaries on the McLeod Completion Date pursuant to the McLeod Acquisition Documents at Cedar Rapids, Iowa as to which the Security Agent, for the benefit of the Senior Finance Parties, shall be granted a Security Interest
pursuant to the Mortgages; 
  
 “Mortgages” means
each of the mortgages and deeds of trust in respect of the Mortgaged Property made by each relevant Obligor in favour of, or for the benefit of, the Security Agent; 
  
 “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which any
Obligor or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions; 
  
 “Multiple Employer Plan” means a single employer plan, as
defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Obligor or any ERISA Affiliate and at least one person (other than the Obligors and the ERISA Affiliates) or (b) was so maintained and in respect of which any
Obligor or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated; 
  
 “Net Proceeds” means: 
  

	 	(a)	 	in relation to any disposal, the total consideration received by any member or members of the Group in respect of the disposal from the Group of any member of the Group or of all or
any part of the business, undertaking or assets of any member of the Group (including, without limitation, the amount of any debt owed to continuing members of the Group by any member of the Group disposed of which is repaid in connection with that
disposal) but after deduction of the amount of any tax required to be paid as a result of the disposal and after deduction of all other reasonable costs and expenses incurred by continuing members of the Group in connection with that disposal;

  

 23 

	 	(b)	 	in relation to any capital contribution, issuance or sale of equity including, without limitation, any Initial Public Offering, the cash proceeds (net of underwriting discounts and
commissions and other reasonable costs and expenses associated therewith) received from such capital contributions, issuance or sale of equity; and 

  

	 	(c)	 	in relation to the Acquisition Documents or the Reports, the total recovered as a result of a claim for breach of contract or warranty or under any indemnity contained in the
Acquisition Documents or any other monies otherwise received or recovered under the Acquisition Documents or the Reports (as the case may be) after deduction of all reasonable and necessary costs, fees and expenses incurred in connection with such
claim; 

  
 “NPL” means the
National Priorities List under CERCLA; 
  
 “Obligors” means the Parent, each Borrower and each Guarantor and “Obligor” means any of them; 
  
 “Obligors’ Agent” has the meaning given to it in Clause 23.4 (Obligors); 
  
 “Operational Cash Flow Component” means that part of the
aggregate of the Required Cash Contribution and the Excess Cash Contribution sourced from operational cash flow of the Group generated in the period 1 April 2002 to 30 September 2002 which is notified to the Facility Agent and the Documentation
Agent in the Drawing Request in respect of the Tranche C3 Term Facility and approved by the Facility Agent; 
  
 “Optional Currency” means Euro, US Dollars and any other currency agreed between the Obligors’ Agent and the Facility Agent and
which is freely transferable and convertible into Sterling and deposits of which are freely available in the London interbank market; 
  
 “Original Banks” means collectively the Original Facilities Banks, the Original Tranche C3 Banks and the Original Tranche D Banks;

  
 “Original Equity Investors” means the
persons referred to as Partners in the Partnership Agreement on the date of the Yell Completion; 
  
 “Original Facilities” means the Tranche A Term Facility, the Tranche B Term Facility, the Tranche C1 Term Facility, the Tranche C2 Term
Facility and the Revolving Facility; 
  
 “Original Fees
Letters” means the letters from Merrill Lynch International (as Original Facilities Mandated Lead Arranger), Merrill Lynch Capital Corporation and CIBC World Markets plc (as one of the Original Facilities Joint Lead Arrangers) to the Parent
dated 25 May 2001 in each case setting out details of certain fees payable by the members of the Group in connection with the Original Facilities and referred to in Clause 10 (Fees); 
  
 “Original Security Documents” means the documents listed in
Part A of Schedule 12; 
  
 “Other Currency
Equivalent” means at any time the amount of any currency other than Sterling which can be purchased with Sterling calculated on the basis of the Facility Agent’s spot rate of exchange; 
  
 “Participating Member State” means any member state which
adopts the euro unit of the single currency pursuant to the Treaty; 
  
 “Partnership Agreement” means the partnership agreement dated 22 June 2001 relating to Topco entered into between the Partners (as defined therein); 
  

 24 

 “PBGC” means the Pension Benefit Guaranty Corporation (or any successor); 
  
 “Permitted Acquisitions” means the acquisition by a member
of the Group (other than an Excluded Group Member) of a business (whether by way of shares or assets) (“Acquisition Assets”) of any company which is similar or related to that carried on by any Material Group Company (other than an
Excluded Group Member) where: 
  

	 	(a)	 	the aggregate of the Acquisition Consideration in respect of Acquisition Assets is not when aggregated with all other Acquisition Consideration in any Financial Year, greater than
£100,000,000 (or its Other Currency Equivalent) plus the cash element of any proposed Acquisition Consideration provided by Further Equity Contributions and/or Further Subordinated Loan Stock and/or Further High Yield Debt and/or the net
proceeds of a Flotation described in Clause 8.5 (IPO Proceeds) and/or the proceeds of all or any part of the Surplus Funding and less the aggregate amount of investments falling within paragraph (b) of the definition of Permitted Joint
Venture for that Financial Year; and 

  

	 	(b)	 	either (1) the cash element of any proposed Acquisition Consideration is provided by any one or more of the following (aa) Further Equity Contributions, (bb) Further Subordinated
Loan Stock, (cc) Further High Yield Debt, (dd) Excess Cash Flow for any previous Financial Year after deducting any mandatory payments made or to be made under Clause 8.4 (Excess Cash Flow) and any amount of such Excess Cash Flow used in a
previous acquisition or to fund other Capital Expenditure or otherwise used to fund a Permitted Acquisition or the acquisition of an Acquiring Company, (ee) the Net Proceeds of disposals which may be reinvested in lieu of being applied in prepayment
of the Facilities pursuant to Clause 8.3(a) (Mandatory Prepayment from Receipts), (ff) Permitted Indebtedness under paragraph (i) of the definition thereof or Revolving Advances the proceeds of which are used as permitted in accordance with
Clause 2.5 (Acquisition Advances), (gg) the incurrence of Capital Expenditure up to the remaining amount of Capital Expenditure permitted during such Financial Year by Clause 16.7(e) (Capital Expenditure) less any remaining amount of
Capital Expenditure that the Parent in good faith estimates may be required to be incurred during such Financial Year in maintenance of the assets of the Group, (hh) the net proceeds of a Flotation described in Clause 8.5 (IPO Proceeds), or
(ii) the proceeds of all or any part of the Surplus Funding or (2) the Acquisition Consideration is provided (subject to the provisions of the Intercreditor Agreement) by the exchange of shares in the target company for shares in Topco in a share
for share exchange; and 

  

	 	(c)	 	the proposed Acquisition Assets, for the period of the twelve months prior to the date of their acquisition, had EBITDA (utilising the definition of EBITDA contained in Clause 16.9
(Financial Definitions) but with references to “Group” being replaced with references to the Acquisition Assets together with any appropriate adjustments) which was: 

  

	 	(1)	 	positive; or 

  

	 	(2)	 	negative but when aggregated with all negative EBITDA of other Acquisition Assets acquired during the same Financial Year (such EBITDA being in each case determined for the period
of the twelve months prior to the date of the acquisition of the relevant Acquisition Assets and in accordance with the adjusted definition of EBITDA described above) would not exceed in aggregate £3,000,000; or 

  

	 	(3)	 	negative and when aggregated with all negative EBITDA of other Acquisition Assets acquired during the same Financial Year (such EBITDA being in each case determined in the same
manner as in sub-paragraph (2) above) would exceed in 

  

 25 

	 	 
aggregate £3,000,000 but was not vetoed by a notice in writing to the Obligors’ Agent from the Facility Agent (acting on the instructions of the
Majority Banks) sent within 30 days of receipt by the Facility Agent of all of the information required pursuant to this paragraph (c) and the following paragraph (d) in relation to the proposed acquisition of such Acquisition Assets.

  
 The Obligors’ Agent shall notify the
Facility Agent of the amount of such EBITDA and aggregate EBITDA by a certificate signed by the chief executive officer or the finance director of the Parent (on behalf of the Parent and without personal liability for the signatories) and supported
by such evidence as the Facility Agent may reasonably request; and 
  

	 	(d)	 	at least 5 Business Days prior to entering into any such acquisition, the Facility Agent shall have received from the Obligors’ Agent a revised version of the Agreed Financial
Projections, reflecting the proposed Acquisition Assets therein (including, without limitation, the incurrence or assumption of any Financial Indebtedness in connection with, or as a result of, the acquisition of such Acquisition Assets) which
demonstrate (to the satisfaction of the Majority Banks (acting reasonably)) that none of the financial covenants in Clause 16.7 (Financial Covenants) will be breached during the Maturity Period and that no Event of Default will arise under
Clause 17.1 (Events of Default), accompanied by a certificate signed by the chief executive officer or the finance director of the Parent confirming (on behalf of the Parent and without personal liability for the signatories) that they
believe that the assumptions (upon which the forecasts and projections in such revised Agreed Financial Projections are based) taken as a whole, and those forecasts and projections, are fair and reasonable and confirming that, in making those
assumptions and forming those forecasts and projections the Parent has taken full and proper account of all contingent liabilities, relating to the Acquisition Assets to be acquired pursuant to the proposed acquisition and the Parent has, where it
is considered that such contingent liabilities may become actual liabilities attributed a proper amount to such contingent liabilities in forming those forecasts and projections Provided that: 

  

	 	(1)	 	if both the Acquisition Consideration in respect of an acquisition of Acquisition Assets is £20,000,000 (or Other Currency Equivalent) or less and the acquisition does not
fall within paragraph (c)(3) above, then a revised version of the Agreed Financial Projections need not be so provided, and instead only a pro forma calculation reflecting the proposed acquisition of Acquisition Assets therein (including, without
limitation, the incurrence or assumption of any Financial Indebtedness in connection with, or as a result of, such acquisition) demonstrating that none of the financial covenants in Clause 16.7 (Financial Covenants) will be breached during
the next four Accounting Quarters need be provided if the chief executive officer or the finance director of the Parent can, and do so, certify (on behalf of the Parent and without personal liability for the signatories) that in making such
acquisition the Group will not incur any contingent liabilities which would be likely to have a material adverse impact on the forecasts and projections contained in the then applicable Agreed Financial Projections (provided further that for any
acquisition or series of acquisitions of Acquisition Assets for which the Acquisition Consideration aggregates £5,000,000 (or Other Currency Equivalent) or less in any Accounting Quarter and where such acquisitions do not fall within paragraph
(c)(3) above, the Obligors’ Agent shall not be required to deliver the pro forma calculation at least 5 Business Days prior to entering into such acquisitions, but shall instead be permitted to deliver such pro forma calculations as soon as
available and in any event within 30 days of the end of such Accounting Quarter); and 

  

 26 

	 	(2)	 	if the acquisition falls within paragraph (c)(3) above, then in addition the Facility Agent shall have received from the Obligors’ Agent a pro forma calculation and evidence
satisfactory to the Majority Banks (acting reasonably) confirming that the Group, including the proposed Acquisition Assets (and reflecting all other relevant aspects of such acquisition including, without limitation, the incurrence or assumption of
any Financial Indebtedness in connection with, or as a result of, the acquisition of such Acquisition Assets) will have positive EBITDA (utilising the definition in Clause 16.9 (Financial Definitions)) for the twelve month period following
the date of the proposed acquisition which is no less than the EBITDA projected for the Group (prior to reflecting the proposed acquisition of the Acquisition Assets) for such twelve month period in accordance with the Agreed Financial Projections;
and 

  

	 	(e)	 	at least 5 Business Days prior to entering into any such acquisition there has been provided to the Facility Agent copies of all accountants’, environmental and other reports
obtained by any member of the Group in respect of such Acquisition Assets; and 

  

	 	(f)	 	no Event of Default or Potential Event of Default will occur as a result of the proposed acquisition of the Acquisition Assets; and 

  

	 	(g)	 	if the Acquisition Assets include or comprise the acquisition of an Internet Business, the Acquisition Consideration for such Internet Business when aggregated with all Acquisition
Consideration for Internet Businesses acquired prior to such acquisition shall not exceed a maximum aggregate amount of £50,000,000 (or its Other Currency Equivalent); 

  
 “Permitted Contribution” means the proceeds of Further
Equity Contributions or Further Subordinated Loan Stock or all or any part of the Surplus Funding or Excess Cash Flow for any previous Financial Year after taking into account any mandatory payments made or to be made under Clause 8.4 (Excess
Cash Flow) and any amount of such Excess Cash Flow already used in accordance with this Agreement; 
  
 “Permitted Indebtedness” means: 
  

	 	(a)	 	Financial Indebtedness arising under the Finance Documents; 

  

	 	(b)	 	Financial Indebtedness permitted by Clauses 16.3(g) (Guarantees), 16.3(h) (Loans), 16.3(i) (Leasing Arrangements), 16.3(j) (Hedging Transactions) and
16.4(h) (Structural Subordination); 

  

	 	(c)	 	unsecured overdraft and working capital facilities in respect of which a Letter of Credit or Bank Guarantee in an amount equal to the maximum principal amount of such facilities has
been issued under the Revolving Facility; 

  

	 	(d)	 	Further High Yield Debt (in an aggregate principal amount not to exceed £200,000,000 (or its equivalent in a relevant currency)); 

  

	 	(e)	 	Financial Indebtedness arising solely as a result of gross exposure (which is zero on a net balance basis) under netting arrangements between accounts with the same Approved Bank,
which netting arrangements are approved by the Majority Banks; 

  

	 	(f)	 	Financial Indebtedness arising under the Vendor Loan Note; 

  

 27 

	 	(g)	 	Financial Indebtedness arising under the Subordinated Loan Stock; 

  

	 	(h)	 	Financial Indebtedness of Yellow Book USA Inc. under the YBUS Loan Notes or in connection with the obligations of Yellow Book USA Inc. to make payments to the beneficiaries of the
Yellow Book USA Management Incentive Compensation Plan in connection with the termination of such Plan at the Yell Completion to the extent that either (i) payment instructions have been given, or cheques have been issued, by Yellow Book USA, Inc.
for payments to discharge such Financial Indebtedness on the Yell Completion Date or (ii) such Financial Indebtedness is fully collateralised by cash standing to the credit of the YBUS Reserve Accounts or (iii) Yellow Book USA, Inc. is fully
indemnified by the BT Vendor in respect of such obligations to the satisfaction of the Facility Agent; 

  

	 	(i)	 	Financial Indebtedness arising under a series of US Dollar denominated subordinated loan notes issued or to be issued by UK Newco 3 to the Subordinated Guarantor in consideration
for the reduction in the amount of the Initial Inter-Company Loan Agreement (in an equivalent amount of Sterling) made by the Subordinated Guarantor to UK Newco 3 and in a maximum principal amount equal to the amount of such reduction provided that
(i) such loan notes will be issued on the same terms as the loan notes issued by UK Newco 3 to the Subordinated Guarantor in accordance with Step 6 of Schedule 13 and will be documented by way of an amendment to the relevant Recapitalisation
Inter-Company Loan Agreement, (ii) there is no movement of cash, (iii) the maximum aggregate principal amount of the US Dollar loan notes issued by UK Newco 3 to the Subordinated Guarantor (including the principal amount of the loan notes issued by
UK Newco 3 to the Subordinated Guarantor on 5 April 2002) shall not at any time exceed US$350,000,000 and (iv) all documentation entered into by UK Newco 3 and the Subordinated Guarantor in connection with such additional issue of loan notes shall
be in form and substance reasonably satisfactory to the Facility Agent; 

  

	 	(j)	 	Financial Indebtedness arising as a result of any subscription permitted pursuant to Clause 16.3(l)(P) (Acquisitions and Investments); and 

  

	 	(k)	 	other Financial Indebtedness in an aggregate principal amount not to exceed £60,000,000 (or its Other Currency Equivalent) less the principal amount of outstanding Revolving
Advances the proceeds of which are used (or which refinance directly or indirectly other Revolving Advances the proceeds of which were used) as permitted in accordance with Clause 2.5 (Acquisition Advances) incurred by members of the Group
(other than Excluded Group Members); 

  
 “Permitted Joint Venture” means: 
  

	 	(a)	 	investments in the C-Don Partnership and in any other joint venture, partnership or similar arrangement subsisting with any person (which is not an Affiliate) made on the date of
this Agreement; and 

  

	 	(b)	 	investments in joint ventures not exceeding an aggregate amount of the lower of £10,000,000 (or its Other Currency Equivalent) for the Group in any Financial Year and the
amount of the allowance of £100,000,000 (or its Other Currency Equivalent) for Permitted Acquisitions which is not utilised for Permitted Acquisitions in that Financial Year provided that (i) each joint venture is in a business which is the
same or related to the Business; (ii) each joint venture entity is incorporated with limited liability and there is no recourse to a member of the Group other than for the relevant investment permitted in accordance with this definition; (iii) the
interest of the relevant member of the Group in each joint venture entity constitutes not less than 20% or more than 50% of the total interests therein; (iv) the relevant member of the 

  

 28 

	 	 
Group has management control over each joint venture entity; and (v) the Facility Agent is provided with a copy of the joint venture agreement and evidence
satisfactory to it (acting reasonably) as to the proposed investment amount; 

  
 “Permitted Payments” means: 
  

	 	(a)	 	payments made by the Parent to Topco on the Yell Completion Date for the purposes of discharging financial advisory fees comprised within the Yell Transaction Costs in an aggregate
maximum amount approved by the Facility Agent; 

  

	 	(b)	 	payments made by the Parent to Topco on the McLeod Completion Date for the purposes of discharging financial advisory fees comprised within the McLeod Transaction Costs in an
aggregate maximum amount approved by the Facility Agent; 

  

	 	(c)	 	payments made by the Parent to Topco for the purposes of discharging certain fees and expenses of Hicks Muse and Apax incurred during each Financial Year in a maximum aggregate
amount equal to the higher of £1,500,000 and 0.25% of the gross revenues of the Group attributable to such Financial Year; 

  

	 	(d)	 	payments to the extent necessary to pay audit fees, legal expenses and other proper and necessary incidental expenses and corporate overheads of the Excluded Group Members and Topco
up to an aggregate amount per annum for all such payments not to exceed an amount equal to £2,000,000 in each Financial Year; 

  

	 	(e)	 	payments by the Parent to Topco for the purpose of discharging certain reasonable disbursements and out of pocket expenses (including fees and disbursement of counsel) incurred by
Hicks Muse and Apax in running and developing the Business; 

  

	 	(f)	 	payments by the Parent to Topco for the purposes of discharging fees payable to Hicks Muse and Apax in relation to financial advisory, investment banking and other similar services
provided in relation to any “Subsequent Transaction” in the amount of a cash fee equal to 1.5% of the total value of the Subsequent Transaction, including, without limitation, the aggregate amount of the funds required to complete the
add-on transaction (excluding the amount of such cash fee payable with respect to Subsequent Transactions) including the amount of indebtedness, preferred stock or similar items assumed (or remaining outstanding). “Subsequent
Transaction” means, collectively, any future proposals for a tender offer, acquisition, sale, merger, exchange, offer, recapitalisation, restructuring or other similar transaction directly or indirectly involving any members of the Group
and any other person or entity; 

  

	 	(g)	 	payments made by the Parent to Topco on the Bridge Note Refinancing Date for the purposes of discharging financial advisory fees comprised within the Bridge Note Refinancing
Transaction Costs in an aggregate maximum amount approved by the Facility Agent; and 

  

	 	(h)	 	the payment, prepayment or repayment of any Intra-Group Debt (as defined in the Intercreditor Agreement) other than to any holding company of UK Newco 3 which is permitted under
this Agreement provided that any such payment, prepayment or repayment shall not in any event be permitted if following a Senior Default (as defined in the Intercreditor Agreement) (and for so long as such Senior Default is continuing), the Facility
Agent has, on the instructions of the Majority Senior Creditors (as defined in the Intercreditor Agreement), served a written notice on the Parent suspending such payment, repayment or prepayment; 

  

 29 

 “Permitted Security Interest” means: 
  

	 	(a)	 	liens arising solely by operation of law and in the ordinary course of its trading activities and not as a result of any default or omission on the part of any member of the Group;

  

	 	(b)	 	rights of set-off existing in the ordinary course of trading activities between any member of the Group and its respective suppliers or customers; 

  

	 	(c)	 	rights of set-off or netting arising by operation of law or by contract by virtue of the provision to any member of the Group of clearing bank facilities or overdraft facilities
permitted under this Agreement; 

  

	 	(d)	 	any retention of title to goods supplied to any member of the Group where such retention is required by the supplier in the ordinary course of its trading activities and on
customary terms and the goods in question are supplied on credit; 

  

	 	(e)	 	Security Interests (except floating charges) arising under finance leases, hire purchase, conditional sale agreements or other agreements for the acquisition of assets on deferred
payment terms permitted under Clause 16.3(i) (Leasing Arrangements) and only to the extent such Security Interests are either granted by the relevant member of the Group over assets comprised within or constituted by such arrangements or were
in existence at the Yell Completion Date; 

  

	 	(f)	 	Security Interests arising under the Security Documents; 

  

	 	(g)	 	rights over cash deposits granted in favour of a landlord for the purposes of securing performance of rent and service charge obligations under licences, subleases or leases of real
property permitted under this Agreement; 

  

	 	(h)	 	statutory liens imposed by (i) any taxing authority of the United States or any political sub-division thereof in respect of taxes, assessments or levies which are not yet due and
payable or which are being contested in good faith by appropriate proceedings, provided that adequate reserves for such contested taxes are maintained on the books of the appropriate members of the Group in conformity with Completion Accounting
Principles; and (ii) the taxing authorities of any other applicable jurisdiction in respect of any taxes, assessments or levies which are being contested in good faith by appropriate proceedings, provided that adequate reserves with respect of such
contested taxes are maintained on the books of the appropriate members of the Group in conformity with Completion Accounting Principles; 

  

	 	(i)	 	Security Interests arising pursuant to an order of attachment or injunction restraining disposal of assets or similar legal process arising in connection with court proceedings
which are contested by any member of the Group in good faith by appropriate proceedings with a reasonable prospect of success; 

  

	 	(j)	 	Security Interests on (and limited solely to) any Acquisition Assets: 

  

	 	(i)	 	existing at the time of, and not created for the purpose of or in contemplation of, such acquisition and securing any Financial Indebtedness which is permitted under paragraph (i)
of the definition of “Permitted Indebtedness” provided that (A) the principal amount secured does not exceed the acquisition cost of such Acquisition Assets and may not be increased; (B) such Financial Indebtedness is or was incurred by a
member of the Group; and (C) the aggregate principal amount of all such 

  

 30 

 
Financial Indebtedness which is so secured may not exceed £15,000,000 (or its Other Currency Equivalent); or 
  

	 	(ii)	 	permitted under Clause 16.10(a) (Acquiring Companies); 

  

	 	(a)	 	any other Security Interest to which the Facility Agent (on the instructions of the Majority Banks) shall have given prior written consent; and 

  

	 	(b)	 	Security Interests not otherwise permitted pursuant to paragraphs (a) to (k) above inclusive securing Financial Indebtedness in an aggregate principal amount not exceeding at any
time £3,000,000 (or its Other Currency Equivalent); 

  
 “Plan” means a Single Employer Plan or a Multiple Employer Plan; 
  
 “Potential Event of Default” means any event which with the giving of notice or the lapse of time or the making of any determination or
fulfilment of any condition provided for in Clause 17.1 (Events of Default) would or could reasonably be expected to constitute an Event of Default; 
  
 “Principal Borrowers” means the UK Principal Borrower and the US Principal Borrower; 
  
 “Quotation Day” means, in relation to any period for which
an interest rate is to be determined: 
  

	 	(a)	 	(if the currency is Sterling) the first day of that period; 

  

	 	(b)	 	(if the currency is euro) two TARGET Days before the first day of that period; or 

  

	 	(c)	 	(for any other currency) two Business Days before the first day of that period, 

  
 unless market practice differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for that
currency will be determined by the Facility Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation
Day will be the last of those days); 
  
 “Recapitalisation” means the recapitalisation of the Group to be effected on or before the McLeod Completion Date pursuant to the Recapitalisation Documents in accordance with the transaction steps described in Schedule 13
and at any time thereafter, the issue of the loan notes by UK Newco 3 to the Subordinated Guarantor described in paragraph (i) of the definition of “Permitted Indebtedness”; 
  
 “Recapitalisation Assignment Agreements” means: 
  

	 	(a)	 	the assignment agreement in the agreed form dated on or before the McLeod Completion Date between the UK Principal Borrower (as assignor) and UK Newco 3 (as assignee);

  

	 	(b)	 	the assignment agreement in the agreed form dated on or before the McLeod Completion Date between the Subordinated Guarantor (as assignor) and UK Newco 3 (as assignee); and

  

	 	(c)	 	the assignment agreement in the agreed form dated on or before the McLeod Completion Date between UK Newco 3 (as assignor) and UK Newco 5 (as assignee), 

  
 in each case entered into by the relevant members of the Group in connection
with the Recapitalisation; 
  

 31 

 “Recapitalisation Documents” means the Recapitalisation Inter-Company Loan Agreements,
the Recapitalisation Assignment Agreements, the Recapitalisation Swap Agreement and any other document in the agreed form entered into by a member of the Group in connection with the Recapitalisation; 
  
 “Recapitalisation Inter-Company Loan Agreements” means (i)
the instrument in the agreed form dated on or before the McLeod Completion Date pursuant to which the Issuer issued subordinated, unsecured and unguaranteed loan notes to the Subordinated Guarantor together with the loan note subscribed for by the
Subordinated Guarantor pursuant to the terms of such instrument; (ii) the instrument in the agreed form dated on or before the McLeod Completion Date pursuant to which the Subordinated Guarantor issued subordinated, unsecured and unguaranteed loan
notes to UK Newco 3 together with the loan note subscribed for by UK Newco 3 pursuant to the terms of such instrument; (iii) the instrument in the agreed form dated on or before the McLeod Completion Date pursuant to which UK Newco 3 issued
subordinated, unsecured and unguaranteed loan notes to the Subordinated Guarantor (as amended after the date of the Sixth Amendment Agreement in connection with the issue of the loan notes referred to in paragraph (i) of the definition of
“Permitted Indebtedness”); (iv) the amended and re-stated Initial Inter-Company Loan Agreement between the Issuer and the Subordinated Guarantor in the agreed form; (v) the amended and re-stated Initial Inter-Company Loan Agreement between
the Subordinated Guarantor and UK Newco 3 in the agreed form; (vi) the amended and re-stated Initial Inter-Company Loan Agreement between UK Newco 3 and the UK Principal Borrower in the agreed form; (vii) the amended and re-stated Initial
Inter-Company Loan Agreement between the UK Principal Borrower and Yellow Book USA, Inc. in the agreed form; (viii) the inter-company loan agreement between the Subordinated Guarantor and Yellow Book USA, Inc. in the agreed form, in each case
entered into by the relevant members of the Group in connection with the Recapitalisation; 
  
 “Recapitalisation Swap Agreement” means the cross currency swap agreement(s) dated on or before the McLeod Completion Date in the agreed form entered into by the Subordinated Guarantor and Yellow Book
USA, Inc. in relation to the Tranche C2 Term Facility for the purpose of netting Sterling and US Dollar currency exposures against each other in connection with the Recapitalisation; 
  
 “Reference Banks” means the principal London offices of Barclays Bank PLC, Deutsche Bank AG London and CIBC
World Markets plc or if any such Bank ceases to be a Reference Bank such other Bank as the Facility Agent shall select after consultation with the Obligors’ Agent; 
  
 “Related Fund” means, with respect to any Bank which is a fund that invests in loans, any other fund that
invests in loans and is controlled by, managed by or advised by the same investment advisor as such Bank or by an Affiliate of such investment advisor; 
  
 “Relevant Interbank Market” means, in relation to Euro, the European interbank market and, in relation to any other currency, the London
interbank market; 
  
 “Repayment Dates” means
each date on which an instalment is due for repayment under Clause 7.1 (Term Advances), the Final Tranche A Repayment Date, the Final Tranche B Repayment Date, the Final Tranche C1 Repayment Date, the Final Tranche C2 Repayment Date, the
Final Tranche C3 Repayment Date, the Final Tranche D Repayment Date and the Revolving Facility Repayment Date; 
  
 “Reports” means the Yell Reports and the McLeod Reports; 
  
 “Reports Side Letters” means the Yell Reports Side Letter and the McLeod Reports Side Letter; 

 
 “Required Cash Contribution” means the available cash
balances of the Group in the amount of $137,500,000 (or its equivalent in other currencies) which are surplus to the on-going working capital 
  

 32 

 needs of the Group and the proceeds of which are permitted by the terms of the Finance Documents to be
applied towards the Bridge Note Refinancing; 
  
 “Revolving Facility” means the revolving credit facility to be made available by the Revolving Banks pursuant to Clause 2.1(g) (Facilities); 
  
 “Revolving Facility Repayment Date” means the seventh anniversary of the First Drawing Date; 
  
 “Rollover Advance” means a Revolving Advance requested in
accordance with Clause 5.1 (Delivery of Drawing Requests) which is in an amount which is less than or equal to (and in the same currency as) a Revolving Advance which is due to be repaid on the proposed Drawing Date of the requested Revolving
Advance from the proceeds of such Revolving Advance; 
  
 “RPI” means the United Kingdom Retail Price Index; 
  
 “Sale” has the meaning given in Clause 8.2 (Mandatory Prepayment on Change of Control or Sale); 
  
 “Screen Rate” means: 
  

	 	(a)	 	in relation to LIBOR, the British Bankers Association Interest Settlement Rate for the relevant currency and period; and 

  

	 	(b)	 	in relation to EURIBOR, the percentage rate per annum determined by the Banking Federation of the European Union for the relevant period, 

  
 displayed on the appropriate page of the Telerate screen. If the agreed page
is replaced or service ceases to be available, the Facility Agent may specify another page or service displaying the appropriate rate after consultation with the Obligors’ Agent and the Banks; 
  
 “Security Agent” means Deutsche Bank AG London as security
trustee for the Senior Finance Parties under the Security Documents or such other person as may from time to time hold the whole or any part of the security created thereby in accordance with the terms hereof; 
  
 “Security Documents” means the Original Security Documents
and the Tranche D Security Documents and any other document entered into from time to time providing for a guarantee or Security Interest in favour of the Senior Finance Parties (or any of them) in respect of the obligations of the Obligors under
the Senior Finance Documents; 
  
 “Security/Guarantee
Principles” means the principles that the granting and extent of any guarantees and Security Interests required from each Obligor in a jurisdiction other than England and Wales in support of their obligations under the Senior Finance
Documents will be subject to the following general considerations: 
  

	 	(a)	 	limitations may be imposed or may arise on (i) the availability and extent of such guarantees and Security Interests by reason of applicable law, directors’ fiduciary duties or
other similar duties or (ii) the extent of such guarantees and Security Interests in order to ensure that directors are not exposed to personal liability to contribute towards the indebtedness to which the same relate; 

  

	 	(b)	 	the cost to the relevant Obligor of providing such guarantees and Security Interests shall not in the opinion of the Facility Agent (acting reasonably) be disproportionately greater
than the benefit obtained by the beneficiaries of such guarantees and Security Interests therefrom; and 

  

 33 

	 	(c)	 	in the case of the grant of Security Interests only, the administrative burden which such Security Interests place on the relevant Obligor shall not in the reasonable opinion of the
Facility Agent be disproportionately greater than the benefit obtained by the beneficiaries of such Security Interests therefrom; 

  
 “Security Interest” means any mortgage, charge (fixed or floating), standard security, pledge, lien, hypothecation, right of set-off,
security trust, assignment by way of security, reservation of title, or any other security interest whatsoever, howsoever created or arising or any other agreement or arrangement (including, without limitation, a sale and repurchase arrangement)
entered into for the purposes of conferring security and any agreement to enter into, create or establish any of the foregoing; 
  
 “Senior Co-Arrangers” means collectively the Original Facilities Senior Co-Arrangers and the Tranche D Senior Co-Arrangers; 

 
 “Senior Finance Parties” means the Mandated Lead
Arrangers, the Joint Lead Arrangers, the Arrangers, the Senior Co-Arrangers, the Tranche D Co-Arrangers, the Agents, each Bank, each Ancillary Bank, each Issuing Bank, each Hedging Bank and any Affiliate of a Bank nominated in accordance with Clause
3.3 (Lending Affiliates) and “Senior Finance Party” means any of them; 
  
 “Shareholder Agreement” means the shareholders agreement dated 22 June 2001 between the general partner of Topco and the entities
referred to therein as the Apax Funds and the HMTF Funds; 
  
 “Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Obligor or any ERISA Affiliate and no person other than the Obligors and the ERISA
Affiliates or (b) was so maintained and in respect of which any Obligor or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated; 
  
 “Sixth Amendment Agreement” means the agreement dated 11
November 2002 between, inter alios, the Parent, the Tranche C3 Mandated Lead Arranger, the Tranche C3 Joint Lead Arranger, each Tranche C3 Arranger, each Tranche C3 Joint Bookrunner, each Original Tranche C3 Bank, the Facility Agent and the
Security Agent pursuant to which the terms of this Agreement are amended and restated; 
  
 “SLPs” means the Scottish Limited Partnerships formed by Hicks Muse and Apax which are subscribers of the Initial Subordinated Loan Stock and “SLP” means either of them; 

 
 “Specified Sovereign” means any member state of the
European Union as comprised on the Yell Completion Date (other than Greece or Portugal); 
  
 “Standard & Poor’s” means Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc.; 
  
 “Sterling” or “£” means the lawful currency for the time being of the United
Kingdom; 
  
 “Sterling Amount” means, in
relation to a Drawing, the amount specified in a Drawing Request delivered by a Borrower or the Obligors’ Agent for that Drawing (or, if the amount requested is not denominated in Sterling, that amount converted into Sterling at the Facility
Agent’s spot rate of exchange on the date which is three Business Days before the Drawing Date or, if later, on the date the Facility Agent receives the Drawing Request) adjusted to reflect (in the case of an Advance) any repayment (other than,
in relation to a Term Facility, a repayment arising from a change of currency), prepayment, consolidation or division or (in the case of a Letter of Credit or Bank Guarantee) the provision of cash cover; 
  

 34 

 “Sterling Equivalent” in relation to an amount denominated or expressed in an Optional
Currency means the equivalent thereof in Sterling converted at the Facility Agent’s spot rate of exchange on the date specified for the relevant calculation; 
  
 “Subordinated Guarantor” means Yellow Pages Limited (formerly known as Seamleigh Limited), a limited
liability company incorporated in England and Wales with registered number 4175821 and a direct wholly-owned Subsidiary of the Issuer; 
  
 “Subordinated Guarantor/UK Newco 3 Convertible Initial Inter-Company Loan Agreement” means the loan agreement, in the agreed terms, dated
22 June 2001 made between the Subordinated Guarantor as lender and UK Newco 3 as borrower setting out the terms on which the proceeds of the issue of the Initial Subordinated Loan Stock are advanced on a subordinated basis to UK Newco 3 in a
principal amount not exceeding £549,000,000 and, following the issue thereof, the Convertible UK Newco 3 Loan Note; 
  
 “Subordinated Loan Stock” means the Initial Subordinated Loan Stock, the Additional Subordinated Loan Stock and the Further Subordinated
Loan Stock; 
  
 “Subordinated Loan Stock
Documents” means the Initial Subordinated Loan Stock Documents, the Additional Subordinated Loan Stock Documents and the Further Subordinated Loan Stock Documents; 
  
 “Subordination Agreement” means the subordination agreement dated 22 June 2001 (as amended and restated
from time to time) entered into between, inter alios, the holders of the Initial Subordinated Loan Stock, the Vendor Noteholder and the Parent; 
  
 “Subsidiary” means: 
  

	 	(a)	 	a subsidiary as defined in Section 736 of the Companies Act 1985; and 

  

	 	(b)	 	a subsidiary undertaking as defined in Section 21 of the Companies Act 1989; 

  

“Surplus Funding” means the amount not exceeding the equivalent in Sterling of US$55,000,000 (calculated at the Facility Agent’s
spot rate of exchange on or around 8.00 a.m. on the Yell Completion Date for same day delivery of Sterling) plus interest accrued thereon from time to time standing to the credit of the Surplus Funding Account from time to time; 
  
 “Surplus Funding Account” means the account with the
Facility Agent opened in the name of the Subordinated Guarantor and charged for the benefit of the Senior Finance Parties into which an amount not exceeding the equivalent in Sterling of US$55,000,000 (calculated at the Facility Agent’s spot
rate of exchange on or around 8.00 a.m. on the Yell Completion Date for same day delivery of Sterling) was paid on the Yell Completion Date as specified in the Yell Completion Funds Flow Statement; 
  
 “TARGET” mean the Trans-European Automated Real-time Gross
Settlement Express Transfer payment system; 
  
 “TARGET
Day” means any day on which TARGET is open for the settlement of payments in Euro; 
  
 “Term Advances” means the Tranche A Advances, the Tranche B Advances, the Tranche C1 Advances, the Tranche C2 Advances, the Tranche C3 Advances and the Tranche D Advances and “Term
Advance” means any of them; 
  

 35 

 “Term Facilities” means the Tranche A Term Facility, the Tranche B Term Facility, the
Tranche C1 Term Facility, the Tranche C2 Term Facility, the Tranche C3 Term Facility and the Tranche D Term Facility and “Term Facility” means any of them; 
  
 “Topco” means Yellow Pages Investments L.P., a limited liability partnership established in the Cayman
Islands and the immediate Holding Company of the Parent; 
  
 “Total Commitments” means, at any time, the aggregate of all of the Commitments at that time; 
  
 “Tranche A Term Facility” means the term loan facility to be made available by the Tranche A Banks pursuant to Clause 2.1(a)
(Facilities); 
  
 “Tranche B Term
Facility” means the term loan facility to be made available by the Tranche B Banks pursuant to Clause 2.1(b) (Facilities); 
  
 “Tranche C1 Term Facility” means the term loan facility to be made available by the Tranche C1 Banks pursuant to Clause 2.1(c)
(Facilities); 
  
 “Tranche C2 Term
Facility” means the term loan facility to be made available by the Tranche C2 Banks pursuant to Clause 2.1(d) (Facilities); 
  
 “Tranche C3 Inter-Company Loan Agreements” means the loan agreements, in the agreed terms, made between members of the Group pursuant to
which, inter alias, the proceeds of the Tranche C3 Term Facility are or are to be advanced on a subordinated basis to, and between members of the Group on or before the Bridge Note Refinancing Date; 
  
 “Tranche C3 Term Facility” means the term loan facility to
be made available by the Tranche C3 Banks pursuant to Clause 2.1(e) (Facilities); 
  
 “Tranche D Borrower” means Yellow Book/McLeod Holdings, Inc., a company incorporated in Delaware and a direct wholly-owned Subsidiary of the US Principal Borrower; 
  
 “Tranche D Fees Letter” means the letter from CIBC World
Markets plc (as Tranche D Mandated Lead Arranger) and Credit Suisse First Boston (as Tranche D Joint Lead Arranger) dated 1 February 2002 setting out details of certain fees payable by the members of the Group in connection with the Tranche D Term
Facility and referred to in Clause 10 (Fees); 
  
 “Tranche D Security Documents” means the documents listed in Part B of Schedule 12 and the Mortgages; 
  
 “Tranche D Term Facility” means the term loan facility to be made available by the Tranche D Banks pursuant to Clause 2.1(f)
(Facilities); 
  
 “Transaction Costs”
mean the Yell Transaction Costs, the McLeod Transaction Costs and the Bridge Note Refinancing Transaction Costs; 
  
 “Transaction Documents” means the Finance Documents, the Investor Documents, the Acquisition Documents, the Inter-Company Loan Agreements
and (to the extent not already included) the Recapitalisation Documents; 
  
 “Transfer Certificate” means a certificate substantially in the form set out in Schedule 6; 
  

 36 

 “Transfer Date” means in relation to any Transfer Certificate, the date for the making
of the transfer as specified in such Transfer Certificate; 
  
 “Transferee” means a person to whom a Bank seeks to transfer all or part of its rights, benefits and obligations hereunder; 
  
 “Transferor Bank” means the Bank seeking to transfer or assign all or part of its rights, benefits and obligations hereunder; 

 
 “Treaty” means the treaty establishing the European
Community being the Treaty of Rome as amended from time to time; 
  
 “UK Business Sale Agreement” has the meaning given to it in the Umbrella Agreement; 
  
 “UK Group” means the UK Principal Borrower and each of its Subsidiaries incorporated in any part of the United Kingdom;

  
 “UK Newco 3” means Yell Holdings 2 Limited
(formerly known as Marchprobe Limited), a limited liability company incorporated in England and Wales with registered number 4180359 and a direct wholly-owned Subsidiary of the Subordinated Guarantor; 
  
 “UK Newco 5” means YH Limited (formerly known as Fastkeel
Limited), a limited liability company incorporated in England and Wales with registered number 4193755 and which is a direct wholly-owned Subsidiary of UK Newco 3; 
  
 “UK Obligor” means any Obligor incorporated in any part of the United Kingdom; 
  
 “UK Share Sale Agreement” has the meaning given to it in
the Umbrella Agreement; 
  
 “Umbrella Agreement”
means the umbrella agreement dated 25 May 2001 between, inter alios, UK Newco 3, the UK Principal Borrower, the US Principal Borrower and the BT Vendor (as amended by the YBUS MIS Amendment Agreement and a further amendment agreement dated
the Yell Completion Date). 
  
 “unpaid sum” has
the meaning given to it in Clause 6.5 (Default Interest); 
  
 “US Dollars”, “Dollars” or “ US$” means the lawful currency for the time being of the United States of America; 
  
 “US Group” means the US Principal Borrower and each of its Subsidiaries incorporated or established in the
United States of America; 
  
 “US Newco
1” means Yellow Book Group, Inc. (formerly known as Yasmin One (US) Inc.), a company incorporated in Delaware whose registered office is at Corporation Trust Center, 1209 Orange Street, Wilmington, Delaware and which is a direct
wholly-owned Subsidiary of Luxco; 
  
 “US
Obligor” means any Obligor incorporated in any state of the United States of America; 
  
 “US Share Sale Agreement” has the meaning given to it in the Umbrella Agreement; 
  
 “Vendor Loan Note” means the subordinated, unsecured
non-cash interest bearing loan note in the agreed form in the principal amount of £100,000,000 issued on the Yell Completion Date by the UK Principal Borrower and subscribed for by the Vendor Noteholder in cash and subsequently novated to

  

 37 

 the Parent pursuant to the Vendor Loan Note Novation Agreements in accordance with Clause 16.2(m)
(Novation of the Vendor Loan Note); 
  
 “Vendor
Loan Note Documents” means the documents evidencing or regulating the terms of the Vendor Loan Note including, without limitation, the Vendor Loan Note Instrument, the Intercreditor Agreement, the Subordination Agreement, the Vendor Loan
Note Novation Agreements and all other documents evidencing the terms of the Vendor Loan Note and any other agreement or document that may be entered into or executed pursuant thereto or in connection therewith, in each case, in the agreed form;

  
 “Vendor Loan Note Instrument” means
the instrument dated 22 June 2001 entered into by the UK Principal Borrower constituting the Vendor Loan Note; 
  
 “Vendor Loan Note Novation Agreements” means each of the novation agreements in the agreed form dated 22 June 2001 between the relevant
Excluded Group Members and the Vendor Noteholder pursuant to which all the rights and obligations of the UK Principal Borrower and the Vendor Noteholder in respect of the Vendor Loan Note are novated by (i) the UK Principal Borrower to UK Newco 3,
(ii) UK Newco 3 to the Subordinated Guarantor, (iii) the Subordinated Guarantor to the Issuer and (iv) the Issuer to the Parent; 
  
 “Vendor Noteholder” means Castaim Limited (formerly known as Yell Limited) a limited liability company registered in England and Wales
with company number 3984695; 
  
 “Vendors” means
the BT Vendor and the McLeod Vendors; 
  
 “Withdrawal
Liability” has the meaning specified in Part I of Subtitle E of Title IV of ERISA; 
  
 “YBUS Loan Notes” means the rollover loan notes issued by Yellow Book USA, Inc. to management as referred to in the asset purchase agreement dated 23 December 1999 between Tadworth Corporation and
Yellow Book USA L.P.; 
  
 “YBUS MIS Amendment
Agreement” means the agreement amending the terms of the Umbrella Agreement and the UK Business Sale Agreement in relation to the arrangements for the termination of the Yellow Book USA Management Incentive Compensation Plan dated on or
before the Yell Completion Date and made between UK Newco 3, the UK Principal Borrower, the US Principal Borrower, BT Holdings Limited and others; 
  
 “YBUS Reserve Accounts” means: 
  

	 	(a)     (i)	 	the account with the Facility Agent opened in the name of Yellow Book USA, Inc. and charged for the benefit of the Senior Finance Parties and (ii) the account with The Chase
Manhattan Bank opened in the name of Yellow Book USA, Inc. and charged for the benefit of the Senior Finance Parties into which accounts there was deposited at the Yell Completion Date amounts of not less than the aggregate amount required to:

  

	 	(ii)	 	discharge all liabilities to the BT Vendor Group under the Yell Acquisition Documents or any other liabilities which Yellow Book USA, Inc had to make payments to the beneficiaries
of the Yellow Book USA Management Incentive Compensation Plan upon its termination pursuant to the YBUS MIS Amendment Agreement and discharging any liabilities for any tax which may be charged on such payments to the beneficiaries of such Plan; and

  

 38 

	 	(iii)	 	redeem all the YBUS Loan Notes and fully discharge all indebtedness thereunder; 

  
 “Yell Acquisition” means the acquisition of the Yell Business pursuant to the Yell Acquisition Documents;

  
 “Yell Acquisition Agreements” means the
Umbrella Agreement, the UK Share Sale Agreement, the UK Business Sale Agreement and the US Share Sale Agreement relating to the acquisition of the Yell Business and made between, inter alios, the UK Principal Borrower, the US Principal
Borrower and UK Newco 3 as purchasers and the BT Vendor and certain of its Subsidiaries as sellers; 
  
 “Yell Acquisition Documents” means the Yell Acquisition Agreements and all other agreements executed pursuant to the terms of the Yell
Acquisition Agreements including, without limitation, the Yell Transitional Services Agreement; 
  
 “Yell Business” means the Yell Target Assets and the Yell Target Securities; 
  
 “Yell Closing Account” means the accounts with the Facility
Agent opened for the purposes of collection of funds required to effect the Yell Completion; 
  
 “Yell Completion” means completion of the sale and purchase of the Yell Business pursuant to the Yell Acquisition Agreements; 
  
 “Yell Completion Date” means 22 June 2001; 
  
 “Yell Completion Funds Flow Statement” means the funds flow statement in relation to the Yell Completion
and the payment of the Yell Transaction Costs, in the agreed form; 
  
 “Yell Information Package” means the Yell Syndication Memorandum and the Agreed Financial Projections (in the agreed form as at the Yell Completion Date); 
  
 “Yell Reports” means: 
  

	 	(a)	 	each of the long-form accountants’ reports on the Yell Business (including a pensions report and a tax report) in the approved form prepared by PricewaterhouseCoopers as
amended and supplemented by the update report by PricewaterhouseCoopers in the approved form; and 

  

	 	(b)	 	each of the legal due diligence reports in the approved form prepared by Weil Gotshal & Manges LLP, 

  
 each such Yell Report being addressed to or accompanied by a letter of reliance in the agreed form in favour of, inter
alios, the Senior Finance Parties; 
  
 “Yell Reports
Side Letter” means the letter, in the agreed form, dated 22 June 2001 addressed by Hicks Muse and Apax to the Facility Agent, the Security Agent and the Parent in relation to the Yell Reports and the Certificates of Title; 
  
 “Yell Structure Document” means the document dated 22 June
2001 (as amended and restated on 3 July 2001) in the agreed form comprising, inter alia, diagrams of the Parent, its direct and indirect Holding Companies and its Subsidiaries (including the Group) before and after the Yell Completion Date
and indicating the movements of funds on the Yell Completion Date; 
  

 39 

 “Yell Syndication Memorandum” means the information memorandum agreed between the Parent
and the Original Facilities Syndication Agent in respect of the Original Facilities as contemplated by Clause 3.6 (Syndication); 
  
 “Yell Target Assets” means the Assets and the Business (each expression as defined in the Umbrella Agreement); 
  
 “Yell Target Securities” means the YPSL Shares and the YB
USA Shares (each expression as defined in the Umbrella Agreement); 
  
 “Yell Transaction Costs” means all fees, costs and expenses and stamp, registration, notarial and similar taxes incurred by members of the Group in connection with the Yell Acquisition and its financing as set out in the
Yell Completion Funds Flow Statement; 
  
 “Yell
Transitional Services Agreement” means the administration and services agreement dated 22 June 2001 between the BT Vendor and the Parent relating to the provision of certain services by the BT Vendor to certain members of the Group; and

  
 “Yellow Book USA Management Incentive Compensation
Plan” means the management incentive compensation plan operated by Yellow Book USA, Inc., effective from 1 October, 1999 until 3 September, 2004. 
  

	1.2	 	Construction: In this Agreement, unless the context otherwise requires, a reference to: 

  
 an “agency” of a state or of the European Community includes any local or other authority, self regulating
or other recognised body or agency, central or federal bank, department, government, legislature, minister, ministry, self regulating organisation, official or public or statutory person (whether autonomous or not) of, or of the government of, the
European Community that state or any political sub-division in or of that state; 
  
 a document being “in the agreed terms” or “in the agreed form” or “in the approved form” means, as the case may be, on terms and in a form agreed and/or approved by
the Facility Agent; 
  
 an “agreement” includes
any legally binding agreement, arrangement, concession, contract, licence, deed or franchise (in each case whether oral or written); 
  
 “assets” includes property and rights of every kind, present, future and contingent (including uncalled share capital) and every kind of
interest in an asset; 
  
 a “consent” includes
an authorisation, approval, exemption, licence, permit, order or permission (and reference to obtaining “consents” shall be construed accordingly); 
  
 a “directive” means any directive, regulation, request or requirement; 
  
 a “filing” includes any filing, registration, recording or
notice (and references to making or renewing “filings” shall be construed accordingly); 
  
 a “guarantee” includes: 
  
 (a) an indemnity; and 
  
 (b) any other obligation (whatever called) of any person: 
  

 40 

	 	(i)	 	to pay, purchase, provide funds (whether by the advance of money, the purchase of or subscription for shares or other investments, the purchase of assets or services, the making of
payments under an agreement or otherwise) for the payment of, indemnify against the consequences of default in the payment of, or otherwise be responsible for, any indebtedness of any other person; or 

  

	 	(ii)	 	to be responsible for the performance of any obligations by or the solvency of any other person, 

  
 (and “guaranteed” and “guarantor” shall be construed accordingly); 
  
 “indebtedness” includes any obligation (whether incurred as
principal, guarantor or as surety) for the payment or repayment of money, whether present or future, actual or contingent; 
  
 a “month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar
month provided that if: 
  

	 	(a)	 	any such period would otherwise end on a day which is not a Business Day, it shall end on the next Business Day in the same calendar month or, if none, on the preceding Business
Day; and 

  

	 	(b)	 	a period starts on the last Business Day in a calendar month or if there is no numerically corresponding day in the month in which that period ends, that period shall end on the
last Business Day in that later month, 

  
 (and
references to “months” shall be construed accordingly); 
  
 a “person” includes any person, unincorporated association, firm, partnership, company, corporation or other body corporate, government, state or agency of a state (whether or not having separate
legal personality); 
  
 “reservations” means the
principle that equitable remedies are remedies which may be granted or refused at the discretion of the court, the limitation on enforcement as a result of laws relating to bankruptcy, insolvency, liquidation, reorganisation, court schemes,
moratoria, administration and other laws affecting the rights of creditors generally, the time-barring of claims under the Limitation Acts, rules against penalties and similar principles and similar principles of law in other jurisdictions relevant
in the context of the Transaction Documents; 
  
 “taxes” includes all present and future income and other taxes, levies, assessments, imposts, deductions, charges, duties, compulsory loans and withholdings on account of tax whatsoever and wheresoever imposed and any
charges in the nature of taxation together with interest thereon and penalties and fines with respect thereto, if any, and any payments made on or in respect thereof and “tax” and “taxation” shall be construed
accordingly; 
  
 a “wholly-owned” Subsidiary or
a “wholly-owned” member of the Group means a member of the Group the entire share capital of which is owned, directly or indirectly, by the Parent; and 
  
 “winding-up” of any person includes its dissolution and/or termination and/or any equivalent or analogous
proceedings under the law of any jurisdiction to which that person is subject. 
  

	1.3	 	Other References: Save where a contrary intention appears, in this Agreement: 

  

	 	(a)	 	a reference to a person is, where relevant, deemed to be a reference to or to include, as appropriate, their respective successors, permitted assignees or transferees;

  

 41 

	 	(b)	 	references to Clauses and Schedules are references to, respectively, clauses of and schedules to this Agreement and references to this Agreement include its Schedules;

  

	 	(c)	 	a reference to any agreement (including, without limitation, any of the Senior Finance Documents) is to be construed as a reference to that agreement as it may from time to time be
amended, varied, supplemented, restated or novated (including, without limitation, by any provisions for any new or increased advances or utilisations thereunder) but excluding for this purpose any amendment, variation, supplement or modification
which is contrary to any provision of any of the Senior Finance Documents; 

  

	 	(d)	 	a reference to a statute or statutory instrument or any provision thereof is to be construed as a reference to that statute or statutory instrument or such provision thereof as the
same may have been, or may from time to time hereafter be, amended or re-enacted; 

  

	 	(e)	 	a time of day is a reference to London time (unless otherwise specified); 

  

	 	(f)	 	the index to and the headings in this Agreement are inserted for convenience only and are to be ignored in construing this Agreement; 

  

	 	(g)	 	words importing the plural shall include the singular and vice versa; 

  

	 	(h)	 	in the event that compliance with any monetary limit specified in this Agreement (other than Clause 16.7 (Financial Covenants)) shall fall to be determined, any conversion
from any currency to Sterling necessary for that purpose shall be by reference to the Facility Agent’s spot rate of exchange on the date of determination; 

  

	 	(i)	 	for the purposes of (i) calculating the Commitments for the definition of “Majority Banks” in Clause 1.1 (Definitions), and (ii) effecting transfers or assignments
pursuant to Clause 20.3 (Assignments and Transfers by Banks), any reference to a Bank shall also be deemed to include a reference to any Affiliate which it has nominated pursuant to Clause 3.3(a)(Lending Affiliates); and

  

	 	(j)	 	references to “the date of this Agreement” and similar phrases shall mean 25 May, 2001. 

  

	1.4	 	Cash Cover: Whenever a Borrower is obliged under the terms of this Agreement: 

  

	 	(a)	 	to repay or prepay any Contingent Liability or provide cash cover in respect of any Contingent Liability, that Borrower shall on the date for such repayment or prepayment or
provision of such cash cover: 

  

	 	(i)	 	by agreement with the beneficiary of such Letter of Credit or Bank Guarantee, reduce such Contingent Liability by the relevant amount; or 

  

	 	(ii)	 	pay the relevant amount to the credit of a Cash Collateral Account; or 

  

	 	(b)	 	to repay or prepay any contingent liability arising under the Ancillary Facilities, it shall do so in accordance with paragraph (a) above or as otherwise specified in the relevant
Ancillary Documents; 

  

	 	(c)	 	to provide cash cover in respect of a Letter of Credit or Bank Guarantee such cash cover shall be provided in the currency of that Letter of Credit or Bank Guarantee.

  

 42 

	2.	 	THE FACILITIES 

  

	2.1	 	Facilities: On the terms and subject to the conditions of this Agreement: 

  

	 	(a)	 	the Tranche A Banks agree to make available to the Borrowers of the Tranche A Term Facility a Sterling term loan facility in a maximum aggregate principal amount not exceeding
£600,000,000 which shall be available for drawing in full in Sterling on the Yell Completion Date; 

  

	 	(b)	 	the Tranche B Banks agree to make available to the Borrowers of the Tranche B Term Facility a Sterling term loan facility in a maximum aggregate principal amount not exceeding
£175,000,000 which shall be available for drawing in full in Sterling on the Yell Completion Date; 

  

	 	(c)	 	the Tranche C1 Banks agree to make available to the Borrowers of the Tranche C1 Term Facility a US Dollars term loan facility in a maximum aggregate principal amount not exceeding
US$181,568,612.08 which shall be available for drawing by way of one or more advances in US Dollars on the Yell Completion Date and on the date of issue of the High Yield Notes and the Discount High Yield Notes; 

  

	 	(d)	 	the Tranche C2 Banks agree to make available to the Borrowers of the Tranche C2 Term Facility a Sterling term loan facility in a maximum aggregate principal amount not exceeding
£52,241,919.42 which shall be available for drawing in full in US Dollars on the Yell Completion Date; 

  

	 	(e)	 	the Tranche C3 Banks agree to make available to the UK Principal Borrower a US Dollars term loan facility in a maximum aggregate principal amount not exceeding US$123,500,000 which
shall be available for drawing in full in US Dollars on the Bridge Note Refinancing Date, provided that the amount available for drawing shall be reduced by the amount cancelled in accordance with Clause 9.4 (Tranche C3 Term Facility);

  

	 	(f)	 	the Tranche D Banks agree to make available to the Tranche D Borrower a US Dollars term loan facility in a maximum aggregate principal amount not exceeding US$250,000,000 which
shall be available for drawing in full in US Dollars on the McLeod Completion Date; and 

  

	 	(g)	 	the Revolving Banks agree to make available to the Borrowers a Sterling revolving credit facility in a maximum aggregate principal amount not exceeding £100,000,000 which
shall be available for drawing during the Availability Period for the Revolving Facility in Sterling, US Dollars and other Optional Currencies and by way of Revolving Advances, issue of Letters of Credit or Bank Guarantees and, on the basis provided
for in Clause 2.2 (Ancillary Facilities), by way of Ancillary Facilities. 

  

	2.2	 	Ancillary Facilities: 

  

	 	(a)	 	A Revolving Bank may by notice to the Facility Agent and subject to the provisions of this Agreement at any time designate a portion of its Revolving Commitment to be made available
by way of Ancillary Facilities under and in accordance with the terms of Ancillary Documents. Any such notice shall specify the type of Ancillary Facilities to be made available and the Ancillary Limit applicable thereto. 

 

	 	(b)	 	In the event that a Revolving Bank designates a portion of its Revolving Commitment to be made available by way of Ancillary Facilities then with effect from such date as the
relevant 

  

 43 

	 	 
Revolving Bank, the Obligors’ Agent and the Facility Agent may agree the Revolving Commitment of such Revolving Bank shall be reduced by the Ancillary
Limit applicable to the Ancillary Facilities made available by that Revolving Bank. In the event that such Revolving Bank ceases to make available all or part of such Ancillary Facilities its Revolving Commitment shall be increased accordingly.

  

	2.3	 	Purpose: 

  

	 	(a)	 	Subject to Clause 2.3(f) (Purpose), the proceeds of the Term Advances (other than the Tranche C3 Advance and the Tranche D Advance) shall be applied:

  

	 	(i)	 	in part discharging the purchase price for the Yell Business pursuant to the Yell Acquisition Documents; 

  

	 	(ii)	 	in part discharging the Yell Transaction Costs; 

  

	 	(iii)	 	in or towards discharging the intra-group debt owed by Yellow Book USA, Inc. to any member of the BT Vendor Group; 

  

	 	(iv)	 	in or towards redemption of the YBUS Loan Notes; 

  

	 	(v)	 	in or towards making payments to the beneficiaries of the Yellow Book USA Management Incentive Compensation Plan in relation to the termination thereof pursuant to the YBUS MIS
Amendment Agreement and accounting for any tax or social security contributions which may be charged on or arise in respect of such payments; and 

  

	 	(vi)	 	in the case of the Tranche C1 Facility only, in part discharging the Bridge Facility and certain related costs and expenses. 

  
 The proceeds of each Term Advance referred to in this Clause 2.3(a) shall be
borrowed by the relevant Borrower and applied for the purposes specified in this Clause 2.3(a) in the manner set forth in the Yell Completion Funds Flow Statement or as otherwise agreed by the Majority Banks. 
  

	 	(b)	 	Subject to Clause 2.3(f) (Purpose), the proceeds of the Tranche C3 Advance shall be applied: 

  

	 	(i)	 	in part towards the Bridge Note Refinancing; and 

  

	 	(ii)	 	in part discharging the Bridge Note Transaction Costs, 

  
 and for no other purpose. 
  
 The proceeds of the Tranche C3 Advance shall be borrowed by the UK Principal Borrower and applied for the purposes specified in this Clause 2.3(b) in the
manner set forth in the Bridge Note Refinancing Funds Flow Statement or as otherwise agreed by the Majority Banks. 
  

	 	(c)	 	Subject to Clause 2.3(f) (Purpose), the proceeds of the Tranche D Advance shall be applied: 

  

	 	(i)	 	in part discharging the purchase price for McLeod pursuant to the McLeod Acquisition Documents; and 

  

 44 

	 	(ii)	 	in part discharging the McLeod Transaction Costs. 

  
 The proceeds of the Tranche D Advance shall be borrowed by the Tranche D Borrower and applied for the purposes specified in this Clause 2.3(c) in the
manner set forth in the McLeod Completion Funds Flow Statement or as otherwise agreed by the Majority Banks. 
  

	 	(d)	 	The proceeds of Revolving Advances and each Letter of Credit and Bank Guarantee issued under the Revolving Facility and the Ancillary Facilities shall be used for the working
capital and other general corporate purposes of the Group arising after the Yell Completion Date (but shall not be used for the purposes of effecting or financing (in whole or in part) acquisitions of other businesses or companies or the purchase
price for the Yell Business or McLeod which is payable pursuant to the Acquisition Documents or the McLeod Transaction Costs save in each case as expressly provided otherwise in Clause 2.5 (Acquisition Advances)) and provided that such
purposes do not include making any repayment or prepayment of principal amounts of the Term Advances. 

  

	 	(e)	 	No Senior Finance Party shall be obliged to enquire as to the use or application of amounts raised under the Finance Documents. 

  

	 	(f)	 	In no circumstances may the purchase price for the shares in Yellow Pages Sales Limited or the associated Yell Transaction Costs be funded or refinanced from the proceeds of any
Drawing hereunder. 

  

	2.4	 	Additional Borrowers: A wholly-owned Subsidiary of the Parent (other than Excluded Group Members) which is not already a Borrower may become a Borrower after the Yell
Completion Date in respect of the Revolving Facility if: 

  

	 	(a)	 	the Obligors’ Agent gives written notice to the Facility Agent identifying the relevant wholly-owned Subsidiary of the Parent; 

  

	 	(b)	 	the Majority Banks confirm to the Facility Agent that they consent to such Subsidiary becoming a Borrower of the Revolving Facility which consent may be given subject to such
conditions as the Majority Banks shall specify but shall not be unreasonably withheld in the case of a company incorporated in any part of the United Kingdom or in any state of the United States of America; 

  

	 	(c)	 	such Subsidiary, the Obligors’ Agent and the Facility Agent execute an Accession Document designating such Subsidiary as a Borrower of the Revolving Facility;

  

	 	(d)	 	to the extent such Subsidiary is not already a Guarantor, such Subsidiary, the Obligors’ Agent and the Facility Agent execute an Accession Document designating such Subsidiary
as a Guarantor; and 

  

	 	(e)	 	such Subsidiary delivers such evidence of the due execution of such documents as the Facility Agent shall reasonably require together with a legal opinion satisfactory to the
Facility Agent (acting reasonably). 

  

	2.5	 	Acquisition Advances: 

  

	 	(a)	 	Subject as provided below and to Clause 2.3(d)(Purpose), the proceeds of Revolving Advances may be used to fund all or any part of the cash element of the Acquisition
Consideration for any Permitted Acquisitions. 

  

 45 

	 	(b)	 	The maximum principal amount of Revolving Advances which can at any time be outstanding, the proceeds of which are used as described in Clause 2.5(a) (or which refinance directly or
indirectly Revolving Advances whose proceeds were originally so used), shall not exceed the lower of £60,000,000 and the aggregate Revolving Commitments at that time less in each case the aggregate principal amount of, or contingent
liabilities in respect of, Financial Indebtedness incurred as permitted under paragraph (i) of the definition of Permitted Indebtedness (whether or not remaining outstanding). 

  

	3.	 	PARTICIPATION OF BANKS 

  

	3.1	 	Basis of Participation: Subject to the other provisions of this Agreement: 

  

	 	(a)	 	each Tranche A Bank will participate in each Tranche A Advance in the proportion which its Tranche A Commitment bears to the total Tranche A Commitments as at the relevant Drawing
Date; 

  

	 	(b)	 	each Tranche B Bank will participate in each Tranche B Advance in the proportion which its Tranche B Commitment bears to the total Tranche B Commitments as at the relevant Drawing
Date; 

  

	 	(c)	 	each Tranche C1 Bank will participate in each Tranche C1 Advance in the proportion which its Tranche C1 Commitment bears to the total Tranche C1 Commitments as at the relevant
Drawing Date; 

  

	 	(d)	 	each Tranche C2 Bank will participate in each Tranche C2 Advance in the proportion which its Tranche C2 Commitment bears to the total Tranche C2 Commitments as at the relevant
Drawing Date; 

  

	 	(e)	 	each Tranche C3 Bank will participate in the Tranche C3 Advance in the proportion which its Tranche C3 Commitment bears to the total Tranche C3 Commitments as at the relevant
Drawing Date; 

  

	 	(f)	 	each Tranche D Bank will participate in the Tranche D Advance in the proportion which its Tranche D Commitment bears to the total Tranche D Commitments as at the relevant Drawing
Date; 

  

	 	(g)	 	each Revolving Bank will participate in each Revolving Advance in the proportion which its Revolving Commitment bears to the total Revolving Commitments as at the relevant Drawing
Date; and 

  

	 	(h)	 	each Revolving Bank will participate (by way of indemnity in favour of the relevant Issuing Bank pursuant to paragraph 4(b) of Schedule 9 (Indemnity)) in each Bank Guarantee
and Letter of Credit in the proportion which its Revolving Commitment bears to the total Revolving Commitments as at the relevant Drawing Date. 

  

	 	(i)	 	For the purposes of Clauses 3.1(i) and (j) (Basis of Participation) and determining the Revolving Banks’ respective participations in Drawings of the Revolving Facility,
the Revolving Commitment of each Ancillary Bank will be reduced by the amount of its Ancillary Limit and the total Revolving Commitments will be reduced by the total Ancillary Limits in each case as at the relevant Drawing Date.

  

	3.2	 	Lending Offices: 

  

 46 

	 	(a)	 	Subject as provided in Clause 3.3 (Lending Affiliates), each Bank will participate in each Drawing through its Lending Office. If any Bank changes its Lending Office for the
purpose of this Agreement, that Bank will notify the Facility Agent and the Obligors’ Agent promptly of such change and, until it does so, the Facility Agent and the Obligors’ Agent will be entitled to assume that no such change has taken
place. 

  

	 	(b)	 	Any Bank may nominate a different Lending Office for the purposes of making a particular Drawing or particular type of Drawing to a Borrower in which event such Lending Office shall
be for all purposes of this Agreement its Lending Office for that Drawing or type of Drawing but not otherwise. 

  

	 	(c)	 	If any Bank changes its Lending Office or nominates a different Lending Office for the purpose of the Facilities and that change or nomination would (but for this Clause 3.2(c) and
as a result of laws or regulations in force or known to be coming into force at that time) result on the occasion of any subsequent payment to that Bank in any amount being required to be paid by an Obligor under Clause 12 (Taxes and Other
Deductions) or 13.2 (Increased Costs), that Obligor shall not be liable to pay any such amount in excess of the amount it would have been obliged to pay if that Bank had not changed its Lending Office or nominated a different Lending
Office. 

  

	3.3	 	Lending Affiliates: 

  

	 	(a)	 	The obligations of each Bank in respect of each Drawing to be made available by it under this Agreement may be discharged by such Bank nominating in this Agreement or in the
Transfer Certificate pursuant to which it becomes party to this Agreement or in writing to the Facility Agent and the Obligors’ Agent, an Affiliate of such Bank as being the lender of one or more Drawings, or by such Affiliate executing this
Agreement in such capacity. Such Affiliate may lend or otherwise make available the amount which such Bank is obliged to lend or so make available in accordance with and subject to the terms of this Agreement. Any amount made available by an
Affiliate shall be due for repayment to it in accordance with the terms of this Agreement as though it had been made available by such Bank. Such Affiliate shall be entitled to the extent of its participation by virtue of such Drawing to all the
rights and benefits of this Agreement and the other Senior Finance Documents including, without limitation, Clause 12 (Taxes and Other Deductions) and Clause 13 (Change in Circumstances) provided that such rights and benefits shall be
exercised on its behalf by its nominating Bank save where law or regulation requires the Affiliate to do so. Each Bank shall remain liable and responsible for the performance of all obligations assumed by the Affiliate on its behalf, and
non-performance of a Bank’s obligations by its Affiliate shall not relieve such Bank from its obligations under this Agreement. 

  

	 	(b)	 	If any Bank nominates an Affiliate for the purposes of Clause 3.3(a) and that nomination would (but for this Clause 3.3 as a result of laws or regulations in force or known to be
coming into force at that time) result on the occasion of any subsequent payment to that Affiliate in any amount being required to be paid by an Obligor under Clause 12 (Taxes and Other Deductions) or Clause 13.2 (Increased Costs),
that Obligor shall not be liable to pay any such amount in excess of the amount it would have been obliged to pay if that Bank had not nominated its Affiliate to participate in the Facilities as above. Each Bank shall notify the Facility Agent and
the Obligors’ Agent of the tax jurisdiction from which its Affiliate will participate in the relevant Drawings. 

  

	 	(c)	 	Any notice or communication to be made to an Affiliate pursuant to Clause 22.1 (Notices) shall be deemed to be served if delivered to the Lending Office of the Bank which
nominated 

  

 47 

	 	 
the Affiliate pursuant to Clause 3.3 provided that any such notice or communication may be served directly upon the Affiliate at the address supplied to the
Facility Agent by the nominating Bank pursuant to its nomination of such Affiliate under Clause 3.3(a) to the extent required to mitigate any obligation to deduct withholding tax from any payment to such Bank pursuant to Clause 12 (Taxes and
Other Deductions) or any payment obligation which might otherwise arise pursuant to Clause 13 (Change in Circumstances). 

  

	3.4	 	Rights and Obligations of Senior Finance Parties: The rights and obligations of each of the Senior Finance Parties under the Senior Finance Documents are several and the
total amounts outstanding at any time under the Senior Finance Documents constitute separate and independent debts. Failure of a Senior Finance Party to observe and perform its obligations under any Senior Finance Document shall neither:

  

	 	(a)	 	result in any other Senior Finance Party incurring any liability whatsoever; nor 

  

	 	(b)	 	relieve any Obligor or any other Senior Finance Party from their respective obligations under the Senior Finance Documents. 

  

	3.5	 	Enforcement of Rights: Subject to any provision of the Senior Finance Documents to the contrary, each Senior Finance Party has the right to protect and enforce its rights
arising out of the Senior Finance Documents and it will not be necessary for any other Senior Finance Party to be joined as an additional party in any proceedings brought for the purpose of protecting or enforcing such rights.

  

	3.6	 	Syndication: 

  

	 	(a)	 	The parties acknowledge that (i) at the date of the Sixth Amendment Agreement, the Tranche C3 Facility is being made available by the Original Tranche C3 Banks with the intention
(but not the obligation) that the Tranche C3 Syndication Agent should co-ordinate syndication of the Tranche C3 Term Facility and (ii) at the date of the Fifth Amendment Agreement, the Tranche D Facility is being made available by the Original
Tranche D Banks with the intention (but not the obligation) that the Tranche D Syndication Agent should co-ordinate syndication of the Tranche D Term Facility. 

  

	 	(b)	 	Each of the Parent and the Borrowers undertakes to assist and cooperate with (i) the Tranche C3 Syndication Agent and the Documentation Agent in syndication of the Tranche C3 Term
Facility (and in forming syndicates of banks and other financial institutions in relation thereto) in such manner and to such extent as the Tranche C3 Syndication Agent may from time to time reasonably request (ii) the Tranche D Syndication Agent
and the Documentation Agent in syndication of the Tranche D Term Facility (and in forming syndicates of banks and other financial institutions in relation thereto) in such manner and to such extent as the Tranche D Syndication Agent may from time to
time reasonably request, in each case including, without limitation, by: 

  

	 	(i)	 	the preparation of each of the Bridge Note Refinancing Memorandum and the McLeod Syndication Memorandum in relation to the Parent and the Group and providing all information
necessary for the assessment of the business, trading, prospects, financial condition, assets and liabilities of the Parent and the Group, the Yell Acquisition and the McLeod Acquisition and all other information necessary to successfully complete
such syndication which is available to, or reasonably obtainable by them; 

  

 48 

	 	(ii)	 	using reasonable efforts to ensure that the syndication process benefits from the existing relationships with Banks enjoyed by the Investors and hosting presentations to potential
Banks concerning the activities of the Parent and the Group; and 

  

	 	(iii)	 	participating in presentations to potential Banks covering the activities of the Group. 

  

	4.	 	CONDITIONS PRECEDENT 

  

	4.1	 	Initial Conditions Precedent to Drawdown of the Original Facilities: The Banks shall not be under any obligation to make any Drawing of the Original Facilities available to
the Borrowers under this Agreement unless: 

  

	 	(a)	 	Documentary: the Facility Agent has received each of the documents specified in Part A of Schedule 3 (or the Facility Agent is satisfied that, subject only to the making of
the relevant Term Advances on the Yell Completion Date, it will receive such documents) in form and substance satisfactory to the Facility Agent; 

  

	 	(b)	 	Equity: the Facility Agent is satisfied that: 

  

	 	(i)	 	Topco has subscribed in full in cash an aggregate amount of not less than £1,000,000 by way of subscription for equity share capital issued by the Parent; and the holders of
the Initial Subordinated Loan Stock have subscribed in full in cash an aggregate amount of not less than £549,000,000 by way of Initial Subordinated Loan Stock issued by the Parent; and the Vendor Noteholder has subscribed in full in cash an
aggregate amount of £100,000,000 by way of subscription for the Vendor Loan Note issued by the UK Principal Borrower; 

  

	 	(ii)	 	such equity share capital is unconditionally owned by Topco and registered in its name in the books of the Parent and such Initial Subordinated Loan Stock and Vendor Loan Note is
unconditionally owned by the holders of the Initial Subordinated Loan Stock and the Vendor Noteholder, respectively, and registered in their names in the books of the Parent and the UK Principal Borrower, respectively; and 

 

	 	(iii)	 	the total proceeds of the subscription described in paragraph (i) above have been subscribed for equity share capital in, or have been lent pursuant to the Initial Inter-Company
Loan Agreements through each of the relevant Excluded Group Members to, the Principal Borrowers in accordance with the steps set forth in the Yell Structure Document and the Yell Completion Funds Flow Statement and that such total proceeds are
standing to the credit of the Yell Closing Account; 

  

	 	(c)	 	Senior Subordinated Debt: the Facility Agent is satisfied that either (i) the Bridge Finance Parties have loaned in full in cash to the Issuer an amount of not less than
£500,000,000 pursuant to the terms of the Bridge Facility Finance Documents or (ii) the High Yield Noteholders and the Discount High Yield Noteholders have subscribed in full in cash to the Issuer an amount of not less than £500,000,000
pursuant to the terms of the Bond Finance Documents and in either case the Issuer has lent the total proceeds thereof pursuant to the Initial Inter-Company Loan Agreements through each of the relevant Excluded Group Members to the Principal
Borrowers in accordance with the steps set forth in the Yell Structure Document and the Yell Completion Funds Flow Statement and the total proceeds are standing to the credit of the Yell Closing Account; and 

  

 49 

	 	(d)	 	Yell Completion: the Facility Agent is satisfied that the Yell Completion will occur immediately after the making of the Term Advances (other than the Tranche D Advances)
under this Agreement. 

  
 The Facility Agent
confirms that it is satisfied that the conditions specified in this Clause 4.1 (Initial Conditions Precedent to Drawdown of the Original Facilities) have been fulfilled. 
  

	4.2	 	Initial Conditions Precedent to Drawdown of the Tranche D Term Facility: The Tranche D Banks shall not be under any obligation to make any Drawing of the Tranche D Term
Facility available to the Tranche D Borrower under this Agreement unless: 

  

	 	(a)	 	Documentary: the Facility Agent has received each of the documents specified in Part B of Schedule 3 (or the Facility Agent is satisfied that, subject only to the making of
the Tranche D Advance on the McLeod Completion Date, it will receive such documents) in form and substance satisfactory to the Facility Agent; 

  

	 	(b)	 	Equity: the Facility Agent is satisfied that: 

  

	 	(i)	 	Topco has subscribed in full in cash in an amount not less than the amount shown in the McLeod Structure Document as the total amount of the Additional Equity Contribution by way of
subscription for equity share capital issued by the Parent; 

  

	 	(ii)	 	the holders of Additional Subordinated Loan Stock have subscribed in full in cash in an amount not less than the amount shown in the McLeod Structure Document as the total amount of
the Additional Subordinated Loan Stock by way of Additional Subordinated Loan Stock issued by the Parent; 

  

	 	(iii)	 	such equity share capital is unconditionally owned by Topco and is registered in its name in the books of the Parent and such Additional Subordinated Loan Stock is unconditionally
owned by the holders of the Additional Subordinated Loan Stock and is registered in their names in the books of the Parent; and 

  

	 	(iv)	 	the total proceeds of the subscriptions described in paragraphs (i) and (ii) above have been subscribed for equity share capital in, or have been lent pursuant to Additional
Inter-Company Loan Agreements through each of the relevant Excluded Group Members to, the Tranche D Borrower in accordance with the steps set forth in the McLeod Structure Document and the McLeod Completion Funds Flow Statement and that such total
proceeds are standing to the credit of the McLeod Closing Account; 

  

	 	(c)	 	Surplus Funding: the Facility Agent is satisfied that: 

  

	 	(i)	 	the Subordinated Guarantor has lent from the proceeds of the Surplus Funding Account an amount equal to the total balance of the Surplus Funding Account on the McLeod Completion
Date (which amount shall be stated in the McLeod Structure Document and shall not be less than US$35,000,000) pursuant to Additional Inter-Company Loan Agreements through each of the relevant Excluded Group Members to the Tranche D Borrower in
accordance with the steps set forth in the McLeod Structure Document and the McLeod Completion Funds Flow Statement and that such total proceeds are standing to the credit of the McLeod Closing Account; and 

  

 50 

	 	(ii)	 	the total proceeds of the subscriptions described in Clauses 4.2(b)(i) and 4.2(b)(ii) (Equity) and the total proceeds of the Surplus Funding Account described in this Clause
4.2(c), in each case standing to the credit of the McLeod Closing Account, are not less than an aggregate amount of US$125,000,000; and 

  

	 	(d)	 	Senior Subordinated Debt: the Facility Agent is satisfied that the Bridge Noteholders have subscribed in full in cash to the Issuer an amount of not less than US$250,000,000
pursuant to the terms of the Bridge Notes Finance Documents and the Issuer has lent the total proceeds thereof pursuant to Additional Inter Company Loan Agreements through each of the relevant Excluded Group Members to the Tranche D Borrower in
accordance with the steps set forth in the McLeod Structure Document and the McLeod Completion Funds Flow Statement and the total proceeds are standing to the credit of the McLeod Closing Account; and 

  

	 	(e)	 	McLeod Completion: the Facility Agent is satisfied that the McLeod Completion will occur immediately after the making of the Tranche D Advance under this Agreement.

  
 When the Facility Agent is satisfied that the
conditions specified in this Clause 4.2 (Initial Conditions Precedent to Drawdown of the Tranche D Term Facility) have been fulfilled, it will notify the Obligors’ Agent and the Banks. 
  

	4.3	 	Initial Conditions Precedent to Drawdown of the Tranche C3 Term Facility: The Tranche C3 Banks shall not be under any obligation to make any Drawing of the Tranche C3 Term
Facility available to the UK Principal Borrower under this Agreement unless: 

  

	 	(a)	 	Documentary: the Facility Agent has received each of the documents specified in Part C of Schedule 3 (or the Facility Agent is satisfied that, subject only to the making of
the Tranche C3 Advance on the Bridge Note Refinancing Date, it will receive such documents) in form and substance satisfactory to the Facility Agent; 

  

	 	(b)	 	Cash Contribution: the Facility Agent is satisfied that certain Subsidiaries of the Parent have lent or otherwise made available the aggregate proceeds of each of the
Required Cash Contribution and (if any) the Excess Cash Contribution to the Issuer on the Bridge Note Refinancing Date on a basis to be agreed by the Facility Agent, the Documentation Agent and the Parent and that such proceeds are standing to the
credit of the Bridge Note Refinancing Closing Account; and 

  

	 	(c)	 	Bridge Note Refinancing: the Facility Agent is satisfied that the Bridge Note Refinancing will occur immediately after the making of the Tranche C3 Advance under this
Agreement. 

  
 When the Facility Agent is satisfied
that the conditions specified in this Clause 4.3 (Initial Conditions Precedent to Drawdown of the Tranche C3 Term Facility) have been fulfilled, it will notify the Obligors’ Agent and the Banks. 
  

	4.4	 	Additional conditions precedent: In addition the Banks shall be under no obligation to make any Drawing available to the Borrowers unless, on both the date of the relevant
Drawing Request and the relevant Drawing Date: 

  

	 	(a)	 	no Event of Default or (save in the case of Rollover Advances) Potential Event of Default has occurred and is continuing and no Event of Default or (save in the case of Rollover
Advances) Potential Event of Default will occur as a result of making such Drawing; 

  

 51 

	 	(b)	 	the representations and warranties set out in Clause 15.1 (Representations and Warranties) stipulated in Clause 15.2 (Repetition) as being repeated on those dates are
true and accurate in each case by reference to the facts and circumstances then subsisting and will remain true and accurate immediately after the Drawing is made and after the Yell Completion has occurred or, in the case of the Drawing under the
Tranche C3 Term Facility, after the Bridge Note Refinancing has occurred or, in the case of the Drawing under the Tranche D Term Facility, after the McLeod Completion has occurred (provided that in the case of Rollover Advances, any failure by a
Borrower to comply with this Clause 4.4(b) shall constitute a drawstop only to the extent it gives rise to an Event of Default); and 

  

	 	(c)	 	in relation to any Drawing of an Advance required for discharging the purchase price for the Yell Business or McLeod, none of the circumstances specified in Clause 13.4(a)(ii)(a)
(Change in Market Conditions) has occurred and is continuing and, in relation to any other Drawing, none of the circumstances specified in Clause 13.4(a) (Change in Market Conditions) has occurred and is continuing, or if they have
occurred and are continuing, an alternative basis for funding the amount of the proposed Drawing has been agreed by the Facility Agent and the Obligors’ Agent in accordance with Clause 13.4(b) (Change in Market Conditions).

  

	5.	 	DRAWINGS 

  

	5.1	 	Delivery of Drawing Requests: In order to draw the Term Facilities or the Revolving Facility, the Obligors’ Agent or the relevant Borrower must deliver to the Facility
Agent a duly completed Drawing Request not later than 10.00 a.m. three Business Days (or such shorter notice period as may be agreed by the Banks and the Obligors’ Agent in respect of Drawings to be made on the Yell Completion Date, the McLeod
Completion Date or the Bridge Note Refinancing Date) prior to the proposed Drawing Date specifying: 

  

	 	(a)	 	which of the Facilities the Drawing is to be made under, whether the Drawing is of an Advance, Letter of Credit or Bank Guarantee and the identity of the Borrower;

  

	 	(b)	 	the proposed Drawing Date (which must be a Business Day falling within the relevant Availability Period); 

  

	 	(c)	 	if the Drawing is by way of a Term Advance, the amount of such Advance which must be in compliance with Clause 2.1 (Facilities) and be equal to the undrawn portion of the
total Commitments in relation to the Term Facility under which such Advance is being requested; 

  

	 	(d)	 	in the case of a Drawing under the Revolving Facility: 

  

	 	(i)	 	the amount of such Drawing which must be equal to or less than (or in the case of a Drawing in an Optional Currency have a Sterling Equivalent equal to or less than) the undrawn
portion on the proposed Drawing Date (but after taking into account the amount of any Drawing under the Revolving Facility to be repaid on the proposed Drawing Date) of the total Revolving Commitments (as reduced by the amount of the total Ancillary
Limits) and must be if less in a minimum amount of £2,000,000 and an integral multiple of £1,000,000 in the case of a Drawing in Sterling or in the case of a Drawing in an Optional Currency have a Sterling Amount of not less than
£2,000,000; and 

  

	 	(ii)	 	if the proceeds are to be used as described in Clause 2.5 (Acquisition Advances) the identity of the Permitted Acquisition, the amount to be so applied and confirmation

  

 52 

	 	 
that the amount to be so applied will not cause the limits specified in Clause 2.5 (Acquisition Advances) to be exceeded.

  

	 	(e)	 	if the Drawing is by way of an Advance the duration of the first Interest Period applicable to such Advance; 

  

	 	(f)	 	details of the payee and the account to which the proceeds of the Drawing (if by way of an Advance) are to be paid (which account must be in the principal financial centre of the
country of the currency of such Drawing and for this purpose, in the case of a Drawing in Euro, the principal financial centre of any Participating Member State may be nominated); 

  

	 	(g)	 	if the Drawing is by way of issue of a Letter of Credit or Bank Guarantee: 

  

	 	(i)	 	the beneficiary of such Letter of Credit or Bank Guarantee; 

  

	 	(ii)	 	the expiry date of the Letter of Credit or Bank Guarantee which must be a date on or before the Revolving Facility Repayment Date and must not be more than twelve months after the
date of issue of such Letter of Credit or Bank Guarantee; 

  

	 	(iii)	 	the terms of the arrangement to which the issue of the Letter of Credit or Bank Guarantee relate; and 

  
 attaching the execution copy of the Letter of Credit or Bank Guarantee to be issued. 
  

	 	(h)	 	in respect of any Drawing under the Tranche C3 Term Facility: 

  

	 	(i)	 	the amount of the Excess Cash Contribution; 

  

	 	(ii)	 	the amount of the Operational Cash Flow Component, 

  
 and including with such Drawdown Request, a break-down of the sources of the Required Cash Contribution and the Excess Cash Contribution (including,
without limitation, details of the Operational Cash Flow Component). 
  

	5.2	 	Requests Irrevocable: A Drawing Request once given may not be withdrawn or revoked. 

  

	5.3	 	Frequency/Number of Drawings: Not more than one Drawing of the Revolving Facility may be requested in any period of 5 consecutive Business Days and not more than 12 Drawings
of the Revolving Facility may be outstanding at any one time. 

  

	5.4	 	Notice to the Banks of a proposed Drawing: The Facility Agent will promptly give each Bank details of each Drawing Request received and of the amount and currency of the
Bank’s participation in the relevant Drawing. 

  

	5.5	 	Making of Advances: Subject to the provisions of this Agreement, each Bank will make available to the Facility Agent its participation in any Advance properly requested under
this Agreement on the relevant Drawing Date. 

  

	5.6	 	Issue of Letters of Credit/Bank Guarantees: 

  

	 	(a)	 	Subject to the provisions of this Agreement, the Issuing Bank will issue any Letter of Credit or Bank Guarantee properly requested by delivery of such Letter of Credit or Bank
Guarantee to 

  

 53 

	 	 
(or to the order of) the beneficiary of such Letter of Credit or Bank Guarantee on the relevant Drawing Date. 

  

	 	(b)	 	No Letter of Credit or Bank Guarantee shall be issued for the account of a member of the Group which is not a Borrower under this Agreement or to a beneficiary which the Issuing
Bank or any Bank is prohibited from dealing with by any law or directive. 

  

	 	(c)	 	The Issuing Bank shall be Deutsche Bank AG London unless another Bank shall agree with the Obligors’ Agent and the Facility Agent that it will issue any Letter of Credit or
Bank Guarantee, in which case that Bank shall be the Issuing Bank for the purposes of that Letter of Credit or Bank Guarantee. 

  

	 	(d)	 	The provisions of Schedule 9 shall apply in relation to any Letter of Credit or Bank Guarantee issued under this Agreement. 

  

	6.	 	INTEREST 

  

	6.1	 	Interest Periods: Interest shall be calculated and payable on each Advance by reference to Interest Periods. Subject to the other provisions of this Agreement each Interest
Period shall be of 1, 2, 3 or 6 months’ duration as selected by the relevant Borrower or the Obligors’ Agent in the Drawing Request for that Advance or such other periods as may be agreed between the Obligors’ Agent and the Banks or,
in the case of any subsequent Interest Period relating to a Term Advance, in a notice received by the Facility Agent not later than 11.00 a.m. on the third Business Day before the first day of that Interest Period (or such other period as may be
agreed between the Obligors’ Agent and the Banks) except that: 

  

	 	(a)	 	until the earlier of the date falling 90 days after the Bridge Note Refinancing Date and the date on which the Tranche C3 Syndication Agent advises the Obligors’ Agent that
syndication of the Tranche C3 Term Facility is complete, Interest Periods relating to the Tranche C3 Advance shall be of no more than one month’s duration; 

  

	 	(b)	 	until the earlier of the date falling 120 days after the McLeod Completion Date and the date on which the Tranche D Syndication Agent advises the Obligors’ Agent that
syndication of the Tranche D Term Facility is complete, Interest Periods relating to the Tranche D Advance shall be of no more than one month’s duration; 

  

	 	(c)	 	the first Interest Period applicable to any Term Advance in the same currency as any other Term Advance (other than the first Term Advance) shall end on the same date as the then
current Interest Period relating to the then outstanding Term Advance or Term Advances in the same currency; 

  

	 	(d)	 	each Advance shall have an Interest Period commencing on its Drawing Date and each successive Interest Period applicable to a Term Advance shall commence on the expiry of the
immediately preceding Interest Period for that Term Advance; 

  

	 	(e)	 	if a Borrower wishes to select an Interest Period for a Term Advance extending beyond a Repayment Date, it may do so only in relation to that part of the Term Advance not due for
repayment on that date. The remainder (being equal to the repayment instalment due on that date) shall be deemed to be a separate Term Advance with an Interest Period ending on that date; 

  

	 	(f)	 	subject to the above exceptions, any Interest Period for which no effective selection notice is received by the Facility Agent shall be of three months duration; and

  

 54 

	 	(g)	 	no Interest Period in relation to a Revolving Advance may extend beyond the Revolving Facility Repayment Date. 

  

	6.2	 	Interest Rate: The rate of interest applicable to an Advance for a particular Interest Period shall be the rate per annum determined by the Facility Agent to be the sum of:

  

	 	(a)	 	the Additional Costs Rate; 

  

	 	(b)	 	the applicable Margin; and 

  

	 	(c)	 	EURIBOR or LIBOR, as the case may be, for that Advance for that Interest Period. 

  
 Interest will accrue daily and shall be calculated on the basis of a 365 day year in the case of Advances denominated in
Sterling and a 360 day year in the case of Advances denominated in any other currency. 
  

	6.3	 	Notification of Interest Periods and Rates: The Facility Agent shall promptly notify the Obligors’ Agent and the Banks of the duration of each Interest Period and the
rate of interest applicable to such Interest Period. 

  

	6.4	 	Payment of Interest: On the last day of each Interest Period, the relevant Borrower shall pay the unpaid interest accrued during the relevant Interest Period on the Advance
to which it relates provided that if an Interest Period is in excess of six months, unpaid interest accrued during each six month period shall be paid on the last Business Day of such six month period with the balance of the unpaid interest accrued
during that Interest Period to be paid on the last day of the relevant Interest Period. 

  

	6.5	 	Default Interest: If any Obligor fails to pay any sum (including, without limitation, any sum payable pursuant to this Clause 6.5 (Default Interest)) under any Senior
Finance Document on its due date (an “unpaid sum”), such Obligor will pay default interest on such unpaid sum from its due date to the date of actual payment (as well after as before judgment) at a rate determined by the Facility
Agent to be 1 per cent. per annum above: 

  

	 	(a)	 	where the unpaid sum is principal which has fallen due prior to the expiry of the relevant Interest Period, the rate applicable to such principal immediately prior to the date it so
fell due (but only for the period from such due date to the end of the relevant Interest Period); or 

  

	 	(b)	 	in any other case (including principal falling within paragraph (a) above once the relevant Interest Period has expired), the rate which would be payable if the unpaid sum was an
Advance made for a period equal to the period of non-payment divided into successive Interest Periods of such duration as shall be selected by the Facility Agent (each a “Default Interest Period”). 

  
 For the purposes of determining the rate of interest on an overdue sum under
this Clause 6.5, the Margin shall be: 
  

	 	(a)	 	if such sum comprises principal of, or interest or any other amount due under, the Tranche A Term Facility or the Revolving Facility, the Margin in relation to the Tranche A Term
Facility and the Revolving Facility; 

  

	 	(b)	 	if such sum comprises principal of, or interest or any other amount due under, the Tranche B Term Facility, the Margin in relation to the Tranche B Facility;

  

 55 

	 	(c)	 	if such sum comprises principal of, or interest or any other amount due under, the Tranche C1 Term Facility, the Tranche C2 Term Facility or the Tranche C3 Term Facility, the Margin
in relation to the Tranche C1 Term Facility, the Tranche C2 Term Facility and the Tranche C3 Term Facility respectively; 

  

	 	(d)	 	if such sum comprises principal of, or interest or any other amount due under, the Tranche D Term Facility, the Margin in relation to the Tranche D Term Facility; and

  

	 	(e)	 	if such sum is not properly attributable to any of the Tranche A Term Facility, the Revolving Facility, the Tranche B Term Facility, the Tranche C1 Term Facility, the Tranche C2
Term Facility, the Tranche C3 Term Facility or the Tranche D Term Facility, the Margin under the Tranche A Term Facility. 

  
 Default interest will be payable on demand by the Facility Agent and will be compounded at the end of each Default Interest Period. 
  

	6.6	 	Margin Adjustment: 

  

	 	(a)	 	Save as provided in this Clause 6.6 (Margin Adjustment) the Margin in relation to each Advance shall be the rate applicable to that Advance as specified in the definition of
Margin contained in Clause 1.1 (Definitions). 

  

	 	(b)	 	In the event that the quarterly consolidated financial statements of the Group last received by the Facility Agent pursuant to Clause 16.6(d) (Financial Statements) together
with the certificate relating thereto delivered pursuant to Clause 16.6(e)(i) (Compliance Certificates) disclose a Leverage Ratio calculated in accordance with Clause 16.7 (Financial Covenants) as at and for the 12 month period ending
on the last day of the relevant Accounting Quarter at a level which in accordance with the table set out below indicates a reduced Margin then the Margin shall be a percentage per annum determined as follows: 

  

	 Leverage Ratio

	  	Tranche A Term
Facility%

	  	Revolving Facility%

	 Greater than or equal to 5.25:1
	  	2.375	  	2.375
	 Less than 5.25:1 but greater than or equal to 4.50:1
	  	2.10	  	2.10
	 Less than 4.50:1 but greater than or equal to 3.50:1
	  	1.85	  	1.85
	 Less than 3.50:1 but greater than or equal to 2.75:1
	  	1.60	  	1.60
	 Less than 2.75:1
	  	1.20	  	1.20

  
 provided that:

  

	 	(A)	 	there shall be no reduction in the Margin prior to receipt by the Facility Agent of the quarterly consolidated financial statements of the Group for the first three Accounting
Quarters following the Yell Completion Date; 

  

 56 

	 	(B)	 	any change in the Margin shall take effect during (but only during) the period from (and including) the date on which the Facility Agent has received the relevant quarterly
consolidated financial statements of the Group in accordance with Clause 16.6(d) (Financial Statements) and the certificate relating thereto in accordance with Clause 16.6(e)(i) (Compliance Certificates) until (but excluding) the date
(a “Readjustment Date”) being the earlier of: 

  

	 	(1)	 	the date on which the Facility Agent next receives quarterly consolidated financial statements pursuant to Clause 16.6(d)(Financial Statements) and the certificate relating
thereto pursuant to Clause 16.6(e)(i) (Compliance Certificates); 

  

	 	(2)	 	the latest date by which the Facility Agent should have received the quarterly consolidated financial statements and certificate relating thereto referred to in sub paragraph (I)
above; 

  
 and, on each Readjustment Date, the
Margin shall revert to its original level at the date of this Agreement, unless a lower Margin than the original level of Margin shall be applicable in accordance with this Clause 6.6 (Margin Adjustment); and 
  

	 	(C)	 	there shall be no decrease in the Margin if an Event of Default has occurred which is continuing and the Margin shall immediately revert to its original level at the date of this
Agreement until such time as any Event of Default is no longer continuing, whereupon the Margin shall be determined in accordance with this Clause 6.6 (Margin Adjustment) on the basis of the most recently delivered quarterly consolidated
financial statements of the Group. 

  

	6.7	 	Margin Inaccuracy: If any annual audited financial statements delivered under Clause 16.6(d) (Financial Statements) demonstrate that the Margin:

  

	 	(a)	 	should have been varied in accordance with Clause 6.6 (Margin Adjustment) when it has not been; or 

  

	 	(b)	 	should not have been varied in accordance with Clause 6.6 (Margin Adjustment) when it has been, 

  
 in either case by reason of an inaccuracy in the relevant quarterly consolidated financial statements, payments of interest
shall following receipt of the relevant audited financial statements by the Facility Agent be adjusted (downwards or, as the case may be, upwards) by such amount as the Facility Agent shall determine is necessary to give effect to the correct
variation in the Margin as demonstrated by the audited financial statements. The Facility Agent’s determination of the adjustments payable under this Clause 6.7 (Margin Inaccuracy) shall, save in the case of manifest error, be conclusive
and the Facility Agent shall provide the Obligors’ Agent with reasonable details of the calculation of such adjustments. 
  

 57 

	7.	 	REPAYMENT 

  

	7.1	 	Term Advances: 

  

	 	(a)	 	Each Borrower of the Tranche A Advances shall procure that the aggregate outstanding principal amount of the Tranche A Advances drawn by it shall be repaid in instalments. An
instalment shall fall due on each of the dates specified in column (1) below and the aggregate amount of the instalment payable by the Borrowers of the Tranche A Advances on that date shall be in the amount equal to the percentage of the Tranche A
Advances advanced on the Yell Completion Date specified in column (2) below opposite that date. The portion of any instalment owing by any Borrower shall be based on the proportion that the Tranche A Advances owing by such Borrower bear to the
Tranche A Advances owing by all the Borrowers. Any balance of the Tranche A Advances remaining outstanding on the Final Tranche A Repayment Date shall be repaid in full on that date. 

  

	(1)	  	 Date

	  	(2)	  	Percentage

	 
	 	  	30 September 2002	  	 	  	4.25	%
	 	  	31 March 2003	  	 	  	4.25	%
	 	  	30 September 2003	  	 	  	6.25	%
	 	  	31 March 2004	  	 	  	6.25	%
	 	  	30 September 2004	  	 	  	9.0	%
	 	  	31 March 2005	  	 	  	9.0	%
	 	  	30 September 2005	  	 	  	11.0	%
	 	  	31 March 2006	  	 	  	11.0	%
	 	  	30 September 2006	  	 	  	9.50	%
	 	  	31 March 2007	  	 	  	9.50	%
	 	  	30 September 2007	  	 	  	10.0	%
	 	  	31 March 2008	  	 	  	10.0	%

  

	 	(b)	 	Each Borrower of the Tranche B Advances shall procure that the aggregate outstanding principal amount of the Tranche B Advances drawn by it shall be repaid in full in two equal
instalments the first of which shall be repaid on the date falling six months prior to the Final Tranche B Repayment Date and the second of which shall be repaid on the Final Tranche B Repayment Date. The portion of any instalment owing by any
Borrower shall be based on the proportion that the Tranche B Advances owing by such Borrower bear to the Tranche B Advances owing by all the Borrowers. Any balance of the Tranche B Advances remaining outstanding on the Final Tranche B Repayment Date
shall be repaid in full on that date. 

  

	 	(c)	 	Each Borrower of the Tranche C1 Advances shall procure that the aggregate outstanding principal amount of the Tranche C1 Advances drawn by it shall be repaid in instalments. An
instalment shall fall due on each of the dates specified in column (1) below and the aggregate amount of the instalment payable by the Borrowers of the Tranche C1 Advances on the relevant date shall be in an amount equal to the percentage of the
total aggregate amount of the Tranche C1 Advances advanced to the relevant Borrowers specified in Column 2 below opposite that date. The portion of any instalment owing by any Borrower shall be based on the proportion that the Tranche C1 Advances
owing by such Borrower bear to the Tranche C1 Advances owing by all the Borrowers. Any balance of the Tranche C1 Advances remaining outstanding on the Final Tranche C1 Repayment Date shall be repaid in full on that date. 

  

 58 

	(1)	  	 Date

	  	(2)	  	Percentage

	 
	 	  	30 September 2002	  	 	  	0.5	%
	 	  	31 March 2003	  	 	  	0.5	%
	 	  	30 September 2003	  	 	  	0.5	%
	 	  	31 March 2004	  	 	  	0.5	%
	 	  	30 September 2004	  	 	  	0.5	%
	 	  	31 March 2005	  	 	  	0.5	%
	 	  	30 September 2005	  	 	  	0.5	%
	 	  	31 March 2006	  	 	  	0.5	%
	 	  	30 September 2006	  	 	  	0.5	%
	 	  	31 March 2007	  	 	  	0.5	%
	 	  	30 September 2007	  	 	  	0.5	%
	 	  	31 March 2008	  	 	  	0.5	%
	 	  	30 September 2008	  	 	  	0.5	%
	 	  	31 March 2009	  	 	  	0.5	%
	 	  	30 September 2009	  	 	  	46.5	%
	 	  	31 March 2010	  	 	  	46.5	%

  

	 	(d)	 	Each Borrower of the Tranche C2 Advances shall procure that the aggregate outstanding principal amount of the Tranche C2 Advances drawn by it shall be repaid in instalments. An
instalment shall fall due on each of the dates specified in column (1) below and the aggregate amount of the instalment payable by the Borrowers of the Tranche C2 Advances on the relevant date shall be in an amount equal to the percentage of the
total aggregate amount of the Tranche C2 Advances advanced to the relevant Borrowers specified in Column 2 below opposite that date. The portion of any instalment owing by any Borrower shall be based on the proportion that the Tranche C2 Advances
owing by such Borrower bear to the Tranche C2 Advances owing by all the Borrowers. Any balance of the Tranche C2 Advances remaining outstanding on the Final Tranche C2 Repayment Date shall be repaid in full on that date. 

  

	(1)	  	 Date

	  	(2)	  	Percentage

	 
	 	  	30 September 2002	  	 	  	0.5	%
	 	  	31 March 2003	  	 	  	0.5	%
	 	  	30 September 2003	  	 	  	0.5	%
	 	  	31 March 2004	  	 	  	0.5	%
	 	  	30 September 2004	  	 	  	0.5	%
	 	  	31 March 2005	  	 	  	0.5	%
	 	  	30 September 2005	  	 	  	0.5	%
	 	  	31 March 2006	  	 	  	0.5	%
	 	  	30 September 2006	  	 	  	0.5	%
	 	  	31 March 2007	  	 	  	0.5	%
	 	  	30 September 2007	  	 	  	0.5	%
	 	  	31 March 2008	  	 	  	0.5	%
	 	  	30 September 2008	  	 	  	0.5	%
	 	  	31 March 2009	  	 	  	0.5	%
	 	  	30 September 2009	  	 	  	46.5	%
	 	  	31 March 2010	  	 	  	46.5	%

  

	 	(e)	 	The UK Principal Borrower shall procure that the aggregate outstanding principal amount of the Tranche C3 Advance drawn by it shall be repaid in instalments. An instalment shall
fall due on each of the dates specified in column (1) below and the aggregate amount of the 

  

 59 

	 	 
instalment payable by the UK Principal Borrower on the relevant date shall be in an amount equal to the percentage of the total aggregate amount of the
Tranche C3 Advance specified in Column 2 below opposite that date. Any balance of the Tranche C3 Advance remaining outstanding on the Final Tranche C3 Repayment Date shall be repaid in full on that date. 

  

	(1)	  	 Date

	  	(2)	  	Percentage

	 
	 	  	31 March 2003	  	 	  	0.5	%
	 	  	30 September 2003	  	 	  	0.5	%
	 	  	31 March 2004	  	 	  	0.5	%
	 	  	30 September 2004	  	 	  	0.5	%
	 	  	31 March 2005	  	 	  	0.5	%
	 	  	30 September 2005	  	 	  	0.5	%
	 	  	31 March 2006	  	 	  	0.5	%
	 	  	30 September 2006	  	 	  	0.5	%
	 	  	31 March 2007	  	 	  	0.5	%
	 	  	30 September 2007	  	 	  	0.5	%
	 	  	31 March 2008	  	 	  	0.5	%
	 	  	30 September 2008	  	 	  	0.5	%
	 	  	31 March 2009	  	 	  	0.5	%
	 	  	30 September 2009	  	 	  	46.5	%
	 	  	31 March 2010	  	 	  	47.0	%

  

	 	(f)	 	The Tranche D Borrower shall procure that the aggregate outstanding principal amount of the Tranche D Advance shall be repaid in full in two equal instalments the first of which
shall be repaid on the date falling six months prior to the Final Tranche D Repayment Date and the second of which shall be repaid on the Final Tranche D Repayment Date. Any balance of the Tranche D Advance remaining outstanding on the Final Tranche
D Repayment Date shall be repaid in full on that date. 

  

	7.2	 	Revolving Advances: 

  

	 	(a)	 	Each Revolving Advance shall be repaid by the relevant Borrower on the last day of the Interest Period applicable to that Revolving Advance. All Revolving Advances outstanding on
the Revolving Facility Repayment Date shall be repaid on that date and no further Revolving Advances shall be capable of being drawn after that date. 

  

	 	(b)	 	Subject to the provisions of this Agreement, any amount repaid or prepaid under the Revolving Facility shall be capable of being redrawn. 

  

	7.3	 	Miscellaneous: The provisions of Clause 8.8 (Miscellaneous) shall apply to any repayment under this Clause 7 (Repayment). 

  

	8.	 	PREPAYMENT 

  

	8.1	 	Voluntary Prepayments: Any Borrower may prepay an Advance or any part thereof at any time provided that the Facility Agent has received not less than 2 Business Days notice
from the Obligors’ Agent of the proposed date and amount of the prepayment and provided that any partial prepayment of an Advance will be in a minimum amount of £3,000,000 and an integral multiple of £1,000,000 (or, if an Optional
Currency, have a Sterling Equivalent in a minimum amount of £3,000,000 in the case of Tranche B Advances, Tranche C1 Advances, Tranche C2 Advances, Tranche C3 Advances, Tranche D 

  

 60 

 Advances or Revolving Advances), and if paid other than on the last day of an Interest Period is made
together with any amount payable under Clause 24.4 (General Indemnity). 
  

	8.2	 	Mandatory Prepayments on Change of Control or Sale: 

  

	 	(a)	 	If either of the events listed in Clause 8.2(b) occurs, then forthwith thereafter (unless otherwise agreed with the Facility Agent acting on the instructions of all the Banks):

  

	 	(i)	 	each Borrower will prepay all Advances drawn by it, accrued interest thereon and all other sums payable under this Agreement and the other Senior Finance Documents;

  

	 	(ii)	 	the unutilised elements of the Revolving Facility will be cancelled and the Revolving Facility Commitment of each Bank shall be reduced to zero; and 

  

	 	(iii)	 	the relevant Borrower will provide cash cover in accordance with Clause 1.4 (Cash Cover) in an amount equal to, and in the currency of, the total Contingent Liabilities of
all the Revolving Banks under all outstanding Letters of Credit and Bank Guarantees issued for the account of such Borrower. 

  

	 	(b)	 	The events referred to in Clause 8.2(a) are the following: 

  

	 	(i)	 	a Sale; or 

  

	 	(ii)	 	a Change of Control. 

  

	 	(c)	 	For the purposes of this Agreement: 

  
 “Change of Control” means: 
  

	 	(a)	 	Hicks Muse, its principals and their Affiliates, Apax, its principals and their Affiliates and the management of the Parent (together, the “Investors”) ceasing to
have the power, directly or indirectly, to vote or direct the voting of shares having a majority of the ordinary voting power for the election of directors of the Parent provided that the occurrence of the foregoing events shall not be deemed a
Change of Control if: 

  

	 	(i)	 	at any time prior to the consummation of an Initial Public Offering and for any reason whatever: 

  

	 	(A)	 	the Investors together otherwise have the right to designate (and do so designate) a majority of the board of directors of the Parent; or 

  

	 	(B)	 	the Investors and their employees, directors and officers (collectively, the “Investor Group”) together own legally and beneficially an amount of the ordinary share
capital of the Parent equal to at least 50% of the percentage of ordinary share capital of the Parent owned by the Investor Group legally and beneficially as of the Yell Completion Date (after giving effect to the Yell Completion) and such ownership
by the Investor Group represents the largest single block of voting shares of the Parent held by any person or persons; or 

  

	 	(ii)	 	at any time after the consummation of an Initial Public Offering and for any reason whatever: 

  

 61 

	 	(A)	 	no person or group of persons acting in concert excluding the Investor Group shall become the beneficial owner, directly or indirectly, of more than the greater of (x) 15% of the
shares of the Parent then outstanding and (y) the percentage of the then outstanding issued voting shares of the Parent owned beneficially by the Investor Group; and 

  

	 	(B)	 	the board of directors of the Parent shall consist of a majority of Continuing Directors; or 

  

	 	(b)	 	a change of control occurs for the purpose of the High Yield Notes or the Discount High Yield Notes; 

  
 “Continuing Directors” means the directors of the Parent on 25 May 2001 and each other director, if, in
each case, such other director’s nomination for election to the board of directors of the Parent is recommended by a majority of the then Continuing Directors or such other director receives the vote of the Investors (directly or indirectly) in
his or her election by the shareholders. 
  
 “Initial
Public Offering” means an underwritten public offering by the Parent of its ordinary share capital to be listed and/or traded on any recognised investment exchange or market in any country. 
  
 “Sale” means a sale or disposal (whether in a single
transaction or a series of related transactions) of all or substantially all of the business and/or assets of the Group. 
  

	8.3	 	Mandatory Prepayments from Receipts: 

  

	 	(a)	 	The Parent will procure that the Advances will be prepaid and/or cash cover provided in accordance with Clause 8.6 (Prepayments: Order of Application) in an amount equal to
the Net Proceeds of any disposal of any asset of the Parent or any other member of the Group (other than a disposal permitted by Clause 16.3(b)(i) to (iv) (inclusive), (vii) or (viii) (Disposals)) which when aggregated with the Net Proceeds
of other such disposals made in the same Financial Year exceed £5,000,000 in aggregate provided that such Net Proceeds shall not be required to be so applied to the extent that such Net Proceeds are reinvested as soon as practicable (but in
any event either reinvested within 180 days after receipt, or contractually committed for reinvestment within such 180 day period and then reinvested within 180 days thereafter) in assets of a similar type to those disposed of or which are otherwise
required for the Business. If, in accordance with Clause 16.3(c) (Arm’s Length Transactions), part of the Net Proceeds of any disposal is not received in cash or Cash Equivalents, such part shall only be subject to application in
accordance with this Clause 8.3(a) when all or any portion thereof is received in, or converted into, cash or Cash Equivalents whereupon such cash or Cash Equivalents shall be applied in accordance with the foregoing provisions of this Clause
8.3(a). 

  

	 	(b)	 	The Parent will procure that the Advances will be prepaid and/or cash cover provided in accordance with Clause 8.6 (Prepayments: Order of Application) in an amount equal to
any Net Proceeds received or recovered by the Parent or any member of the Group as a result of a claim for breach of contract or warranty under the Acquisition Documents or otherwise received from any Vendor under the Acquisition Documents or
received as a result of claims against any professionals in relation to any of the Reports provided that such Net Proceeds shall not be required to be so applied to the extent that such Net Proceeds are reinvested or applied as soon as practicable
(but in any event either reinvested or applied within 180 days, or contractually committed for reinvestment within such 180 day period and then reinvested or 

  

 62 

 applied within 180 days thereafter) in replacing or investing in assets or to meet a liability in respect
of which such Net Proceeds are received or recovered. 
  

	 	(c)	 	The Parent will procure that the Advances will be prepaid and/or cash cover provided in accordance with Clause 8.6 (Prepayments: Order of Application) in an amount equal to
any moneys received by the Parent or any member of the Group as a result of a claim under any insurance (save for proceeds payable to third parties under any insurance for third party liability) to the extent not used to reinstate, replace, repair
or otherwise invest in assets in respect of which such moneys were received or to meet a liability in respect of which such moneys were received or (if the moneys received relate to an asset which is no longer required for the Business) to invest in
assets which are required for the Business, in each case as soon as practicable (but in any event either used within 180 days after receipt, or contractually committed for investment within such 180 day period and then used within 180 days
thereafter). 

  
 Any moneys not immediately applied
in prepayment and/or provision of cash cover in accordance with paragraphs (a), (b) or (c) above or Clause 8.5 (IPO Proceeds) shall be held in a Cash Collateral Account pending application in accordance with paragraphs (a), (b) or (c) above
or Clause 8.5 (IPO Proceeds), as the case may be, and in the case of any moneys held in a Cash Collateral Account pending application in accordance with paragraphs (a), (b) and (c) above or Clause 8.5 (IPO Proceeds) which are not so
applied within 180 days after receipt or so committed to be applied within that period and applied within 180 days thereafter, shall be applied in prepayment of the Advances and/or the provision of cash cover in accordance with Clause 8.6
(Prepayments: Order of Application). 
  

	8.4	 	Excess Cash Flow: Within 10 Business Days of delivery of the audited consolidated financial statements of the Group pursuant to Clause 16.6(d) (Financial Statements)
for a Financial Year commencing with the Financial Year ending 31 March, 2003, the Borrowers will prepay the Advances and/or provide cash cover in an amount equal to 50 per cent. of the amount of Excess Cash Flow for such Financial Year provided
that, if the Leverage Ratio in respect of any such Financial Year is 3.50:1 or lower, then the amount to be so applied in prepayment and/or provided as cash cover shall be equal to 25 per cent. of the amount of Excess Cash Flow for such Financial
Year. Commencing with the Financial Year ending 31 March, 2003, the Parent will procure that the Auditors will deliver, together with the audited consolidated financial statements to be delivered to the Facility Agent pursuant to Clause 16.6(d)(i)
(Financial Statements), a certificate confirming the amount of the Excess Cash Flow (if any) for the relevant Financial Year together with a calculation of how that amount has been determined. 

  

	8.5	 	IPO Proceeds: The Parent shall apply or procure another member of the Group to apply the aggregate net proceeds of any Flotation (if they exceed £20,000,000) either (a)
in investing in assets required or useful for the Business and which become owned by a member of the Group (other than an Excluded Group Member) or (b) for one or more of the specified purposes of the Business for which the Flotation was undertaken
(as described in the prospectus therefor) provided that such net proceeds shall not be used in or toward prepayment of any Financial Indebtedness of any member of the Group other than in or toward prepayment of the Facilities. For the purpose of
this Clause 8.5, aggregate net proceeds means the total proceeds realised by the Parent, any Borrower and/or any other person the subject of a Flotation (not constituting a Change of Control) or any shareholder of the person the subject of such a
Flotation less the reasonable costs, fees and expenses incurred in connection with such Flotation. On each occasion that aggregate net proceeds are received in respect of such a Flotation, the Parent shall procure that the amount required to be
applied pursuant to this Clause 8.5 shall be, within three Business Days of such Flotation occurring, paid by a member of the Group (which has provided security over all or substantially all of its assets to the Senior Finance Parties) into a Cash
Collateral Account. If such aggregate net proceeds are received by a person other than a member of the Group, 

  

 63 

 the Parent shall procure that an amount equal to such aggregate net proceeds are contributed by a Further
Equity Contribution to the Parent or by Further Subordinated Loan Stock so that the Parent is able to comply with its obligations under the preceding sentence. To the extent that any such amount is not applied in investing in assets or for the
specified purposes of the Business described in the prospectus for the Flotation as permitted by this Clause 8.5 within a 180 day period commencing on such Flotation occurring (or contractually committed for investment or application within such 180
day period and then applied within 180 days thereafter) then they shall be then applied in or towards prepayment of the Facilities in accordance with Clause 8.6 (Prepayments: Order of Application). The Parent shall cease to be obliged to
apply or procure the application of, in accordance with this Clause 8.5, any amount in respect of such aggregate net proceeds of a Flotation not constituting a Change of Control which occurs when the Leverage Ratio on the immediately preceding date
on which such ratio was tested under Clause 16.7(d) (Leverage Ratio) was 3.5:1 or better and the Leverage Ratio for the twelve month period following the date of the Flotation (taking into account the Flotation but excluding the aggregate net
proceeds or any other amounts in respect thereof received by the Group, save in the case of any prepayment of the Term Facilities or permanent repayment and cancellation of the Revolving Facility which shall be taken into account in the calculation
of Total Net Debt) will be 3.5:1 or better (as evidenced by a pro forma calculation received from the Obligors’ Agent satisfactory to the Majority Banks (acting reasonably)). 
  

	8.6	 	Prepayments: Order of Application: 

  

	 	(a)	 	Prepayments made pursuant to Clauses 8.1 (Voluntary Prepayments), 8.3 (Mandatory Prepayments from Receipts), 8.4 (Excess Cash Flow) and 8.5 (IPO
Proceeds) shall: 

  

	 	(i)	 	be applied, in the case of the first £60,000,000 aggregate principal amount applied in prepayment (whether voluntary or mandatory) in prepayment of Term Advances in order of
maturity, inverse order of maturity or on a pro rata basis as directed by the Obligors’ Agent by no less than 3 Business Days notice in writing to the Facility Agent. If no such selection is made the relevant prepayments will be applied as
provided below. Notwithstanding the foregoing, any Tranche C1 Bank’s, Tranche C2 Bank’s or Tranche C3 Bank’s right of waiver described in paragraph (ii) shall also apply to any proposed prepayment pursuant to this paragraph (i);

  

	 	(ii)	 	in the case of all other prepayments not applied as provided in paragraph (i), as between the Tranche A Term Facility, the Tranche B Term Facility, the Tranche C1 Term Facility, the
Tranche C2 Term Facility, the Tranche C3 Term Facility and the Tranche D Term Facility, be applied against outstandings pro rata to (A) the outstanding principal amount of the Tranche A Advance, (B) the outstanding principal amount of the Tranche B
Advances, (C) the outstanding principal amount of the Tranche C1 Advances, (D) the outstanding principal amount of the Tranche C2 Advances (E) the outstanding principal amount of the Tranche C3 Advances and (F) the outstanding principal amount of
the Tranche D Advance (provided that any Tranche C1 Bank, any Tranche C2 Bank or any Tranche C3 Bank may waive its rights to any such prepayment and any proposed prepayment under subparagraph (i) above by giving notice of such waiver to the Facility
Agent by no later than the date falling one Business Day prior to the date on which the relevant prepayment is to be made in which event such amount shall be applied, at the option of the Obligors’ Agent, either against the outstanding
principal amount of the Tranche A Advances or against outstandings pro rata to the outstanding principal amount of the Tranche A Advances, the outstanding principal amount of the Tranche B Advances and the outstanding principal amount of the Tranche
D Advance); and 

  

 64 

	 	(iii)	 	in relation to the unpaid instalments in respect of the Tranche A Term Facility be applied pro rata against the scheduled instalments of principal detailed in Clause7.1(a) (Term
Advances); and 

  

	 	(iv)	 	in relation to the unpaid instalments in respect of the Tranche B Term Facility be applied pro rata against the scheduled instalments of principal detailed in Clause 7.1(b) (Term
Advances); and 

  

	 	(v)	 	in relation to the unpaid instalments in respect of the Tranche C1 Term Facility be applied pro rata against the scheduled instalments of principal detailed in Clause 7.1(c)
(Term Advances); and 

  

	 	(vi)	 	in relation to the unpaid instalments in respect of the Tranche C2 Term Facility be applied pro rata against the scheduled instalments of principal detailed in Clause 7.1(d)
(Term Advances); and 

  

	 	(vii)	 	in relation to the unpaid instalments in respect of the Tranche C3 Term Facility be applied pro rata against the scheduled instalments of principal detailed in Clause 7.1(e)
(Term Advances); and 

  

	 	(viii)	 	in relation to the unpaid instalments in respect of the Tranche D Term Facility be applied pro rata against the scheduled instalments of principal detailed in Clause 7.1(f) (Term
Advances), 

  
 until in each
case the Term Facilities have been reduced to zero; and 
  

	 	(ix)	 	thereafter in permanent prepayment of Revolving Advances and cash advances outstanding forming part of Ancillary Outstandings (as defined in Schedule 8) in such order as the
Obligors’ Agent may select and thereafter in providing cash cover in respect of any Contingent Liability under any Letter of Credit or Bank Guarantee issued under the Revolving Facility or contingent liability under any Ancillary Facility.

  
 The Revolving Commitments of the Banks shall be
cancelled in an amount equal to each amount prepaid or provided as cash cover under sub-paragraph (vi) above. Each Bank’s Revolving Commitment shall be reduced proportionately (and the relevant Ancillary Limit reduced). Any such amounts shall
be applied in reduction of the Revolving Commitments of the Revolving Banks on a pro rata basis. 
  

	 	(b)	 	Subject as otherwise provided in this Agreement, the Obligors’ Agent shall by notice in writing to the Facility Agent to be received not later than three Business Days prior to
the date of the relevant repayment or prepayment designate which Advances are to be repaid or prepaid in order to meet amounts due on such date. 

  

	8.7	 	Prepayments during Interest Periods: Where any amount required to be prepaid under Clauses 8.3 (Mandatory Prepayments from Receipts), 8.4 (Excess Cash Flow) or
8.5 (IPO Proceeds) is received by the Facility Agent during an Interest Period, the Obligors’ Agent may by notice in writing to the Facility Agent to be received not less than three Business Days prior to payment of the relevant amount
to the Facility Agent, request such amount to be placed in a Cash Collateral Account in which event such amount shall be paid to the credit of a Cash Collateral Account and shall be thereafter applied by the Facility Agent against the relevant
Advance or Advances at the expiry of the relevant Interest Period. The interest earned on such account will be applied by the Facility Agent towards the interest 

  

 65 

 due by the relevant Borrower in respect of the relevant Advance at the time the amount is applied in
repayment of the relevant Advance. 
  

	8.8	 	Miscellaneous: 

  

	 	(a)	 	No prepayment of an Advance may be made except at the times and in the manner expressly provided by this Agreement. 

  

	 	(b)	 	Any repayment or prepayment must be accompanied by accrued interest on the amount repaid or prepaid and any other sum then due under this Agreement. 

  

	 	(c)	 	Any repayment or prepayment of an Advance (or part thereof) shall be made in the currency of that Advance. 

  

	 	(d)	 	No amount repaid or prepaid may be redrawn save as provided in Clause 7.2 (Revolving Advances). 

  

	 	(e)	 	Any notice of prepayment delivered by any Obligor or the Obligors’ Agent under this Agreement shall be irrevocable. 

  

	9.	 	CANCELLATION 

  

	9.1	 	All Facilities: If the first Term Advance for a Term Facility shall not have been made under this Agreement on or prior to the last Business Day of the Availability Period
for such Facility, such Facility shall be cancelled and the applicable Senior Finance Parties shall be under no further obligation to permit Drawings under this Agreement in respect of such Term Facility. 

  

	9.2	 	Term Facilities: On the last Business Day of the Availability Period for each Term Facility any portion of the Commitments in relation to such Term Facility remaining undrawn
will be cancelled. 

  

	9.3	 	Cancellation of the Revolving Facility by the Obligors’ Agent: 

  

	 	(a)	 	The Obligors’ Agent may cancel the Revolving Commitments in whole or in part (but if in part a minimum of £2,000,000 and an integral multiple of £1,000,000) at any
time during the Availability Period for the Revolving Facility by giving not less than 2 Business Days irrevocable written notice to that effect to the Facility Agent specifying the date and amount of the proposed cancellation. Any such cancellation
shall reduce each Bank’s Revolving Commitment on a pro rata basis (ignoring for this purpose any reduction in the Revolving Commitment of an Ancillary Bank by reason of an Ancillary Limit). 

  

	 	(b)	 	No cancellation of the Revolving Facility by the Obligors’ Agent may be made if it would result in the aggregate of the Revolving Advances and the Contingent Liability of all
the Banks under Letters of Credit and Bank Guarantees issued under the Revolving Facility at the time of the proposed cancellation exceeding the total Revolving Commitments as reduced by the total Ancillary Limits at such time.

  

	9.4	 	Tranche C3 Term Facility: The total Tranche C3 Commitments shall be reduced (in a minimum of $2,000,000 and integral multiples of $1,000,000) on the date of the Drawing
Request in respect of the Tranche C3 Term Facility by the amount of the Excess Cash Contribution (if any) identified therein and approved by the Facility Agent (acting on the instructions of the Tranche C3 Banks) and the amount by which the Tranche
C3 Commitments are reduced shall be treated as cancelled. Any such cancellation shall reduce each Tranche C3 Bank’s Commitment in respect of the Tranche C3 Facility on a pro rata basis. 

  

 66 

	9.5	 	Miscellaneous: No Borrower may cancel all or any part of the Facilities except as expressly provided in this Agreement or, in relation to the Ancillary Facilities, any
Ancillary Document. Any notice of cancellation shall be irrevocable and no part of the Facilities which has been cancelled shall be capable of being drawn. 

  

	9.6	 	Replacement of a Bank: 

  

	 	(a)	 	If at any time: 

  

	 	(i)	 	any Bank becomes a “Non-Consenting Bank”; or 

  

	 	(ii)	 	any Bank becomes a “Non-Funding Bank”; 

  
 then the Obligors’ Agent may, on five Business Days prior written notice to the Facility Agent and such Bank, replace such Bank by requiring such
Bank to (and such Bank shall) transfer pursuant to Clause 20.3(a) (Assignments and Transfers by Banks) all of its rights and obligations under this Agreement to a Bank or other bank or financial institution, selected by the Obligors’
Agent and which is reasonably acceptable to the Facility Agent and the Issuing Banks, which confirms its willingness to assume and does assume all the obligations of the transferring Bank (including the assumption of the transferring Bank’s
participation on the same basis as the transferring Bank) for a purchase price equal to the outstanding principal amount of such Bank’s participation in the outstanding Advances and all accrued interest and fees and other amounts payable
hereunder. 
  

	 	(b)	 	The replacement of a Bank pursuant to Clause 9.6(a) shall be subject to the following conditions: 

  

	 	(i)	 	the Obligors’ Agent shall have no right to replace the Facility Agent; 

  

	 	(ii)	 	neither the Facility Agent nor any Bank shall have any obligation to the Obligors’ Agent to find a replacement Bank or other such entity; 

  

	 	(iii)	 	in the event of a replacement of a Non-Consenting Bank such replacement must take place no later than 180 days after the date the Non-Consenting Bank notified the Obligors’
Agent and the Facility Agent of its failure to agree to any requested consent, waiver or amendment to the Senior Finance Documents; and 

  

	 	(iv)	 	in no event shall the Bank hereby replaced be required to pay or surrender to such replacement Bank or other entity any of the fees received by such Bank hereby replaced pursuant to
this Agreement. 

  

	 	(c)	 	In the event that: 

  

	 	(i)	 	the Obligors’ Agent or the Facility Agent has requested the Banks to consent to a waiver or amendment of any provisions of the Senior Finance Documents;

  

	 	(ii)	 	the waiver or amendment in question requires the consent of all Banks; and 

  

	 	(iii)	 	the Majority Banks have consented to such waiver or amendment, 

  
 then any Bank who does not agree to such waiver or amendment shall be deemed a “Non-Consenting Bank”. 
  

 67 

	 	(d)	 	A “Non-Funding Bank” means: 

  

	 	(i)	 	any Bank which has failed to make or participate in an Advance as required by this Agreement; or 

  

	 	(ii)	 	any Bank which has given notice to a Borrower or the Facility Agent that it does not intend to make or participate in any Advances in accordance with the requirements of this
Agreement or has repudiated its obligations to do so. 

  

	 	(e)	 	The Obligors’ Agent’s right to replace a Non-Funding Bank pursuant to this Clause 9.6 supplements rather than replaces the other legal and equitable rights and remedies
available to the Parent against such Non-Funding Bank under this Agreement or otherwise. 

  

	10.	 	FEES 

  

	10.1	 	Commitment Fees: 

  
 (a) 
  

	 	(i)	 	The Parent shall pay, or will procure to be paid, to the Facility Agent for the account of the Revolving Banks a commitment fee on the Revolving Facility from the date of this
Agreement which will be computed at the rate of 0.75 per cent. per annum (save if a different rate applies pursuant to Clause 10.1(a)(ii), at such different rate) on the daily, undrawn, uncancelled amount of the total Revolving Commitments and be
payable on the Yell Completion Date and, following the Yell Completion Date, quarterly in arrears and on the Revolving Facility Repayment Date. 

  

	 	(ii)	 	In the event that the quarterly consolidated financial statements of the Group last received by the Facility Agent pursuant to Clause 16.6(d) (Financial Statements) together
with the certificate relating thereto delivered pursuant to Clause 16.6(i) (Compliance Certificates) disclose a Leverage Ratio calculated in accordance with Clause 16.7 (Financial Covenants) as at and for the 12 month period ending on
the last day of the relevant Accounting Quarter at a level which in accordance with the table set out below indicates a reduced Revolving Facility commitment fee then the amount of the Revolving Facility commitment fee shall be determined as
follows: 

  

	 Leverage Ratio

	  	Revolving Facility
Commitment Fee

	 
	 Greater than or equal to 4.50:1
	  	0.75	% p.a.
	 Less than 4.50:1 but greater than or equal to 3.50:1
	  	0.625	% p.a.
	 Less than 3.50:1 but greater than or equal to 2.75:1
	  	0.50	% p.a.
	 Less than 2.75:1
	  	0.375	% p.a.

  
 provided that: 
  

	 	(A)	 	 there shall be no reduction in the amount of the Revolving Facility commitment fee prior to receipt by the Facility Agent of the quarterly 

  

 68 

	 	consolidated financial statements of the Group for the first three Accounting Quarters following the Yell Completion Date; 

  

	 	(B)	 	any change in the amount of the Revolving Facility commitment fee shall take effect during (but only during) the period from (and including) the date on which the Facility Agent has
received the relevant quarterly consolidated financial statements of the Group in accordance with Clause 16.6(d) (Financial Statements) and the certificate relating thereto in accordance with Clause 16.6(e)(i) (Compliance Certificates)
until (but excluding) the date (a “Readjustment Date”) being the earlier of: 

  

	 	(1)	 	the date on which the Facility Agent next receives quarterly consolidated financial statements pursuant to Clause 16.6(d) Financial Statements) and the certificate relating
thereto pursuant to Clause 16.6(e)(i) (Compliance Certificates); 

  

	 	(2)	 	the latest date by which the Facility Agent should have received the quarterly consolidated financial statements and certificate relating thereto referred to in sub paragraph (I)
above; 

  
 and, on each Readjustment Date, the
Revolving Facility commitment fee shall revert to 0.75 per cent. per annum, unless a lower Revolving Facility commitment fee shall be applicable in accordance with this Clause 10.1(a); and 
  

	 	(C)	 	there shall be no decrease in the Revolving Facility commitment fee if an Event of Default has occurred which is continuing and the Revolving Facility commitment fee shall
immediately revert to 0.75 per cent. per annum until such time as any Event of Default is no longer continuing, whereupon the Revolving Facility commitment fee shall be determined in accordance with this Clause 10.1(a)(ii) on the basis of the most
recently delivered quarterly consolidated financial statements of the Group. 

  

	 	(iii)	 	If any annual audited financial statements delivered under Clause 16.6(d) (Financial Statements) demonstrate that the Revolving Facility commitment fee:

  

	 	(A)	 	should have been varied in accordance with Clause 10.1(a)(ii) when it has not been; or 

  

	 	(B)	 	should not have been varied in accordance with Clause 10.1(a)(ii) when it has been, 

  
 in either case by reason of an inaccuracy in the relevant quarterly consolidated financial statements, payments of the
Revolving Facility commitment fee shall following receipt of the relevant audited financial statements by the Facility Agent be adjusted (downwards or, as the case may be, upwards) by such amount as the Facility Agent shall determine is necessary to
give effect to the correct variation in the amount of the Revolving Facility commitment fee as demonstrated by the audited financial statements. The Facility Agent’s determination of the adjustments payable under this Clause 10.1(a)(iii) shall,
save in the case of manifest error, be conclusive and the Facility Agent shall provide the Obligors’ Agent with reasonable details of the calculation of such adjustments. 
  

 69 

	 	(iv)	 	The commitment fees payable under this Clause 10.1(a) (Commitment Fees) will accrue from day to day and will be calculated on the basis of a 365 day year and the actual
number of days elapsed. 

  

	 	(b)	 	The Parent will pay or cause to be paid to the Facility Agent for the account of the Tranche C3 Banks a commitment fee on the Tranche C3 Term Facility from the date of the Sixth
Amendment Agreement which will be: 

  

	 	(i)	 	computed at the rate of 0.75 per cent. per annum on the daily, undrawn, uncancelled amount of the total Tranche C3 Commitments; and 

  

	 	(ii)	 	payable quarterly in arrears and on the Bridge Note Refinancing Date. 

  
 The commitment fees payable under this Clause 10.1(b) (Commitment Fees) will accrue from day to day and will be calculated on the basis of a 360
day year and the actual number of days elapsed. 
  

	 	(c)	 	The Parent will pay or cause to be paid to the Facility Agent for the account of the Tranche D Banks a commitment fee on the Tranche D Term Facility from the date of the Fifth
Amendment Agreement which will be: 

  

	 	(i)	 	computed at the rate of 0.75 per cent. per annum on the daily, undrawn, uncancelled amount of the total Tranche D Commitments; and 

  

	 	(ii)	 	payable quarterly in arrears and on the McLeod Completion Date. 

  
 The commitment fees payable under this Clause 10.1(c) (Commitment Fees) will accrue from day to day and will be calculated on the basis of a 360
day year and the actual number of days elapsed. 
  

	10.2	 	Arrangement and Underwriting Fees: The Parent will pay to the relevant Senior Finance Parties for their own account the arrangement and underwriting fees in the amounts and
at the times as specified in the Fees Letters. 

  

	10.3	 	Agency Fees: The Borrowers will pay to the Facility Agent for its own account and to the Security Agent for its own account agency fees at the times and otherwise in
accordance with the terms of the Agency Fees Letter. 

  

	10.4	 	Letter of Credit/Bank Guarantee Commission: Each Borrower for whose account a Letter of Credit or Bank Guarantee is issued shall pay to the Facility Agent for the account of
the Revolving Banks a commission at a rate equal to the Margin (as adjusted from time to time in accordance with Clause 6.6 (Margin Adjustment)) for the Revolving Facility on that Bank’s Contingent Liability from day to day in relation
to that Letter of Credit or Bank Guarantee. That commission shall be payable quarterly in arrears for so long as that Bank has any such Contingent Liability and on the date on which it ceases to have any such Contingent Liability.

  

	10.5	 	Issuing Bank Fee: Each Borrower for whose account a Letter of Credit or Bank Guarantee is issued shall pay to the Issuing Bank which issued that Letter of Credit or Bank
Guarantee a fee equal to 0.125 per cent. per annum on the Contingent Liability of such Issuing Bank from day to day in relation to that Letter of Credit or Bank Guarantee. That fee shall be payable quarterly in arrears for so long as such Issuing
Bank has any such Contingent Liability and on the date on which it ceases to have any such Contingent Liability. 

  

 70 

	10.6	 	VAT: All fees payable under the Senior Finance Documents are exclusive of any value added tax or other similar tax chargeable upon or in connection with such fees. If any
value added tax or other similar tax is or becomes chargeable such tax will be added to the fee concerned at the appropriate rate and will be paid by the relevant Obligor at the same time as the fee itself is paid. 

  

	11.	 	CURRENCY OPTION 

  

	11.1	 	Requests for Optional Currency: Subject as otherwise provided in this Agreement, if a Borrower so requests in a Drawing Request for a Revolving Advance or a Letter of Credit
or Bank Guarantee that Revolving Advance, Letter of Credit or Bank Guarantee shall be denominated in an Optional Currency provided that Revolving Advances may not be denominated at any one time in more than three Optional Currencies at any time.

  

	11.2	 	Response to Request for an Optional Currency: If not later than the close of business three Business Days prior to the first day of an Interest Period during which a
Revolving Advance is to be denominated in an Optional Currency: 

  

	 	(a)	 	any Bank notifies the Facility Agent that: 

  

	 	(i)	 	that Bank reasonably expects to be unable to obtain matching deposits in that Optional Currency in the Relevant Interbank Market at or about 11.00 a.m. on the relevant date in
sufficient amounts to fund its share of that Revolving Advance during that Interest Period; or 

  

	 	(ii)	 	it would by reason of national or international financial, political or economic conditions, currency availability, currency exchange rates or exchange controls be impossible or
impracticable or it would be unlawful or contrary to a directive (whether or not having the force of law but, if not having the force of law, being one with which it is the practice of banks in the relevant jurisdiction to comply) for its share of
that Revolving Advance to be denominated in that Optional Currency during that Interest Period; or 

  

	 	(b)	 	the Facility Agent determines that: 

  

	 	(i)	 	the relevant Optional Currency is for any reason not freely convertible into Sterling and/or not freely transferable; or 

  

	 	(ii)	 	it is impossible to make payment in the country of the currency in which the Revolving Advance is to be denominated in the manner provided for in this Agreement;

  
 the Facility Agent shall promptly notify the
Obligors’ Agent and the Banks. 
  

	11.3	 	Fallback Currency: If in relation to any Interest Period relating to a Revolving Advance the Facility Agent gives notice to the Obligors’ Agent and the Banks in
accordance with Clause 11.2 (Response to Request for an Optional Currency) that Revolving Advance shall during that Interest Period instead be denominated in Sterling. 

  

	11.4	 	Commitments: On the date on which any Drawing under the Revolving Facility is requested (whether or not in an Optional Currency), the Facility Agent shall determine whether
the aggregate of: 

  

 71 

	 	(a)	 	the amount in Sterling of that Drawing or, if denominated in an Optional Currency, the Sterling Equivalent (determined as at or about 11:00 a.m. two Business Days prior to the
relevant Drawing Date) of that Drawing; and 

  

	 	(b)	 	the Sterling Equivalent (determined as at or about 11:00 a.m. two Business Days prior to the relevant Drawing Date) of each existing Revolving Advance denominated in an Optional
Currency which will be outstanding on the relevant Drawing Date; and 

  

	 	(c)	 	each existing Revolving Advance denominated in Sterling which will be outstanding on the relevant Drawing Date; and 

  

	 	(d)	 	the Sterling Equivalent (determined as at or about 11:00 a.m. two Business Days prior to the relevant Drawing Date) of the total Contingent Liability of all the Banks under Letters
of Credit and Bank Guarantees already issued and denominated in Optional Currencies which will be outstanding on the relevant Drawing Date; and 

  

	 	(e)	 	the total Contingent Liability of all the Banks under Letters of Credit and Bank Guarantees already issued and denominated in Sterling which will be outstanding on the relevant
Drawing Date, 

  
 exceeds the total amount of the
Revolving Commitments of the Banks. In the event that the Commitments of the Banks are so exceeded the requested Revolving Advance, Letter of Credit or Bank Guarantee shall be reduced by the amount by which the total Revolving Commitments of the
Banks are so exceeded. 
  

	12.	 	TAXES AND OTHER DEDUCTIONS 

  

	12.1	 	Payments to be free and clear: All sums payable by each Obligor under this Agreement shall be paid (a) free of any restriction or condition, (b) free and clear of and (except
to the extent required by law) without any deduction or withholding for or on account of any tax and (c) without deduction or withholding (except to the extent required by law) on account of any other amount whether by way of set-off, counter-claim
or otherwise. 

  

	12.2	 	Grossing-up of Payments: If any Obligor or any other person is required by law to make any deduction or withholding on account of any such tax or other amount from any sum
paid or payable by any Obligor to any Senior Finance Party under the Senior Finance Documents: 

  

	 	(a)	 	such Obligor shall notify the Facility Agent of any such requirement or any change in any such requirement as soon as such Obligor becomes aware of it; 

  

	 	(b)	 	such Obligor shall pay any such tax or other amount before the date on which penalties attach thereto, such payment to be made for its own account unless that liability is imposed
on any other party in which case it shall be made on behalf of and in the name of that party; 

  

	 	(c)	 	the sum payable by such Obligor in respect of which the relevant deduction or withholding is required shall be increased to the extent necessary to ensure that, after the making of
that deduction or withholding, that party receives on the due date and retains (free from any liability in respect of any such deduction or withholding) a net sum equal to the sum which it would have received and so retained had no such deduction or
withholding been required or made; and 

  

 72 

	 	(d)	 	within 30 days after paying any sum from which it is required by law to make any deduction or withholding, and within 30 days after the due date of payment of any tax or other
amount which it is required by Clause 12.2(b) (Grossing-Up of Payments) to pay, such Obligor shall deliver to the Facility Agent evidence satisfactory to the other affected parties of such deduction or withholding and of the remittance of
such payment to the relevant taxing or other authority. 

  

	12.3	 	Indemnity: 

  

	 	(a)	 	Without prejudice to Clauses 12.1 (Payments to be free and clear) and 12.2 (Grossing-Up of Payments), if any Senior Finance Party (or any person on its behalf) is
required to make any payment on account of tax or otherwise (except on account of tax on the overall net income of that party or that other person) on or calculated by reference to the amount of any sum receivable or received by that Senior Finance
Party (or any person on its behalf) under the Senior Finance Documents from any Obligor (including, without limitation, under Clause 12.1 (Payments to be free and clear) or 12.2 (Grossing-Up of Payments)) or any liability in respect of
any such payment is assessed, levied, imposed or claimed against any Senior Finance Party (or any person on its behalf), such Obligor shall, on demand by the Facility Agent, forthwith indemnify that Senior Finance Party (or such person) against such
payment or liability, and any costs, charges and expenses (including, without limitation, penalties) payable or incurred in connection therewith. 

  

	 	(b)	 	No Senior Finance Party (or any person on its behalf) shall be entitled to make any claim for any increased payment under Clause 12.2 (Grossing-up of Payments) on any date
falling later than nine months after the discharge of the obligations (both actual and contingent) of the Obligors under this Agreement and the cancellation of the Commitments, in full. 

  

	12.4	 	Tax Credits: If and to the extent that any Senior Finance Party is able, in its sole opinion, to apply or otherwise take advantage of any offsetting tax credit or other
similar tax benefit out of or in conjunction with any deduction, withholding or payment which gives rise to an obligation on any Obligor to pay any additional amount pursuant to Clause 12.2 (Grossing-Up of Payments) or 12.3 (Indemnity)
that Senior Finance Party shall, to the extent that in its sole opinion it can do so without prejudice to the retention of the amount of such credit or benefit and without any other adverse tax consequences for that Senior Finance Party, reimburse
to such Obligor, at such time as such tax credit or benefit shall have actually been received by that Senior Finance Party such amount as that Senior Finance Party shall, in its sole opinion, have determined to be attributable to the relevant
deduction, withholding or payment and as will leave it in no better or worse position in respect of its worldwide tax liabilities than it would have been in if the payment of such additional amount had not been required. Such reimbursement (if any)
shall be conclusive evidence of the amount due to such Obligor, and shall be accepted by such Obligor, in full and final settlement of any claim for reimbursement under this Clause 12.4 (Tax Credits). 

  

	12.5	 	Tax Affairs: Nothing herein contained shall oblige any Senior Finance Party to disclose to any Obligor or any other person any information regarding its tax affairs or tax
computations or interfere with the right of any Senior Finance Party to arrange its tax affairs in whatsoever manner it thinks fit and, in particular, no Senior Finance Party shall be under any obligation to claim relief from its corporate profits
or similar tax liability in credits or deductions available to it (and, if it does claim, the extent, order and manner in which it does so shall be at its absolute discretion). 

  

 73 

	12.6	 	Exceptions: 

  

	 	(a)	 	No additional amount will be payable to a Senior Finance Party under Clause 12.2 (Grossing-Up of Payments) as a result of any deduction or withholding or payment of United
Kingdom taxes to the extent that at the time such payment falls due such Senior Finance Party is not a Qualifying Person and such payment would not have fallen due had such Senior Finance Party been a Qualifying Person unless the reason such Senior
Finance Party is not a Qualifying Person is a change (after the date of this Agreement or in the case of a Senior Finance Party which became a party to this Agreement after the date of this Agreement the date on which it became a party) in any law
or directive or in the interpretation or application thereof or in any practice or concession of the United Kingdom Inland Revenue or any other relevant taxing or fiscal authority in any jurisdiction with which the relevant Senior Finance Party has
a connection. 

  
 For this purpose
“Qualifying Person” means at any time: 
  

	 	(i)	 	a bank as defined in the Income and Corporation Taxes Act 1988 (the “Taxes Act”) Section 840A for the purposes of Section 349 of the Taxes Act or a United Kingdom
resident company (for United Kingdom corporation tax purposes) or a non United Kingdom resident company trading in the United Kingdom through a branch or agency which is within the charge to United Kingdom corporation tax as regards any interest
payable or paid to it under this Agreement; 

  

	 	(ii)	 	a person to whom payments under the Senior Finance Documents may be made without deduction or withholding for or on account of taxes whether by reason of an applicable taxation
treaty between the United Kingdom and the country in which that person is, or is treated as, resident or carrying on business and pursuant to which there is a valid and extant claim of such person or otherwise; or 

  

	 	(iii)	 	a building society as defined in Section 832(1) Taxes Act and which is entitled to receive any interest paid or payable to it under this Agreement without deduction or withholding
for or on account of taxes pursuant to Section 477A(7) Taxes Act; 

  

	 	(b)	 	In respect only of an Advance made by a Bank to a Borrower which is resident in the United States for the purposes of United States federal income tax, for any period with respect
to which a Bank has failed to provide such Borrower with the appropriate form, certificate or other document described in Clause 12.8 (US Filings) (other than if such failure is due to a change in applicable law or directive, or in the
interpretation or application thereof, occurring after the date on which a form, certificate or other document originally was required to be provided), such Bank shall not be entitled to any additional amount under Clause 12.2 (Grossing-Up of
Payments) with respect to taxes imposed by the United States by reason of such failure; provided, however, that should a Bank become subject to such taxes because of its failure to deliver a form, certificate or other document required
hereunder, that Borrower shall take such steps as such Bank shall reasonably request to assist such Bank in recovering such taxes. 

  

	12.7	 	Filings: In circumstances where an Obligor is required (or would in the absence of any such filing be required) to make a deduction or withholding for or on account of any
taxes or any other deductions contemplated by this Clause 12 (other than taxes imposed by the United States), that Obligor and each relevant Senior Finance Party shall (to the extent they are entitled or required to do so) cooperate in a timely
manner in filing such forms and documents as the appropriate tax authority may reasonably 

  

 74 

 require in order to enable such Obligor to make relevant payments under the Senior Finance Documents
without having to make such deduction or withholding. 
  

	12.8	 	US Filings: In respect only of an Advance made by a Bank to a Borrower which is resident in the United States for United States federal income tax purposes, each Bank
organized under the laws of a jurisdiction outside the United States shall, on or prior to the date of its execution and delivery of this Agreement in the case of each Original Bank or on or prior to the date of the assignment or transfer pursuant
to which it becomes a Bank in the case of each other Bank, and from time to time thereafter as requested in writing by Obligors’ Agent (but only so long thereafter as such Bank remains lawfully able to do so), provide each of the Facility Agent
and the Obligors’ Agent with two original Internal Revenue Service Forms W-8BEN or W-8ECI certifying that such Bank is exempt from United States withholding tax on payments pursuant to this Agreement or, in the case of a Bank that has provided
a certificate to the Facility Agent that it is not (i) a “bank” (as defined in Section 881(c)(3)(A) of the Internal Revenue Code), (ii) a ten-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of
the Borrower or (iii) a controlled foreign corporation related to the Borrower (within the meaning of Section 864(d)(4) of the Internal Revenue Code), Internal Revenue Service Form W-8BEN certifying that such Bank is a foreign corporation,
partnership, estate or trust, or any successor or other form prescribed by the Internal Revenue Service. If any form or document referred to in this Clause 12.8 requires the disclosure of information, other than information necessary to compute the
tax payable and information required on the date hereof by Internal Revenue Service Forms W-8BEN or W-8ECI or the certificate described above, that a Bank reasonably considers to be confidential, the Bank shall give notice thereof to the
Obligors’ Agent and shall not be obligated to include in such form or document such confidential information. 

  

	13.	 	CHANGE IN CIRCUMSTANCES 

  

	13.1	 	Illegality: If at any time after the date of this Agreement, as a result of the introduction of or any change in, or in the interpretation or application or administration of
any applicable law or (whether or not having the force of law but, if not having the force of law, being one with which it is the practice of banks in the relevant jurisdiction to comply) any applicable directive of any agency of any state, it is or
will become unlawful or contrary to any such directive for any Bank to allow all or part of its Commitments to remain outstanding and/or to make, fund or allow to remain outstanding all or part of its share of any Drawing and/or to carry out all or
any of its other obligations under this Agreement: 

  

	 	(a)	 	upon that Bank notifying the Obligors’ Agent, its Commitments shall be cancelled; and 

  

	 	(b)	 	each Borrower shall within five Business Days of request from that Bank (or on such later date as that Bank shall certify to be necessary to comply with the relevant law or
directive) prepay that Bank’s portion of each Advance owing by such Borrower then outstanding together with accrued interest thereon and provide cash cover in an amount equal to that Bank’s Contingent Liability in relation to each Letter
of Credit or Bank Guarantee and pay any other sum then due to that Bank under this Agreement in each case to the extent necessary to avoid the illegality. 

  

	13.2	 	Increased Costs: 

  

	 	(a)	 	If at any time after the date of this Agreement, as a result of the introduction of or any change in, or in the interpretation or application or administration of, any applicable
law or (whether or not having the force of law but, if not having the force of law, being one with which it is the practice of banks in the relevant jurisdiction to comply), any applicable directive of any agency of any state including, without
limitation, any law or directive relating to taxation, reserve asset, special deposit, cash ratio, liquidity or capital adequacy requirements or other 

  

 75 

 forms of banking, fiscal, monetary, or regulatory controls in each case, occurring after the date of this
Agreement: 
  

	 	(i)	 	the cost to any Bank of maintaining all or any part of its Commitments and/or of making, maintaining or funding all or any part of its share of any Drawing or overdue sum is
increased; and/or 

  

	 	(ii)	 	any sum received or receivable by the Facility Agent or any Bank under the Senior Finance Documents or the effective return to it under the Senior Finance Documents is reduced;
and/or 

  

	 	(iii)	 	the Facility Agent or any Bank makes any payment or foregoes any interest or other return on or calculated by reference to the amount of any sum received or receivable by it under
the Senior Finance Documents; 

  
 the relevant
Borrower shall indemnify the Facility Agent or that Bank against that increased cost, reduction, payment or foregone interest or other return and, accordingly, shall from time to time on demand (whenever made) pay to the Facility Agent for its own
account or for the account of that Bank the amount certified by it to be necessary so to indemnify it. 
  

	 	(b)	 	The Borrowers will not be obliged to compensate the Facility Agent or any Bank pursuant to Clause 13.2 (Increased Costs) in respect of any increased cost, reduction, payment,
foregone interest or other return: 

  

	 	(iv)	 	compensated for by payment of the Additional Costs Rate; or 

  

	 	(v)	 	attributable to a change in the tax on the overall net income of the Facility Agent or that Bank; or 

  

	 	(vi)	 	compensated for by the operation of Clause 12 (Taxes and other Deductions) or which would have been so compensated for but for the operation of Clause 12.6
(Exceptions); 

  

	 	(c)	 	To the extent that any Holding Company of the Facility Agent or any Bank suffers a cost which would have been recoverable by the Facility Agent or that Bank under this Clause 13.2
(Increased Costs) had that cost been imposed on the Facility Agent or that Bank the Facility Agent or that Bank shall be entitled to recover that amount under this Clause 13.2 (Increased Costs) on behalf of the relevant Holding
Company. 

  

	 	(d)	 	If a Bank does not notify the Facility Agent of its intention to claim pursuant to this Clause 13.2 within ninety days after the date on which that Bank becomes aware of the
relevant increased cost, reduction, payment or foregone interest or other return, that Bank shall not be entitled to claim indemnification for such increased cost, reduction, payment or foregone interest or other return in respect of any period more
than ninety days before the date on which that Bank does notify the Facility Agent of its intention to make such a claim. 

  

	 	(e)	 	No Senior Finance Party shall be entitled to make any claim pursuant to Clause 13.1 (Illegality) or this Clause 13.2 on any date falling later than nine months after the
discharge of the obligations (both actual and contingent) of the Obligors under this Agreement and the cancellation of the Commitments, in full. 

  

 76 

	13.3	 	Mitigation: 

  

	 	(a)	 	If in respect of any Bank, circumstances arise which would, or would upon the giving of notice, result in: 

  

	 	(i)	 	an obligation to make any payment under Clause 12 (Taxes and Other Deductions); or 

  

	 	(ii)	 	an obligation to make payment under Clause 13.1 (Illegality); or 

  

	 	(iii)	 	a demand for compensation under Clause 13.2 (Increased Costs); 

  
 then, without in any way limiting, reducing or otherwise qualifying the obligations of the Obligors under those Clauses, upon the written request of the
Obligors’ Agent, such Bank, in consultation with the Facility Agent and the Obligors’ Agent, shall take such reasonable steps as may be open to it to mitigate or remove the effects of such circumstances, on terms mutually acceptable to the
Facility Agent, such Bank and the Obligors’ Agent, provided that such Bank will not be obliged to take any action if to do so would or might in the opinion of that Bank have an adverse effect upon its business, operations or financial condition
or cause it to incur liabilities or obligations (including, without limitation, tax liabilities) which, in its opinion, are material or cause it to incur any costs or expenses for which it has not been indemnified to its satisfaction by the
Obligors’ Agent. 
  

	13.4	 	Change in Market Conditions: 

  

	 	(a)	 	If in relation to any Interest Period: 

  

	 	(i)	 	LIBOR or EURIBOR (as applicable) are being determined pursuant to paragraph (b) of the relevant definition and no or only one Reference Bank supplies a quotation in accordance with
the definition of LIBOR or, in the case of Advances in euro, EURIBOR; or 

  

	 	(ii)	 	on the basis of notifications from Banks whose Commitments exceed 50% of the Total Commitments, the Facility Agent determines that (a) matching deposits are not available in the
Relevant Interbank Market at or about 11 a.m. on the Quotation Day for that Interest Period in sufficient amounts to fund their respective shares of the amount to which that Interest Period relates during that Interest Period or (b) the quotations
supplied do not accurately reflect the cost to the Banks of obtaining such deposits; or 

  

	 	(iii)	 	the Facility Agent determines that, by reason of circumstances affecting the Relevant Interbank Market, adequate and fair means do not or will not exist for determining the rate of
interest applicable for that Interest Period; 

  
 the Facility Agent shall promptly notify the Obligors’ Agent and the Banks. 
  

	 	(b)	 	The Facility Agent (on behalf of and after consultation with the Banks) shall then negotiate with the Obligors’ Agent with a view to agreeing an alternative basis for
calculating the interest payable on the Advance(s) to which that Interest Period relates. Any alternative basis agreed in writing by the Facility Agent (on behalf of and with the consent of all the Banks) and the Obligors’ Agent within 30 days
of the Facility Agent’s notification of the event in question shall take effect in accordance with its terms. If an alternative basis is not so agreed, 

  

 77 

 each Bank’s share of such Advance(s) shall during that Interest Period bear interest at the rate per
annum equal to the sum of (i) the applicable Margin and (ii) the cost to that Bank (as certified by it to the Obligors’ Agent within 10 Business Days of the end of that 30 day period and expressed as a rate per annum) of funding its share
during that Interest Period by whatever means that Bank determines to be most appropriate. 
  

	 	(c)	 	So long as this Clause 13.4 applies in relation to any Advance, the Facility Agent, in consultation with the Obligors’ Agent and each Reference Bank, shall from time to time,
but not less often than monthly, review whether or not the circumstances referred to in paragraph (a) still prevail with a view to returning to the usual basis for calculating interest under the terms of this Agreement. 

  

	13.5	 	Issuing Bank: References in Clause 12 (Taxes and Other Deductions) and Clause 13.1 (Illegality) and 13.2 (Increased Costs) shall include any Bank in its
capacity as an Issuing Bank. 

  

	13.6	 	Replacement of Banks: If any of the circumstances referred to in Clause 13.3 (Mitigation) arise, the Facility Agent, at the written request of the Obligors’
Agent, will consult with the Obligors’ Agent with a view to identifying and approaching bank(s), financial institution(s) and/or other entities acceptable to the Facility Agent, the Issuing Bank(s) and the Obligors’ Agent which may be
willing to become party to this Agreement as a Bank in replacement of such existing Bank. 

  

	14.	 	PAYMENTS 

  

	14.1	 	By Banks: 

  

	 	(a)	 	On each date on which an Advance is to be made, each Bank shall make its share of that Advance available to the Facility Agent in the place for payment to the relevant Borrower by
payment in the currency of that Advance and in immediately available cleared funds to such account as the Facility Agent shall specify. 

  

	 	(b)	 	The Facility Agent shall make the amounts so made available to it available to the relevant Borrower before close of business in the place of payment on that date by payment in the
same currency and funds as received by the Facility Agent to such account of the relevant Borrower as shall have been specified in the Drawing Request requesting that Advance. If any Bank makes its share of any Advance available to the Facility
Agent later than required by Clause 14.1(a) (By Banks), the Facility Agent shall make that share available to the relevant Borrower as soon as practicable thereafter. 

  

	14.2	 	By Obligors: 

  

	 	(a)	 	On each date on which any sum is due from any Obligor, that Obligor shall make that sum available to the Facility Agent in the place for payment by payment in the currency in which
that sum is due and in immediately available cleared funds to such account as the Facility Agent shall specify. 

  

	 	(b)	 	The Facility Agent shall make available to each Senior Finance Party before close of business in that place on that date its pro rata share (if any) of any sum so made available to
the Facility Agent in the same currency and funds as received by the Facility Agent to such account of that Senior Finance Party with such bank in that place as it shall have specified to the Facility Agent. If any sum is made available to the
Facility Agent later than required by Clause 14.2(a) (By Obligors), the Facility Agent shall make each Senior Finance Party’s share (if any) available to it as soon as practicable thereafter. 

  

 78 

	14.3	 	Refunding of Payments: The Facility Agent shall not be obliged to make available to any person any sum which it is expecting to receive for the account of that person until
it has been able to establish that it has received that sum. However, it may do so if it wishes. If and to the extent that it does so but it transpires that the Facility Agent had not then received the sum which it paid out:

  

	 	(a)	 	the person to whom the Facility Agent made that sum available shall on request refund it to the Facility Agent; and 

  

	 	(b)	 	the person by whom that sum should have been made available or, if that person fails to do so the person to whom that sum should have been made available, shall on request pay to
the Facility Agent the amount (as certified by the Facility Agent) which will indemnify the Facility Agent against any funding or other cost, loss, expense or liability sustained or incurred by it as a result of paying out that sum before receiving
it. 

  

	14.4	 	Non-Business Days: 

  

	 	(a)	 	The duration of an Interest Period shall not be changed after 11.00 a.m. on the Quotation Day for that Interest Period unless it later becomes apparent to the Facility Agent that
the day on which that Interest Period would otherwise end is not a Business Day. In that event, that Interest Period shall instead end on the Business Day succeeding that day (whichever is selected by the Facility Agent and notified by it to the
Obligors’ Agent and the Banks). 

  

	 	(b)	 	Any Repayment Date which would otherwise fall on a day which is not a Business Day shall be adjusted on the same basis so as to fall on a Business Day which is the last day of an
Interest Period. 

  

	 	(c)	 	Any payment to be made by any Obligor on a day which is not the last day of an Interest Period or a Repayment Date and which would otherwise be due on a day which is not a Business
Day shall instead be due on the next Business Day. 

  

	14.5	 	Change in Currency: 

  

	 	(a)	 	If any change occurs in a currency or currency unit of any country or if more than one currency or currency unit are at the same time recognised by the central bank of any relevant
country as the lawful currency of such country, then: 

  

	 	(i)	 	any reference in the Senior Finance Documents to, and any obligations arising under the Senior Finance Documents in, the currency of that country shall be translated into, or paid
in, the currency or currency unit designated by the Facility Agent after consultation with the Banks; and 

  

	 	(ii)	 	any translation from one of such country’s currencies or currency units to another shall be at the official rate of exchange recognised by that central bank for the conversion
of such currencies or currency unit into the other, rounded up or down to the nearest whole unit of such other currency. 

  

	 	(b)	 	If a change in any currency of any relevant country occurs (including in consequence of European Monetary Union), this Agreement will be amended to the extent to which the Facility
Agent, in good faith, determines to be necessary to reflect the change in currency or any financial market practices relating to dealing in the new currency and to put the Banks in the same position, so far as is possible, that they would have been
in if no change in currency had occurred. 

  

 79 

	15.	 	REPRESENTATIONS AND WARRANTIES 

  

	15.1	 	Representations and Warranties: Each Obligor represents and warrants to each of the Senior Finance Parties that: 

  

	 	(a)	 	Incorporation: It, and each of its Subsidiaries, is duly incorporated and validly existing with limited liability under the laws of the place of its incorporation and has the
power to own its assets and carry on its business as it is now being conducted. 

  

	 	(b)	 	Power: It has power to enter into, exercise its rights under, and perform and comply with its obligations under, each of the Transaction Documents to which it is party and to
carry out the transactions contemplated by such Transaction Documents. 

  

	 	(c)	 	Authority: All actions, conditions and things required to be taken, fulfilled and done by it in order: 

  

	 	(i)	 	to enable it to enter into, exercise its rights under, and perform and comply with its obligations under, the Transaction Documents to which it is party and to carry out the
transactions contemplated by such Transaction Documents; and 

  

	 	(ii)	 	to ensure that those obligations are valid, legally binding and, subject to reservations, enforceable in accordance with their terms; and 

  

	 	(iii)	 	to make each of the Transaction Documents to which it is party admissible in evidence in the courts of the jurisdiction to which it has submitted in such Transaction Document; and

  

	 	(iv)	 	to create the security constituted by the Security Documents (other than, until the McLeod Completion Date, the Tranche D Security Documents) to which it is party and, subject to
reservations, to ensure that such security has the ranking specified therein, 

  
 have (subject as provided in Clause 15.1(d) (Consents and Filings) in relation to the security constituted by the Security Documents) been taken, fulfilled and done. 
  

	 	(d)	 	Consents and Filings: All consents and filings required: 

  

	 	(i)	 	for its entry into, exercise of its rights, and performance and compliance with its obligations under, each of the Transaction Documents to which it is party; and

  

	 	(ii)	 	for it to carry out the transactions contemplated by the Transaction Documents, 

  
 have been obtained or made and are in full force and effect or will be obtained or made and be in full force and effect
prior to the Yell Completion Date save for (1) any filings, registrations or recordations required in relation to the security constituted by the Security Documents (other than, until the McLeod Completion Date, the Tranche D Security Documents) but
each Obligor will take all necessary action to enable the Security Agent to effect all such filings, registrations and recordations in relation to the Security Documents within the applicable time periods, (2) any consents and filings required in
connection with the entry into, exercise of its rights, and performance and compliance with its obligations under, each of the McLeod Transaction Documents, the Recapitalisation Documents and the Bridge Note Refinancing Transaction Documents to
which it is party and for it to carry out the transactions contemplated by the McLeod Transaction Documents, the Recapitalisation Documents and the 
  

 80 

	 	 
Bridge Note Refinancing Transaction Documents which in each case will be obtained or made and be in full force and effect prior to, in the case of the McLeod
Transaction Documents and the Recapitalisation Documents, the McLeod Completion Date and, in the case of the Bridge Note Refinancing Transaction Documents, the Bridge Note Refinancing Date and (3) Minor Authorisations, Consents and Filings).

  

	 	(e)	 	Non-Conflict: Its entry into, exercise of its rights under and performance and compliance with its obligations under each of the Transaction Documents to which it is party
and the carrying out of the transactions contemplated by the Transaction Documents do not: 

  

	 	(i)	 	contravene any law, directive, judgment or order to which it or any of its Subsidiaries is subject; 

  

	 	(ii)	 	contravene its memorandum or articles of association or other Constitutional Documents; 

  

	 	(iii)	 	breach in any material respect any material agreement including, without limitation, the Bond Finance Documents or any material consent to which it or any of its Subsidiaries is a
party or which is binding upon it or any of its Subsidiaries or any of its or their respective assets; or 

  

	 	(iv)	 	oblige it, or any of its Subsidiaries, to create any security or result in the creation of any security over its or their respective assets other than under the Security Documents.

  

	 	(f)	 	Obligations Binding: Its obligations under the Transaction Documents to which it is a party are valid, legally binding and, subject to reservations, enforceable and each of
the Security Documents to which it is party constitute valid security ranking, subject to reservations and subject as provided in Clause 15.1(d) (Consents and Filings) in relation to the security constituted by the Security Documents, in
accordance with the terms of such documents. 

  

	 	(g)	 	Winding-up: No administrator, receiver, liquidator or similar officer has been appointed with respect to it or any of its Subsidiaries or any of its or their respective
assets nor (so far as it is aware) is any petition or proceeding for any such appointment pending nor has any resolution for any such appointment been passed. 

  

	 	(h)	 	No Defaults: 

  

	 	(i)	 	No Event of Default or Potential Event of Default has occurred and is continuing or might reasonably be expected to result from the making of any Drawing. 

 

	 	(ii)	 	No event has occurred and is continuing which constitutes a default, and no event has occurred and is continuing which, with the giving of notice or the lapse of time or making of
any determination or fulfilment of any condition in each case as provided for in the agreement concerned is reasonably likely to constitute a default, under any agreement to which it or any of its Subsidiaries is party and which, in any case, has or
could reasonably be expected to have a Material Adverse Effect. 

  

	 	(i)	 	Litigation: No litigation, arbitration, administrative, regulatory or similar proceeding is current, pending or, to its knowledge, threatened: 

  

 81 

	 	(i)	 	to restrain its entry into, the exercise of its rights under and performance and compliance with its obligations under, or the enforcement of, any of the Transaction Documents or
the carrying out of the transactions contemplated by the Transaction Documents; 

  

	 	(ii)	 	which has, or is reasonably likely to have, by itself or together with any other such proceedings, a Material Adverse Effect; or 

  

	 	(iii)	 	which has, or is reasonably likely to have, a material adverse effect on the business, operations, results of operations, performance, assets or condition (financial or otherwise)
of the McLeod Group (taken as a whole). 

  

	 	(j)	 	No Security Interests/Guarantees/Financial Indebtedness: 

  

	 	(i)	 	No Security Interest (or agreement to create the same) exists or is permitted to subsist on or over its or any of its Subsidiaries’ assets or is permitted to subsist except as
permitted by Clause 16.3(d) (Negative Pledge); 

  

	 	(ii)	 	Neither it nor any of its Subsidiaries has granted or agreed to grant any guarantee except as permitted by Clause 16.3(g) (Guarantees); 

  

	 	(iii)	 	Neither it nor any of its Subsidiaries has incurred any Financial Indebtedness except for Permitted Indebtedness; and 

  

	 	(iv)	 	Neither McLeod nor any of its Subsidiaries has incurred any Financial Indebtedness (except under the Senior Finance Documents). 

  

	 	(k)	 	Labour Disputes: There are no labour disputes involving any member of the Group current, pending or, to its knowledge, threatened which have or are reasonably likely to have
a Material Adverse Effect. 

  

	 	(l)	 	Assets: 

  

	 	(i)	 	In relation to the Yell Acquisition:- 

  

	 	(A)	 	the shares, rights and other assets comprising the Yell Business acquired by the Principal Borrowers and UK Newco 3 under the Yell Acquisition Documents as set out in the Yell
Structure Document will on the Yell Completion Date be beneficially owned by the Principal Borrowers and UK Newco 3 and the Principal Borrowers and UK Newco 3 will be entitled to and will forthwith become the legal and beneficial registered owners
of the shares, rights and other assets comprising the Yell Business free from any Security Interest (or agreement to create the same) other than Permitted Security Interests and all consents and filings necessary for the transfer of the Yell
Business to the Principal Borrowers and UK Newco 3 have been or will on the Yell Completion Date have been obtained or made (other than Minor Authorisations, Consents and Filings); and 

  

	 	(B)	 	it or its Subsidiaries has or will on the Yell Completion Date have good title to or valid leases (subject, in the case of leases, to obtaining consent from the relevant landlords
(where required by the terms of such leases) to the transfer of such leases to the UK Principal Borrower which application for 

  

 82 

	 	 
consent shall be made as soon as practicable following the Yell Completion) or licences of or otherwise be entitled to use all material assets necessary to
conduct the Business (as constituted on the Yell Completion Date); 

  

	 	(ii)	 	In relation to the McLeod Acquisition: 

  

	 	(A)	 	the shares, rights and other assets comprising the shares, rights and other assets to be acquired by the Tranche D Borrower under the McLeod Acquisition Documents as set out in the
McLeod Structure Document will on the McLeod Completion Date be beneficially owned by the Tranche D Borrower and the Tranche D Borrower will be entitled to and will forthwith become the legal and beneficial registered owners of the shares, rights
and other assets comprising McLeod free from any Security Interest (or agreement to create the same) other than Permitted Security Interests and all consents and filings necessary for the transfer of McLeod to the Tranche D Borrower have been or
will on the McLeod Completion Date have been obtained or made (other than Minor Authorisations, Consents and Filings); and 

  

	 	(B)	 	it or its Subsidiaries has or will on the McLeod Completion Date have good title to or valid leases (subject, in the case of leases, to obtaining consent from the relevant landlords
(where required by the terms of such leases) to the transfer of such leases to the relevant member of the Group which application for consent shall be made as soon as practicable following the McLeod Completion) or licences of or otherwise be
entitled to use all material assets necessary to conduct the McLeod Business; 

  

	 	(m)	 	Consents, filings and laws applicable to operations: 

  

	 	(i)	 	All consents and filings which are necessary for the carrying on of the Business have been obtained or effected and all such consents and filings are in full force and effect and
there are no circumstances known to it which indicate that any such consents and filings are likely to be revoked or varied in whole or in part, save in each case to the extent that absence of any such consent or filing or variation of any such
consent does not and is not reasonably likely to have a Material Adverse Effect. 

  

	 	(ii)	 	It and each of its Subsidiaries is in compliance in all material respects with all material laws and directives applicable to it in its jurisdiction of incorporation or
jurisdictions in which it operates. 

  

	 	(n)	 	Accounts: 

  

	 	(iii)	 	The audited consolidated financial statements (together with the notes thereto) most recently delivered pursuant to Clause 16.6(d) (Financial Statements):

  

	 	(A)	 	give a true and fair view of the financial position of the Group as at the date to which they were prepared and for the Financial Year then ended; and 

  

	 	(B)	 	were prepared in accordance with Applicable GAAP. 

  

	 	(iv)	 	The quarterly and monthly consolidated management accounts most recently delivered pursuant to Clause 16.6(d) (Financial Statements): 

  

 83 

	 	(A)	 	reasonably represent the financial position of the Group as at the date to which they were prepared and for the quarter or month then ended (as the case may be);

  

	 	(B)	 	take account of all material liabilities (contingent or otherwise) of the Group at that date; and 

  

	 	(C)	 	were prepared on a basis substantially in accordance with Applicable GAAP. 

  

	 	(o)	 	Material Adverse Change: 

  

	 	(i)	 	Since the date of the Latest Yell Audited Accounts there has been no development or event which has had, or could reasonably be expected to have, a Material Adverse Effect.

  

	 	(ii)	 	Neither McLeod nor any of its Subsidiaries has suffered any adverse change in its business, operations, results of operations, assets or condition (financial or otherwise) since 30
September 2001, except (A) as disclosed in Section 2.7 of the Disclosure Schedules to the McLeod Acquisition Agreement and (B) for such changes which, in the aggregate, would not constitute a material adverse change in the business, operations,
results of operations, assets or condition (financial or otherwise) of McLeod and its Subsidiaries (taken as a whole); provided that any adverse effects on or change in McLeod or any of its Subsidiaries resulting from or relating to (aa) the
execution of the McLeod Acquisition Agreement and the announcement of such Agreement and the transactions contemplated thereby or (bb) the announcement of the Restructuring (as defined in the McLeod Acquisition Agreement) or the commencement or
pendency of proceedings under Title 11 of the United States Code by or against the McLeod Vendors and/or their Subsidiaries (including McLeod and its Subsidiaries) and subsequent disclosures related to the terms or status of the Restructuring or
such proceedings shall be excluded from the determination of a material adverse change. 

  

	 	(p)	 	Tax Liabilities: No claims are being, or are reasonably likely to be, asserted against it or any of its Subsidiaries with respect to taxes which are reasonably likely to be
determined adversely to it or to such Subsidiary and which, if so adversely determined, would have or be reasonably likely to have a Material Adverse Effect and all reports and returns on which taxes for which a member of the Group may have a
liability are required to be shown have been filed within any applicable time limits and all taxes required to be paid have been paid within any applicable time limit save, in each case, to the extent that failure to do so does not have and is not
reasonably likely to have a Material Adverse Effect. 

  

	 	(q)	 	Latest Accounts: 

  

	 	(i)	 	The Latest Yell Management Accounts and the Latest Yell Audited Accounts: 

  

	 	(A)	 	were prepared in accordance with Applicable GAAP consistently applied; 

  

	 	(B)	 	give a true and fair view of or, in the case of the Latest Yell Management Accounts, reasonably represent the financial position of the Yell Business as at the date to which they
were prepared and for the period then ended; and 

  

 84 

	 	(C)	 	take account of all material liabilities (contingent or otherwise) of the Yell Business at that date. 

  

	 	(ii)	 	The Latest McLeod Management Accounts and the Latest McLeod Audited Accounts: 

  

	 	(A)	 	were prepared in accordance with accounting principles, standards and practices generally accepted from time to time in the United States consistently applied;

  

	 	(B)	 	give a true and fair view of or, in the case of the Latest McLeod Management Accounts, reasonably represent the financial position of McLeod as at the date to which they were
prepared and for the period then ended; and 

  

	 	(C)	 	take account of all material liabilities (contingent or otherwise) of McLeod at that date. 

  

	 	(iii)	 	The Latest Tranche C3 Group Management Accounts and the Latest Tranche C3 Group Audited Accounts: 

  

	 	(A)	 	were prepared in accordance with Applicable GAAP consistently applied; 

  

	 	(B)	 	give a true and fair view of or, in the case of the Latest Tranche C3 Group Management Accounts, reasonably represent the financial position of the Yell Business as at the date to
which they were prepared and for the period then ended; and 

  

	 	(C)	 	take account of all material liabilities (contingent or otherwise) of the Yell Business at that date. 

  

	 	(r)	 	Information Package: 

  

	 	(i)	 	In relation to the Yell Information Package: 

  

	 	(A)	 	all statements of fact relating to the assets, financial condition and operations of the Business contained in the Yell Information Package are true and accurate in all material
respects; 

  

	 	(B)	 	the opinions and views expressed in the Yell Syndication Memorandum represent the honestly held opinions and views of the Parent and Management and were arrived at after careful
consideration and were based on reasonable grounds; 

  

	 	(C)	 	the projections and forecasts contained in the Agreed Financial Projections (in the agreed form as at the Yell Completion Date) are based upon assumptions (including, without
limitation, assumptions as to the future performance of the Business, inflation, price increases and efficiency gains) which the Parent and Management have carefully considered and consider to be fair and reasonable (it being recognised by the
Agents and the Banks that such Agreed Financial Projections are not guarantees of future performance and that the actual results (during the periods covered by such 

  

 85 

	 	 
Agreed Financial Projections) may differ materially in practice from the projected results set forth therein); 

  

	 	(D)	 	after careful consideration, the Yell Information Package does not omit to disclose or take into account any matter known to the Parent or Management where failure to disclose or
take into account such matter would result in the Yell Information Package (or any information or projection contained therein) being misleading in any material respect; and 

  

	 	(E)	 	nothing has occurred or come to light since the date as at which the Yell Information Package was prepared which, insofar as the Parent or Management is aware, renders any material
facts forming the basis thereof materially inaccurate or misleading or which makes any of the projections or forecasts contained therein materially unfair or unreasonable or renders any of the assumptions upon which the projections are based
materially unfair or unreasonable. 

  

	 	(ii)	 	In relation to the McLeod Information Package: 

  

	 	(A)	 	all statements of fact relating to the assets, financial condition and operations of the Group and the McLeod Business contained in the McLeod Information Package are true and
accurate in all material respects; 

  

	 	(B)	 	the opinions and views expressed in the McLeod Syndication Memorandum represent the honestly held opinions and views of the Parent and Management and were arrived at after careful
consideration and were based on reasonable grounds; 

  

	 	(C)	 	the projections and forecasts contained in the Agreed Financial Projections (in the agreed form as at the McLeod Completion Date taking account of the McLeod Acquisition) are based
upon assumptions (including, without limitation, assumptions as to the future performance of the Business, inflation, price increases and efficiency gains) which the Parent and Management have carefully considered and consider to be fair and
reasonable (it being recognised by the Agents and the Banks that such Agreed Financial Projections are not guarantees of future performance and that the actual results (during the periods covered by such Agreed Financial Projections) may differ
materially in practice from the projected results set forth therein); 

  

	 	(D)	 	after careful consideration, the McLeod Information Package does not omit to disclose or take into account any matter known to the Parent or Management where failure to disclose or
take into account such matter would result in the McLeod Information Package (or any information or projection contained therein) being misleading in any material respect; and 

  

	 	(E)	 	nothing has occurred or come to light since the date as at which the McLeod Information Package was prepared which, insofar as the Parent or Management is aware, renders any
material facts forming the basis thereof materially inaccurate or misleading or which makes any of the projections or forecasts contained therein materially unfair or unreasonable or renders any 

  

 86 

	 	 
of the assumptions upon which the projections are based materially unfair or unreasonable. 

  

	 	(iii)	 	In relation to the Bridge Note Refinancing Information Package: 

  

	 	(A)	 	all statements of fact relating to the assets, financial condition and operations of the Group and the Business contained in the Bridge Note Refinancing Information Package are true
and accurate in all material respects; 

  

	 	(B)	 	the opinions and views expressed in the Bridge Note Refinancing Memorandum represent the honestly held opinions and views of the Parent and Management and were arrived at after
careful consideration and were based on reasonable grounds; 

  

	 	(C)	 	the projections and forecasts contained in the Agreed Financial Projections (in the agreed form as at the Bridge Note Refinancing Date taking account of the Bridge Note Refinancing)
are based upon assumptions (including, without limitation, assumptions as to the future performance of the Business, inflation, price increases and efficiency gains) which the Parent and Management have carefully considered and consider to be fair
and reasonable (it being recognised by the Agents and the Banks that such Agreed Financial Projections are not guarantees of future performance and that the actual results (during the periods covered by such Agreed Financial Projections) may differ
materially in practice from the projected results set forth therein); 

  

	 	(D)	 	after careful consideration, the Bridge Note Refinancing Information Package does not omit to disclose or take into account any matter known to the Parent or Management where
failure to disclose or take into account such matter would result in the Bridge Note Refinancing Information Package (or any information or projection contained therein) being misleading in any material respect; and 

  

	 	(E)	 	nothing has occurred or come to light since the date as at which the Bridge Note Refinancing Information Package was prepared which, insofar as the Parent or Management is aware,
renders any material facts forming the basis thereof materially inaccurate or misleading or which makes any of the projections or forecasts contained therein materially unfair or unreasonable or renders any of the assumptions upon which the
projections are based materially unfair or unreasonable. 

  

	 	(s)	 	Reports: 

  

	 	(i)	 	So far as each of the Parent and Management is aware, after due and careful review, none of the Reports is misleading in any material respect and there is no expression of opinion,
forecast or projection contained therein or conclusion reached therein in relation to any material matter which is not fair and reasonable in all material respects. 

  

	 	(ii)	 	All material factual information furnished in relation to the Yell Business or, as the case may be, the McLeod Business to any of the firms which prepared any of the

  

 87 

	 	    	 	Reports and contained or referred to therein was, so far as each of the Parent and Management is aware after due and careful review, true and accurate in all material respects at
the time supplied and, so far as each of the Parent and Management is aware after due and careful review, all opinions, forecasts and projections supplied to such firms which are contained or referred to in any of the Reports were arrived at after
careful consideration, were fair and were based on reasonable grounds. 

  

	 	(iii)	 	So far as each of the Parent and Management is aware, after due and careful review, the Reports do not omit to disclose any matter where failure to disclose such matter would result
in the Reports (or any opinion, forecast or projection contained in the Reports) being misleading in any material respect. 

  

	 	(iv)	 	Neither the Parent nor Management is aware of anything which has occurred or come to light since the date of the Reports which renders any material facts contained in the Reports
inaccurate or misleading in any material respect or which makes any of the opinions, projections and forecasts contained in the Reports other than fair and reasonable in all material respects. 

  

	 	(t)	 	Documents: 

  

	 	(i)	 	In relation to Drawings to be made on the Yell Completion Date: 

  

	 	(A)	 	the Yell Structure Document accurately records the structure of the Group as it will be immediately following the Yell Completion and includes details of all Holding Companies of
the Parent and of any minority shareholdings in any member of the Group held by any person who is not a member of the Group and details of all companies, joint ventures and partnerships in which any member of the Group has an interest or
participation; 

  

	 	(B)	 	each of the companies identified in the Yell Structure Document as a “Dormant” company is a Dormant Company; 

  

	 	(C)	 	the Yell Acquisition Documents as furnished to the Facility Agent contain all the material terms of the Yell Acquisition; 

  

	 	(D)	 	the Investor Documents and the Subordination Agreement as furnished to the Facility Agent contain all the material terms of the agreements between the Vendor Noteholder (in relation
to the Vendor Loan Note only), the holders of the Initial Subordinated Loan Stock and their respective Affiliates (in relation to the Initial Subordinated Loan Stock only), Topco, each member of the Group, the partners in Topco, the arrangements
between the Investors and the general partner of Topco and the conditions relating to the exercise by such general partner of its rights and duties as general partner on such date; and 

  

	 	(E)	 	the Bridge Facility Finance Documents contain all material terms of the agreements between the Bridge Facility Finance Parties, the Issuer and each other member of the Group.

  

 88 

	 	(ii)	 	In relation to the Drawing of the Tranche D Term Facility to be made on the McLeod Completion Date: 

  

	 	(A)	 	the McLeod Structure Document accurately records the structure of the Group as it will be immediately following the McLeod Completion and includes details of all Holding Companies
of the Parent and of any minority shareholdings in any member of the Group held by any person who is not a member of the Group and details of all companies, joint ventures and partnerships in which any member of the Group has an interest or
participation; 

  

	 	(B)	 	each of the companies identified in the McLeod Structure Document as a “Dormant” company is a Dormant Company; 

  

	 	(C)	 	the McLeod Acquisition Documents as furnished to the Facility Agent contain all the material terms of the McLeod Acquisition; 

  

	 	(D)	 	the Investor Documents and the Subordination Agreement as furnished to the Facility Agent contain all the material terms of the agreements between the Vendor Noteholder (in relation
to the Vendor Loan Note only), the holders of the Subordinated Loan Stock and their respective Affiliates (in relation to the Subordinated Loan Stock only), Topco, each member of the Group, the partners in Topco, the arrangements between the
Investors and the general partner of Topco and the conditions relating to the exercise by such general partner of its rights and duties as general partner on such date; 

  

	 	(E)	 	the Bridge Notes Finance Documents (if any) contain all material terms of the agreements between the Bridge Notes Finance Parties, the Issuer and each other member of the Group.

  

	 	(iii)	 	The High Yield Notes Finance Documents contain all material terms of the agreements between the High Yield Noteholders, the High Yield Notes Trustee, the Issuer and each other
member of the Group and the Discount High Yield Notes Finance Documents contain all material terms of the agreements between the Discount High Yield Noteholders, the Discount High Yield Notes Trustee, the Issuer and each other member of the Group.

  

	 	(u)	 	Material Disclosures: So far as the Parent is aware after due and careful enquiry, the Parent has fully disclosed in writing to the Facility Agent all material information in
its possession relating to the Yell Acquisition or, as the case may be, the McLeod Acquisition. 

  

	 	(v)	 	Intellectual Property: 

  

	 	(i)	 	The Intellectual Property required in order to conduct the Business: 

  

	 	(A)	 	is legally and beneficially owned by or licensed to members of the Group (other than Excluded Group Members) free from any licences or obligations to grant any licences and free
from any assignments or obligations to grant any assignments to third parties which are materially prejudicial to the use of that Intellectual Property and will in either case not be materially adversely affected by the transactions contemplated by
the Transaction Documents; 

  

 89 

	 	(B)	 	has not lapsed or been cancelled in any respect which would have a Material Adverse Effect and all steps have been taken to protect and maintain such Intellectual Property,
including, without limitation, paying renewal fees where failure to do so would have or be reasonably likely to have a Material Adverse Effect. 

  

	 	(ii)	 	None of the Material Intellectual Property is being or has been infringed where such infringement could reasonably be expected to have a Material Adverse Effect.

  

	 	(iii)	 	The Business carried on by it and its Subsidiaries does not infringe any intellectual property rights of any third party and where the Intellectual Property required in order to
conduct the Business is subject to any right, permission to use or licence granted to or by any member of the Group, such agreement has not been breached in any way and no member of the Group has received or is aware of a notice of termination being
served by any party thereto to the extent such infringement, breach or termination would have or could be reasonably expected to have a Material Adverse Effect. 

  

	 	(w)	 	Environmental Warranties: 

  

	 	(i)	 	Its operations and properties, and the operations and properties of each of its Subsidiaries comply with all applicable Environmental Laws and Environmental Permits, all past
non-compliance with such Environmental Laws and Environmental Permits has been resolved without ongoing obligations or costs, and no circumstances exist that would be reasonably likely to (A) form the basis of an Environmental Action against any
member of the Group or any of their operations or properties or (B) cause any such operations or property to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law except in each case insofar as
any such violation or liability referred to in this subsection (i) could not be reasonably likely to result in a Material Adverse Effect. 

  

	 	(ii)	 	None of the properties currently or formerly owned or operated by it or any of its Subsidiaries is listed or proposed for listing on the NPL or on the CERCLIS or any analogous
foreign, state or local list or is adjacent to any such property; there are no and to its knowledge and the knowledge of any of its Subsidiaries never have been any underground or aboveground storage tanks or any surface impoundments, septic tanks,
pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed on any property currently owned or operated by it or any of its Subsidiaries or, to the best of its knowledge, on any property formerly owned or
operated by it or any of its Subsidiaries; there is no asbestos or asbestos-containing material on any property currently owned or operated by it or any of its Subsidiaries; and Hazardous Materials have not been released, discharged or disposed of
on any property currently or formerly owned or operated by it or any of its Subsidiaries except in each case insofar as any such violation or liability referred to in this paragraph (ii) could not be reasonably likely to result in a Material Adverse
Effect. 

  

	 	(iii)	 	Neither it nor any of its Subsidiaries is undertaking, or has recently completed, either individually or together with other potentially responsible parties, any investigation or
assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any governmental or regulatory
authority or the requirements of any Environmental Law; and all 

  

 90 

	 	 
Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly owned or operated by it or
any of its Subsidiaries have been disposed of in a manner not reasonably expected to result in material liability to it or any of its Subsidiaries except in each case insofar as any such violation or liability referred to in this paragraph (iii)
could not be reasonably likely to result in a Material Adverse Effect. 

  

	 	(x)	 	Holding Company: Each Excluded Group Member has not traded (other than by entering into the Transaction Documents), does not have liabilities to any person other than
pursuant to the Transaction Documents and in respect of payment of legal fees, auditors’ fees and expenses, has no assets other than shares in its respective Subsidiaries and the benefit of rights under the Inter-Company Loan Agreements and no
other member of the Group has guaranteed or otherwise become liable or responsible for any obligations or liabilities of any Excluded Group Member except as expressly provided under the Senior Finance Documents, the Bridge Facility Finance Documents
(to the extent such Bridge Facility Finance Documents are in force), the Bridge Notes Finance Documents (to the extent such Bridge Notes Finance Documents are in force), the Bond Finance Documents nor has any member of the Group incurred any
liabilities to any Excluded Group Member save to the extent such liabilities are permitted by the terms of this Agreement. 

  

	 	(y)	 	US Government Regulations: 

  

	 	(i)	 	Neither it nor any of its Subsidiaries is an “investment company,” or an “affiliated person” of, or “promoter” or “principal underwriter”
for, an “investment company,” as such terms are defined in the Investment Company Act of 1940, as amended. Neither the making of any Drawing, nor the application of the proceeds or repayment thereof by any Obligor, nor the consummation of
the other transactions contemplated hereby, will violate any provision of such Act or any rule, regulation or order of the Securities and Exchange Commission thereunder. 

  

	 	(ii)	 	Neither it nor any of its Subsidiaries is a “holding company”, or a “subsidiary company” of a “holding company”, or an “affiliate” of a
“holding company” or of a “subsidiary company” of a “holding company”, as such terms are defined in the Public Utility Holding Company Act of 1935, as amended. 

  

	 	(iii)	 	No Obligor is engaged in the business of extending credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the
Federal Reserve System of the United States of America) as in effect from time to time, and no proceeds of any Advance will be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any
margin stock. 

  

	 	(z)	 	Employee Benefit Plans: 

  

	 	(i)	 	No ERISA Event has occurred or is reasonably expected to occur that has resulted in or is reasonably expected to result in a material liability of any Obligor or any ERISA
Affiliate. 

  

	 	(ii)	 	Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) for each Plan, copies of which have been filed with the Internal Revenue Service of the United
States of America, is complete and accurate and fairly presents 

  

 91 

	 	 
the funding status of such Plan, and since the date of such Schedule B there has been no material adverse change in such funding status.

  

	 	(iii)	 	Neither any Obligor nor any ERISA Affiliate has incurred or is reasonably expected to incur any Withdrawal Liability to any Multiemployer Plan to the extent such incurrence would
have or be reasonably likely to have a Material Adverse Effect. 

  

	 	(iv)	 	Neither any Obligor nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within
the meaning of Title IV of ERISA, and no such Multiemployer Plan is reasonably expected to be in reorganization or to be terminated, within the meaning of Title IV of ERISA. 

  

	 	(v)	 	With respect to each scheme or arrangement mandated by a government other than the United States of America (a “Foreign Government Scheme or Arrangement”) and with
respect to each employee benefit plan maintained or contributed to by any Obligor or any Subsidiary of any Obligor that is not subject to United States law (a “Foreign Plan”): 

  

	 	(A)	 	any employer and employee contributions required by law or by the terms of any Foreign Government Scheme or Arrangement or any Foreign Plan have been made, or, if applicable,
accrued, in accordance with normal accounting practices, save to the extent that failure to make or accrue such contributions would have or be reasonably likely to have a Material Adverse Effect; 

  

	 	(B)	 	the fair market value of the assets of each funded Foreign Plan, the liability of each insurer for any Foreign Plan funded through insurance or the book reserve established for any
Foreign Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued benefit obligations, as of the date hereof, with respect to all current and former participants in such Foreign Plan according to the
actuarial assumptions and valuations most recently used to account for such obligations in accordance with applicable generally accepted accounting principles save to the extent that any such insufficiency, whether individually or in the aggregate,
would have or be reasonably likely to have a Material Adverse Effect; and 

  

	 	(C)	 	each Foreign Plan required to be registered has been registered and has been maintained in good standing with applicable regulatory authorities save to the extent where failure to
make or maintain any such registrations would have or be reasonably likely to have a Material Adverse Effect. 

  

	 	(aa)	 	OFT Undertaking: The undertakings requested by the Secretary of State for Trade and Industry on 11 May 2001 from the BT Vendor in relation to the part of the regulated
Business carried on in the United Kingdom by the Yell Business are in the forms disclosed to the Banks on 24 May 2001. 

  

	 	(bb)	 	Recapitalisation: 

  

	 	(i)	 	After due and careful consideration, the Parent is of the opinion and view that the Recapitalisation will not be prejudicial to the interests of the Senior Finance Parties.

  

 92 

	 	(ii)	 	The Parent has fully disclosed to the Facility Agent full and complete information and professional advice including, without limitation, tax advice, which it has received relating
to the Recapitalisation. 

  

	 	(iii)	 	The Recapitalisation Documents contain all the terms of the agreements relating to the Recapitalisation between the Issuer, the Subordinated Guarantor, UK Newco 3, UK Newco 5,
Luxco, US Newco 1, the US Principal Borrower, the UK Principal Borrower and Yellow Book USA, Inc. 

  

	 	(iv)	 	The Security Interests created by the Security Documents attach and extend to the assets, rights, benefits, liabilities and obligations of the relevant members of the Group under
the Recapitalisation Documents and such Security Documents continue in full force and effect in accordance with their terms notwithstanding any release of any Security Interest which may be effected by the Security Agent from time to time in
connection with any aspect of the Recapitalisation. 

	

	 	(cc)	 	Tranche D Term Facility: The payment obligations of each Obligor in respect of the Tranche D Term Facility rank pari passu in right and priority of payment with the payment
obligations of each Obligor under the Original Facilities, the Tranche C3 Term Facility and the Hedging Liabilities (as such expression is defined in the Intercreditor Agreement). 

  

	 	(dd)	 	Tranche C3 Term Facility: The payment obligations of each Obligor in respect of the Tranche C3 Term Facility rank pari passu in right and priority of payment with the payment
obligations of each Obligor under the Original Facilities, the Tranche D Term Facility and the Hedging Liabilities (as such expression is defined in the Intercreditor Agreement). 

  

	15.2	 	Repetition: The representations and warranties in Clause 15.1 (Representations and Warranties) shall be deemed repeated on the date of each Drawing Request, each
Drawing Date and on the last day of each Interest Period by reference to the facts and circumstances existing on such date provided that: 

  

	 	(a)	 	the representations and warranties set out in Clause 15.1(r)(i) (Information Package) shall, in respect of the Yell Syndication Memorandum only, be made on the date of the
Yell Syndication Memorandum and to the extent they relate to the Agreed Financial Projections (in the agreed form as at the Yell Completion Date), be made on 25 May 2001 and only repeated on the date of the first Drawing Request and the First
Drawing Date; 

  

	 	(b)	 	the representations and warranties set out in Clauses 15.1(r)(ii)(A) to 15.1(r)(ii)(D) (Information Package) inclusive shall, in respect of the McLeod Syndication Memorandum,
be made on the date of the McLeod Syndication Memorandum; 

  

	 	(c)	 	the representations and warranties set out in Clause 15.1(r)(ii)(E) (Information Package) shall, in respect of the McLeod Syndication Memorandum, be made on the date of the
Fifth Amendment Agreement and only be repeated on the date of the Drawing Request for the Tranche D Advance and the Drawing Date of the Tranche D Advance; 

  

	 	(d)	 	the representations and warranties set out in Clause 15.1(r)(ii) (Information Package) shall, in respect of the Agreed Financial Projections (in the agreed form as at the
McLeod Completion Date taking into account the McLeod Acquisition), be made on the date of the Fifth Amendment Agreement and only repeated on the date of the Drawing Request for the Tranche D Advance and the Drawing Date of the Tranche D Advance;

  

 93 

	 	(e)	 	the representations and warranties set out in Clauses 15.1(r)(iii)(A) to 15.1(r)(iii)(D) (Information Package) inclusive shall, in respect of the Bridge Note Refinancing
Memorandum, be made on the date of the Bridge Note Refinancing Memorandum; 

  

	 	(f)	 	the representations and warranties set out in Clause 15.1(r)(iii)(E) (Information Package) shall, in respect of the Bridge Note Refinancing Memorandum, be made on the date of
the Sixth Amendment Agreement and only be repeated on the date of the Drawing Request for the Tranche C3 Advance and the Drawing Date of the Tranche C3 Advance; 

  

	 	(g)	 	the representations and warranties set out in Clause 15.1(r)(iii) (Information Package) shall, in respect of the Agreed Financial Projections (in the agreed form as at the
Bridge Note Refinancing Date taking into account the Bridge Note Refinancing), be made on the date of the Sixth Amendment Agreement and only repeated on the date of the Drawing Request for the Tranche C3 Advance and the Drawing Date of the Tranche
C3 Advance; 

  

	 	(h)	 	the representations and warranties set out in Clause 15.1(s) (Reports) shall: 

  

	 	(i)	 	to the extent they relate to the Yell Reports, be made on 25 May 2001 and only repeated on the date of the first Drawing Request and the First Drawing Date; and

  

	 	(ii)	 	to the extent they relate to the McLeod Reports, be made on the date of the Fifth Amendment Agreement and only repeated on the date of the Drawing Request for the Tranche D Advance
and the Drawing Date of the Tranche D Advance; 

  

	 	(i)	 	the representations and warranties set out in Clause 15.1(u) (Material Disclosures) shall: 

  

	 	(i)	 	to the extent they relate to the Yell Acquisition, be made on 25 May 2001 and only repeated on the date of the first Drawing Request and the First Drawing Date; and

  

	 	(ii)	 	to the extent they relate to the McLeod Acquisition, be made on the date of the Fifth Amendment Agreement and only repeated on the date of the Drawing Request for the Tranche D
Advance and the Drawing Date of the Tranche D Advance; 

  

	 	(j)	 	the representations and warranties set out in Clauses 15.1(g) (Winding-up) and 15.1(x) (Holding Company) shall: 

  

	 	(i)	 	in relation to Drawings under the Original Facilities, be made on 25 May 2001 and only repeated on the date of the first Drawing Request and the First Drawing Date;

  

	 	(ii)	 	in relation to Drawings under the Tranche C3 Term Facility, be made on the date of the Sixth Amendment Agreement and only repeated on the date of the Drawing Request for the Tranche
C3 Advance and the Drawing Date of the Tranche C3 Advance; and 

  

	 	(iii)	 	in relation to Drawings under the Tranche D Term Facility, be made on the date of the Fifth Amendment Agreement and only repeated on the date of the Drawing Request for the Tranche
D Advance and the Drawing Date of the Tranche D Advance; 

  

	 	(k)	 	the representations and warranties set out in Clauses 15.1(i)(i) and (ii) (Litigation) and 15.1(j)(i) to 15.1(j)(viii) (No Security Interests/Guarantees/Financial
Indebtedness) shall be 

  

 94 

	 	 
made on 25 May 2001 and only repeated on the date of the first Drawing Request and the First Drawing Date; 

  

	 	(l)	 	the representations and warranties set out in Clauses 15.1(i)(iii) (Litigation) and 15.1(j)(iv) (No Security Interests/Guarantees/Financial Indebtedness) shall be made
on the date of the Fifth Amendment Agreement and only repeated on the date of the Drawing Request for the Tranche D Advance and the Drawing Date of the Tranche D Advance; 

  

	 	(m)	 	the representations and warranties set out in Clause 15.1(l)(i) (Assets), 15.1(q)(i) (Latest Accounts) and 15.1(t)(i) (Documents) shall be made on 25 May 2001
and only repeated on the date of the first Drawing Request and the First Drawing Date; 

  

	 	(n)	 	the representations and warranties set out in Clause 15.1(l)(ii) (Assets), 15.1(o)(ii) (Material Adverse Change), 15.1(q)(ii) (Latest Accounts), 15.1(t)(ii)
(Documents) and 15.1(bb) (Recapitalisation) shall be made on the date of the Fifth Amendment Agreement and only repeated on the date of the Drawing Request for the Tranche D Advance and the Drawing Date of the Tranche D Advance;

  

	 	(o)	 	the representations and warranties set out in Clause 15.1(q)(iii) (latest Accounts) shall be made on the date of the Sixth Amendment Agreement and only repeated on the date
of the Drawing Request for the Tranche C3 Advance and the Drawing Date of the Tranche C3 Advance; 

  

	 	(p)	 	the representations and warranties set out in Clauses 15.1(a) (Incorporation) to 15.1(g) (Winding-up) (inclusive), Clause 15.1(cc)(Tranche D Term Facility) and
Clause 15.1(dd) (Tranche C3 Term Facility) shall in addition be repeated on each date on which an Accession Document or an additional Security Document is entered into in respect of such acceding Obligor; 

  

	 	(q)	 	the representations and warranties set out in Clause 15.1(o)(i) (Material Adverse Change) shall in addition be repeated on each date on which a compliance certificate is
delivered under Clause 16.6(i)) (Compliance Certificates); 

  

	 	(r)	 	the representations and warranties set out in Clause 15.1(t)(iii) (Documents) shall be made on the date that the High Yield Notes and the Discount High Yield Notes are issued
as described in Clause 16.4(k) (Issue of High Yield Notes and Discount High Yield Notes); and 

  

	 	(s)	 	the representation and warranties set in Clause 15.1(bb) (Recapitalisation) shall be made on the date that each series of subordinated loan notes are issued as described in
paragraph (i) of the definition of Permitted Indebtedness. 

  

	16.	 	UNDERTAKINGS 

  

	16.1	 	Duration of Undertakings: The undertakings in this Clause 16 shall continue for so long as any sum remains payable or capable of becoming payable under the Senior Finance
Documents. 

  

	16.2	 	General Undertakings: 

  

	 	(a)	 	Authorisations and Consents: Each Obligor will, and will procure that each of its Subsidiaries will, apply for, obtain and promptly renew from time to time and maintain in
full force and effect all consents and comply with the terms of all such consents, and promptly make and renew from time to time all such filings, as may be required under any applicable law or directive to enable it to enter into, exercise its
rights, and perform and comply with its 

  

 95 

	 	 
obligations under the Transaction Documents to which it is party and to carry out the transactions contemplated by the Transaction Documents to which it is a
party and to ensure that its obligations under the Transaction Documents to which it is party are valid, legally binding and, subject to reservations, enforceable and each of the Security Documents to which it is party constitutes valid security
ranking, subject to reservations, in accordance with its terms (save for Minor Authorisations, Consents and Filings). 

  

	 	(b)	 	Maintenance of status and authorisation: Each Obligor will, and will procure that each of its Subsidiaries will (save as permitted by Clause 16.3(a) (Amalgamations and
Change of Business)): 

  

	 	(i)	 	do all such things as are necessary to maintain its corporate existence; 

  

	 	(ii)	 	ensure that it has the right to conduct its business and will obtain and maintain all material consents and make all material filings necessary for the conduct of such business and
take all steps necessary to ensure that the same are in full force and effect and on request by the Facility Agent, supply copies of any such consent or filing; and 

  

	 	(iii)	 	comply in all material respects with all laws and directives binding upon it and procure compliance in all material respects by all of its respective officers and employees with all
applicable laws and directives and in particular, without limitation, will comply with any directive from or of any agency of the United Kingdom (including the Office of Fair Trading) or the European Community and any undertaking or other agreement
given to any such agency. 

  
 If any agency of any
state or of the European Community issues or delivers any new directive (whether specifically in relation to a member of the Group or otherwise) which will or could reasonably be expected to have a material adverse effect on the operation by one or
more Material Group Companies of its business or the pricing of its sales, the Parent shall promptly notify the Facility Agent in writing and if the Facility Agent so requests within a period of 120 days from the occurrence of such issue or delivery
shall present to the Banks a revised business plan for the Group to take account of such event and details of, and an explanation of, the steps that are proposed to be taken by the Group as a result of such directive. 
  

	 	(c)	 	Pari passu ranking: Each Obligor will, and will procure that each of its Subsidiaries will, ensure that its payment obligations under each of the Senior Finance Documents
rank and will at all times rank at least pari passu in right and priority of payment with all its other present and future unsecured and unsubordinated indebtedness (actual or contingent) except indebtedness preferred solely by operation of law.

  

	 	(d)	 	Insurances: 

  

	 	(i)	 	Each Obligor will, and will procure that each of its Subsidiaries will, on or prior to the Yell Completion Date or, in the case of insurances relating to the McLeod Business on or
prior to the McLeod Completion Date, effect and thereafter maintain insurances at its own expense in respect of all its assets and business of an insurable nature with reputable insurers of good standing. Such insurances must provide cover:

  

	 	(A)	 	against all risks which are normally insured against by other companies owning, possessing or leasing similar assets and carrying on similar businesses and include, without
limitation, cover against loss of profits, 

  

 96 

	 	 
product liability, professional indemnity, pollution and public liability, but subject to any exclusions typical for insurances of this type; and

  

	 	(B)	 	in such amounts as would in the circumstances be prudent for such companies taking into account the size and nature of the business carried on, and the assets owned, by such
companies and the jurisdiction in which such businesses are carried on and assets located. 

  

	 	(ii)	 	Each Obligor will, and will procure that each of its Subsidiaries will: 

  

	 	(A)	 	supply to the Facility Agent on request copies of each policy for insurance required to be maintained in accordance with sub-paragraph (i) above together with the current premium
receipts relating thereto; 

  

	 	(B)	 	promptly notify the Facility Agent in writing of any material change to its insurance cover from time to time; 

  

	 	(C)	 	promptly notify the Facility Agent in writing of any claim or notification under any of its insurance policies which is for, or is reasonably likely to result in a claim under such
policy for, an amount in excess of £10,000,000 (or its Other Currency Equivalent); and 

  

	 	(D)	 	procure that the interest of the Security Agent is noted on each policy of insurance required to be maintained in accordance with sub-paragraph (i) to the extent that such insurance
is of a type on which it is possible to so note the interest of the Security Agent. 

  

	 	(e)	 	Taxes: Each Obligor will, and will procure that each of its Subsidiaries will, pay within any applicable time limit all taxes imposed by any agency of any state upon it or
any of them or any of its or their assets, income or profits or any transactions undertaken or entered into by it or any of them save in the event of a bona fide dispute with regard to any tax in respect of which proper provision has, if
appropriate, been made in the accounts of the relevant member of the Group. 

  

	 	(f)	 	Acquisition Documents: 

  

	 	(i)	 	The Parent will, and will procure that each of its Subsidiaries will, take all reasonable action (having regard to the cost and benefit of doing so) to enforce any material claim it
has in relation to the warranties given under the Acquisition Documents and to enforce all other rights and entitlements it may have under the Acquisition Documents, unless the Majority Banks otherwise consent (such consent not to be unreasonably
withheld) save where the directors of the relevant company (acting reasonably) confirm that in their opinion it would be detrimental to the company (or its business) so to do, or where the Parent provides a copy of legal advice to the Facility Agent
from a reputable law firm or an opinion of counsel (or such other evidence as may be reasonably satisfactory to the Facility Agent) confirming that the relevant member of the Group is unlikely to be successful in enforcing such a claim or, if it did
so, the proceeds of such a claim would be unlikely to be materially more than the costs incurred by the Group in making such claim. 

  

	 	(ii)	 	Except as permitted pursuant to Clause 16.2(f)(iii) (Acquisition Documents), the Parent will not and will procure that each of its Subsidiaries will not, amend, vary,

  

 97 

	 	 
supplement or waive any of the terms of the Yell Acquisition Documents prior to or on the Yell Completion Date nor amend, vary, supplement or waive any of
the terms of the McLeod Acquisition Documents prior to or on the McLeod Completion Date unless in each case it has obtained the prior written consent of the Majority Banks to the same, and after the Yell Completion Date or, as the case may be, the
McLeod Completion Date unless such amendment, variation, supplement or waiver is not prejudicial to the Banks or has the prior written consent of the Majority Banks. 

  

	 	(iii)	 	The Parent will not and will procure that each of its Subsidiaries will not, on or prior to the Yell Completion Date (in respect of the Yell Acquisition Documents) and the McLeod
Completion Date (in respect of the McLeod Acquisition Documents) exercise any discretion thereunder or give any consent or waiver thereunder other than a consent or waiver of any condition or conditions under such documentation which consent or
waiver is either not prejudicial to the Banks and is promptly notified to the Facility Agent, the Original Facilities Mandated Lead Arranger and the Original Facilities Joint Lead Arrangers (in respect of the Yell Acquisition Documents) or to the
Facility Agent, the Tranche D Mandated Lead Arranger and the Tranche D Joint Lead Arranger (in respect of the McLeod Acquisition Documents) or which has the prior written consent of the Majority Banks. 

  

	 	(iv)	 	Without prejudice to any other provision of this Agreement, the Parent will, and will procure that each of its Subsidiaries will, use reasonable endeavours to obtain all Minor
Authorisations, Consents and Filings. 

  

	 	(g)	 	Hedging Arrangements: 

  

	 	(i)	 	The Principal Borrowers will (A) by no later than 90 days after the Yell Completion Date in respect of not less than 50% of the aggregate Tranche A Advances made available on the
Yell Completion Date and (B) no later than 180 days after the Yell Completion Date in respect of not less than 50% of the aggregate of the Tranche B Advances, the Tranche C1 Advances and the Tranche C2 Advances made available on the Yell Completion
Date, enter into Hedging Agreements with Hedging Banks so as to ensure that for a period of no less than 2 years from the Yell Completion Date the Group has hedging of interest rate exposure in respect of not less than 50 per cent. of the aggregate
Term Advances made available on the Yell Completion Date. 

  

	 	(ii)	 	The Tranche D Borrower will, by no later than 90 days after the McLeod Completion Date in respect of not less than 50% of the Tranche D Advance made available on the McLeod
Completion Date enter into Hedging Agreements with Hedging Banks so as to ensure that for a period of no less than 2 years from the McLeod Completion Date the Group has hedging of interest rate exposure in respect of not less than 50 per cent. of
the Tranche D Advance made available on the McLeod Completion Date. 

  

	 	(iii)	 	The UK Principal Borrower will, by no later than 90 days after the Bridge Note Refinancing Date in respect of not less than 50% of the Tranche C3 Advance made available on the
Bridge Note Refinancing Date enter into Hedging Agreements with Hedging Banks so as to ensure that for a period of no less than 2 years from the Bridge Note Refinancing Date the Group has hedging of interest rate exposure in respect of not less than
50 per cent. of the Tranche C3 Advance made available on the Bridge Note Refinancing Date. 

  

 98 

	 	(h)	 	Banking Business: Each Obligor will, and will procure that each of its Subsidiaries will, as soon as reasonably practicable and in any event no later than 30 days after the
Yell Completion Date (in respect of bank accounts relating to the Yell Business maintained in any part of the United Kingdom), 90 days after the Yell Completion Date (in respect of bank accounts relating to the Yell Business maintained in any part
of the United States of America) and 150 days after the McLeod Completion Date (in respect of bank accounts relating to the McLeod Business maintained in any part of the United States of America), only maintain bank accounts with Ancillary Banks or
Approved Banks and only carry on banking business with Banks or Approved Banks. 

  

	 	(i)	 	Pension Schemes: Each Obligor will, and will procure that each of its Subsidiaries will, if requested by the Facility Agent, deliver to the Facility Agent at such time as
those reports are prepared in order to comply with then current statutory or auditing requirements, actuarial reports in relation to the pension schemes for the time being operated by members of the Group, and will ensure that all such pension
schemes are fully funded to the extent required by law based on reasonable actuarial assumptions applicable in the jurisdiction in which the relevant pension scheme is maintained. 

  

	 	(j)	 	Financial Assistance: Each Obligor will, and will procure that each of its Subsidiaries will, comply in any and all respects with sections 151 to 158 (inclusive) of the
Companies Act 1985 or any similar enactments or financial assistance laws in any other applicable jurisdiction, including in relation to the execution of the Finance Documents and the payment of amounts due under the Finance Documents.

  

	 	(k)	 	Intellectual Property: Each Obligor will and each Obligor will procure that each of its Subsidiaries will: 

  

	 	(i)	 	observe and comply with all obligations and laws to which it in its capacity as registered proprietor, beneficial owner, user, licensor or licensee of the Material Intellectual
Property or any part thereof is subject where failure to do so would have or could be reasonably expected to have a Material Adverse Effect; 

  

	 	(ii)	 	do all acts as are necessary to maintain, register, protect and safeguard the Material Intellectual Property or any part thereof or any right of any such Obligor under the Material
Intellectual Property where failure to do so would have or could be reasonably expected to have a Material Adverse Effect and not discontinue the use of any of such Intellectual Property nor allow it to be used in such a way that it is put at risk
by becoming generic or by being identified as disreputable if in each case to do so would have or could be reasonably expected to have a Material Adverse Effect; and 

  

	 	(iii)	 	not assign, sever, licence, dispose of or otherwise part with Material Intellectual Property other than to the extent permitted pursuant to Clause 16.3(b) (Disposals) or the
granting of a licence to any person to use the same, but only in each case if to do so would not have or could not be reasonably expected to have a Material Adverse Effect. 

  

	 	(l)	 	Termination of Financing Statements: Upon the request of the Facility Agent, and at the expense of the Parent, within 10 days after such request, the Parent will procure that
the Facility Agent is provided with proper termination statements on Form UCC-3 covering such financing statements as the Facility Agent may reasonably request (save for any financing statements which have been previously filed with respect to
Permitted Security Interests). 

  

 99 

	 	(m)	 	Novation of the Vendor Loan Note: Each of the UK Principal Borrower, UK Newco 3, the Subordinated Guarantor and the Parent will, and the Parent will procure that the Issuer
will, immediately upon the Yell Completion occurring enter into the relevant Vendor Loan Note Novation Agreements for the purposes of novating the obligations of the UK Principal Borrower under the Vendor Loan Note from the UK Principal Borrower to
UK Newco 3, from UK Newco 3 to the Subordinated Guarantor, from the Subordinated Guarantor to the Issuer and from the Issuer to the Parent, respectively. 

  

	 	(n)	 	Material Property: Each Obligor will not, and will procure that each of its Subsidiaries will not, save with the express written consent of the Security Agent, exercise any
of the powers of leasing or agreeing to lease vested in or conferred on mortgagors by common law or by statute (including Section 99 of the Law of Property Act 1925) or create or suffer to be created a tenancy of any Material Property or confer or
permit to be conferred upon any person any contractual licence, right or interest to occupy or use the whole or any part of the Material Property or accept, agree to accept or permit the acceptance of a surrender of any lease, underlease, tenancy,
licence or agreement relating thereto or exercise any power to determine or extend any of the same, save where any such tenancy or lease is being granted pursuant to any statutory rights of renewal with which such Obligor or Subsidiary is obliged by
law to comply. 

  

	 	(o)	 	OFT Undertaking: The Parent shall ensure that without the prior written consent of the Facility Agent (acting on the instructions of the Majority Banks), to the extent Topco,
the Parent or any other member of the Group gives any undertakings to the Secretary of State for Trade and Industry pursuant to or in response to its request to the BT Vendor dated 11 May 2001 for, inter alia, a cap on the increase in
advertising rates charged to customers in respect of the regulated Business carried on in the United Kingdom by the Yell Business, no undertaking will be given which will: 

  

	 	(i)	 	result in a cap on the increase in advertising rates charged to customers in respect of the regulated Business carried on in the United Kingdom by the Yell Business in excess of RPI
minus 6 per cent. per annum being applied at any time in any Financial Year occurring during the period of time covered by the undertakings; or 

  

	 	(ii)	 	result in additional conditions being imposed on or any amendment being made to any existing condition imposed on the regulated Business carried on in the United Kingdom by the Yell
Business which are more onerous than the conditions contained in the draft undertakings sought by the Secretary for Trade and Industry disclosed to the Banks on 24 May 2001 (the “draft undertakings”) except to the extent that such
conditions are not adverse to the interests of the Banks as determined (following consultation with the Obligors’ Agent) in the reasonable opinion of the Banks. 

  
 The Parent further undertakes to give the undertakings requested by the Secretary of State for Trade and Industry on 11 May
2001 from the Vendor in relation to that part of the regulated Business carried on in the United Kingdom by the Yell Business by not later than 5 July, 2001 (in the form of the draft undertakings or in such other forms as have been disclosed to the
Facility Agent prior to the signing of such undertakings and which undertakings are in compliance with this Clause 16.2(o)) and the Parent agrees to provide the Facility Agent with a certified copy of such executed undertakings promptly thereafter.

  
 The Parent shall promptly after such undertakings are given,
procure the preparation of any revisions necessary to the Agreed Financial Projections to take account of such undertakings, which revisions will demonstrate that such undertakings have no adverse effect on EBITDA 
  

 100 

 for the Group for the periods covered by the Agreed Financial Projections and will deliver copies of such
revisions, once they have been completed, to the Facility Agent promptly thereafter. 
  

	 	(p)	 	Recapitalisation: The Parent and each of the relevant Obligors will, and will procure that each of their respective Subsidiaries will, effect the Recapitalisation in
accordance with the transaction steps described in Schedule 13 and the terms of the Recapitalisation Documents. 

  

	 	(q)	 	Material Contracts: In the event that any Material Contract is terminated the Obligors will procure that such Material Contract is replaced with an alternative contract or
contracts or arrangements so that neither the termination of such Material Contract nor the replacement thereof results in a Material Adverse Effect and to the extent a termination of such replacement contract or contracts could reasonably be
expected to have a Material Adverse Effect, such replacement contract or contracts will constitute Material Contracts for the purposes of this Agreement. 

  

	 	(r)	 	YBUS Indebtedness: The Parent shall procure that Yellow Book USA, Inc., and Yellow Book USA, Inc. shall, as soon as practicable after the Yell Completion:

  

	 	(i)	 	comply with the undertaking given by it in the YBUS MIS Amendment Agreement to pay all amounts owed to the beneficiaries under the Yellow Book USA Management Incentive Compensation
Plan in connection with the termination of the Yellow Book USA Management Incentive Compensation Plan who have delivered to Yellow Book USA, Inc. “Releases” (as defined in the YBUS MIS Amendment Agreement) prior to the Yell Completion
within the deadline set out in the YBUS MIS Amendment Agreement and discharge any liability which it may have to account for tax or pay social security contributions arising in respect of such payments; 

  

	 	(ii)	 	redeem all YBUS Loan Notes and fully discharge all indebtedness thereunder; and 

  

	 	(iii)	 	promptly claim all amounts owing to it by the BT Vendor under the YBUS MIS Amendment Agreement. 

  
 Yellow Book USA, Inc. shall fund any payments described in paragraphs (i) and (ii) above, where payment instructions in
respect of the same cannot be given by Yellow Book USA, Inc. on the Yell Completion Date to make such payments, by making drawings from the YBUS Reserve Accounts and shall not be entitled to make drawings from such accounts for any other reason
other than to transfer amounts standing to the credit of the YBUS Reserve Account opened with the Facility Agent to amounts standing to the credit of the YBUS Reserve Account opened with The Chase Manhattan Bank following the date on which The Chase
Manhattan Bank has acknowledged its receipt and acceptance of the account pledge letter required to be delivered pursuant to the terms of the New York law general security agreement to be entered into between Yellow Book USA, Inc. and Deutsche Bank
AG London on the Yell Completion Date unless otherwise agreed by the Facility Agent (acting reasonably). 
  

	 	(s)	 	US Real Estate: The Parent will procure that within thirty (30) days of the McLeod Completion Date the items listed in Schedule 14 with respect to each Mortgaged Property
shall be delivered to the Security Agent. 

  

 101 

	16.3	 	Restrictions: 

  

	 	(a)	 	Amalgamations and Change of Business: Except with the specific consent of the Majority Banks, no Obligor will, and each Obligor will procure that none of its Subsidiaries
will: 

  

	 	(i)	 	amalgamate, merge or consolidate with or into any other person or be the subject of any reconstruction provided that (x) any Obligor (other than an Excluded Group Member) may effect
an amalgamation, merger or consolidation with any of its Subsidiaries if following such amalgamation, merger or consolidation, all obligations of the merging entity under the Senior Finance Documents shall be assumed by the merged entity and the
shares in the surviving entity and its assets shall continue to be or shall become subject to security under the Security Documents and the Parent shall ensure that the relevant Obligors or, as the case may be, surviving entity shall take all
reasonable steps necessary to maintain, create, perfect and register such security and shall deliver to the Security Agent such evidence as the Security Agent shall require of the due execution of any new Security Documents which may be executed by
such Obligors or surviving entity pursuant to this Clause 16.3(a) or, as the case may be, the continuing validity of the relevant existing Security Documents and of the assumption of such obligations, together with a legal opinion (if required)
satisfactory to the Security Agent; and (y) Luxco may transfer all of its assets to UK Newco 5 immediately prior to the liquidation of Luxco if immediately following such transfer UK Newco 5 shall have entered into Security Documents (to the extent
required) in form and substance satisfactory to the Security Agent for the purposes of charging all such assets in favour of the Security Agent and shall have taken all reasonable steps necessary to maintain, create, perfect and register such
security and deliver to the Security Agent such evidence as the Security Agent shall require of the due execution of any such Security Documents, together with a legal opinion (if required) satisfactory to the Security Agent; or

  

	 	(ii)	 	materially change the nature or scope of its business. 

  

	 	(b)	 	Disposals: No Obligor will and each Obligor will procure that none of its Subsidiaries will, (whether by a single transaction or a number of related or unrelated transactions
and whether at the same time or over a period of time) sell, transfer, lease out, lend or otherwise dispose of any of its assets or all or any part of its undertaking or agree to do so. The following transactions shall not be prohibited by this
Clause: 

  

	 	(i)	 	disposals of assets (other than shares in any member of the Group) in the ordinary course of trading; 

  

	 	(ii)	 	the disposal of cash and Cash Equivalents in the ordinary course of business to the extent not otherwise prohibited by the Senior Finance Documents; 

  

	 	(iii)	 	the exchange of assets (other than shares in any member of the Group) for other assets of a similar nature and value; 

  

	 	(iv)	 	any disposal of assets (other than shares in any member of the Group) by a member of the Group to an Obligor (other than an Excluded Group Member); 

  

	 	(v)	 	any disposal of assets (other than shares in any member of the Group) which are obsolete for the purpose for which such assets are normally utilised or which are no longer required
for the purpose of the relevant person’s business or operations; 

  

 102 

	 	(vi)	 	any disposal to which the Majority Banks shall have given their prior written consent; 

  

	 	(vii)	 	disposals of assets between wholly-owned Subsidiaries of the Parent neither of which is an Obligor or an Excluded Group Member; 

  

	 	(viii)	 	disposals permitted by Clause 16.3(d) (Negative Pledge), 16.3(e) (Factoring), 16.3(h) (Loans) and 16.3(i) (Leasing Agreements); 

 

	 	(ix)	 	any disposal of shares in any member of the Group which is a Subsidiary of UK Newco 3 by a member of the Group to UK Newco 3 or an Obligor which is a Subsidiary of UK Newco 3,
provided that where the shares disposed of are shares in a member of the Group incorporated in England and Wales and the transferee is incorporated in a state of the United States of America, the consent in writing of the Majority Banks will be
required for the disposal of such shares; 

  

	 	(x)	 	the disposal of all of the assets of Luxco (including all of the shares owned by Luxco in US Newco 1) to UK Newco 5 immediately prior to the liquidation of Luxco provided that
immediately following such disposal UK Newco 5 enters into Security Documents (to the extent required) in form and substance satisfactory to the Security Agent for the purpose of charging all such assets in favour of the Security Agent and shall
have taken all reasonable steps necessary to maintain, create, perfect and register such security and deliver to the Security Agent such evidence as the Security Agent shall require of the due execution of any such Security Documents, together with
a legal opinion (if required) satisfactory to the Security Agent; 

  

	 	(xi)	 	disposals (other than in accordance with sub-paragraphs (i) to (ix) above) to persons not being members of the Group of assets (other than Material Intellectual Property which would
be required to conduct the Business following such disposal or shares of any member of the Group which owns any such Material Intellectual Property), where the gross value of all assets disposed of after the date hereof does not exceed
£45,000,000 (or its Other Currency Equivalent) in any Financial Year and in aggregate does not exceed £125,000,000 (or its Other Currency Equivalent) prior to repayment or prepayment of all the Facilities. For the purposes of this
sub-paragraph (ix) the value of an asset means the higher of its book value and its fair market value (in the latter case determined by reference to the cash and/or fair market value of any assets received as consideration for the disposal). Any
disposal made pursuant to this sub-paragraph must be made at full market value; and 

  

	 	(xii)	 	disposals or satisfaction of intra-group receivables in connection with the Recapitalisation pursuant to the Recapitalisation Assignment Agreements, 

  
 provided that: 
  

	 	(A)	 	disposals under sub-paragraphs (iv), (ix), (x) and (xi) above will only be permitted so long as no Event of Default or Potential Event of Default has occurred and is continuing; and

  

	 	(B)	 	any asset disposed of in accordance with sub-paragraphs (iv), (ix) and (x) above which is subject to a Security Interest at the time of disposal shall be subject to equivalent
security under a Security Document following disposal and the relevant Subsidiary of the Parent shall take all steps necessary to create, perfect or register such security and shall deliver to the Security 

  

 103 

 Agent such evidence as the Security Agent shall require of the due execution of the relevant Security
Document together with a legal opinion (other than an English legal opinion) to the extent reasonably necessary in form and substance satisfactory to the Security Agent. 
  

	 	(c)	 	Arm’s Length Transactions: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, enter into any arrangement or transaction other than on an
arm’s length basis and in the normal course of business, save for: 

  

	 	(i)	 	intercompany loans permitted under Clauses 16.3(h)(ii), (iii), (v), (viii), (xiii) and (xv) (Loans); 

  

	 	(ii)	 	disposals permitted by Clauses 16.3(b)(iv), (ix), (x) and (xii) (Disposals); 

  

	 	(iii)	 	transactions entered into pursuant to the Recapitalisation Documents; and 

  

	 	(iv)	 	the payment of amounts which will comprise Permitted Payments under paragraphs (a), (b), (c) or (g) of the definition of Permitted Payments; 

  
 and no Obligor will, and each Obligor will procure that none of its
Subsidiaries will, dispose of any assets (save for any disposal permitted under Clause 16.3(b)(iii), 16.3(b)(iv), 16.3(b)(ix) or 16.3(b)(x) (Disposals) inclusive) other than where at least 75% of the total consideration for the relevant
disposal is in cash or in Cash Equivalents payable on or before completion of the relevant disposal and on terms that the purchaser thereof does not obtain title or possession of any asset the subject of such disposal prior to completion of such
disposal and payment of the whole consideration therefor or in circumstances where the consideration for such disposal comprises, either in whole or in part, assets in circumstances where had such consideration been paid in cash, Clause 8.3(a)
(Mandatory Prepayments from Receipts) would have applied and such cash could have been applied in the acquisition of such assets. 
  

	 	(d)	 	Negative Pledge: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, create or agree to create or permit to subsist any Security Interest on or
over the whole or any part of its undertaking or assets (present or future) except for any Permitted Security Interests. 

  

	 	(e)	 	Factoring: No Obligor will, and each Obligor will procure that none of its Subsidiaries will: 

  

	 	(i)	 	sell or otherwise dispose of any asset on terms whereby such asset is or may be leased to or re-acquired or acquired by it or any other member of the Group other than as permitted
under Clause 16.3(i) (Leasing Arrangements); or 

  

	 	(ii)	 	sell or otherwise dispose of any receivable other than (A) in connection with the Recapitalisation pursuant to the Recapitalisation Assignment Agreements and (B) the discounting of
bills or notes in the ordinary course of trading on a non-recourse basis. 

  

	 	(f)	 	Indebtedness: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, incur or agree to incur or permit to subsist any Financial Indebtedness other
than Permitted Indebtedness. 

  

	 	(g)	 	Guarantees: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, grant or agree to grant or permit to subsist any guarantee other than:

  

 104 

	 	(i)	 	guarantees, indemnities or performance bonds given in the ordinary course of its trading activities or in relation to its occupation of leased properties; 

 

	 	(ii)	 	guarantees contained in the Senior Finance Documents, the Bridge Facility Finance Documents and as permitted pursuant to Clause 16.4(k)(iii) (Issue of High Yield Notes and
Discount High Yield Notes) and in accordance with the definition of Further High Yield Debt; 

  

	 	(iii)	 	guarantees and indemnities given by members of the Group (other than Excluded Group Members) to facilitate the operation of accounts of other members of the Group (other than
Excluded Group Members) with the same Approved Bank on a net balance basis with (or without) credit balances and debit balances on the various accounts being netted off; 

  

	 	(iv)	 	any guarantees, where the aggregate amount so guaranteed by all members of the Group at any time when aggregated with all Financial Indebtedness permitted to be outstanding pursuant
to paragraph (i) of the definition of Permitted Indebtedness does not exceed £60,000,000 (or its Other Currency Equivalent) less the principal amount of outstanding Revolving Advances the proceeds of which are used (or which refinance directly
or indirectly other Revolving Advances the proceeds of which were used) as permitted in accordance with Clause 2.5 (Acquisition Advances); and 

  

	 	(v)	 	any guarantees and indemnities on the part of members of the Group contained in the Acquisition Documents; and 

  

	 	(vi)	 	the keep well agreement dated 6 August 2001 entered into by the Parent and the Issuer (as amended on or before the issuance of the Bridge Notes). 

  

	 	(h)	 	Loans: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, make or agree to make or permit to be outstanding any loans or grant or agree to
grant any credit other than: 

  

	 	(i)	 	trade credit given in the ordinary course of its trading activities; 

  

	 	(ii)	 	loans and the granting of credit by Obligors to other Obligors (other than by or to the Parent, the Issuer and/or the Subordinated Guarantor) which have entered into Security
Documents over all or substantially all of their assets; 

  

	 	(iii)	 	loans made pursuant to Initial Inter-Company Loan Agreements on the Yell Completion Date in accordance with the Yell Structure Document; 

  

	 	(iv)	 	loans to employees of the Group, or to trustee(s) of any employee share option scheme for any member of the Group, provided that the maximum aggregate principal amount of all such
loans shall not exceed £6,000,000 (or its Other Currency Equivalent) at any time; 

  

	 	(v)	 	loans made pursuant to Further Inter-Company Loan Agreements in relation to the on-lending of the proceeds of any permitted Flotation, any Further Subordinated Loan Stock, any
Further Equity Contribution, all or any part of the Surplus Funding or any Further High Yield Debt; 

  

 105 

	 	(vi)	 	cash deposits placed by members of the Group in accounts held with Approved Banks and/or Ancillary Banks and which are the subject of security granted under the Security Documents
or which do not exceed £10,000,000 (or its Other Currency Equivalent) in aggregate; 

  

	 	(vii)	 	investments in Cash Equivalents which are the subject of security granted under the Security Documents, to the extent permitted by this Agreement; 

  

	 	(viii)	 	loans and the granting of credit between wholly-owned Subsidiaries of the Parent neither of which is an Obligor or an Excluded Group Member; 

  

	 	(ix)	 	loans and the granting of credit by members of the Group which are not Obligors or Excluded Group Members to Obligors (other than the Parent, the Issuer and/or the Subordinated
Guarantor) which have entered into Security Documents over all or substantially all of their assets; 

  

	 	(x)	 	loans made between the UK Principal Borrower, UK Newco 3, the Subordinated Guarantor, the Issuer and the Parent for the purposes of novating obligations of the issuer of the Vendor
Loan Note pursuant to the Vendor Loan Note Novation Agreements; 

  

	 	(xi)	 	loans not otherwise permitted by paragraphs (i) to (x) above in an aggregate outstanding amount not exceeding at any time £2,000,000 (or its Other Currency Equivalent) for the
Group as a whole; 

  

	 	(xii)	 	loans made by the Parent to Topco for the purposes of making Permitted Payments; 

  

	 	(xiii)	 	loans made between members of the Group in connection with the Recapitalisation pursuant to the Recapitalisation Inter-Company Loan Agreements; 

  

	 	(xiv)	 	loans made between members of the Group pursuant to Additional Inter-Company Loan Agreements on the McLeod Completion Date in accordance with the McLeod Structure Document to the
extent not repaid on the Bridge Note Refinancing Date; 

  

	 	(xv)	 	loans made between members of the Group in connection with the Bridge Note Refinancing pursuant to the Tranche C3 Inter-Company Loan Agreements; and 

  

	 	(xvi)	 	loans made between members of the Group the terms of which have been approved by the Majority Banks. 

  

	 	(i)	 	Leasing Arrangements: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, enter into or permit to subsist any finance lease, hire purchase,
conditional sale agreement or other agreement for the acquisition of any asset upon deferred payment terms provided that members of the Group (other than Excluded Group Members) may enter into or permit to subsist such finance leases or other
agreements in connection with the acquisition of equipment and other items required for the Business and provided further that the aggregate of the capital element of all rentals at any time outstanding under all such finance leases and agreements
(determined in accordance with Applicable GAAP) does not exceed £25,000,000 (or its Other Currency Equivalent) in aggregate for all members of the Group. 

  

 106 

	 	(j)	 	Hedging Transactions: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, enter into any interest rate swap, cap, ceiling, collar or floor or
any currency swap, futures, foreign exchange or commodity contract or option or any similar instrument for managing or hedging currency exposure other than: 

  

	 	(i)	 	the Hedging Agreements; 

  

	 	(ii)	 	the Recapitalisation Swap Agreement; and 

  

	 	(iii)	 	for hedging currency or commodity exposure arising in the ordinary course of trading of a member of the Group (and not for speculative purposes). 

  

	 	(k)	 	Joint Ventures: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, enter into or permit to subsist any joint venture, partnership or similar
arrangement with any person, other than any Permitted Joint Venture. 

  

	 	(l)	 	Acquisitions and Investments: No Obligor will, and each Obligor will procure that none of its Subsidiaries will: 

  

	 	(i)	 	acquire any business or acquire any Subsidiary or the whole or substantially the whole of the assets of any other person or enter into any agreement so to do;

  

	 	(ii)	 	own or acquire any interest in or subscribe for any share or equity related investment or debt or equity security or enter into any agreement to do so (other than equity shares in
the share capital of its direct wholly-owned Subsidiaries); 

  

	 	(iii)	 	make any capital contribution to any person (not being one of its wholly-owned Subsidiaries); or 

  

	 	(iv)	 	lease (or otherwise acquire the use of) any premises other than in the ordinary course of business, 

  
 other than: 
  

	 	(A)	 	pursuant to the Yell Acquisition Documents; 

  

	 	(B)	 	any shares owned by it in Subsidiaries at the date of this Agreement; 

  

	 	(C)	 	any acquisition by a member of the Group pursuant to a disposal permitted under Clauses 16.3(b)(iv), 16.3(b)(ix) and 16.3(b)(x) (Disposals); 

  

	 	(D)	 	any acquisition of Cash Equivalents for treasury management purposes; 

  

	 	(E)	 	Permitted Acquisitions; 

  

	 	(F)	 	capital contributions made to any Permitted Joint Venture in accordance with the agreed terms and subject to the limitations imposed by the definition of “Permitted Joint
Venture”; 

  

	 	(G)	 	any acquisition of Acquisition Assets not constituting a Permitted Acquisition with the prior written consent of the Majority Banks; 

  

 107 

	 	(H)	 	assets acquired as non-cash consideration as permitted pursuant to Clause 16.3(c) (Arm’s Length Transactions); 

  

	 	(I)	 	the incorporation or acquisition of the Issuer by the Parent prior to the Yell Completion Date; 

  

	 	(J)	 	the acquisition of shares in Luxco by UK Newco 5 after the Yell Completion Date on terms satisfactory to the Majority Banks; 

  

	 	(K)	 	the subscription by the Subordinated Guarantor for preference shares of UK Newco 3 on conversion of indebtedness owing under the Convertible UK Newco 3 Loan Note;

  

	 	(L)	 	the incorporation or acquisition of the Tranche D Borrower by the US Principal Borrower prior to the date of the Fifth Amendment Agreement; 

  

	 	(M)	 	the acquisition of McLeod by the Tranche D Borrower pursuant to the McLeod Acquisition Documents in accordance with the terms and conditions of this Agreement;

  

	 	(N)	 	the incorporation or acquisition by UK Newco 3 or any Obligor which is a Subsidiary of UK Newco 3 of any wholly owned Subsidiary for the purpose of facilitating a Group
re-organisation permitted under this Agreement, provided that (i) such shares shall be subject to first priority security in favour of the Security Agent (ii) such new wholly owned Subsidiary shall create first priority security over all or
substantially all of its assets and undertaking pursuant to Security Documents in form and substance satisfactory to the Security Agent and (iii) and the relevant Obligor shall take all steps necessary to create, perfect and deliver to the Security
Agent such evidence as the Security Agent shall require of the due execution of the relevant Security Document together with legal opinions (other than an English legal opinion) to the extent reasonably necessary in form and substance satisfactory
to the Security Agent; 

  

	 	(O)	 	the acquisition by UK Newco 5 of all of the shares held by Luxco in US Newco 1 and all of the other assets of Luxco immediately prior to and in contemplation of the liquidation of
Luxco provided that UK Newco 5 enters into a supplemental agreement to the New York law governed security agreement dated 22 June 2002 to pledge the shares UK Newco 5 will acquire in US Newco 1 and such other Security Documents in form and substance
satisfactory to the Security Agent in order to create Security Interests over the other assets so acquired and takes all reasonable steps necessary to maintain, create, perfect and register such security and delivers to the Security Agent such
evidence as the Security Agent shall require of the due execution of any such Security Documents, together with legal opinion(s) (other than an English legal opinion) to the extent reasonably necessary in form and substance satisfactory to the
Security Agent; and 

  

	 	(P)	 	the subscription by any member of the Group which is a creditor (the “Creditor”) under an Inter-Company Loan Agreement for ordinary shares in any other member of
the Group which is a debtor of such Creditor under an Inter-Company Loan Agreement to the extent such subscription is funded 

  

 108 

 entirely out of the proceeds of the repayment of such Inter-Company Loan Agreement in connection with
the elimination of Luxco from the Group provided that such shares shall be subject to first priority security in favour of the Security Agent pursuant to Security Documents in form and substance satisfactory to the Security Agent and the Creditor
shall take all steps necessary to create, perfect and deliver to the Security Agent such evidence as the Security Agent shall require of the due execution of the relevant Security Document together with legal opinions (other than an English legal
opinion) to the extent reasonably necessary in form and substance satisfactory to the Security Agent. 
  

	 	(m)	 	Surplus Funding Account: The Subordinated Guarantor may only make withdrawals from the Surplus Funding Account where the proceeds withdrawn are to be used in connection with
financing the purchase price for McLeod or used or on lent to another member of the Group for the corporate purposes of the relevant member of the Group or for any other purpose where the payment or intercompany loan is not prohibited by this
Agreement or the Intercreditor Agreement. 

  

	16.4	 	Capital Structure: 

  

	 	(a)	 	Control: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, allot or issue any shares or any relevant securities (as defined in Section 80(2)
of the Companies Act 1985) other than: 

  

	 	(i)	 	an issue of shares by one wholly-owned Subsidiary of the Parent to its direct Holding Company which is another wholly-owned Subsidiary of the Parent; 

  

	 	(ii)	 	an issue of ordinary share capital in the Parent carrying no creditor rights (whether actual or contingent) until all amounts owing under the Senior Finance Documents (whether
actual or contingent) have been paid in full and the Senior Finance Parties have no further obligations thereunder; and 

  

	 	(iii)	 	an issue of shares by any wholly-owned Subsidiary of UK Newco 3 to UK Newco 3 or to another wholly-owned Subsidiary of UK Newco 3, provided that UK Newco 3 or, as the case
may be, such other wholly-owned Subsidiary of UK Newco 3, has contemporaneously entered into Security Documents in form and substance satisfactory to the Security Agent with respect to all or substantially all of its assets (including, without
limitation, in respect of such shares). 

  

	 	(b)	 	Variation of Documents: 

  

	 	(i)	 	Subject to sub-paragraph (ii) below, the Parent will not, and will procure that no member of the Group or any Holding Company of the Parent will, agree to any waiver, amendment or
variation to the terms of the Investor Documents which could reasonably be expected to prejudice the interests of the Senior Finance Parties under the Senior Finance Documents without the consent of the Majority Banks, provided that the
constitutional documents of Luxco may be waived, amended or varied to the extent necessary to provide for the liquidation of Luxco, provided that the transfer referred to in Clause 16.3(a)(ii) has first occurred. For this purpose, “Investor
Documents” shall exclude the Partnership Agreement and the Shareholder Agreement. 

  

 109 

	 	(ii)	 	Notwithstanding the provisions of sub-paragraph (i) above, the Parent will not, and will procure that no other member of the Group or any Holding Company of the Parent will, agree
to any waiver, amendment or variation: 

  

	 	(A)	 	to any provisions of the Investor Documents which specify that such documents are subject to the provisions of the Intercreditor Agreement or the Senior Finance Documents or similar
provisions; or 

  

	 	(B)	 	if the effect of such amendment or variation is to: 

  

	 	(1)	 	change any provision relating to payment or distribution or calculation of amounts to shareholders or noteholders or other holders of any relevant instrument which could have the
effect of increasing or accelerating any cash payment thereunder (other than to amend the articles of association of UK Newco 3 to enable UK Newco 3 to issue preference shares which will be subject to the restrictions in the Intercreditor Agreement
on the making of payments or redemptions of such preference shares); or 

  

	 	(2)	 	change any provision relating to redemption of share capital or notes or other relevant instrument which could result in redemption occurring earlier than anticipated or scheduled.

  

	 	(iii)	 	The Parent will not, and will procure that no other member of the Group will, agree to any amendment, waiver or variation of any of the Senior Subordinated Finance Documents, unless
such amendment, waiver or variation (A) is not prejudicial to the Senior Finance Parties, (B) is permitted under the Intercreditor Agreement or (C) is permitted by the Majority Banks. 

  

	 	(iv)	 	The Parent will not, and will procure that no other member of the Group will, agree to any amendment, waiver or variation of any of the Recapitalisation Documents, unless such
amendment, waiver or variation (A) is not prejudicial to the Senior Finance Parties, (B) is permitted under the Intercreditor Agreement or (C) is permitted by the Majority Banks. 

  

	 	(v)	 	The Parent will not and will procure that no other member of the Group will, agree to any amendment, waiver or variation of any of the Inter-Company Loan Agreements (other than (x)
the amendment to the Subordinated Guarantor/UK Newco 3 Convertible Initial Inter-Company Loan Agreement to reflect the summary of terms for the Convertible UK Newco 3 Loan Note attached thereto or in connection with the Recapitalisation and (y) an
amendment to a Recapitalisation Inter-Company Loan Agreement in accordance with paragraph (i) of the definition of Permitted Indebtedness) unless such amendment, variation or waiver (A) is not prejudicial to the Senior Finance Parties, (B) is
permitted under the Intercreditor Agreement or (C) is permitted by the Majority Banks. 

  

	 	(c)	 	Cashflow Restrictions: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, be a party to any contractual or similar arrangement pursuant to
which any member of the Group (other than the Parent) is prohibited from making any payment of dividends, distributions of income and other amounts other than the Senior Finance Documents, the Senior Subordinated Finance Documents (other than the
Bridge Notes Finance Documents) and the documentation for any Further High Yield Debt provided that 

  

 110 

 any such cashflow restrictions are on normal market terms for financings of such nature and in any event
do not prohibit or restrict the making of payments or the application of monies for the purposes of making payments under and obtaining the Security Interests required by the Senior Finance Documents. 
  

	 	(d)	 	Payments to Members, Employees and Others: No Obligor will, and each Obligor will procure that none of its Subsidiaries will: 

  

	 	(i)	 	make any payment to its directors or employees (other than salaries, bonus, other similar remuneration or loans permitted by Clause 16.3(h)(iv) (Loans) or as otherwise
permitted by the Intercreditor Agreement) by way of management fee, royalty fee or otherwise unless such payment is in respect of services actually provided on bona fide arm’s length commercial terms to the US Group or, as the case may be, the
UK Group, save for payments pursuant to any management incentive compensation plan approved by the Facility Agent; 

  

	 	(ii)	 	make any payment to any member (or its representative) of the Parent or of any Holding Company of the Parent or either of the SLPs other than a Permitted Payment or as permitted
pursuant to Clause 16.4(d)(i) or Clause 16.4(f) (Restrictions on Subordinated Debt); or 

  

	 	(iii)	 	make any repayment of principal of, or payment of interest on, or any other payment with respect to indebtedness to any shareholder, save as permitted in the Intercreditor Agreement
or in connection with the Recapitalisation (including, without limitation, as contemplated in paragraph (i) of the definition of Permitted Indebtedness) and excluding, for the avoidance of doubt, the conversion of the Convertible UK Newco 3 Loan
Note into preference shares issued by UK Newco 3 to the Subordinated Guarantor pursuant to the terms of the Convertible UK Newco 3 Loan Note. 

  

	 	(e)	 	Restriction on Redemption and Acquisition of Own Shares: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, directly or indirectly redeem,
purchase, retire or otherwise acquire for consideration any shares or warrants issued by it or set apart any sum for any such purpose or otherwise reduce its capital, provided that an Obligor may take such action if: 

  

	 	(i)	 	it is a direct or indirect wholly-owned Subsidiary of UK Newco 3 which has entered into, or contemporaneously enters into, Security Documents with respect to all or substantially
all of its assets; and 

  

	 	(ii)	 	such action is undertaken as part of a Group re-organisation permitted under this Agreement, 

  
 but provided further that such action may not be taken if following the occurrence of a Senior Default (as defined in the
Intercreditor Agreement) which is continuing, the Facility Agent has (on the instructions of the Majority Senior Creditors (as defined in the Intercreditor Agreement)) served a written notice on the Parent suspending such action; 
  

	 	(f)	 	Restrictions on Subordinated Debt: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, make any repayment of principal of or payment of
interest on, or any other payment under or with respect to: 

  

 111 

	 	(i)	 	the Subordinated Loan Stock or any other shareholder loans to Excluded Group Members; 

  

	 	(ii)	 	the Inter-Company Loan Agreements or any loans made thereunder (excluding, for the avoidance of doubt, any repayment of principal or other payment made in connection with (w) the
Recapitalisation (including, without limitation, as contemplated in paragraph (i) of the definition of Permitted Indebtedness), (x) the conversion of the Convertible UK Newco 3 Loan Note into preference shares issued by UK Newco 3 to the
Subordinated Guarantor pursuant to the terms of the Convertible UK Newco 3 Loan Note and (y) the Bridge Note Refinancing as specified in the Bridge Note Refinancing Funds Flow Statement); or 

  

	 	(iii)	 	the Vendor Loan Note, 

  
 other than in each case, as permitted under, and in accordance with, the terms of the Intercreditor Agreement, and each Obligor will, and each Obligor
will procure that each of its Subsidiaries will, use the proceeds of Further High Yield Debt only for making Permitted Acquisitions or for the purposes of the Business. 
  

	 	(g)	 	Restriction on Payment of Dividends and other amounts: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, declare or pay, directly or
indirectly, any dividends or make any other distribution or pay any interest or other amounts, whether in cash or otherwise, on or in respect of its share capital or any class of its share capital or set apart any sum for any such purpose other
than: 

  

	 	(i)	 	by a member of the Group to another member of the Group which is a wholly-owned Subsidiary of UK Newco 3; or 

  

	 	(ii)	 	as permitted in accordance with the Intercreditor Agreement. 

  

	 	(h)	 	Structural Subordination: Notwithstanding any other provision of the Senior Finance Documents, no Obligor will, and each Obligor will procure that none of its Subsidiaries
will: 

  

	 	(i)	 	declare or pay, directly or indirectly, any dividends or make any distribution in favour of the Parent, the Issuer, the Subordinated Guarantor, any Holding Company of the Parent or
any of the SLPs; 

  

	 	(ii)	 	make any loan to or grant any financial accommodation to the Parent, the Issuer, the Subordinated Guarantor, any Holding Company of the Parent or any of the SLPs or any Acquiring
Company (other than pursuant to the Inter-Company Loan Agreements or to the extent permitted by Clause 16.10(b) (Acquiring Companies)); 

  

	 	(iii)	 	pay any interest or other amount to the Parent, the Issuer, the Subordinated Guarantor, any Holding Company of the Parent or any of the SLPs under or in connection with any loan
received from the Parent, the Issuer, the Subordinated Guarantor, any such Holding Company or any of the SLPs or pay any amount to or transfer monies to the Parent, the Issuer, the Subordinated Guarantor, any Holding Company of the Parent or any of
the SLPs whatsoever (other than (x) pursuant to the Recapitalisation Documents or otherwise in connection with the Recapitalisation (including, without limitation, as contemplated in paragraph (i) of the definition of Permitted Indebtedness), and
(y) (in the case of UK Newco 3 and the Subordinated Guarantor only) on the Bridge Note Refinancing Date in connection with the Bridge 

  

 112 

 Note Refinancing as specified in the Bridge Note Refinancing Funds Flow Statement);

  

	 	(iv)	 	sell, transfer, lease out, lend or otherwise dispose of any asset to the Parent, the Issuer, the Subordinated Guarantor, any Holding Company of the Parent or any of the SLPs (other
than pursuant to the Recapitalisation Inter-Company Loan Agreements and (in the case of UK Newco 3 only) the Tranche C3 Inter-Company Loan Agreements); or 

  

	 	(v)	 	grant any guarantee or enter into any participation or purchase arrangements in relation to any obligation of the Parent, the Issuer, the Subordinated Guarantor, any Holding Company
of the Parent or any of the SLPs or any Acquiring Company other than (A) the guarantee from the Subordinated Guarantor, in respect of the obligations of the Issuer under the Bridge Facility Finance Documents, the Bond Finance Documents, and the
Further High Yield Debt, (B) to the extent permitted under the Intercreditor Agreement and (C) any guarantee given under the Senior Finance Documents, 

  
 or commit to any person to enter into any agreement under which it has any obligation to do any of the foregoing, except as
permitted in accordance with the Intercreditor Agreement. 
  

	 	(i)	 	Holding Companies: Notwithstanding any other provision of this Agreement or the other Finance Documents, each of the Excluded Group Members shall, and the Parent will procure
that the Issuer shall: 

  

	 	(i)	 	carry on business solely as an investment holding company of the Group and, in the case of the Parent and the Issuer as finance companies of the Group, and shall not carry on any
other business other than the holding of shares in their respective Subsidiaries, the entry into the Transaction Documents and the making of loans pursuant to the terms of the Inter-Company Loan Agreements; 

  

	 	(ii)	 	not own any assets other than shares in its Subsidiaries (provided that the Parent shall not own directly shares in any of its Subsidiaries other than the Issuer, the Issuer shall
not own directly shares in any of its Subsidiaries other than the Subordinated Guarantor and the Subordinated Guarantor shall not own directly shares in any of its Subsidiaries other than UK Newco 3) and loans made by it pursuant to the
Inter-Company Loan Agreements and monies received by it thereunder and permitted to be received by it under the Intercreditor Agreement; 

  

	 	(iii)	 	not incur or agree to incur or permit to subsist any Financial Indebtedness or grant or agree to grant or permit to subsist any Security Interest other than in each case pursuant to
the Transaction Documents or as otherwise permitted by this Agreement; 

  

	 	(iv)	 	not make any loans to any person other than pursuant to the Inter-Company Loan Agreements or any loans from the Parent to Topco for the purposes of making Permitted Payments; and

  

	 	(v)	 	save for the proceeds of the Surplus Funding to be advanced to the relevant members of the Group pursuant to Additional Inter-Company Loan Agreements, to the extent in receipt of
proceeds from Further Subordinated Loan Stock, Further Equity Contributions, all or any part of the Surplus Funding and Further High Yield Debt, advance such proceeds pursuant to Further Inter-Company Loan Agreements, 

  

 113 

 through each intermediate Holding Company to UK Newco 3 or any of its Subsidiaries. 
  

	 	(j)	 	Redemption or Purchase of High Yield Notes/Discount High Yield Notes/Bridge Facility/Further High Yield Debt: No Obligor will, and each Obligor will procure that none of its
Subsidiaries will: 

  

	 	(i)	 	repay, redeem, prepay (by defeasance or otherwise) or otherwise retire the principal amount of the High Yield Notes, the Discount High Yield Notes or any Further High Yield Debt;

  

	 	(ii)	 	purchase, repurchase, acquire or agree to acquire (or procure any other person to acquire on its account) all or any part of the High Yield Notes, the Discount High Yield Notes or
Further High Yield Debt; or 

  

	 	(iii)	 	repay, redeem or prepay all or any part of the Bridge Facility other than as permitted pursuant to Clause 16.4(k) (Issue of High Yield Notes and Discount High Yield Notes);

  
 except as permitted in accordance with the
Intercreditor Agreement provided that paragraphs (i), (ii) and (iii) above shall not apply to the Issuer. 
  

	 	(k)	 	Issue of High Yield Notes and Discount High Yield Notes: It is agreed that the Issuer may issue the High Yield Notes and the Discount High Yield Notes (and shall be entitled
to exchange them for notes having identical terms (other than exchange rights) pursuant to a registration of the High Yield Notes and the Discount High Yield Notes with the Securities and Exchange Commission of the United States) the proceeds of
which shall be used to prepay all of the amounts owing and outstanding under or pursuant to the Bridge Facility Agreement provided that each of the following conditions is met at the time of issue of the High Yield Notes and the Discount High Yield
Notes and the making of the prepayment under or pursuant to the Bridge Facility Agreement: 

  

	 	(i)	 	the aggregate net proceeds of the High Yield Notes and the Discount High Yield Notes are no more than the aggregate amount required to fully repay all principal and interest and
other amounts accrued under the Bridge Facility Agreement, the annual interest rate for the High Yield Notes shall not exceed 15.5% and the annual cash interest rate shall not exceed 13.5%, interest shall be payable not more frequently than
semi-annually and the terms of the High Yield Notes and the Discount High Yield Notes shall not otherwise be materially more onerous to the Issuer and the Subordinated Guarantor than the terms and conditions set out in the term sheets for the High
Yield Notes and Discount High Yield Notes in the agreed form; 

  

	 	(ii)	 	no Event of Default has occurred and is continuing or would occur immediately after the issue of the High Yield Notes and the Discount High Yield Notes; 

  

	 	(iii)	 	none of the High Yield Notes, the Discount High Yield Notes or the other Bond Finance Documents benefit or will benefit from any Security Interest from or over all or any part of
any assets of any member of the Group or from any guarantees (other than a subordinated guarantee from the Subordinated Guarantor, in the agreed terms, and indemnities in the indemnity agreements and other Bond Finance Documents from the Issuer);
and 

  

 114 

	 	(iv)	 	the maturity date of the High Yield Notes and the Discount High Yield Notes is at least 1 year after the Final Tranche C1 Repayment Date and the Final Tranche C2 Repayment Date.

  

	16.5	 	Environmental Undertakings: Each Obligor will, and each Obligor will procure that each of its Subsidiaries will: 

  

	 	(a)	 	comply with the terms and conditions of all Environmental Permits and all Environmental Laws applicable to it where failure so to do would have or be reasonably likely to have a
Material Adverse Effect; 

  

	 	(b)	 	promptly upon receipt of the same notify the Facility Agent of any claim, notice or other material communication served on it by any regulatory authority in respect of or if it
becomes aware of: 

  

	 	(i)	 	any suspension, revocation or material variation of any Environmental Permit applicable to it which has or is reasonably likely to have a Material Adverse Effect;

  

	 	(ii)	 	any breach of any Environmental Laws or any change in Environmental Laws which has or is reasonably likely to have a Material Adverse Effect; 

  

	 	(iii)	 	any material investment by any member of the Group required to maintain, acquire or renew any Environmental Permit required in connection with the Business; or

  

	 	(iv)	 	the issue of any enforcement or prohibition or similar notice by a regulatory authority or receipt by any member of the Group of any complaint, demand, civil claim or enforcement
proceeding which has or is reasonably likely to have a Material Adverse Effect; 

  

	 	(c)	 	use all reasonable endeavours (by employing the best available techniques not involving excessive cost) to prevent any person taking any action or making any claim against any
member of the Group under any Environmental Laws where such action or claim would have or be reasonably likely to have a Material Adverse Effect. 

  

	16.6	 	Information and Accounting Undertakings: 

  

	 	(a)	 	Events of Default: Each Obligor will, and will procure that each of its Subsidiaries will, promptly notify the Facility Agent of the occurrence of any Event of Default or
Potential Event of Default and will from time to time on request deliver to the Facility Agent a certificate from one of its directors confirming that no Event of Default or Potential Event of Default has occurred and is continuing or setting out
details of any Event of Default or Potential Event of Default and the action taken or proposed to be taken to remedy it. 

  

	 	(b)	 	Books of Account: Each Obligor will keep, and each Obligor will procure that each of its Subsidiaries will keep, proper books of account relating to its business and
following the occurrence of an Event of Default or Potential Event of Default which is continuing or if the Facility Agent (acting on reasonable grounds) believes that an Event of Default or Potential Event of Default has occurred, will permit the
Facility Agent or any authorised representative of the Facility Agent upon reasonable notice and at reasonable times to visit it and each of its Subsidiaries and inspect the same at the place where they are maintained. 

  

 115 

	 	(c)	 	Appointment of Auditors: No Obligor will, and each Obligor will procure that none of its Subsidiaries will, appoint any auditors other than a firm of international repute.

  

	 	(d)	 	Financial Statements: The Parent will deliver to the Facility Agent for distribution to the Banks sufficient copies for each of the Banks of the following:

  

	 	(i)	 	as soon as available and in any event within 120 days after the end of each of its Financial Years, the audited consolidated financial statements of the Group for that Financial
Year; 

  

	 	(ii)	 	as soon as available and in any event within 45 days of the end of each Accounting Quarter the quarterly consolidated management accounts as at the end of and for that Accounting
Quarter; 

  

	 	(iii)	 	as soon as available and in any event within 30 days of the end of each month (or 45 days of the end of the last month comprised in an Accounting Quarter) the monthly consolidated
management accounts of the Group as at the end of and for that month; and 

  

	 	(iv)	 	not less than 45 days after the beginning of each of its Financial Years the operating budget for such Financial Year; 

  
 such financial statements, accounts and operating budget: 
  

	 	(v)	 	in the case of audited annual financial statements, to include a profit and loss account, balance sheet, cashflow statement and directors and auditors report thereon;

  

	 	(vi)	 	in the case of monthly and quarterly management accounts, to include a profit and loss account, balance sheet, cashflow statement and management commentary for the Group and to be
in such form as the Facility Agent (acting on the instructions of the Majority Banks) may reasonably require taking into account operational systems of the Group and subject to the approval of the Obligors’ Agent (such approval not to be
unreasonably withheld or delayed) together with, if prepared, an update of the projections contained in the most recent operating budget delivered to the Facility Agent under this Clause 16.4(d); 

  

	 	(vii)	 	in the case of the operating budget to be in a format and with a level of information reasonably satisfactory to the Facility Agent (acting on the instructions of the Majority
Banks) and in any event to include a projected balance sheet, projected cashflow statement, projected profit and loss account, details of projected capital expenditure, 

  
 and, in each case, (other than in the case of the monthly management accounts) to have been approved by the chief financial
officer, finance director or another director of the Parent. 
  

	 	(e)	 	Compliance Certificates: 

  

	 	(i)	 	Each of the annual financial statements and each of the quarterly financial statements delivered under Clause 16.6(d) (Financial Statements) must be accompanied by a
certificate signed by the chief financial officer, the finance director or another director of the Parent certifying whether or not as at the date of the relevant accounts the Parent was in compliance with the financial covenants contained in Clause
16.7 

  

 116 

 (Financial Covenants) (such certificate to contain reasonably detailed calculations acceptable to
the Facility Agent demonstrating such compliance or failure to comply) and confirming that as at that date no Event of Default or Potential Event of Default had occurred and is continuing or giving details of any Event of Default or Potential Event
of Default which has occurred and is continuing and the action taken or proposed to be taken to remedy it. 
  

	 	(ii)	 	Each of the annual audited financial statements delivered under Clause 16.6(d)(i) (Financial Statements) must be accompanied by a certificate from the Auditors (in such form
and with such content as the Facility Agent may reasonably require (in consultation with the Parent and the Auditors)): 

  

	 	(A)	 	demonstrating whether or not as at the date of such financial statements the Parent was in compliance with the financial covenants contained in Clause 16.7 (Financial
Covenants); and 

  

	 	(B)	 	in respect of the Financial Year ending 31 March, 2003, and each subsequent Financial Year, confirming the amount of Excess Cash Flow (together with a calculation of how that amount
has been determined) for the purpose of Clause 8.4 (Excess Cash Flow). 

  

	 	(f)	 	Accounting Reference Date: No alteration may be made to the Financial Year end of the Parent unless the Parent and the Facility Agent shall have agreed such changes to Clause
8.4 (Excess Cash Flow), to the financial covenants and such other provisions contained in this Agreement as will fairly reflect such alteration and the Parent shall procure that the Financial Year end of each of its Subsidiaries shall be the
same as its own. In particular, without limitation, notwithstanding such alteration, Clause 8.4 (Excess Cash Flow) shall be first applicable in respect of the 12 month period ending 31 March, 2003 whether or not such date is the Financial
Year end of the Parent. 

  

	 	(g)	 	Investigations: If an Event of Default shall have occurred and be continuing or if the Majority Banks believe in good faith and on reasonable grounds that any financial
statements, certificates or calculations provided by the Parent are inaccurate or incomplete in any material respect, the Facility Agent (acting on the instructions of the Majority Banks) may (following consultation with the Parent as to the scope
of the investigation and its cost): 

  

	 	(i)	 	instruct (or require the Parent to instruct) the Auditors or other firm of accountants of international repute selected by the Facility Agent to carry out an investigation into the
affairs of the Group and/or the financial performance of the Group and/or the accounting and other reporting procedures and standards of the Group; or 

  

	 	(ii)	 	instigate such other investigations and commission such other reports (including, without limitation, legal and valuation reports) as the Facility Agent (acting on the instructions
of the Majority Banks) shall reasonably require into the affairs of the Group, 

  
 in each case, to the extent that the Facility Agent (acting reasonably) considers them to be relevant to that Event of Default or the circumstances giving rise to that Event of Default or establishing the accuracy of
such financial statements, certificate or calculations. The expense of any such investigations or reports shall be borne by the Parent unless the Facility Agent called for an investigation or report on the basis that financial statements or
calculations were inaccurate, incomplete, or misleading in any material respect and the investigation or report 
  

 117 

 concludes that such financial statements or calculations are not inaccurate, incomplete or misleading in
any material respect. 
  

	 	(h)	 	Other Information: Each Obligor will, and will procure that each of its Subsidiaries will, promptly deliver to the Facility Agent for distribution to the Banks:

  

	 	(i)	 	details of any litigation, arbitration, administrative or regulatory proceedings which is reasonably likely to be determined against it or its Subsidiaries and which, if resolved
against it or its Subsidiaries, would result or be reasonably likely to (whether individually or together with any other such claims) result in the Group suffering an aggregate loss which would have or would be reasonably likely to have a Material
Adverse Effect; 

  

	 	(ii)	 	details of any labour dispute affecting it or any of its Subsidiaries which has or could reasonably be expected to have a Material Adverse Effect; 

  

	 	(iii)	 	at the same time as sent or made available, any formal document or information sent or made available to its shareholders generally (or as a class) or to its creditors generally;

  

	 	(iv)	 	such other information relating to its financial condition or operation, or those of its Subsidiaries, as the Facility Agent (or any other Bank through the Facility Agent) may from
time to time reasonably request; 

  

	 	(v)	 	details of any material breach of the terms of the Acquisition Documents or any claim made by or against it under the terms of the Acquisition Documents; 

 

	 	(vi)	 	details of any material breach of (A) the Investor Documents, (B) the Senior Subordinated Finance Documents, (C) the Recapitalisation Documents and/or (D) the Inter-Company Loan
Agreements, in each case by any party thereto of which it is aware; 

  

	 	(vii)	 	details of any member of the Group which becomes a Material Group Company, ceases to be a Dormant Company or which is incorporated in England, Wales and Scotland and is established
or acquired by a member of the Group after the date of this Agreement; 

  

	 	(viii)	 	details of any material change in the structure of the Group from that set out in the Yell Structure Document or the McLeod Structure Document which could have a prejudicial affect
on the interests of the Senior Finance Parties; 

  

	 	(ix)	 	details of any acquisition by it or any person on its behalf of any Material Property or any estate or interest in any Material Property; and 

  

	 	(x)	 	such information relating to any of its assets subject to the Security Interests created or purported to be created pursuant to the Security Documents as the Security Agent (acting
reasonably) may require. 

  

	 	(i)	 	Completion Accounting Principles: All financial statements of the Parent or any other member of the Group delivered or to be delivered to the Facility Agent under this
Agreement (other than the Latest McLeod Audited Accounts and the Latest McLeod Management Accounts) shall be prepared in accordance with Completion Accounting Principles. If as a 

  

 118 

 result of a change in accounting principles such financial statements are required to be prepared on a
different basis: 
  

	 	(i)	 	the Parent shall promptly so advise the Facility Agent; 

  

	 	(ii)	 	on request of the Facility Agent, the Parent and the Facility Agent (on behalf of the Banks) shall negotiate in good faith with a view to agreeing such amendments to Clause 16.7
(Financial Covenants) and/or the definitions of any or all of the terms used therein as are necessary to give the Banks comparable protection to that contemplated at the date of this Agreement; 

  

	 	(iii)	 	if amendments satisfactory to the Majority Banks are agreed by the Parent and the Facility Agent in writing within 30 days of such notification to the Facility Agent, those
amendments shall take effect in accordance with the terms of that agreement; and 

  

	 	(iv)	 	if such amendments are not so agreed within 30 days, within 15 days after the end of that 30 day period, the Parent shall either: 

  

	 	(A)	 	deliver to the Facility Agent, in reasonable detail and in a form satisfactory to the Facility Agent, details of all such adjustments as need to be made to the relevant financial
statements in order to bring them into line with Completion Accounting Principles; or 

  

	 	(B)	 	ensure that the relevant financial statements are prepared in accordance with Completion Accounting Principles. 

  

	 	(j)	 	ERISA Reporting Requirements: Each Obligor will: 

  

	 	(i)	 	ERISA Events and ERISA Reports: (A) promptly and in any event within 10 days after any Obligor or any ERISA Affiliate knows or has reason to know that any ERISA Event has
occurred, deliver to the Facility Agent a statement of the finance director of the Parent describing such ERISA Event and the action, if any, that such Obligor or such ERISA Affiliate has taken and proposes to take with respect thereto and (B) on
the date any records, documents or other information must be furnished to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such records, documents and information; 

  

	 	(ii)	 	Plan Terminations: promptly and in any event within 2 Business Days after receipt thereof by any Obligor or any ERISA Affiliate, copies of each notice from the PBGC stating
its intention to terminate any Plan or to have a trustee appointed to administer any Plan; 

  

	 	(iii)	 	Plan Annual Reports: promptly upon the written request of the Facility Agent, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) most
recently filed with the United States Internal Revenue Service with respect to each Plan; 

  

	 	(iv)	 	Multiemployer Plan Notices: promptly and in any event within 5 Business Days after receipt thereof by any Obligor or any ERISA Affiliate from the sponsor of a Multiemployer
Plan, copies of each notice concerning: 

  

 119 

	 	(A)	 	the imposition of Withdrawal Liability by any such Multiemployer Plan; 

  

	 	(B)	 	the reorganization or termination, within the meaning of Title IV of ERISA, of any such Multiemployer Plan; or 

  

	 	(C)	 	the amount of liability incurred, or that may be incurred, by such Obligor or any ERISA Affiliate in connection with any event described in sub-paragraphs (A) or (B) above.

  

	16.7	 	Financial Covenants: The Parent undertakes that it will procure that: 

  

	 	(a)	 	Senior Debt Coverage Ratio: The ratio of Senior Debt to EBITDA shall not, in respect of the relevant testing period specified in Clause 16.8 (Calculation) ending on
each of the dates specified in Column A below be greater than the ratio specified opposite that date in Column B below: 

  

	 Column A

	  	Column B

	 30 June 2001
	  	4.95:1
	 30 September 2001
	  	4.95:1
	 31 December 2001
	  	4.95:1
	 31 March 2002
	  	4.95:1
	 30 June 2002
	  	4.85:1
	 30 September 2002
	  	4.75:1
	 31 December 2002
	  	4.85:1
	 31 March 2003
	  	4.50:1
	 30 June 2003
	  	4.45:1
	 30 September 2003
	  	4.20:1
	 31 December 2003
	  	4.00:1
	 31 March 2004
	  	3.60:1
	 30 June 2004
	  	3.55:1
	 30 September 2004
	  	3.30:1
	 31 December 2004
	  	3.15:1
	 31 March 2005
	  	3.00:1
	 30 June 2005
	  	2.90:1
	 30 September 2005
	  	2.75:1
	 31 December 2005
	  	2.65:1
	 31 March 2006
	  	2.50:1
	 30 June 2006
	  	2.50:1
	 30 September 2006
	  	2.50:1
	 31 December 2006
	  	2.50:1
	 31 March 2007
	  	2.50:1
	 30 June 2007
	  	2.50:1
	 30 September 2007
	  	2.50:1
	 31 December 2007
	  	2.50:1
	 31 March 2008
	  	2.50:1
	 30 June 2008
	  	2.50:1
	 30 September 2008
	  	2.50:1
	 31 December 2008
	  	2.50:1
	 31 March 2009
	  	2.50:1
	 30 June 2009
	  	2.50:1
	 30 September 2009
	  	2.50:1

  

 120 

	 Column A

	  	Column B

	 31 December 2009
	  	2.50:1

  

	 	(b)	 	Fixed Charge Cover Ratio: The ratio of Cashflow to Total Debt Service (“Fixed Charge Cover”) shall not, in respect of the relevant testing period specified
in Clause 16.8 (Calculation) ending on each of the dates specified in Column A below be less than the ratio specified opposite that date in Column B below. 

  

	 Column A

	  	Column B

	 31 March 2002
	  	1.00:1
	 30 June 2002
	  	1.00:1
	 30 September 2002
	  	1.00:1
	 31 December 2002
	  	1.00:1
	 31 March 2003
	  	1.00:1
	 30 June 2003
	  	1.00:1
	 30 September 2003
	  	1.00:1
	 31 December 2003
	  	1.00:1
	 31 March 2004
	  	1.00:1
	 30 June 2004
	  	1.00:1
	 30 September 2004
	  	1.00:1
	 31 December 2004
	  	1.00:1
	 31 March 2005
	  	1.00:1
	 30 June 2005
	  	1.00:1
	 30 September 2005
	  	1.00:1
	 31 December 2005
	  	1.00:1
	 31 March 2006
	  	1.00:1
	 30 June 2006
	  	1.00:1
	 30 September 2006
	  	1.00:1
	 31 December 2006
	  	1.00:1
	 31 March 2007
	  	1.00:1
	 30 June 2007
	  	1.00:1
	 30 September 2007
	  	1.00:1
	 31 December 2007
	  	1.00:1
	 31 March 2008
	  	1.00:1
	 30 June 2008
	  	1.00:1
	 30 September 2008
	  	1.00:1
	 31 December 2008
	  	1.00:1
	 31 March 2009
	  	1.00:1
	 30 June 2009
	  	1.00:1
	 30 September 2009
	  	1.00:1
	 31 December 2009
	  	1.00:1

  

	 	(c)	 	Interest Cover Ratio: The ratio of EBITDA to Net Cash Interest Payable shall not, in respect of the relevant testing period specified in Clause 16.8 (Calculation)
ending on each of the dates specified in Column A below, be less than the ratio specified opposite that date in Column B below: 

  

	 Column A

	  	Column B

	 30 June 2001
	  	1.65:1

  

 121 

	 Column A

	  	Column B

	 30 September 2001
	  	1.65:1
	 31 December 2001
	  	1.65:1
	 31 March 2002
	  	1.65:1
	 30 June 2002
	  	1.60:1
	 30 September 2002
	  	1.60:1
	 31 December 2002
	  	1.65:1
	 31 March 2003
	  	1.68:1
	 30 June 2003
	  	1.75:1
	 30 September 2003
	  	1.85:1
	 31 December 2003
	  	1.92:1
	 31 March 2004
	  	2.00:1
	 30 June 2004
	  	2.15:1
	 30 September 2004
	  	2.20:1
	 31 December 2004
	  	2.25:1
	 31 March 2005
	  	2.30:1
	 30 June 2005
	  	2.35:1
	 30 September 2005
	  	2.40:1
	 31 December 2005
	  	2.40:1
	 31 March 2006
	  	2.50:1
	 30 June 2006
	  	2.50:1
	 30 September 2006
	  	2.50:1
	 31 December 2006
	  	2.50:1
	 31 March 2007
	  	2.50:1
	 30 June 2007
	  	2.55:1
	 30 September 2007
	  	2.60:1
	 31 December 2007
	  	2.65:1
	 31 March 2008
	  	2.75:1
	 30 June 2008
	  	2.75:1
	 30 September 2008
	  	2.75:1
	 31 December 2008
	  	2.75:1
	 31 March 2009
	  	2.75:1
	 30 June 2009
	  	2.75:1
	 30 September 2009
	  	2.75:1
	 31 December 2009
	  	2.75:1

  

	 	(d)	 	Leverage Ratio: The ratio of Total Net Debt on each date specified in Column A below to EBITDA for the testing period specified in Clause 16.8 (Calculation) ending on
such date shall not be greater than the ratio specified opposite that date in Column B below: 

  

	 Column A

	  	Column B

	 30 June 2001
	  	6.50:1
	 30 September 2001
	  	6.50:1
	 31 December 2001
	  	6.50:1
	 31 March 2002
	  	6.50:1
	 30 June 2002
	  	6.75:1
	 30 September 2002
	  	6.70:1
	 31 December 2002
	  	6.50:1
	 31 March 2003
	  	6.20:1
	 30 June 2003
	  	6.00:1

  

 122 

	 Column A

	  	Column B

	 30 September 2003
	  	5.75:1
	 31 December 2003
	  	5.50:1
	 31 March 2004
	  	5.25:1
	 30 June 2004
	  	5.10:1
	 30 September 2004
	  	4.90:1
	 31 December 2004
	  	4.65:1
	 31 March 2005
	  	4.50:1
	 30 June 2005
	  	4.35:1
	 30 September 2005
	  	4.20:1
	 31 December 2005
	  	4.05:1
	 31 March 2006
	  	3.90:1
	 30 June 2006
	  	3.80:1
	 30 September 2006
	  	3.70:1
	 31 December 2006
	  	3.55:1
	 31 March 2007
	  	3.40:1
	 30 June 2007
	  	3.40:1
	 30 September 2007
	  	3.35:1
	 31 December 2007
	  	3.30:1
	 31 March 2008
	  	3.25:1
	 30 June 2008
	  	3.25:1
	 30 September 2008
	  	3.25:1
	 31 December 2008
	  	3.25:1
	 31 March 2009
	  	3.25:1
	 30 June 2009
	  	3.25:1
	 30 September 2009
	  	3.25:1
	 31 December 2009
	  	3.25:1

  

	 	(e)	 	Capital Expenditure: The aggregate Capital Expenditure (which expression for this purpose only shall not include amounts which are funded by the Additional Equity
Contribution, the Additional Subordinated Loan Stock, Further Equity Contributions, Further Subordinated Loan Stock, all or any part of the Surplus Funding, Further High Yield Debt, Permitted Indebtedness under paragraph (i) of the definition
thereof, the Net Proceeds of disposals applied in accordance with Clause 8.3(a) (Mandatory Prepayments from Receipts), Excess Cash Flow for the previous Financial Year (after taking into account any mandatory prepayments made or to be made
under Clause 8.4 (Excess Cash Flow) and any amounts of such Excess Cash Flow used in funding any other Capital Expenditure (including any previous Permitted Acquisition)), Net Proceeds received or recovered as described in and applied in
accordance with Clause 8.3(b) (Mandatory Prepayment from Receipts), moneys received as described in and applied in accordance with Clause 8.3(c) (Mandatory Prepayment from Receipts) and amounts applied in accordance with Clause 8.5
(IPO Proceeds)) for the Group in each of its Financial Years specified in Column A below will not exceed the amount specified opposite that Financial Year in Column B below (or its equivalent in other currencies): 

  

	 Column A

	  	Column B

	 31 March 2002
	  	£	28,800,000
	 31 March 2003
	  	£	37,700,000
	 31 March 2004
	  	£	43,200,000
	 31 March 2005
	  	£	38,700,000

  

 123 

	 Column A

	  	Column B

	 31 March 2006
	  	£	40,700,000
	 31 March 2007
	  	£	41,000,000
	 31 March 2008
	  	£	42,800,000
	 31 March 2009
	  	£	44,200,000
	 31 March 2010
	  	£	44,100,000

  
 Provided that if in
any Financial Year, actual Capital Expenditure is less than the amount of Capital Expenditure specified in Column B above for that same Financial Year (“Scheduled Capital Expenditure”), an amount equal to the lower of 100% of the
amount of Scheduled Capital Expenditure not actually spent (after deducting therefrom any amount which was carried forward from the previous Financial Year) and 50% of the Scheduled Capital Expenditure for that Financial Year may be added to the
Scheduled Capital Expenditure for the following Financial Year (but not for any subsequent Financial Year). 
  

	16.8	 	Calculation: 

  

	 	(a)	 	The covenants contained in Clauses 16.7(a) (Senior Debt Coverage Ratio), 16.7(b) (Fixed Charge Cover Ratio), 16.7(c) (Interest Cover Ratio) and 16.7(d)
(Leverage Ratio) will be tested on a rolling aggregate basis for the immediately preceding twelve months ending on each of the dates specified in the relevant Column A, provided that in respect of any covenant testing date falling less than
12 months after the Yell Completion Date: 

  

	 	(i)	 	Net Cash Interest Payable shall be calculated by multiplying Net Cash Interest Payable for the period from the Completion Date up to and including the relevant covenant testing date
(the “Calculation Period”) by A/B, where A = 365 and B = the number of days in the Calculation Period; and 

  

	 	(ii)	 	the relevant figures for Total Debt Service shall be calculated by multiplying the actual figure for Total Debt Service for the Calculation Period by A/B, where A = 365 and B = the
number of days in the Calculation Period. 

  

	 	(iii)	 	The covenants contained in Clause 16.7 (Financial Covenants) will be tested by reference to the accounts delivered to the Facility Agent under Clause 16.6(d)(ii)
(Financial Statements) for the relevant Accounting Quarter (and to the extent necessary for any covenant testing date falling less than twelve months after the Yell Completion Date, the Latest Yell Audited Accounts and the Latest Yell
Management Accounts) unless in any such case the audited accounts required to be delivered to the Facility Agent pursuant to Clause 16.6(d)(i) (Financial Statements) for the relevant period or any part thereof are available on the relevant
date on which any such covenant is tested, in which case such audited accounts shall be used instead. 

  

	 	(b)	 	If the audited accounts are not available when the covenant is tested but when such audited accounts become available the audited accounts demonstrate that the figures in any
relevant quarterly accounts utilised for any such calculation cannot have been substantially accurate then the Facility Agent shall require such adjustment to the calculations to be made as it, in good faith, considers appropriate to rectify such
inaccuracy and compliance with the covenants in Clause 16.7 (Financial Covenants) will be determined by reference to such adjusted figures. 

  

 124 

	 	(c)	 	The components of each definition used in Clause 16.7 (Financial Covenants) will be calculated in accordance with Completion Accounting Principles as varied by this
Agreement. 

  

	 	(d)	 	For the purposes of calculating EBITDA in connection with the Leverage Ratio in Clause 16.7(d) (Leverage Ratio) for any testing period ending with the Accounting Quarter
ending on or about 31 March, 2002 or any earlier Accounting Quarter, EBITDA for that period shall be plus, to the extent deducted, (i) the amount actually expended in relation to the items identified in the Yell Reports (described at paragraph (a)
of the definition of Yell Reports) prepared by PricewaterhouseCoopers dated 27 April 2001, as “US Prototype Expenses” incurred in relation to the United States business of the Group (as set out on page 10 thereof) and product development
costs included within “other New Media overhead costs” (as set out on page 135 thereof) and (ii) the amount actually expended as lease payments under a sale and leaseback of the car fleet as identified on page 10 of such draft
PricewaterhouseCoopers Reports (but each such addition shall not exceed in relation to any period the amount specified for such items in relation to that period in such pages of such PricewaterhouseCoopers Reports). 

  

	 	(e)	 	For the purposes of calculating EBITDA in respect of any 12 month period (the “current 12 month period”): 

  

	 	(i)	 	if an Annual Directory which is last published during the last month of the 12 month period ending immediately preceding the current 12 month period is not published during the
current 12 month period but is published on a date falling not more than 30 days after the last day of the current 12 month period, then for the current 12 month period and the 12 month period commencing immediately after the current 12 month period
it shall be accounted for as if it had been published on the last day of the current 12 month period; and 

  

	 	(ii)	 	if an Annual Directory is published twice during the current 12 month period, the first such publication shall be accounted for as if it had been published on the last day of the 12
month period immediately preceding the current 12 month period. 

  
 “Annual Directory” means each printed directory of the Group which is published and at all relevant times is continuing to be published on an annual basis. 
  

	 	(f)	 	For the testing periods ending with the Accounting Quarters ending on or about 30 June 2002, 30 September 2002 and 31 December 2002, EBITDA for each such period shall be adjusted by
increasing the amount which would otherwise be included in the calculation of EBITDA for such period in respect of the net cost savings achieved since the McLeod Completion Date in relation to the operating of the McLeod Business and the Yell
Business together, to an annualised amount by multiplying the original amount of such net cost savings by a fraction equal to 365 divided by the number of days in the period from the McLeod Completion Date to the relevant testing date.

  

	 	(g)	 	For the purposes of calculating Cashflow for each testing period ending 31 December 2002, 31 March 2003, 30 June 2003 and 30 September 2003 and (for the purposes of determining
Excess Cash Flow) the Financial Year ending 31 March 2003, the amount of the Operational Cash Flow Component shall be deducted and for the purposes of calculating Total Debt Service in connection with the Fixed Charge Cover Ratio in Clause 16.7(c)
(Fixed Charge Cover Ratio) for each such testing period, the amount of the Bridge Note Refinancing shall be excluded. 

  

 125 

	16.9	 	Financial Definitions: In this Agreement, unless the context requires otherwise, the following expressions shall have the following meanings, and each of the expressions
shall refer to the position of the Group on a consolidated basis, unless the context otherwise requires: 

  
 “Capital Expenditure” means expenditure of the Group which should be treated as capital expenditure in accordance with Completion
Accounting Principles; 
  
 “Cashflow” means, in
respect of the relevant testing period, and without double counting, EBITDA for that period: 
  

	 	(a)	 	minus any tax paid in cash during that period and plus any tax rebate actually received in cash; 

  

	 	(b)	 	minus all Capital Expenditure (but which shall include, without limitation, any expenditure in respect of the McLeod Acquisition and any Permitted Acquisition) paid in cash by
members of the Group during that period and for this purpose to the extent that any such Capital Expenditure is financed: 

  

	 	(i)	 	by finance lease, hire purchase or similar arrangement the amount included in Capital Expenditure shall be the amount which would have been included had such Capital Expenditure not
been so financed but after including the principal amount financed under such financing arrangement as a cash inflow; 

  

	 	(ii)	 	by Excess Cash Flow (as described in paragraph (b)(i)(dd) of the definition of Permitted Acquisitions), Permitted Indebtedness (as described in paragraph (b)(i)(ff) of the
definition of Permitted Acquisitions) or Further High Yield Debt, or amounts applied in accordance with Clause 8.3(b) (Mandatory Prepayment from Receipts) or Clause 8.5 (IPO Proceeds), or amounts from the Surplus Funding Account, the
amount included in such Capital Expenditure shall be the amount which would have been included had such Capital Expenditure not been so financed but after including the amount of such Excess Cash Flow or such Permitted Indebtedness or the cash
proceeds received by the Group through such Further High Yield Debt, or the amounts applied in accordance with Clause 8.3(b) (Mandatory Prepayment from Receipts) or (to the extent not already included) Clause 8.5 (IPO Proceeds) or such
amounts from the Surplus Funding Account, in each case to the extent such Capital Expenditure is financed thereby, as a cash inflow; 

  

	 	(c)	 	plus any extraordinary or exceptional items received in cash during that period; 

  

	 	(d)	 	minus any extraordinary or exceptional items paid in cash during that period; 

  

	 	(e)	 	minus the amount of the increase or plus the amount of the decrease (as the case may be) in Working Capital during that period other than any increase or decrease in Working Capital
of any member of the US Group; 

  

	 	(f)	 	plus, to the extent not already included in determining EBITDA, the amount of any dividends or other profit distributions (net of tax) received in cash by any member of the Group
during that period from companies which are not members of the Group; 

  

	 	(g)	 	minus the amount of any profit of any Subsidiary of the Parent taken into account in EBITDA for that period which whether by law or for any other reason cannot be distributed by way
of dividend, loan or other means to the Parent; 

  

 126 

	 	(h)	 	plus, to the extent not already included as an exceptional item or otherwise included in determining EBITDA, any Net Proceeds received or recovered as cash or Cash Equivalents
during such Financial Year arising on the disposal of any asset (not being stock disposed of in the ordinary course of trading) provided that there shall be excluded from Cashflow any portion of Net Proceeds not required to be applied in prepayment
in accordance with Clause 8.3(a) (Mandatory Prepayments from Receipts); 

  

	 	(i)	 	less (to the extent already included) the amount of any Net Proceeds arising on the disposal of any asset (not being stock disposed of in the ordinary course of trading) which are
applied in prepayment of the Advances or provision of cash cover in accordance with Clause 8.3 (Mandatory Prepayments from Receipts); 

  

	 	(j)	 	plus (to the extent not already included) any amount of additional available cash resulting from the release of pension surpluses; 

  

	 	(k)	 	plus (to the extent not already included) the amount subscribed in cash as the Additional Equity Contribution, the Additional Subordinated Loan Stock, Further Equity Contributions
or Further Subordinated Loan Stock; and 

  

	 	(l)	 	minus (to the extent not already deducted) the amount of fees paid in cash to Hicks Muse and Apax referred to in paragraph (b) of the definition of Permitted Payments;

  
 “Cash Interest Payable” means,
in respect of the relevant testing period, the amount of Interest Payable during that period excluding any such Interest Payable which is capitalised or rolled-up or otherwise not currently payable in respect of the period under the terms of the
Bridge Facility, the High Yield Notes, the Discount High Yield Notes or the Further High Yield Debt, the Vendor Loan Note or the Subordinated Loan Stock (and not paid or becoming due for payment in that period) and, for the avoidance of doubt,
payment blockage provisions (if any) in relation to the Bridge Facility, the High Yield Notes, the Discount High Yield Notes or the Further High Yield Debt (or their operations) shall not be treated as resulting in Interest Payable thereon being
treated as not currently payable; 
  
 “Cash Interest
Receivable” means, in respect of the relevant testing period, the amount of Interest Receivable during such period excluding any such Interest Receivable which is capitalised or rolled-up or otherwise not currently payable in respect of the
period and any Interest Receivable to the extent deemed irrecoverable; 
  
 “EBITDA” means, in respect of the relevant testing period, the consolidated profit on ordinary activities of the Group for such period: 
  

	 	(a)	 	before any deduction for or on account of corporation tax or other taxes on income or gains; 

  

	 	(b)	 	before any deduction for Interest Payable or any deduction for the discount element or interest accrual on the Vendor Loan Note or the Subordinated Loan Stock;

  

	 	(c)	 	after deducting (to the extent included) Interest Receivable; 

  

	 	(d)	 	excluding extraordinary or exceptional items; 

  

	 	(e)	 	after deducting (to the extent otherwise included) the amount of profit (or adding back the loss) of any member of the Group (other than the Parent) which is attributable to any
third party (not being a member of the Group) which is a shareholder or partner in such member of the Group; 

  

 127 

	 	(f)	 	after deducting (to the extent otherwise included) any gain over book value arising in favour of a member of the Group on the disposal of any business or asset (not being any
disposals made in the ordinary course of trading) during such period and any gain arising on any revaluation of any business or asset during such period; 

  

	 	(g)	 	after adding back (to the extent otherwise deducted) any loss against book value incurred by a member of the Group on the disposal of any business or asset (not being any disposals
made in the ordinary course of trading) during such period; 

  

	 	(h)	 	adding back the Transaction Costs to the extent deducted; 

  

	 	(i)	 	adding back depreciation of fixed assets and amortisation of goodwill or intangible assets during that period, to the extent deducted; and 

  

	 	(j)	 	adding back (to the extent deducted) the amount of fees payable to Hicks Muse and Apax referred to in paragraph (b) of the definition of Permitted Payments;

  
 “Excess Cash Flow” means, in
respect of any Financial Year commencing with the Financial Year ending 31 March, 2003, Cashflow for that Financial Year (as determined from the annual audited consolidated accounts of the Parent): 
  

	 	(a)	 	less Net Cash Interest Payable for that Financial Year; 

  

	 	(b)	 	less all scheduled repayments of the Term Facilities made during that Financial Year; 

  

	 	(c)	 	less the aggregate amount of prepayments of the Term Advances made pursuant to Clause 8.1 (Voluntary Prepayments) and applied in accordance with Clause 8.6 (Prepayments:
Order of Application) during that Financial Year (save to the extent already deducted in a previous Financial Year from Excess Cash Flow in accordance with paragraph (g) below); 

  

	 	(d)	 	less all scheduled repayments and all prepayments (whether voluntary or mandatory) of principal under the terms of any other Financial Indebtedness of any member of the Group
(excluding (i) any Financial Indebtedness between any member of the Group and any other member of the Group, (ii) any amount paid in relation to the Vendor Loan Note, the Subordinated Loan Stock, the High Yield Notes, the Discount High Yield Notes,
any Further High Yield Debt or the Bridge Notes and (iii) any amount paid in relation to the Facilities save as referred to in (a), (b) or (c) above) falling due during that Financial Year: 

  

	 	(e)     (A)	 	including, without limitation, all capital payments falling due in respect of any Financial Indebtedness falling within paragraph (g) of the definition of that term; and

  

	 	(f)      (B)	 	excluding any repayment or prepayment of any overdraft or revolving credit facility (including, without limitation, the Revolving Advances) falling due during that period and
capable of being simultaneously redrawn under the terms of the relevant facility; 

  

	 	(g)	 	less the amount of any unspent Capital Expenditure during that Financial Year which is carried forward to the next Financial Year as permitted pursuant to Clause 16.7(e) (Capital
Expenditure); 

  

 128 

	 	(h)	 	plus the amount of any unspent Capital Expenditure from the previous Financial Year which was carried forward to that Financial Year as permitted to Clause 16.7(e) (Capital
Expenditure) but was not incurred or committed during that Financial Year; 

  

	 	(i)	 	excluding, to the extent otherwise included, amounts deposited in a Cash Collateral Account to provide cash cover in respect of any Contingent Liability hereunder or for the
purposes of a prepayment in accordance with Clause 8.7 (Prepayment during Interest Periods) (with amounts deposited by way of cash cover to form part of Cashflow of any succeeding Financial Year in which such amounts are released from such
cash cover without application in respect of the relevant Contingent Liabilities); 

  

	 	(j)	 	less amounts included in the definition of “Cashflow” under paragraph (k) thereof; 

  

	 	(k)	 	less the amount of the increase or plus the amount of the decrease (as the case may be) in Working Capital of any member of the US Group during that Financial Year; and

  

	 	(l)	 	less Interest Receivable on the Surplus Funding Account during such period which is payable in cash and any other amount of the Surplus Funding which is included in Cashflow (except
pursuant to paragraph (b) of the definitions thereof) in respect of that Financial Year (if any); 

  
 “Interest” means interest and amounts in the nature of interest paid or payable in respect of any Financial Indebtedness of any member of
the Group excluding any interest paid or payable on Financial Indebtedness between any member of the Group and any other member of the Group but including, without limitation: 
  

	 	(a)	 	the interest element of finance leases; 

  

	 	(b)	 	discount and acceptance fees payable (or deducted) in respect of any Financial Indebtedness; 

  

	 	(c)	 	fees payable in connection with the issue or maintenance of any bond, letter of credit, guarantee or other assurance against financial loss which constitutes Financial Indebtedness
and is issued by a third party on behalf of a member of the Group; 

  

	 	(d)	 	repayment and prepayment premiums payable or incurred in repaying or prepaying any Financial Indebtedness; and 

  

	 	(e)	 	commitment, utilisation and non-utilisation fees payable or incurred in respect of Financial Indebtedness (but excluding any fees payable in relation to any borrowing for arranging
such borrowing and which are paid at the commencement of such borrowing); 

  
 “Interest Payable” means, in respect of the relevant testing period, the aggregate of: 
  

	 	(a)	 	Interest accrued (whether or not paid or capitalised) during that testing period; and 

  

	 	(b)	 	the amount of the discount element of any Financial Indebtedness amortised during such period; 

  
 in each case, as an obligation of any member of the Group during that period and calculated on the basis that: 

 

	 	(a)	 	the amount of Interest accrued will be increased by an amount equal to any amount payable by members of the Group under Hedging Agreements in relation to that testing period;

  

 129 

	 	(b)	 	the amount of Interest accrued will be reduced by an amount equal to any amount payable to members of the Group under Hedging Agreements in relation to that testing period;

  

	 	(c)	 	the discount element of the Subordinated Loan Stock and the Vendor Loan Note will be excluded; 

  

	 	(d)	 	amortisation of Transaction Costs to the extent amortised, will be excluded; 

  

“Interest Receivable” means, in respect of the relevant testing period, the amount of interest (which for this purpose shall include
all payments of the type described in the definition of Interest above) accrued due to members of the Group (other than by other members of the Group) during such period whether or not paid; 
  
 “Net Cash Interest Payable” means, in respect of the
relevant testing period, Cash Interest Payable less Cash Interest Receivable; 
  
 “Senior Debt” means the aggregate outstanding principal amount of all Financial Indebtedness under the Facilities (including, without duplication, Contingent Liabilities and contingent liabilities
under the Ancillary Facilities) and under any Permitted Indebtedness incurred as permitted under paragraph (i) of the definition of Permitted Indebtedness; 
  
 “Total Debt Service” means, in respect of the relevant testing period, the aggregate of: 
  

	 	(a)	 	Net Cash Interest Payable for that period; 

  

	 	(b)	 	all scheduled repayments of the Facilities falling due during that period (as adjusted as a result of any voluntary or mandatory prepayments but, for this purpose, treating all such
prepayments as having been applied pro rata against unpaid instalments); and 

  

	 	(c)	 	all scheduled repayments and prepayments (whether voluntary or mandatory) of principal under the terms of any other Financial Indebtedness of any member of the Group (excluding any
Financial Indebtedness between any member of the Group and any other member of the Group, the Subordinated Loan Stock and the Vendor Loan Note) falling due during that period: 

  

	 	(d)	 	including, without limitation, all capital payments falling due in respect of any Financial Indebtedness falling within paragraph (g) of the definition of that term; and

  

	 	(e)	 	excluding any repayment or prepayment of any overdraft or revolving credit facility (including, without limitation, the Revolving Advances) falling due during that period and
capable of being simultaneously redrawn under the terms of the relevant facility; 

  
 “Total Net Debt” means, at any time, the aggregate outstanding principal or capital amount of all Financial Indebtedness of the Group
calculated on a consolidated basis excluding any Financial Indebtedness between any member of the Group and any other member of the Group, the Subordinated Loan Stock and the Vendor Loan Note and the Discount High Yield Notes provided that:

  

	 	(a)	 	in the case of finance leases referred to in the definition of Financial Indebtedness, only the capitalised value of any items falling thereunder as determined in accordance with
Completion Accounting Principles shall be included; 

  

 130 

	 	(b)	 	in the case of guarantees referred to in the definition of Financial Indebtedness, any items falling thereunder shall not be included to the extent relating to indebtedness of
another member of the Group already included in this calculation; and 

  

	 	(c)	 	freely available cash balances of the Group at that time held with a Bank or an Approved Bank shall be deducted from the amount of such Financial Indebtedness (save to the extent
already taken into account in the calculation of Total Net Debt); and 

  
 “Working Capital” means trade and other debtors in respect of operating items plus prepayments and stock less trade and other creditors in respect of operating items and less accrued expenses and
accrued costs (but excluding the Transaction Costs). 
  

	16.10	 	Acquiring Companies: Notwithstanding any other provision of the Senior Finance Documents: 

  

	 	(a)	 	each Obligor will procure that none of its Subsidiaries which are Acquiring Companies will create or agree to create or permit to subsist any Security Interest on or over the whole
or any part its undertaking or assets (present or future) except for: (i) Security Interests on (and limited solely to) Acquisition Assets existing or created at the time of such acquisition and securing any Financial Indebtedness which is permitted
under paragraph (i) of the definition of “Permitted Indebtedness” provided that (A) the principal amount secured does not exceed the acquisition cost of such Acquisition Assets; and (B) such Financial Indebtedness is incurred by the
Acquiring Company which is acquiring such Acquisition Assets and is not guaranteed by any other member of the Group and (C) the acquisition cost of such Acquisition Assets is funded entirely by such Financial Indebtedness together with (if required)
the proceeds of a Permitted Contribution, and (ii) any other Permitted Security Interests; 

  

	 	(b)	 	no Obligor will, and each Obligor will procure that none of its Subsidiaries will: 

  

	 	(i)	 	make any loan to or grant any financial accommodation to any Acquiring Company save where such loan or financial accommodation is funded entirely by the proceeds of Permitted
Contributions; nor 

  

	 	(ii)	 	grant any guarantee or enter into any participation or purchase arrangements in relation to any obligation of any Acquiring Company or commit to any person to enter into any
agreement under which it has any obligation to do any of the foregoing other than (A) to the extent permitted under the Intercreditor Agreement and (B) any guarantee permitted under the Senior Finance Documents. 

  

	 	(c)	 	if at any time an Acquiring Company becomes a Material Group Company then the Facility Agent (acting on the instructions of the Majority Banks) shall be entitled by notice in
writing to the Obligors’ Agent require that either: 

  

	 	(i)	 	such Acquiring Company delivers an Accession Document, becomes a Guarantor and executes Security Documents in accordance with the provisions of Clause 18.9 (Further
Guarantors) (subject always to Clause 18.10 (Guarantee Limitations)), as if the words in the second parentheses in Clause 18.9(a) were not included in such clause (but on the basis that any Security Interest so granted ranks second to any
Permitted Security Interest incurred by the Acquiring Company in accordance with paragraph (a) above); or 

  

	 	(ii)	 	 the Financial Indebtedness incurred by such Acquiring Company in accordance with paragraph (i) of the definition of “Permitted Indebtedness” and secured
by the above 

  

 131 

	 	 
referred to prior ranking Permitted Security Interest is refinanced by an Advance under the Revolving Facility and such Permitted Security Interest is
released. 

  
 Upon receipt of such notice, the
Obligors’ Agent shall specify in writing to the Facility Agent whether such Financial Indebtedness shall be refinanced or not and if it fails to specify within 10 Business Days it shall be deemed to have selected that the Acquiring Company
delivers and will procure that the Acquiring Company delivers an Accession Document, becomes and will procure that the Acquiring Company becomes a Guarantor and executes and will procure that the Acquiring Company executes Security Documents as
described in subparagraph (i) above. 
  
 If the Obligors’
Agent selects refinancing of such Financial Indebtedness and there is sufficient availability under the Revolving Facility, then the Obligors’ Agent will procure that the Acquiring Company becomes a Borrower under the Revolving Facility,
refinances such Financial Indebtedness and discharges such Permitted Security Interest as soon as practicable and in any event within 20 days. Upon any Acquiring Company becoming a Borrower of the Senior Facilities and discharging all prior
Permitted Security Interests as described above, the provisions of this Agreement with regard to “Acquiring Companies” shall no longer apply to it and such Acquiring Company shall thereafter be treated as an Obligor for all purposes of
this Agreement. 
  

	17.	 	EVENTS OF DEFAULT 

  

	17.1	 	Events of Default: Each of the events set out in this Clause 17.1 (Events of Default) constitutes an Event of Default whether or not the occurrence of the event
concerned is outside the control of the Parent or any other member of the Group. 

  

	 	(a)	 	Payment Default: Any Obligor fails to pay on the due date any amount payable by it under any of the Senior Finance Documents at the place and in the currency at or in which
it is expressed to be payable unless in relation to the non-payment of amounts other than principal, payment is made within 5 days of its due date. 

  

	 	(b)	 	Breach of Other Obligations: 

  

	 	(i)	 	Any Obligor fails to comply with any of its obligations in Clause 16.3(d) (Negative Pledge), Clause 16.4(h) (Structural Subordination), Clause 16.4(i) (Holding
Companies) and Clause 16.4(j) (Redemption or Purchase of High Yield Notes/Discount High Yield Notes/Bridge Facility/Further High Yield Debt). 

  

	 	(ii)	 	The Parent fails to comply with its obligations under Clauses 16.7(a), (b), (c), (d) or (e) (Financial Covenants). 

  

	 	(iii)	 	Any Obligor fails to observe or perform any of its obligations or undertakings under any of the Senior Finance Documents (other than those specified in Clause 17.1(a) (Payment
Default) or Clause 17.1(b)(i) or (ii) (Breach of Other Obligations)) and, if such failure is capable of remedy, it is not remedied within 30 days of such Obligor becoming aware of the relevant matter and that it constitutes a default.

  

	 	(c)	 	Misrepresentation: Any representation, warranty or written statement which is made by any Obligor in any of the Senior Finance Documents or is contained in any certificate,
statement or notice provided under or pursuant to any of the Senior Finance Documents proves to be incorrect in any respect when made (or when repeated or deemed to be repeated) unless 

  

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 (except in the case of Clause 15.1(o) (Material Adverse Change)) the circumstances giving rise to
that default are capable of remedy and are remedied within 30 days of such Obligor becoming aware of the relevant matter and that it constitutes a default. 
  

	 	(d)	 	Invalidity and Unlawfulness: 

  

	 	(i)	 	Any provision of any Senior Finance Document is or becomes invalid or (subject to reservations) unenforceable for any reason or shall be repudiated or the validity or enforceability
of any provision of any Senior Finance Document shall at any time be contested by any party thereto (other than a Senior Finance Party). 

  

	 	(ii)	 	At any time it is or becomes unlawful for any Obligor to perform any of its obligations under any of the Senior Finance Documents in circumstances or to an extent which the Majority
Banks consider to be materially prejudicial to the interests of any Senior Finance Party under the Senior Finance Documents. 

  

	 	(iii)	 	At any time any act, condition or thing required to be done, fulfilled or performed in order (A) to enable any Obligor lawfully to enter into, exercise its rights under or perform
the obligations expressed to be assumed by it under any of the Senior Finance Documents to which it is party, (B) to ensure that the obligations expressed to be assumed by any Obligor under any Senior Finance Document to which it is party are legal,
valid and binding, (C) to make each Senior Finance Document admissible in evidence in the English courts and (D) to create the security constituted by the Security Documents to which any Obligor is party, is not done, fulfilled or performed.

  

	 	(e)	 	Cross Default: Any Financial Indebtedness of a member or members of the Group in excess of £15,000,000 or its equivalent in other currencies in aggregate:

  

	 	(i)	 	is not paid when due or within any applicable grace period in any agreement relating to that Financial Indebtedness; or 

  

	 	(ii)	 	becomes due and payable (or capable of being declared due and payable) before its normal maturity or is placed upon demand (or any commitment for any such indebtedness is cancelled
or suspended) by reason of a default or event of default however described. 

  

	 	(f)	 	Insolvency: Any Material Group Company stops or suspends or threatens or announces an intention to stop or suspend payment of its debts or shall admit its inability to pay
its debts as they fall due or shall for the purpose of any applicable law be or be deemed to be unable to pay its debts or shall otherwise be or be deemed to be insolvent or a moratorium is declared in respect of indebtedness of it or any of its
Subsidiaries. 

  

	 	(g)	 	Receivership and Administration: 

  

	 	(i)	 	Any encumbrancer takes possession of, or a receiver or administrator or similar officer is appointed over or in respect of all or any substantial part of the business or assets of
any Material Group Company; or 

  

	 	(ii)	 	A petition is presented or meeting convened or application made for the purpose of appointing an administrator or receiver or other similar officer of, or for the making of an
administration order in respect of, any Material Group Company and: 

  

 133 

	 	(A)	 	(other than in the case of a petition to appoint an administrator) such petition or application is not discharged within 14 days; or 

  

	 	(B)	 	in the case of a petition to appoint an administrator, the Facility Agent is satisfied that it will not be discharged before it is heard. 

  

	 	(h)	 	Compositions and Arrangements: 

  

	 	(i)	 	Any Material Group Company convenes a meeting of its creditors generally or proposes or makes any arrangement or composition with, or any assignment for the benefit of, its
creditors generally. 

  

	 	(ii)	 	Any Material Group Company enters into any negotiations for or in connection with the re-scheduling, restructuring or readjustment of any Financial Indebtedness by reason of
financial difficulties. 

  

	 	(i)	 	Winding-up: Any meeting of any Material Group Company is convened for the purpose of considering any resolution for (or to petition for) its winding up or any member of the
Group passes such a resolution or a petition is presented for the winding-up of a member of the Group (other than a frivolous or vexatious petition discharged within 30 days of being presented or any other petition which is contested on bona fide
grounds and discharged at least 30 days before its hearing date) or an order is made for the winding-up of any Material Group Company and not (in any case) being a winding-up of a Material Group Company (other than an Excluded Group Member)
involving an amalgamation or reorganisation on a solvent basis to which the Facility Agent (acting on the instructions of the Majority Banks) has given its prior written consent. 

  

	 	(j)	 	Suspension of Payments: Any other order is made or resolution passed or other action taken for the suspension of payments, protection from creditors or bankruptcy of a
Material Group Company. 

  

	 	(k)	 	Similar Events Elsewhere: There occurs in relation to a Material Group Company or any of its assets in any country or territory in which it is incorporated or carries on
business or to the jurisdiction of whose courts a Material Group Company or any of its assets is subject, any event which the Facility Agent reasonably considers to correspond in that country or territory with any of those mentioned in Clauses
17.1(f) (Insolvency) to 17.1(j) (Suspension of Payments) (inclusive). 

  

	 	(l)	 	Attachment or Process: A creditor attaches or takes possession of, or a distress, execution, sequestration or other process is levied or enforced upon or sued out against any
of the assets, of a Material Group Company and is not discharged within 30 days. 

  

	 	(m)	 	Security Enforceable: Any Security Interest or Security Interests granted by a member or members of the Group securing in aggregate Financial Indebtedness in excess of
£15,000,000 (or the Other Currency Equivalent thereof) becomes enforceable whether or not steps are taken to enforce the same. 

  

	 	(n)	 	Cessation of Business: Any Material Group Company ceases, or threatens or proposes to cease, to carry on all or a substantial part of its business other than transfers from
one Material Group Company to an Obligor (which is not an Excluded Group Member). 

  

 134 

	 	(o)	 	Compulsory Acquisition: All or a substantial part of the assets of a Material Group Company are seized, nationalised, expropriated or compulsorily acquired by, or by the
order of, any agency of any state. 

  

	 	(p)	 	Litigation: Any litigation, arbitration, or administrative or regulatory proceeding is commenced by or against a member of the Group which could reasonably be expected to be
adversely determined against the relevant member of the Group and, if so determined, (whether by itself or together with any related claims) could reasonably be expected to have a Material Adverse Effect. 

  

	 	(q)	 	Auditor’s Qualification: The Auditors qualify their report on the audited consolidated financial statements of the Parent in any manner which is, in the reasonable
opinion of the Majority Banks, materially adverse in the context of the Finance Documents. 

  

	 	(r)	 	Intercreditor/Constitutional/Recapitalisation Documents: 

  

	 	(i)	 	Any party to the Intercreditor Agreement (other than the Senior Finance Parties) fails to comply with its obligations thereunder or the Intercreditor Agreement ceases to be binding
upon any such party for whatever reason and, as a result, in the opinion of the Majority Banks, the position of the Senior Finance Parties under the Senior Finance Documents is prejudiced; or 

  

	 	(ii)	 	the Constitutional Documents or the Recapitalisation Documents are amended or varied in a manner which is not permitted under Clause 16.4(b) (Variation of Documents)
(regardless for these purposes of whether or not the undertaking contained in that Clause in relation to the Constitutional Documents is legally enforceable). 

  

	 	(s)	 	Minority Interests: Any Obligor (other than the Parent) or any other Excluded Group Member ceases to be a wholly-owned Subsidiary of the Parent. 

  

	 	(t)	 	Non-Material Group Companies: Any of the events referred to in sub-clauses (f) to (l) (inclusive), (n) and (o) occur in respect of members of the Group not being Material
Group Companies (or not being Material Group Companies for the purposes of sub-clauses (f) to (i) (inclusive), (n) and (o) of Clause 17.1 (Events of Default)) which if treated as being one company would fall within the definition of Material
Group Company. 

  

	 	(u)	 	ERISA Events of Default: 

  

	 	(i)	 	Any ERISA Event shall have occurred and the sum (determined as of the date of occurrence of such ERISA Event) of the Insufficiency of such Plan and the Insufficiency of any and all
other Plans with respect to which an ERISA Event shall have occurred and then exist (or the liability of the Obligors and the ERISA Affiliates related to such ERISA Event) exceeds £15,000,000 (or its Other Currency Equivalent).

  

	 	(ii)	 	 Any Obligor or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer
Plan in an amount that, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Obligors and the ERISA Affiliates as Withdrawal Liability (determined as of the date of such notification), exceeds £15,000,000
(or its 

  

 135 

	 	 
Other Currency Equivalent) or requires payments exceeding £3,000,000 (or its Other Currency Equivalent) per annum. 

  

	 	(iii)	 	Any Obligor or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is being terminated, within
the meaning of Title IV of ERISA, and as a result of such reorganization or termination the aggregate annual contributions of the Obligors and the ERISA Affiliates to all Multiemployer Plans that are then in reorganization or being terminated have
been or will be increased over the amounts contributed to such Multiemployer Plans for the plan years of such Multiemployer Plans immediately preceding the plan year in which such reorganization or termination occurs by an amount exceeding
£3,000,000 (or its Other Currency Equivalent). 

  

	17.2	 	Cancellation and Repayment: At any time after the occurrence of an Event of Default (and whilst the same is continuing) the Facility Agent may, and will if so directed by the
Majority Banks, by written notice to the Obligors’ Agent do all or any of the following in addition and without prejudice to any other rights or remedies which it or any other Senior Finance Party may have under this Agreement or any of the
other Senior Finance Documents: 

  

	 	(a)	 	terminate the availability of the Facilities whereupon the Facilities shall cease to be available for drawing, the undrawn portion of the Commitments of each of the Banks shall be
cancelled and no Bank shall be under any further obligation to make Advances under this Agreement and no further Letters of Credit or Bank Guarantees may be requested under this Agreement; and/or 

  

	 	(b)	 	declare all Advances, accrued interest thereon and any other sum then payable under this Agreement and any of the other Senior Finance Documents to be immediately due and payable,
whereupon such amounts shall become so due and payable; and/or 

  

	 	(c)	 	declare all Advances to be payable on demand whereupon the same shall become payable on demand; and/or 

  

	 	(d)	 	require the provision of cash cover whereupon each Borrower shall immediately provide cash cover in an amount equal to the total Contingent Liability of the Banks under all Letters
of Credit and Bank Guarantees issued under this Agreement for its account. 

  

	17.3	 	Ancillary Facilities: On the occurrence of an Event of Default and whilst the same is continuing, an Ancillary Bank may (but prior to notice being served under Clause 17.2
(Cancellation and Repayment) only if so instructed by the Facility Agent on the instructions of the Majority Banks) and shall if so instructed by the Majority Banks: 

  

	 	(a)	 	terminate the availability of the Ancillary Facilities, whereupon the Ancillary Facilities shall cease to be available and the relevant Ancillary Bank shall no longer be under any
obligation to provide any credit provided for thereunder; and/or 

  

	 	(b)	 	declare all amounts outstanding under the Ancillary Facilities due and payable whereupon such amounts shall become due and payable together with accrued interest thereon and any
other sum then payable under the relevant Ancillary Documents; and/or 

  

	 	(c)	 	require the provision of cash cover whereupon the relevant Borrowers shall immediately provide cash cover in an amount equal to the contingent liability of the Ancillary Bank under

  

 136 

 all instruments issued under the terms thereof which give rise to a contingent liability on the part of
the Ancillary Bank; and/or 
  

	 	(d)	 	terminate any foreign exchange or hedging agreement entered into by the Ancillary Bank under the terms of the Ancillary Facilities. 

  

	17.4	 	Obligors: Notwithstanding Clause 17.2 (Cancellation and Repayment), upon the actual or deemed entry of an order for relief under the US Bankruptcy Code with respect to
any Obligor, the Facilities shall cease to be available to such Obligor, all Advances outstanding to such Obligor shall become immediately due and payable and such Obligor shall be required to provide cash cover in respect of all Letters of Credit
and Bank Guarantees issued for its account in each case automatically and without any further action by any party hereto. 

  

	17.5	 	Material Group Companies: If a company is a Material Group Company solely as a result of the operation of the proviso to the definition of Material Group Company, it shall
not be treated as a Material Group Company for the purposes of sub-clauses 17.1(f) to (i) (inclusive), (n) and (o) unless it would be a Material Group Company within the meaning of paragraph (b) of the definition of Material Group Company (but as if
the reference to “5%” were replaced by “3%”) provided that the occurrence of any event which would constitute an Event of Default under any of such sub-clauses if it were to be treated as a Material Group Company for the purposes
of such sub-clauses, shall be an Event of Default in relation to such company for the purposes of the Security Documents. 

  

	18.	 	GUARANTEES 

  

	18.1	 	Guarantee: In consideration of the Senior Finance Parties entering into the Senior Finance Documents each Guarantor (jointly and severally with the other Guarantors)
irrevocably and unconditionally; 

  

	 	(a)	 	guarantees to each Senior Finance Party as principal obligor the performance by each other Obligor of all its obligations under the Senior Finance Documents and the payment when due
by each other Obligor of all sums payable under the Senior Finance Documents; 

  

	 	(b)	 	undertakes with each Senior Finance Party that if any other Obligor fails to pay any of the indebtedness referred to in Clause 18.1(a) (Guarantee) on its due date it will pay
that sum on demand; and 

  

	 	(c)	 	indemnifies each Senior Finance Party on demand against all losses, damages, costs and expenses incurred by such Senior Finance Party arising as a result of any obligation of any
Obligor under the Senior Finance Documents being or becoming unenforceable, invalid or illegal. 

  
 provided that subject to Clause 18.10 (Guarantee Limitations), the amount recoverable from each of the Subordinated Guarantor, UK Newco 3, UK Newco
5, Luxco, US Newco 1 and the US Principal Borrower under this Clause 18.1 shall be limited in each case to the principal amount of £957,000,000 (or its Other Currency Equivalent) in relation to Financial Indebtedness under the Term Facilities
and £100,000,000 (or its Other Currency Equivalent) in relation to Financial Indebtedness under the Revolving Facility, provided always that such limitation on the amount recoverable shall not operate so as to release any Guarantor from its
obligations under this Clause 18 (Guarantees) as they exist at the date of each of (i) the Fifth Amendment Agreement and (ii) the Sixth Amendment Agreement. 
  

	18.2	 	Guarantors as Principal Debtors: As between each Guarantor and the Senior Finance Parties but without affecting the obligations of any Borrower, each Guarantor shall be
liable under Clause 18.1 (Guarantee) as if it were the sole principal debtor and not merely a surety. Accordingly, its obligations 

  

 137 

 thereunder and any liability deriving therefrom shall not be discharged or affected by (and each
Guarantor hereby irrevocably waives any defences it may now or hereafter acquire in any way relating to) any circumstance which would so discharge or affect such obligations or liability if such Guarantor were the sole principal debtor including:

  

	 	(a)	 	any time, indulgence, waivers or consents given to any Obligor or any other person; 

  

	 	(b)	 	any amendment, variation or modification to any Finance Document or any other security or guarantee or any increase in the amount of the Facilities; 

  

	 	(c)	 	the making or absence of any demand on any Obligor or any other person for payment or performance of any other obligations, or the application of any moneys at any time received
from any Obligor or any other person; 

  

	 	(d)	 	the enforcement, perfecting or protecting of or absence of enforcement, perfecting or protecting of any security, guarantee or undertaking (including, without limitation, all or any
of the obligations and liabilities of any Obligor); 

  

	 	(e)	 	the release, taking, giving or abstaining from taking of any security, guarantee or undertaking (including, without limitation, the Senior Finance Documents);

  

	 	(f)	 	the insolvency, winding-up, administration, receivership or the commencement of any other insolvency procedure under the laws of any relevant jurisdiction in relation to any
Obligor, any Senior Finance Party or any other person or the making of any arrangement or composition with or for the benefit of creditors by any other Obligor, any Senior Finance Party or any other person; 

  

	 	(g)	 	any amalgamation, merger or change in constitution in relation to any Obligor, any Senior Finance Party or any other person; 

  

	 	(h)	 	the illegality, invalidity or unenforceability of or any defect in any provision of any Finance Document or any security, obligations or liabilities arising or expressed to arise
thereunder; 

  

	 	(i)	 	any Senior Finance Party ceasing or refraining from giving credit or making loans or advances to or otherwise dealing with any Obligor or any other person or any other security,
guarantee or undertaking; 

  

	 	(j)	 	the failure of any Senior Finance Party to disclose to any Obligor any information relating to the business, assets, financial condition or prospects of any other Obligor now or
hereafter known to such Senior Finance Party (each Guarantor waiving any duty on the part of the Senior Finance Parties to disclose such information); or 

  

	 	(k)	 	any other circumstance which, but for this provision, might operate to release or otherwise exonerate such Guarantor from its obligations hereunder. 

  

	18.3	 	Other Guarantors: It is specifically acknowledged and agreed that the Senior Finance Parties may from time to time make any arrangement, compromise, waiver or other dealing
with any Obligor in relation to any guarantee or other obligations under the Senior Finance Documents which such Senior Finance Parties may think fit and no such arrangement, compromise, waiver or other dealing shall exonerate or discharge any other
Obligor from its obligations under the Senior Finance Documents. 

  

 138 

	18.4	 	Guarantors’ Obligations Continuing: Each Obligor’s obligations under this Agreement are and will remain in full force and effect by way of continuing security until
no sum remains to be lent or remains payable under this Agreement. Furthermore, those obligations are additional to, and not instead of, any security or other guarantee or indemnity at any time existing in favour of any person, whether from that
Obligor or otherwise and each Obligor waives any right it may have to require any Senior Finance Party to enforce any such security, guarantee or indemnity before claiming against it. 

  

	18.5	 	Exercise of Guarantors’ Rights: So long as any sum remains payable or capable of becoming payable under the Senior Finance Documents: 

  

	 	(a)	 	any right of an Obligor (by reason of performance of any of its obligations hereunder) to be indemnified by any other Obligor or to take the benefit of or enforce any security or
other guarantee or to receive any payment from any other Obligor shall be exercised and enforced by such Obligor and shall only be exercised and enforced by such Obligor in such manner and on such terms as the Facility Agent may require; and

  

	 	(b)	 	any amount received or recovered by such Obligor as a result of any exercise of any such right shall be held in trust for the Senior Finance Parties and immediately paid to the
Facility Agent. 

  

	18.6	 	Avoidance of Payments: Each Obligor shall on demand indemnify the Facility Agent and each Senior Finance Party against any funding or other cost, loss, expense or liability
sustained or incurred by it as a result of it being required for any reason to refund all or part of any amount received or recovered by it from such Obligor in respect of any sum payable by any Borrower under this Agreement.

  

	18.7	 	Suspense Accounts: Any amount received or recovered by any Senior Finance Party (otherwise than as a result of a payment by a Borrower to the Facility Agent) in respect of
any sum due and payable by any Borrower under this Agreement may be placed in a suspense account and kept there for so long as the recipient thinks fit. Amounts deposited in any such account shall accrue interest at the Facility Agent’s usual
rate for deposits of a similar amount and nature from time to time and interest accrued shall be credited to such account. 

  

	18.8	 	Primary Obligations: As a separate and alternative stipulation, each Obligor unconditionally and irrevocably agrees that any sum expressed to be payable by any Obligor under
this Agreement but which is for any reason (whether or not now existing and whether or not now known or becoming known to any party to this Agreement) not recoverable from such Obligor on the basis of a guarantee shall nevertheless be recoverable
from it as if it were the sole principal debtor and shall be paid by it to the Facility Agent on demand. 

  

	18.9	 	Further Guarantors: Subject to the Security/Guarantee Principles, the Parent will: 

  

	 	(a)	 	procure that any company which is incorporated in England, Wales and Scotland (and which is not, or ceases to be, a Dormant Company) or any other person which is a Material Group
Company (but not including the Issuer or any company which is acquired or formed as part of a Permitted Acquisition and in respect of whose assets or shares a Security Interest under paragraph (j)(ii) of the definition of Permitted Security Interest
is granted) which is not a Guarantor shall become a Guarantor by delivering an Accession Document duly executed by it and by the Parent to the Facility Agent within 10 Business Days after being required to become a Guarantor by the Facility Agent
(acting on the instructions of the Majority Banks); 

  

	 	(b)	 	procure that any such company or Material Group Company which enters into an Accession Document shall within 15 Business Days after being required to become a Guarantor by the
Facility Agent (acting on the instructions of the Majority Banks) execute such Security 

  

 139 

 Documents (in favour of the Security Agent for the benefit of the Senior Finance Parties) as the Facility
Agent shall require; and 
  

	 	(c)	 	procure that there shall be delivered to the Facility Agent with the original executed Accession Document and any such Security Documents such evidence of the due execution of the
Accession Document and such Security Documents as the Facility Agent shall reasonably require together with a legal opinion satisfactory to the Facility Agent. 

  

	18.10	 	Guarantee Limitations: 

  

	 	(a)	 	Each of the parties to this Agreement hereby confirms that it is the intention of all such persons that the obligations of each Guarantor organised under the laws of any state of
the United States of America (a “U.S. Guarantor”) under this Clause 18 (Guarantees) do not constitute a fraudulent transfer or conveyance for the purposes of any proceeding of the type referred to in Clause 17.1(f), (g), (h),
(i), (j) or (k) (Events of Default) or Title 11, U.S. Code, or any similar foreign, federal or state law for the relief of debtors, the United States Uniform Fraudulent Conveyance Act, the United States Uniform Fraudulent Transfer Act or any
similar foreign, federal or state law to the extent applicable to the obligations of a U.S. Guarantor under this Clause 18 (Guarantees). To effect the foregoing intention, the Facility Agent, the Arranger Group, the Banks and the Guarantors
hereby irrevocably agree that the obligations of each U.S. Guarantor at any time shall be limited to the maximum amount as will result in the obligations of such U.S. Guarantor under this Clause 18 (Guarantees) not constituting a fraudulent
transfer or conveyance. 

  

	 	(b)	 	The liability of each Guarantor incorporated under the laws of Luxembourg under this Clause 18 (Guarantee) and under any indemnities contained elsewhere in this Agreement:

  

	 	(i)	 	shall not include any obligation which, if incurred, would constitute the provision of financial assistance (as defined in article 49-6 of the Luxembourg Company Act of
10th August, 1915, as amended), whether directly or indirectly, for the subscription for, or the acquisition or the
refinancing of the acquisition of, its own shares; and 

  

	 	(ii)	 	shall be limited, at any time, to an aggregate amount not exceeding the greater of: 

  

	 	(A)	 	the Luxembourg Guarantor’s net worth (“capitaux propres”) (as referred to in article 214 of the Luxembourg Company Act of 10th August, 1915, as amended) as reflected in its then most recent annual accounts approved at a general meeting of its shareholders; and

  

	 	(B)	 	the Luxembourg Guarantor’s net worth (“capitaux propres”) (as referred to in article 214 of the Luxembourg Company Act of 10th August, 1915, as amended) immediately following Completion. 

  
 For the avoidance of doubt, the obligations and liabilities of each Guarantor under this Clause 18 (Guarantee) shall
include a guarantee of the liabilities to the Security Agent as joint creditor together with each of the other Senior Finance Parties under Clause 19.13 (Security Agent as Joint and Several Creditor and Representative) of the Intercreditor
Agreement. 
  

	18.11	 	Release of Security: If a member of the Group shall dispose of any asset (including shares in any other member of the Group) and such disposal is permitted by the terms of
the Senior Finance Documents or is otherwise consented to pursuant to the terms of the Senior Finance Documents then the Facility Agent shall promptly (and is hereby authorised by the Senior Finance Parties to) execute 

  

 140 

 and instruct the Security Agent to execute such documents effecting the release of such asset from the
security created in favour of the Senior Finance Parties as shall be required to allow the disposal to take place. 
  

	18.12	 	Release of Guarantors: If all of the shares in a member of the Group which is a Guarantor are disposed of and such disposal is permitted by the terms of the Senior Finance
Documents or consented to pursuant to the terms of the Senior Finance Documents and as a result the Guarantor ceases to be a member of the Group, the Facility Agent shall promptly (and is hereby authorised by the Senior Finance Parties to) execute
and instruct the Security Agent to execute such documents as may be necessary to release such Guarantor from all past, present and future liabilities (including rights of contribution) under the Senior Finance Documents and all existing Guarantors
hereby consent to such release and confirm that their respective liabilities as Guarantor shall not be discharged or otherwise affected as a consequence of such release. 

  

	19.	 	THE AGENTS AND THE OTHER SENIOR FINANCE PARTIES 

  

	19.1	 	Authorisation: 

  

	 	(a)	 	Each Original Facilities Bank hereby appoints Merrill Lynch International as Original Facilities Syndication Agent, CIBC World Markets plc as Documentation Agent and Merrill Lynch
International and CIBC World Markets plc as the Original Facilities Joint Bookrunners. 

  

	 	(b)	 	Each Tranche C3 Bank hereby appoints CIBC World Markets plc as Tranche C3 Syndication Agent and CIBC World Markets plc and Credit Suisse First Boston as the Tranche C3 Joint
Bookrunners. 

  

	 	(c)	 	Each Tranche D Bank hereby appoints CIBC World Markets plc as Tranche D Syndication Agent and CIBC World Markets plc and Credit Suisse First Boston as the Tranche D Joint
Bookrunners. 

  

	 	(d)	 	Each Bank hereby appoints Deutsche Bank AG London as the Facility Agent and each Senior Finance Party hereby appoints Deutsche Bank AG London as the Security Agent to act as agent
and security trustee for the purposes of the Senior Finance Documents entered into by it in such capacity. 

  

	 	(e)	 	Each Bank authorises the Facility Agent, the Original Facilities Syndication Agent, the Documentation Agent, each Original Facilities Joint Bookrunner, the Tranche C3 Syndication
Agent, the Tranche D Syndication Agent, each Tranche C3 Joint Bookrunner, each Tranche D Joint Bookrunner and each Senior Finance Party authorises the Security Agent, to take in each case such action as agent on its behalf and to exercise such
rights, powers and discretions under the Senior Finance Documents as are delegated to such Agent by the terms of the Senior Finance Documents together with such other powers and discretions as are reasonably incidental thereto and to give a good
discharge for any moneys payable under the Senior Finance Documents. 

  

	 	(f)	 	Except as expressly provided in Clause 20.7 (The Register), each of the Agents will act solely as agent for the Banks and/or the Senior Finance Parties (as the case may be)
in carrying out its respective functions as agent under the Senior Finance Documents. No Agent shall have, nor be deemed to have, assumed any obligations to, or trust or fiduciary relationship with, the other Senior Finance Parties or any Obligor
other than those for which specific provision is made by the Senior Finance Documents. 

  

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	19.2	 	Agents’ Duties: Each Agent shall: 

  

	 	(a)	 	promptly send to each Bank each notice received by it from an Obligor under any of the Senior Finance Documents except in the case of any notice relating to a particular Bank which
shall be sent to that Bank only; 

  

	 	(b)	 	promptly send to each Bank a copy of any document or information received by it pursuant to Clause 16.6 (Information and Accounting Undertakings) and (if requested by the
relevant Bank) a copy of any legal opinion delivered in relation to this Agreement or any Security Document and a copy of any document delivered to it pursuant to Clause 4.1 (Initial Conditions Precedent to Drawdown of the Original
Facilities), or Clause 4.2 (Initial Conditions Precedent to Drawdown of the Tranche D Term Facility) or Clause 4.3 (Initial Conditions Precedent to Drawdown of the Tranche C3 Term Facility) other than the Fees Letters or the Agency
Fees Letter; 

  

	 	(c)	 	subject to those provisions of the Senior Finance Documents which require the consent of all the Banks and, in the case of the Security Agent, subject as provided in Clause 19.12
(Role of Security Agent), act in accordance with any instructions from the Majority Banks or, if so instructed by the Majority Banks, refrain from exercising a right, power or discretion vested in it under any of the Senior Finance Documents;

  

	 	(d)	 	have only those duties, obligations and responsibilities expressly specified in the Senior Finance Documents; and 

  

	 	(e)	 	without prejudice to Clause 19.7 (Information), promptly notify each Bank, each Hedging Bank and the Facility Agent if it becomes aware of the occurrence of any Event of
Default or Potential Event of Default. 

  

	19.3	 	Agents’ Rights: Each Agent and, (for the purposes of paragraph (j) below only) each member of the Arranger Group may: 

  

	 	(a)	 	perform any of its duties, obligations and responsibilities under this Agreement or any of the other Senior Finance Documents by or through its personnel or agents on the basis that
each Agent may extend the benefits of any indemnity received by it hereunder to its personnel or agents; 

  

	 	(b)	 	refrain from exercising any right, power or discretion vested in it under the Senior Finance Documents until it has received instructions from the Majority Banks or the Facility
Agent or the Majority Senior Creditors (as defined in the Intercreditor Agreement), as the case may be, as to whether (and, if it is to be, the way in which) it is to be exercised and shall in all cases be fully protected when acting, or (if so
instructed) refraining from acting, in accordance with instructions from the Majority Banks or the Facility Agent or the Majority Senior Creditors (as the case may be); 

  

	 	(c)	 	treat (a) the Bank which makes available any portion of an Advance as the person entitled to repayment of that portion unless the Facility Agent has received a Transfer Certificate
in relation to all or part of it in accordance with Clause 20 (Assignments and Transfers) and the relevant entries have been made in the Register (as defined in Clause 20.7 (The Register)); and (b) the office set under a Bank’s
name at the end of this Agreement (or, in the case of a Transferee, at the end of the Transfer Certificate to which it is a party as Transferee) as its Lending Office unless the Facility Agent has received from that Bank a notice of change of

  

 142 

	 	 
Lending Office and each Agent may act on any such notice until it is superseded by a further such notice; 

  

	 	(d)	 	refrain from doing anything which would or might in its opinion be contrary to any law, regulation or judgment of or of any court of any jurisdiction or any directive of any agency
of any state or otherwise render it liable to any person and may do anything which is in its opinion necessary to comply with any such law, regulation, judgment or directive; 

  

	 	(e)	 	assume that no Event of Default or Potential Event of Default has occurred unless an officer of such Agent, while active on the account of the Obligors in connection with the
Facilities, acquires actual knowledge to the contrary; 

  

	 	(f)	 	refrain from taking any step (or further step) to protect or enforce the rights of any Senior Finance Party under the Senior Finance Documents until it has been indemnified and/or
secured to its satisfaction against any and all costs, losses, expenses or liabilities (including legal fees) which it would or might sustain or incur as a result; 

  

	 	(g)	 	rely on any communication or document believed by it to be genuine and correct and assume it to have been communicated or signed by the person by whom it purports to be
communicated; 

  

	 	(h)	 	rely as to any matter of fact which might reasonably be expected to be within the knowledge of any person on a statement by or on behalf of such person; 

  

	 	(i)	 	obtain and pay for such legal or other expert advice or services as may to it seem necessary or desirable and rely on any such advice; 

  

	 	(j)	 	accept deposits from, lend money to, provide any advisory or other services to or engage in any kind of banking or other business with any party to the Senior Finance Documents, or
any Affiliate of any party (and, in each case, may do so without liability to account); 

  

	 	(k)	 	in the case of the Security Agent, accept without enquiry such title as an Obligor may have to any asset or assets intended to be the subject of the security created by the Security
Documents; and 

  

	 	(l)	 	in the case of the Security Agent, hold or deposit any title deeds, Security Documents or any other documents in connection with any of the assets charged by the Security Documents
with any banker or banking company or any company whose business includes undertaking the safe custody of deeds or documents or with any lawyer or firm of lawyers and it shall not be responsible for or be required to insure against any loss incurred
in connection with any such holding or deposit and it may pay all sums required to be paid on account or in respect of any such deposit. 

  

	19.4	 	Exoneration: None of the Arranger Group, the Agents or any of their respective personnel or agents: 

  

	 	(a)	 	shall be responsible for the adequacy, accuracy or completeness of any representation, warranty, statement or information in the Senior Finance Documents or any notice or other
document delivered under the Senior Finance Documents (including, without limitation, the Yell Syndication Memorandum, the McLeod Syndication Memorandum and the Bridge Note Refinancing Memorandum); 

  

 143 

	 	(b)	 	shall be responsible for the execution, delivery, validity, legality, adequacy, enforceability or admissibility in evidence of any of the Senior Finance Documents;

  

	 	(c)	 	shall be obliged to enquire as to the occurrence or continuation of an Event of Default or Potential Event of Default or as to the accuracy or completeness of any representation or
warranty made by any person; 

  

	 	(d)	 	shall be liable for anything done or not done by it or any of them under or in connection with the Senior Finance Documents save in the case of its own or their own negligence or
wilful misconduct; 

  

	 	(e)	 	shall be responsible for any failure of any Obligor or any other Senior Finance Party duly and punctually to observe and perform their respective obligations under the Senior
Finance Documents; 

  

	 	(f)	 	shall be responsible for the consequences of relying on the advice of any professional advisers selected by any of them in connection with the Senior Finance Documents; or

  

	 	(g)	 	shall be liable for acting (or refraining from acting) in what it believes in good faith to be in the best interests of the Senior Finance Parties or any of them in circumstances
where it has been unable, or it is not practicable, to obtain instructions in accordance with this Agreement. 

  

	19.5	 	Agents as Senior Finance Parties: Each Agent shall have the same rights and powers with respect to its participation in the Senior Finance Documents as any other Senior
Finance Party and may exercise those rights and powers as if it were not also acting as an Agent. 

  

	19.6	 	Non-Reliance: Each Senior Finance Party confirms that it has itself been, and will at all times continue to be, solely responsible for making its own independent
investigation and appraisal of the business, financial condition, creditworthiness, status and affairs of each Obligor and the Subsidiaries of each Obligor and has not relied, and will not at any time rely, on any Agent or any of the Arranger Group:

  

	 	(a)	 	to provide it with any information relating to the business, financial condition, creditworthiness, status or affairs of any Obligor or the Subsidiaries of any Obligor, whether
coming into its possession before or after the making of any Drawing (save as provided in Clause 19.2 ( Agents’ Duties)); or 

  

	 	(b)	 	to check or enquire into the adequacy, accuracy or completeness of any information provided by any Obligor or the Subsidiaries of any Obligor under or in connection with the Senior
Finance Documents (whether or not such information has been or is at any time circulated to it by any Agent or any of the Arranger Group); or 

  

	 	(c)	 	to assess or keep under review the business, financial condition, creditworthiness, status or affairs of any Obligor or the Subsidiaries of any Obligor. 

  

	19.7	 	Information: 

  

	 	(a)	 	All communications to an Obligor are to be made by or through the Facility Agent save in respect of any communication in connection with the Security Documents to which the Security
Agent is a party in which case all such communications are to be made by or through the Security Agent. Each Senior Finance Party will notify the Facility Agent of and provide the Facility Agent with, a copy of any communication between such Senior
Finance Party and 

  

 144 

 an Obligor or any other of the Senior Finance Parties on any matter concerning the Facilities or the
Senior Finance Documents. 
  

	 	(b)	 	Notwithstanding anything to the contrary expressed or implied herein, no Agent shall as between itself and the other Senior Finance Parties be bound to disclose to any other Senior
Finance Party or other person (i) any information, disclosure of which might, in the opinion of such Agent, result in a breach of any law or directive or be otherwise actionable at the suit of any person, or (ii) any information supplied by any
member of the Group to such Agent which is identified by a member of the Group at the time of supply as being unpublished, confidential, or price sensitive information relating to a proposed transaction by a member of the Group and supplied solely
for the purpose of evaluating in consultation with such Agent whether such transaction might require a waiver or amendment to any of the provisions of the Senior Finance Documents. 

  

	 	(c)	 	In acting as an Agent for the Senior Finance Parties, each Agent’s department which undertakes the relevant agency role will be treated as a separate entity from any of its
other departments (or similar unit of such Agent in any subsequent reorganisation) or Affiliates and, any information given by any member of the Group to one of the other departments which is acting in an advisory or other capacity to the Group or
any member of the Group and not in the capacity of an Agent is to be treated as confidential and will not be available to the Senior Finance Parties without the consent of the Parent provided that: 

  

	 	(i)	 	the consent of the Parent will not be required in relation to any information which an Agent in its discretion, determines relates to an Event of Default or Potential Event of
Default or in respect of which the Banks have given a Confidentiality Undertaking; and 

  

	 	(ii)	 	if representatives or employees of an Agent receive information in relation to a Event of Default or Potential Event of Default whilst acting in an advisory capacity they will not
be obliged to disclose such information to representatives or employees of such Agent in their capacity as agent bank or security agent hereunder or to any of the Banks if to do so would breach any rule or directive or fiduciary duty imposed upon
such persons. 

  

	19.8	 	Indemnity to Agents: To the extent that any Obligor does not do so on demand or is not obliged to do so, each Bank shall on demand indemnify each Agent in the proportion
borne by its Commitments to the Total Commitments at the relevant time (or, if no Commitments are then outstanding, in the proportion borne by its Commitments to the Total Commitments at the last time there were any) against any cost, expense or
liability referred to in Clause 24 (Indemnities) or sustained or incurred by each Agent in complying with any instructions from the Majority Banks or otherwise sustained or incurred by each Agent in connection with the Senior Finance
Documents or its or their respective duties, obligations and responsibilities under the Senior Finance Documents except to the extent that they are sustained or incurred as a result of the negligence or wilful misconduct of an Agent or any of its
personnel or agents. 

  

	19.9	 	Resignation of Agents: 

  

	 	(a)	 	Each Agent may resign its appointment hereunder at any time without assigning any reason therefor by giving not less than thirty days’ prior written notice to that effect to
the Obligors’ Agent and each of the other Senior Finance Parties provided that no such resignation shall be effective until a successor for such Agent is appointed in accordance with this Clause 19.9 (Resignation of Agents). If the
retiring Agent gives notice of its resignation then any reputable 

  

 145 

 and experienced bank or other financial institution with offices in London may be appointed as a
successor to that Agent by the Majority Banks during the period of such notice with the consent of the Obligors’ Agent (not to be unreasonably withheld or delayed) except where an Event of Default has occurred and is continuing and the Group
has a shadow or actual senior debt rating less than B from Standard & Poor’s or the equivalent from Moody’s Investor Services, Inc. in which case no such consent will be required but, if no such successor is so appointed, the retiring
Agent may appoint a successor itself in consultation with the Obligors’ Agent. If a successor to such Agent is so appointed, then (i) the retiring Agent shall be discharged from any further obligation hereunder but shall remain entitled to the
benefit of the provisions of this Clause 19 (The Agents and the other Senior Finance Parties) and (ii) its successor and each of the other parties hereto shall have the same rights and obligations amongst themselves as they would have had if
such successor had been an original party hereto. 
  

	 	(b)	 	The retiring Agent will co-operate with the successor Agent in order to ensure that its functions are transferred to the successor Agent and will promptly make available to the
successor Agent such documents and records as have been maintained in connection with the Senior Finance Documents in order that the successor Agent is able to discharge its functions. 

  

	 	(c)	 	The provisions of this Agreement will continue in effect for the benefit of any retiring Agent in respect of any actions taken or omitted to be taken by it or any event occurring
before the termination of its agency. 

  

	 	(d)	 	The Security Agent’s resignation shall not take effect until all necessary deeds and documents have been entered into in order to substitute its successor as holder of the
Security Documents and each other party to this Agreement agrees to promptly enter into any documents reasonably required for this purpose. 

  

	19.10	 	Payments to Senior Finance Parties: 

  

	 	(a)	 	Each Agent will account to the other Senior Finance Parties for their respective due proportions of all sums received by it for such Senior Finance Parties, whether by way of
repayment of principal or payment of interest, commitment commission, fees or otherwise. 

  

	 	(b)	 	Each Agent and each member of the Arranger Group may retain for its own use and benefit, and will not be liable to account to the other Senior Finance Parties for all or any part of
any sums received by way of agency or arrangement fee or by way of reimbursement of expenses incurred by it. 

  

	19.11	 	Change of Office of Agents: Each Agent may at any time and from time to time in its sole discretion by written notice to the Obligors’ Agent and each of the other Senior
Finance Parties designate a different office in the United Kingdom from which its duties as an Agent will be performed. 

  

	19.12	 	Role of the Security Agent: The Security Agent shall hold the benefit of the Security Documents to which it is party as agent and security trustee for itself and the Senior
Finance Parties to apply all payments and other benefits received by it by reason thereof, or otherwise realised thereunder, in accordance with this Agreement. 

  

	19.13	 	Security Agent as Joint and Several Creditor and Representative: 

  

	 	(a)	 	Each of the Obligors and each of the Senior Finance Parties (other than the Security Agent) agree that the Security Agent shall be the joint creditor (together with the relevant
Senior 

  

 146 

 Finance Parties) of each and every obligation of any Obligor towards each of the Senior Finance Parties
(other than the Security Agent) under the Senior Finance Documents, and that accordingly the Security Agent will have its own independent right to demand performance by the relevant Obligor of those obligations. However, any discharge of any such
obligation to one of the Security Agent or a Senior Finance Party (other than the Security Agent) shall, to that extent, discharge the corresponding obligation owing to the other. 
  

	 	(b)	 	Without limiting or affecting the Security Agent’s rights against any Obligor (whether under this paragraph or under any other provision of the Senior Finance Documents), the
Security Agent agrees with each other Senior Finance Party (on a several and divided basis) that, subject as set out in the next sentence, it will not exercise its rights as a joint creditor with a Senior Finance Party (other than the Security
Agent) except with the consent of the relevant Senior Finance Party. However, for the avoidance of doubt, nothing in the previous sentence shall in any way limit the Security Agent’s right to act in the protection or preservation of rights
under, or to enforce any Security Document as contemplated by, this Deed and/or the relevant Security Document (or to do any act reasonably incidental to any of the foregoing). 

  

	20.	 	ASSIGNMENTS AND TRANSFERS 

  

	20.1	 	Successors: This Agreement shall be binding upon and enure to the benefit of each party hereto and its or any subsequent successors, Transferees and assigns.

  

	20.2	 	Assignments and Transfers by the Obligors: No Obligor shall be entitled to assign or transfer all or any of its rights, benefits and obligations hereunder.

  

	20.3	 	Assignments and Transfers by Banks: Any Bank may assign all or any of its rights and benefits hereunder or transfer in accordance with Clause 20.5 (Transfers by Banks)
all or any of its rights, benefits and obligations hereunder to any person, provided that: 

  

	 	(a)	 	such assignment or transfer shall be in a minimum amount of £5,000,000, US$5,000,000 or Euro 5,000,000 except in the case of: 

  

	 	(i)	 	an assignment or transfer which has the effect of reducing the participation of the relevant Bank to zero in any of the Facilities; or 

  

	 	(ii)	 	assignments or transfers which are made by a Bank in connection with syndication of any of the Facilities at any time prior to completion of syndication (as notified to the
Obligors’ Agent by the Syndication Agent) provided that after all such assignments or transfers have been effected (A) such Bank and/or its Affiliates and/or its Related Funds, and (B) such Transferees and/or their Affiliates and/or Related
Funds maintain in each case an aggregate holding in respect of the Facilities of not less than £5,000,000, US$5,000,000 or Euro 5,000,000 or such other aggregate amount as shall have been previously agreed by the Obligors’ Agent and the
Facility Agent; or 

  

	 	(iii)	 	an assignment or transfer which is made by a Bank to its Affiliate or to another Bank or to a Related Fund provided that such assignment or transfer is in a minimum amount of
£1,000,000, US$1,000,000 or Euro 1,000,000 and that after such assignment or transfer has been effected (A) such Bank and/or its Affiliates and/or its Related Funds and (B) such Transferee and/or its Affiliates and/or Related Funds maintain in
each case an aggregate holding in respect of the Facilities of not less than £5,000,000, US$5,000,000 or Euro 5,000,000 or such other aggregate amount as shall have been previously agreed by the Obligors’ Agent and the Facility Agent;

  

 147 

	 	(b)	 	in the case of an assignment or transfer in respect of the Revolving Facility, each Issuing Bank has approved the Transferee (such consent not to be unreasonably withheld);

  

	 	(c)	 	where the assignment or transfer in question occurs after the completion of syndication of the relevant Facility (as notified to the Obligors’ Agent by the Original Facilities
Syndication Agent, the Tranche C3 Syndication Agent or, as the case may be, the Tranche D Syndication Agent), such assignment/transfer is subject to the approval of the Obligors’ Agent (such approval not to be unreasonably withheld or delayed)
except that no approval of the Obligors’ Agent will be required where such assignment or transfer is made to another Bank or to an Affiliate of any Bank or to a Related Fund or where an Event of Default has occurred and is continuing and the
Group has an actual or shadow senior debt rating less than B from Standard & Poor’s or the equivalent from Moody’s Investor Services, Inc. provided that if the assignment or transfer does not require the consent of the Obligors’
Agent, the Facility Agent shall as soon as practicable notify the Obligors’ Agent of each such assignment or transfer; 

  

	 	(d)	 	such assignee or Transferee has entered into an accession agreement to the Intercreditor Agreement; and 

  

	 	(e)	 	such Transferee is a bank, trust or other financial institution or other entity which is regularly engaged in making, purchasing or investing in or securitising loans and/or
securities or which was established for the purpose of making, purchasing or investing in or securitising loans and/or securities. 

  

	20.4	 	Assignments by Banks: If any Bank assigns all or any of its rights and benefits hereunder in accordance with Clause 20.3 (Assignments and Transfers by Banks), then,
unless and until the assignee has delivered a notice to the Facility Agent confirming in favour of the Facility Agent and the other Senior Finance Parties that it shall be under the same obligations towards each of them as it would have been under
if it had been an original party hereto as a Bank (whereupon such assignee shall become a party hereto as a “Bank”), the Facility Agent and the other Senior Finance Parties shall not be obliged to recognise such assignee as having the
rights against each of them which it would have had if it had been such a party hereto. 

  

	20.5	 	Transfers By Banks: If any Bank wishes to transfer by novation all or any of its rights, benefits and/or obligations hereunder as contemplated in Clause 20.3 (Assignments
and Transfers by Banks) then such transfer may be effected by (i) the delivery to the Facility Agent of a duly completed Transfer Certificate executed by such Transferor Bank and the relevant Transferee and (ii) the transfer being recorded in
the Register (as defined in Clause 20.7 (The Register)). The registration of the transfer shall be recorded by the Facility Agent upon receipt of a duly completed Transfer Certificate duly executed by the Transferor Bank and the Transferee.
Upon the earlier of (i) the Transfer Date (provided that the Facility Agent had received the duly completed Transfer Certificate five Business Days (or such earlier Business Day as may be agreed by the Facility Agent) prior to the proposed Transfer
Date) and (ii) the date five Business Days following the receipt of the duly completed Transfer Certificate then: 

  

	 	(a)	 	to the extent that in such Transfer Certificate the Transferor Bank seeks to transfer by novation its rights, benefits and obligations hereunder, each of the Obligors and such
Transferor Bank shall be released from further obligations towards one another hereunder and their respective rights against one another shall be cancelled (such rights and obligations being referred to in this Clause 20.5 as “discharged
rights and obligations”); 

  

	 	(b)	 	each of the Obligors and the Transferee party thereto shall assume obligations towards one another and/or acquire rights against one another which differ from such discharged rights
and 

  

 148 

 obligations only insofar as such Obligor and such Transferee have assumed and/or acquired the same in
place of such Obligor and such Transferor Bank; 
  

	 	(c)	 	the Facility Agent, such Transferee and the other Senior Finance Parties shall acquire the same rights and benefits and assume the same obligations between themselves as they would
have acquired and assumed had such Transferee been an original party hereto as a Bank with the rights, benefits and/or obligations acquired or assumed by it as a result of such transfer and to that extent the Facility Agent and the relevant
Transferor Bank shall each be released from further obligations to each other hereunder; 

  

	 	(d)	 	such Transferee shall become a party hereto as a “Bank”. 

  

	20.6	 	Assignment and Transfer Fees: On the date upon which an assignment takes effect pursuant to Clause 20.4 (Assignments by Banks) or a transfer takes effect pursuant to
Clause 20.5 (Transfers by Banks) the relevant assignee or Transferee shall pay to the Facility Agent for its own account a fee of £1,500 provided, however, that no such fee shall be payable in the case of an assignment or transfer which
is made by a Bank to another Bank or an Affiliate of a Bank or a Related Fund of the transferor Bank and provided further that in the case of assignments or transfers made on the same day by a Bank in accordance with Clause 20.3 (Assignments and
Transfers by Banks) to more than one person or to more than one fund managed by the same investment advisor, only a single fee of £1,500 shall be payable for all such same-day assignments. 

  

	20.7	 	The Register: 

  

	 	(a)	 	The Facility Agent, acting for this purpose as the agent of the Obligors, shall maintain at its address referred to in Clause 22.1 (Notices) (i) a copy of each notice
referred to in Clause 20.4 (Assignment by Banks) and each Transfer Certificate referred to in Clause 20.5 (Transfer by Banks) delivered to and accepted by it and (ii) with respect to each Facility, a register for the recordation of the
names and addresses of the Banks and the Commitment of, and principal amount owing to, each Bank from time to time (the “Register”) under such Facility. The entries in each Register shall be conclusive and binding for all purposes,
absent manifest error, and the Obligors, the Agents and the Banks shall treat each person whose name is recorded in such Register as a Bank hereunder for all purposes of this Agreement. The Registers shall be available for inspection by any Obligor
or any Bank at any reasonable time and from time to time upon reasonable prior notice. 

  

	 	(b)	 	Upon its receipt of a notice referred to in Clause 20.4 (Assignments by Banks) or a Transfer Certificate referred to in Clause 20.5 (Transfers by Banks), the Facility
Agent shall, if, in the case of a notice, such notice is in accordance with Clause 20.4 (Assignments by Banks) or, in the case of a Transfer Certificate, such Transfer Certificate has been completed and is in substantially the form of
Schedule 6 hereto, (i) accept such notice or Transfer Certificate, as the case may be, (ii) record the information contained therein in the appropriate Register and (iii) give prompt notice thereof to the relevant Obligors. 

 

	20.8	 	Disclosure of Information: Any Bank may disclose to any person: 

  

	 	(a)	 	to (or through) whom such Bank assigns or transfers (or may potentially assign or transfer) all or any of its rights, benefits and obligations hereunder; or

  

	 	(b)	 	with (or through) whom such Bank enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by
reference to, the Senior Finance Documents or any Obligor, 

  

 149 

 such information about any Obligor or any of its Subsidiaries or the Senior Finance Documents as such
Bank shall consider appropriate, provided that the person to whom such information is to be given has entered into a Confidentiality Undertaking. 
  

	20.9	 	Transfer of Risk: Nothing in this Agreement or any other Senior Finance Document will oblige a Bank which assigns or transfers all or part of its rights and/or obligations
under this Agreement or cause such Bank to be liable: 

  

	 	(a)	 	to accept a re-assignment or re-transfer from a Transferee of any of the rights or obligations assigned, transferred or novated pursuant to this Clause 20 (Assignment and
Transfers); or 

  

	 	(b)	 	to support any losses incurred by a Transferee by reason of the non-performance by any Obligor of its obligations under any of the Finance Documents. 

  

	20.10	 	Sub-participation: Nothing in this Agreement shall restrict the ability of a Bank to sub-participate any or all of its obligations hereunder provided that except for any
sub-participation arrangement entered into by a Bank with another Bank or an Affiliate of a Bank or any other sub-participation arrangement entered into after, or subsisting at the time of, the occurrence of an Event of Default which is continuing
at any time when the Group has an actual or shadow senior debt rating less than B from Standard & Poor’s or the equivalent from Moody’s Investor Services, Inc., (i) such Bank’s obligations under this Agreement (including its
Commitments) shall remain unchanged; (ii) such Bank shall remain solely responsible to the other parties hereto for the performance of such obligations; (iii) the Borrowers, the Agents, each member of the Arranger Group and the other Banks shall
continue to deal solely and directly with such Bank in connection with such Bank’s rights and obligations under this Agreement; and (iv) no participant under any such sub-participation shall have any right to approve any amendment or waiver of
any provision of any Senior Finance Document, or any consent to any departure by the Obligors therefrom, except to the extent that such amendment, waiver or consent would reduce the principal of, or interest on, or any fees or other amounts payable
hereunder, in each case to the extent subject to such sub-participation, postpone any date fixed for any payment of principal of, or interest on, or any fees or other amounts payable hereunder, in each case to the extent subject to such
sub-participation. 

  

	20.11	 	Affiliates: Any Affiliate of a Bank nominated by such Bank to make available Drawings pursuant to Clause 3.3 (Lending Affiliates) shall by virtue of its signature of
the relevant Transfer Certificate become party to this Agreement for the purposes of making available such Drawings with the rights specified in Clause 3.3 (Lending Affiliates) and shall be a Senior Finance Party for the purposes of the
Senior Finance Documents to the extent necessary to give effect to Clause 3.3 (Lending Affiliates). 

  

	20.12	 	Authorisation of Facility Agent: Each party to this Agreement irrevocably authorises the Facility Agent to make the relevant entry in the Register on its behalf for the
purposes of Clause 20.7 (The Register) without any further consent of, or consultation with, such party. 

  

	20.13	 	Prior to the Transfer: Notwithstanding any other provision of this Agreement, the assignment or transfer of all or any part of the rights, benefits and/or obligations
hereunder shall not be effective until such assignment or transfer is recorded in the Register (as defined in Clause 20.7 (The Register)) and, prior to such entries being made in the Register, all amounts owing to the Transferor with respect
to such rights, benefits and/or obligations shall remain owing to the Transferor. 

  

 150 

	21.	 	PRO RATA PAYMENTS, RECEIPTS AND SET OFF 

  

	21.1	 	Pro Rata Payments: 

  

	 	(a)	 	Recoveries: If any amount owing by any Obligor under any Senior Finance Document to a Bank (the “Recovering Bank”) is discharged by payment, set-off or any
other manner other than through the Facility Agent in accordance with Clause 14 (Payments) (such amount being referred to in this Clause 21.1 (Pro Rata Payments) as a “Recovery”) then: 

  

	 	(i)	 	within 2 Business Days of receipt of the Recovery the Recovering Bank shall pay to the Facility Agent an amount equal (or equivalent) to such Recovery; 

  

	 	(ii)	 	the Facility Agent shall treat such payment as if it were part of the payment to be made by the relevant Obligor to the Banks rateably in accordance with their respective
entitlements; and 

  

	 	(iii)	 	(save for any receipt by the Recovering Bank as a result of the operation of paragraph (ii) above) as between the relevant Obligor (as the case may be) and the Recovering Bank the
Recovery shall be treated and deemed as not having been paid. 

  

	 	(b)	 	Notification of Recovery: Each Bank will notify the Facility Agent promptly of any such Recovery by that Bank other than by payment through the Facility Agent. If any
Recovery subsequently has to be wholly or partly refunded by the Recovering Bank which paid an amount equal thereto to the Facility Agent under Clause 21.1(a) (Recoveries), each Bank to which any part of that amount was distributed will, on
request from the Recovering Bank, repay to the Recovering Bank such Bank’s pro rata share of the amount which has to be refunded by the Recovering Bank. 

  

	 	(c)	 	Information: Each Bank will on request supply to the Facility Agent such information as the Facility Agent may from time to time request for the purpose of this Clause 21.1
(Pro Rata Payments). 

  

	 	(d)	 	Exceptions to sharing of Recoveries: Notwithstanding the foregoing provisions of this Clause 21.1 (Pro Rata Payments), no Recovering Bank will be obliged to share any
Recovery which it receives pursuant to legal proceedings taken by it to recover any sums owing to it under the Senior Finance Documents with any other party which has a legal right to, but does not, either join in such proceedings or commence and
diligently pursue separate proceedings to enforce its rights in the same or another court (unless the proceedings instituted by the Recovering Bank are instituted by it without prior notice having been given to such party through the Facility
Agent). 

  

	 	(e)	 	Obtaining Consents: Each party to this Agreement agrees to take all steps required of it pursuant to Clause 21.1(a) (Recoveries) and to use its reasonable endeavours
to obtain any consents or authorisations which may at any relevant time be required in respect of any payment to be made by it pursuant to this Clause 21.1 (Pro Rata Payments). 

  

	 	(f)	 	No Security: The provisions of this Clause 21.1 (Pro Rata Payments) shall not, and shall not be construed so as to, constitute a charge by any Bank over all or any
part of any sum received or recovered by it under any of the circumstances mentioned in this Clause 21.1 (Pro Rata Payments). 

  

 151 

	 	(g)	 	Ancillary Banks and Hedging Banks: 

  

	 	(i)	 	This Clause 21.1 (Pro Rata Payments) shall not, for the avoidance of doubt, apply to any Recovery by a Bank in its capacity as an Ancillary Bank or Hedging Bank at any time
prior to service of notice under Clause 17.2 (Cancellation and Repayment). 

  

	 	(ii)	 	Following service of notice under Clause 17.2 (Cancellation and Repayment) this Clause 21.1 (Pro Rata Payments) shall apply to all Recoveries by Ancillary Banks and
Hedging Banks which arise otherwise than as a result of a payment made in accordance with Clause 21.2 (Receipts) provided that this Clause 21.1 (Pro Rata Payments) shall not apply to amounts recovered by an Ancillary Bank or a Hedging
Bank as a result of exercising rights under the Ancillary Documents or Hedging Agreements respectively to set off or net sums due and payable by and to it under those documents in its capacity as an Ancillary Bank or Hedging Bank, as the case may
be, or as a result of exercising its rights under any memorandum of deposit granted thereunder. 

  

	21.2	 	Receipts: If any sum paid or recovered in respect of the liabilities of an Obligor under any of the Senior Finance Documents is less than the amount then due, the Facility
Agent or the Security Agent (as the case may be) shall apply that sum against amounts outstanding under the Senior Finance Documents in the following order: 

  

	 	(a)	 	first to any unpaid fees and reimbursement of unpaid expenses of the Facility Agent and the Security Agent due under the Senior Finance Documents; 

  

	 	(b)	 	second to any unpaid fees and reimbursement of unpaid expenses of the Banks due under the Senior Finance Documents; 

  

	 	(c)	 	third to unpaid interest; 

  

	 	(d)	 	fourth to unpaid principal (including without limitation provision of cash cover in respect of contingent liabilities); and 

  

	 	(e)	 	fifth to other amounts due under the Senior Finance Documents, 

  
 in each case (other than (a)) pro rata to the outstanding amounts owing to the Senior Finance Parties under the Senior Finance Documents taking into
account any applications under this Clause 21.2 (Receipts) but for this purpose the Hedging Banks and the Hedging Agreements shall be excluded in determining any distribution under this Clause 21.2 (Receipts). 
  

	21.3	 	Set-Off: 

  

	 	(a)	 	After an Event of Default has occurred and for so long as it is continuing, each Senior Finance Party is hereby authorised at any time and from time to time (without notice to the
relevant Obligor) to set-off or otherwise apply any and all deposits (irrespective of the terms applicable to such deposits) at any time held and other indebtedness at any time owing by such Senior Finance Party to or for the account of any Obligor
(in any such case whether or not then matured or due) against any indebtedness of the relevant Obligor to the relevant Senior Finance Party under the Senior Finance Documents which is due and unpaid. 

  

 152 

	 	(b)	 	The rights of each Senior Finance Party under this Clause are in addition to other rights and remedies (including, without limitation, other rights of set-off) that such Senior
Finance Party may have. 

  

	 	(c)	 	This Clause 21.3 (Set-Off) shall be without prejudice to any rights of set-off which may be agreed between the Obligors and any Ancillary Bank under the Ancillary Documents
and any rights of set-off or netting arrangements contained in any Hedging Agreements. 

  

	 	(d)	 	A Senior Finance Party may exercise such rights notwithstanding that the amounts concerned may be expressed in different currencies and each Senior Finance Party is authorised to
effect any necessary conversions at a market rate of exchange selected by it. 

  
 Provided that following service of notice under Clause 17.2 (Cancellation and Repayment) any amount remaining after payments of the amounts referred to in paragraphs (a) and (b) above shall be applied in
payment to the Facility Agent (for itself and the Banks (other than the Hedging Banks)) and the Hedging Banks for application towards unpaid and outstanding indebtedness due to them pro rata to the outstanding amount of indebtedness due to each such
Senior Finance Party provided that no Hedging Bank shall be entitled to any portion of any relevant amount to the extent that it has already received the portion of that amount under the Intercreditor Agreement. 
  

	22.	 	NOTICES, CONFIDENTIALITY AND CERTIFICATES 

  

	22.1	 	Notices: 

  

	 	(a)	 	Mode of Service: Any notice or other communication to be served under or in connection with this Agreement shall, unless otherwise stated, be made in writing and served by
letter, telex or facsimile to the relevant party at its address, telex or facsimile number shown immediately after its name on the signature page of this Agreement or set out under its name in Schedule 1 or set out in the Transfer Certificate or
Accession Document by which it became party hereto or such other address or number notified by it to the other parties to this Agreement and, in the case of any Senior Finance Party, marked for the attention of the person or department there
specified. 

  

	 	(b)	 	Deemed Service: Subject to the proviso below: 

  

	 	(i)	 	any notice or other communication served by post will, unless otherwise stated, be deemed served 48 hours after posting or on delivery if delivered personally or by courier;

  

	 	(ii)	 	any notice or other communication sent by telex or facsimile transmission will, unless otherwise stated, be deemed served at the time of transmission unless served on a day which is
not a Business Day or after 5.00 p.m. London time in which case it will be deemed served at 9.00 a.m. on the following Business Day 

  
 provided that: 
  

	 	(A)	 	any notice or communication served on any Senior Finance Party by another Senior Finance Party will only be deemed served on receipt by the relevant Senior Finance Party; and

  

	 	(B)	 	the foregoing sub-paragraphs 22.1(b)(i) and 22.1(b)(ii) shall not apply to any Drawing Request or to any notice or communication served on a Senior 

  

 153 

	 	 
Finance Party by any Obligor or the Obligors’ Agent pursuant to paragraphs (c) and (d) of the definition of “Permitted Acquisitions”; Clause
6.1 (Interest Periods); Clause 8 (Prepayment); Clause 9.3 (Revolving Facility); Clause 16.6(a) (Events of Default); and Clause 16.6(h)(v) and 16.6(h)(vi) (Other Information); and all of such Drawing Requests,
notices and communications will only be deemed served on receipt by the relevant Senior Finance Party. 

  

	 	(c)	 	Proof of Service: In proving service of any notice or other communication it will be sufficient to prove: 

  

	 	(i)	 	in the case of a letter, that such letter was properly stamped or franked, addressed and placed in the post or in the case of personal delivery, was left at the correct address; and

  

	 	(ii)	 	in the case of a telex or facsimile transmission, that such telex or facsimile was duly transmitted to the telex or facsimile number, as appropriate, of the addressee referred to in
Clause 22.1(a) (Mode of Service). 

  

	22.2	 	Electronic communication: 

  

	 	(a)	 	Any communication to be made between an Agent and a Senior Finance Party under or in connection with the Senior Finance Documents may be made by e-mail or other electronic means and
each Senior Finance Party hereby agrees that: 

  

	 	(i)	 	unless and until notified to the contrary, this is to be an accepted form of communication; 

  

	 	(ii)	 	it will notify the Facility Agent in writing of its e-mail address and/or any other information required to enable the sending and receipt of information by such means; and

  

	 	(iii)	 	it will notify the Facility Agent of any change to its e-mail address or any other such information supplied by it. 

  

	 	(b)	 	Any electronic communication made between an Agent and a Senior Finance Party will be effective only when actually received in readable form and in the case of any electronic
communication made by a Senior Finance Party to an Agent, only if it is addressed in such a manner as the Agent shall specify for this purpose. 

  

	22.3	 	Certificates: Any certificate, determination, notification or opinion of any Senior Finance Party or group of Senior Finance Parties as to any rate of interest or any other
amount payable under any Senior Finance Document will be, in the absence of manifest error, prima facie evidence of the matters to which it relates. Where any person gives a certificate on behalf of any of the parties to the Senior Finance Documents
pursuant to any provision thereof and such certificate proves to be incorrect, the individual shall incur no personal liability in consequence of such certificate being incorrect save where such individual acted fraudulently or recklessly in giving
such certificate (in which case any liability of such individual shall be determined in accordance with applicable law). 

  

	22.4	 	Confidentiality: Subject to Clause 20.8 (Disclosure of Information), the parties will keep confidential the Senior Finance Documents and all information which they
acquire under or in connection with the Senior Finance Documents save that such information may be disclosed: 

  

 154 

	 	(a)	 	if so required by law or regulation or, if requested by any regulator with jurisdiction over any Senior Finance Party or any Affiliate of any Senior Finance Party;

  

	 	(b)	 	if it comes into the public domain (other than as a result of a breach of this Clause 22.4 (Confidentiality)); 

  

	 	(c)	 	to auditors, professional advisors or rating agencies; or 

  

	 	(d)	 	in connection with any legal proceedings; or 

  

	 	(e)	 	to Bridge Facility Finance Parties, Discount High Yield Creditors, High Yield Creditors and Further High Yield Creditors (each as defined in the Intercreditor Agreement) or holders
of Subordinated Loan Stock or the Equity Investors or the BT Vendor or the McLeod Vendors (to the extent, in the opinion of the Parent (acting reasonably), it is necessary to make any such disclosure); or 

  

	 	(f)	 	to any direct or indirect contractual counterparty in swap agreements or to such contractual counterparty’s professional advisor (so long as such contractual counterparty or
professional advisor to such contractual counterparty agrees to be bound by the provisions of this Clause 22.4 (Confidentiality)). 

  
 The provisions of this Clause 22.4 (Confidentiality) shall supersede any undertakings with respect to confidentiality previously given by any
Senior Finance Party in favour of any Obligor. 
  

	23.	 	AMENDMENTS, WAIVERS AND CONSENTS 

  

	23.1	 	Banks: 

  

	 	(a)	 	Majority Banks: Subject to Clauses 23.1(b) and (c), 23.2 (Specific Parties) and 23.3 (Security Documents), any provision of this Agreement or any of the other
Senior Finance Documents may be amended, waived, varied or modified and all consents hereunder may be given, with the agreement of the Majority Banks and the Obligors’ Agent. 

  

	 	(b)	 	All Banks: Any amendment, waiver, variation, modification or consent shall require the unanimous agreement of all of the Banks if it results in: 

  

	 	(i)	 	any extension of the final scheduled maturity date of any Facility or any extension of the expiry date of any Letter of Credit or Bank Guarantee beyond the Revolving Facility
Repayment Date; 

  

	 	(ii)	 	any reduction in the rate of interest (other than by reason of the provisions of Clause 6.6 (Margin Adjustment)) or fees or extension of the time for payment of any interest
or fees; 

  

	 	(iii)	 	any reduction in the principal amount outstanding under any Facility or in the amount of any Letter of Credit or Bank Guarantee (except as a result of a repayment or prepayment of
cash); 

  

	 	(iv)	 	release of any material part of the security constituted by the Security Documents other than pursuant to the enforcement of such security; 

  

	 	(v)	 	release of any Guarantor from its obligations under Clause 18 (Guarantees) except to the extent permitted by Clause 18.12 (Release of Guarantors);

  

 155 

	 	(vi)	 	any amendment, variation or modification of this Clause 23.1(b), Clause 20.2 (Assignments and Transfers by the Obligors) or to the definition of Majority Banks;

  
 provided further that (in addition to the
agreement of the Majority Banks): 
  

	 	(A)	 	any increase or reduction in the Commitments of any Bank shall require the consent of such Bank; 

  

	 	(B)	 	any reduction in any scheduled repayment in relation to a Facility or extension of any scheduled payment date for any repayment in relation to a Facility shall require the consent
of each Bank participating in that Facility; 

  

	 	(C)	 	any change in the required application of any prepayments in accordance with Clause 8 (Prepayment) as between the Facilities shall require the consent of Banks whose
Commitments in relation to each Facility which is being allocated a lesser prepayment aggregate more than 66 2/3%
of all the Commitments of Banks in relation to such Facility (provided that, for the avoidance of doubt, the Majority Banks may waive any such prepayment as long as the application of prepayments between the Facilities is not altered).

  

	 	(c)	 	Consents: Any matter which by the terms of the Senior Finance Documents as at the date hereof is stated to be subject to the consent of all Banks shall not be waived,
amended, varied or modified save with the consent of all the Banks. 

  

	 	(d)	 	Facility Agent: The Facility Agent may effect on behalf of any Bank any amendment, waiver, variation or modification to the Senior Finance Documents permitted by this Clause
23.1 (Banks). 

  

	23.2	 	Specific Parties: 

  

	 	(a)	 	Agents/each member of the Arranger Group/Issuing Bank: Any decision which will affect the rights or obligations of any of the Agents, any member of the Arranger Group or any
Issuing Bank shall require its consent also. 

  

	 	(b)	 	Ancillary Banks: Any decision which will affect the rights or obligation of any Ancillary Bank will require its consent also subject as specifically provided otherwise in the
Senior Finance Documents. The Ancillary Documents may be amended, varied, waived or modified by agreement between the parties thereto subject as provided in Schedule 8 (Ancillary Facilities). 

  

	 	(c)	 	Hedging Banks: Any decision which will affect the rights or obligation of any Hedging Bank will require its consent also subject as specifically provided otherwise in the
Senior Finance Documents. The Hedging Agreements may be amended, varied, waived or modified by agreement between the parties thereto subject as provided in the Intercreditor Agreement. 

  

	23.3	 	Security Documents: The Security Documents may be amended, varied, waived or modified with the agreement of the relevant Obligor and the Security Agent (acting on the
instructions of the Majority Senior Creditors (as defined in the Intercreditor Agreement)). 

  

	23.4	 	Obligors: Each Obligor irrevocably authorises the UK Principal Borrower to act as agent for the Obligors (the “Obligors’ Agent”):

  

 156 

	 	(a)	 	to give all notices and instructions and make such agreements expressed to be capable of being given or made by the Obligors’ Agent on behalf of the Obligors or any of them
under this Agreement; and 

  

	 	(b)	 	to agree on behalf of the Obligors or any of them the terms of any consents or waivers given or required under the Senior Finance Documents and all amendments made to any of them
(including this Agreement), 

  
 notwithstanding in
either case that they may affect rights and obligations of such Obligor and in either case without further reference to or the consent of such Obligor and such Obligor shall as regards each of the other parties to this Agreement and the other Senior
Finance Documents be bound thereby as though it had itself given such notice of instruction, made such agreement or agreed such consent, waiver or amendment. 
  

	23.5	 	No Implied Waivers: 

  

	 	(a)	 	Failure to Exercise Rights: No failure or delay by any Senior Finance Party in exercising any right, power or privilege under any of the Senior Finance Documents will operate
as a waiver thereof nor will any single or partial exercise of any right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. 

  

	 	(b)	 	Cumulative Rights: The rights and remedies provided in the Senior Finance Documents are cumulative and not exclusive of any rights and remedies provided by law and all such
rights and remedies howsoever arising will, save where expressly provided to the contrary therein, be available to the Senior Finance Parties severally and any Senior Finance Party shall be entitled to commence proceedings in connection therewith in
its own name. 

  

	 	(c)	 	Grant of Waivers: A waiver given or consent granted by the any Senior Finance Party under the Senior Finance Documents will be effective only if given in writing and then
only in the instance and for the purpose for which it is given. 

  

	24.	 	INDEMNITIES 

  

	24.1	 	Initial Expenses: The Parent will on demand pay and reimburse or procure that other members of the Group pay and reimburse to the Facility Agent, the Security Agent, the
Mandated Lead Arrangers and the Joint Lead Arrangers on the basis of a full indemnity, all reasonable costs and expenses (including legal fees and other out-of-pocket expenses and any value added tax or other similar tax thereon) properly incurred
by the Facility Agent, the Security Agent, the Mandated Lead Arrangers or the Joint Lead Arrangers in connection with: 

  

	 	(a)	 	save where the Yell Completion does not occur (in which case no costs or expenses shall be required to be paid), the negotiation, preparation, execution and completion of each of
the Senior Finance Documents (subject, with respect to the preparation, execution and delivery of the Senior Finance Documents, to an agreed cap in relation to legal fees) and all documents, matters and things referred to in the Senior Finance
Documents or incidental to any of the Senior Finance Documents provided that if the McLeod Completion does not occur, no costs and expenses shall be required to be paid in connection with the negotiation, preparation, amendment, variation,
restatement, execution and completion of the Fifth Amendment Agreement and any other Senior Finance Documents to the extent such costs and expenses were incurred by the relevant Senior Finance Parties in connection with, and are attributable to, the
McLeod Acquisition; 

  

 157 

	 	(b)	 	any variation, amendment, restatement, waiver, consent or suspension of rights (or any proposal for any of the same) relating to any of the Senior Finance Documents which is
requested by or on behalf of an Obligor or which becomes necessary as a result of circumstances affecting any Obligor including, without limitation, any variation, amendment, restatement, waiver, consent or suspension of rights relating to any
Senior Finance Document in connection with the Recapitalisation; 

  

	 	(c)	 	the investigation of any Event of Default or Potential Event of Default; and 

  

	 	(d)	 	costs incurred in connection with syndication of the Facilities (including, without limitation, costs of preparing the Yell Syndication Memorandum, the McLeod Syndication Memorandum
and the Bridge Note Refinancing Memorandum). 

  

	24.2	 	Enforcement Expenses: The Parent will on demand pay and reimburse or procure that other members of the Group pay and reimburse to each Senior Finance Party, on the basis of a
full indemnity, all costs and expenses (including legal fees and other out of pocket expenses and any value added tax or other similar tax thereon) properly incurred by such Senior Finance Party in connection with the preservation, enforcement or
the attempted preservation or enforcement of any of such Senior Finance Party’s rights under any of the Senior Finance Documents. 

  

	24.3	 	Stamp Duties, etc.: The Parent will pay and on demand indemnify each Senior Finance Party from and against any liability for any stamp duty, documentary or registration taxes
or notarial fees which are or may hereafter become payable in connection with the entry into, performance, execution or enforcement of any of the Senior Finance Documents or to which any of the Senior Finance Documents may otherwise be or become
subject or give rise. The Parent will in addition on demand indemnify each of the Senior Finance Parties from and against any losses or liabilities which they incur as a result of any delay or omission by the Parent to so pay any such duties, taxes
or fees. 

  

	24.4	 	General Indemnity: The Parent shall on demand indemnify each of the Senior Finance Parties against any funding or other cost, loss, expense or liability (excluding loss of
profit) sustained or incurred by it as a result of: 

  

	 	(a)	 	a Drawing not being made by reason of non-fulfilment of any of the conditions in Clauses 4.1 (Initial Conditions Precedent to Drawdown of the Original Facilities), 4.2
(Initial Conditions Precedent to Drawdown of the Tranche D Term Facility), 4.3 (Initial Conditions Precedent to Drawdown of the Tranche C3 Term Facility) or 4.4 (Additional Conditions Precedent); 

  

	 	(b)	 	any sum payable by any Borrower under the Senior Finance Documents not being paid when due (but credit shall be given to such Borrower for any interest paid when due);

  

	 	(c)	 	the occurrence of any Event of Default or any breach of the Senior Finance Documents; 

  

	 	(d)	 	the accelerated repayment of the Advances under Clause 17.2 (Cancellation and Repayment); 

  

	 	(e)	 	the receipt or recovery by any Senior Finance Party (or the Facility Agent on its behalf) of all or part of any Advance or overdue sum otherwise than on the last day of an Interest
Period relating to that Advance or overdue sum; or 

  

	 	(f)	 	any prepayment payable by any Borrower under the Senior Finance Documents not being paid after notice of such prepayment has been made to the Facility Agent.

  
 Without prejudice to its generality, the
foregoing indemnity: 
  

 158 

	 	(a)	 	extends to any interest (excluding, for the avoidance of doubt, Margin) fees or other sums whatsoever paid or payable on account of any funds borrowed in order to fund any amount
which an Obligor fails to pay in breach of this Agreement and to any loss, premium, penalty or expenses which may be incurred in liquidating or employing deposits from third parties acquired to make, maintain or fund outstanding Advances or any
other amount due or to become due under this Agreement; and 

  

	 	(b)	 	will entitle the relevant Senior Finance Party to recover breakage costs from the Parent in the event of an Advance or other sum being repaid or pre-paid prior to the last day of an
Interest Period even though the relevant Senior Finance Party has financed such Advance or other sum from its own resources, the costs it thereby incurs being calculated on the assumption it had borrowed an amount equal to the Advance or other sum
in question in the London interbank market for the duration of the relevant Interest Period. 

  

	24.5	 	Currency Indemnity: Without prejudice to Clause 24.4 (General Indemnity), if: 

  

	 	(a)	 	any amount payable by any Obligor under or in connection with any Senior Finance Document is received by any Senior Finance Party (or by the Facility Agent on behalf of any Senior
Finance Party) in a currency (the “Payment Currency”) other than that agreed in the relevant Senior Finance Document (the “Agreed Currency”), whether as a result of any judgement or order or the enforcement thereof,
the liquidation of the relevant Obligor or otherwise and the amount produced by converting the Payment Currency so received into the Agreed Currency is less than the relevant amount of the Agreed Currency; or 

  

	 	(b)	 	any amount payable by any Obligor under or in connection with any Senior Finance Document has to be converted from the Agreed Currency into another currency for the purpose of (i)
making or filing a claim or proof against any Obligor, (ii) obtaining an order or judgment in any court or other tribunal or (iii) enforcing any order or judgment given or made in relation to any Senior Finance Document, 

  
 then the Obligor will, as an independent obligation, indemnify the relevant
Senior Finance Party for the deficiency and any loss sustained as a result. Any conversion required will be made at such prevailing rate of exchange on such date and in such market as is determined by the relevant Senior Finance Party as being most
appropriate for the conversion. The Obligor will, in addition pay the costs of the conversion. 
  

	24.6	 	Waiver: The Parent waives any right it may have in any jurisdiction to pay any amount under any Senior Finance Document in a currency other than that in which it is expressed
to be payable in the relevant Senior Finance Document. 

  

	24.7	 	Senior Finance Party Indemnity: The Parent agrees to indemnify and hold harmless each Senior Finance Party and each of their Affiliates and their officers, directors,
employees, agents and advisors (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including, without limitation, reasonable fees and expenses of counsel) that may be
incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of, or in connection with the preparation for a defence of, any investigation (which results in any litigation or
proceeding), litigation or proceeding arising out of, related to or in connection with the Senior Finance Documents (and including, without limitation, by reason of or in connection with any Environmental Law or Environmental Consent), whether or
not such investigation, litigation or proceeding is brought by the Parent, its shareholders or creditors or an Indemnified Party or an Indemnified Party is otherwise a party thereto, except to the extent such claim, damage, loss,

  

 159 

 
liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s
breach of contract, negligence or wilful misconduct. 
  

	25.	 	PARTIAL INVALIDITY 

  
 If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any respect in any jurisdiction, that shall not affect the legality,
validity or enforceability of the remaining provisions in that jurisdiction or that or any other provision in any other jurisdiction. 
  

	26.	 	GOVERNING LAW AND SUBMISSION TO JURISDICTION 

  

	26.1	 	Governing Law: This Agreement (and any dispute, controversy, proceedings or claims of whatever nature arising out of or in any way relating to this Agreement) shall be
governed by and construed in all respects in accordance with English law. 

  

	26.2	 	Submission to Jurisdiction: For the benefit of each of the Senior Finance Parties, each Obligor irrevocably submits to the jurisdiction of the courts in England for the
purpose of hearing and determining any dispute arising out of this Agreement and for the purpose of enforcement of any judgement against its assets. 

  

	26.3	 	Freedom of Choice: The submission to the jurisdiction of the courts referred to in Clause 26.2 (Submission to Jurisdiction) shall not (and shall not be construed so as
to) limit the right of any Senior Finance Party to take proceedings against any Obligor in the courts of any country in which any Obligor has assets or in any other court of competent jurisdiction nor shall the taking of proceedings in any one or
more jurisdictions preclude the taking of proceedings in any other jurisdiction (whether concurrently or not) if and to the extent permitted by applicable law. 

  

	26.4	 	Process Agent: Each Obligor which is not a company incorporated in England and Wales hereby irrevocably and unconditionally appoints and agrees to maintain the UK Principal
Borrower whose principal office is currently at its registered office as its agent in England to receive, for and on behalf of itself, service of process in such jurisdiction in any suit, action or proceeding (together
“Proceedings”) in relation to such dispute or enforcement. 

  

	26.5	 	Service: Each Obligor hereby irrevocably and unconditionally: 

  

	 	(a)	 	waives any objection it may now or at any time have on any grounds whatsoever to the laying of venue of any Proceedings, in any of the aforesaid courts; 

  

	 	(b)	 	agrees that failure by any such process agent to give notice of the process to it shall not impair the validity of such service or of any judgment based on that service;

  

	 	(c)	 	agrees that nothing in any of the Senior Finance Documents shall affect the right to serve process in any other manner permitted by law; 

  

	 	(d)	 	to the fullest extent permitted by law, waives any right it may have in any jurisdiction to have any Proceedings take the form of a trial by jury; and 

  

	 	(e)	 	agrees that a judgment or order of an English court in connection with the Senior Finance Documents is conclusive and binding on it and maybe enforced against it in the courts of
any other jurisdiction. 

  

 160 

	27.	 	COUNTERPARTS 

  
 This Agreement may be executed in any number of counterparts and all such counterparts taken together shall be deemed to constitute one and the same
instrument. 
  

	28.	 	THIRD PARTIES 

  
 Unless expressly provided to the contrary in any Senior Finance Document, a person who is not a party to this Agreement has no right under the Contracts
(Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any terms of this Agreement. 
  
 IN WITNESS whereof the parties hereto have caused this Agreement to be duly executed on the date first written above. 
  

 161 

 SCHEDULE 1 
  
 The Original Banks and their Commitments 
  

	 	 	Tranche A
Term
Facility
Commitment

	 	Tranche B
Term
Facility
Commitment

	 	Tranche C1
Term
Commitment

	 	Tranche C2
Term
Commitment

	 	Tranche C3
Term
Commitment

	 	Tranche D
Commitment

	 	Revolving
Facility
Commitment

	MERRILL LYNCH CAPITAL CORPORATION	 	£	200,000,000	 	£	58,333,334	 	US$	60,522,870.70	 	US$	17,413,973.14	 	US$	9,262,500	 	US$	25,000,000	 	£	33,333,334
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 4 World Financial Centre –
 7th Floor
 New York, New York 10080
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 001 212 738 1719
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 CIBC WORLD MARKETS plc
	 	£	200,000,000	 	£	58,333,333	 	US$	60,522,870.69	 	US$	17,413,973.14	 	US$	47,856,250	 	US$	40,000,000	 	£	33,333,333
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Cottons Centre
 Cottons Lane
 London SE1 2QL
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 0207 234 6433
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 162 

	 	 	Tranche A
Term
Facility
Commitment

	 	Tranche B
Term
Facility
Commitment

	 	Tranche C1
Term
Commitment

	 	Tranche C2
Term
Commitment

	 	Tranche C3
Term
Commitment

	 	Tranche D
Commitment

	 	Revolving
Facility
Commitment

	DEUTSCHE BANK AG LONDON	 	£	200,000,000	 	£	58,333,333	 	US$	60,522,870.69	 	US$	17,413,973.14	 	US$	9,262,500	 	US$	25,000,000	 	£	33,333,333
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Winchester House
 1 Great Winchester Street
 London EC2N 2DB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 020 7547 6419 /5703
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Barry Jefferies /Ronald Lane-Smith
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	CREDIT SUISSE FIRST BOSTON	 	 	N/A	 	 	N/A	 	 	N/A	 	 	N/A	 	US$	47,856,250	 	US$	25,000,000	 	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 As advised separately to the
 Facility Agent
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: As advised separately
 to the Facility Agent
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: As advised separately
 to the Facility Agent
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 163 

	 	 	Tranche A
Term Facility
Commitment

	 	Tranche B
Term Facility
Commitment

	 	Tranche C1 Term
Commitment

	 	Tranche C2 Term
Commitment

	 	Tranche C3 Term
Commitment

	 	Tranche D
Commitment

	 	Revolving
Facility
Commitment

	 BARCLAYS BANK PLC
	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	9,262,500	 	US$	25,000,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Global Services Unit
 5 The North Colonnade
 Canary Wharf
 London E14 4BB
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 020 7773 6811
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Ian Stewart
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 HSBC BANK PLC
	 	N/A	 	N/A	 	N/A	 	N/A	 	 	N/A	 	US$	25,000,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 2nd Floor
 27-32 Poultry
 London EC2P 2BX
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 020 7260 4800
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Tim Burton
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 164 

	 	 	Tranche A
Term Facility
Commitment

	 	Tranche B
Term Facility
Commitment

	 	Tranche C1 Term
Commitment

	 	Tranche C2 Term
Commitment

	 	Tranche C3 Term
Commitment

	 	Tranche D
Commitment

	 	Revolving
Facility
Commitment

	THE ROYAL BANK OF SCOTLAND PLC	 	N/A	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	25,000,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Loans Administration
 Corporate Banking Office
 P.O. Box 450
 5-10 Great Tower Street
 London EC3P 3HX
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 020 7220 7370
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: John Shippey /Kevin Mann
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	BAYERISCHE HYPO-UND VEREINSBANK AG LONDON BRANCH	 	N/A	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	17,500,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 41 Moorgate
 London EC2R 6PP
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 020 7573 8352
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Guy Beeston / Ray Daws
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 165 

	 	 	Tranche A
Term
Facility
Commitment

	 	Tranche B
Term
Facility
Commitment

	 	Tranche C1
Term
Commitment

	 	Tranche C2
Term
Commitment

	 	Tranche C3
Term
Commitment

	 	Tranche D
Commitment

	 	Revolving
Facility
Commitment

	BEAR STEARNS CORPORATE LENDING INC	 	N/A	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	15,000,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 245 Park Avenue
 New York, NY 10167
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 001 212 272 9184/4844
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Kevin Cullen /Victor Bulzacchelli
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND	 	N/A	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	7,500,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Orchard Brae House
 30 Queensferry Road
 Edinburgh EH4 2UG
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 0131 343 7080
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Lesley Ross / Matt Black
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 166 

	 	 	Tranche A
Term
Facility
Commitment

	 	Tranche B
Term Facility
Commitment

	 	Tranche C1 Term
Commitment

	 	Tranche C2 Term
Commitment

	 	Tranche C3 Term
Commitment

	 	Tranche D
Commitment

	 	Revolving
Facility
Commitment

	 ALLIED IRISH BANKS, PLC
	 	N/A	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	5,000,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Bankcentre
 Ballsbridge
 Dublin 4
 Ireland
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 00 353 1 660 3529
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Lynda O’Callaghan,
 AIB Corporate Banking, Business Support Unit
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	CREDIT INDUSTRIEL ET COMMERCIAL	 	N/A	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	5,000,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Veritas House
 125 Finsbury Pavement
 London EC2A 1HX
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 020 7454 5454
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Helen Macazaga
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

 167 

	 	 	Tranche A
Term Facility
Commitment

	 	Tranche B
Term Facility
Commitment

	 	Tranche C1 Term
Commitment

	 	Tranche C2 Term
Commitment

	 	Tranche C3 Term
Commitment

	 	Tranche D
Commitment

	 	Revolving
Facility
Commitment

	FORTIS PROJECT FINANCE LIMITED	 	N/A	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	5,000,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Camomile Court
 23 Camomile Street
 London EC3A 7PP
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Hayley McKenna
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	LLOYDS TSB BANK PLC	 	N/A	 	N/A	 	N/A	 	N/A	 	N/A	 	US$	5,000,000	 	N/A
	 Lending Office:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Loans Administration Dept
 Bank House
 Wine Street
 Bristol BS1 2AN
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Facsimile: 0117 923 3367
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
								
	 Attention: Ann Brock
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  
  

 168 

  
 SCHEDULE 2 

 
 The Borrowers and the Guarantors 
  
 Part A—The Borrowers 
  
 UK Principal Borrower (Yell Ltd) 
 US Principal Borrower (Yellow Book Holdings, Inc.) 
 Yellow Book USA, Inc. 
 Tranche D Borrower (Yellow Book/McLeod Holdings, Inc.) 
 McLeodUSA Media Group, Inc. 
  
 Part B—The Guarantors 
  
 The Subordinated Guarantor (Yellow Pages Ltd) 
 UK Newco 3 (Yell Holdings 2 Limited) 
 UK Newco 5 (YH Ltd) 
 US Newco 1 (Yellow Book Group, Inc) 
 US Principal Borrower 
 Yellow Book USA, Inc. 
 Yellow Book of New York,
Inc. 
 Yellow Book of Pennsylvania, Inc. 
 UK Principal Borrower 
 Yellow Pages Sales Limited 
 General Art Services Limited 
 Luxco (Yell S.àr.l) 
 Tranche D Borrower 
 McLeodUSA Media Group, Inc.

 Consolidated Communications Directories Inc. 
 McLeodUSA Publishing Company 
  

 163 

 SCHEDULE 3 
  

	 	Part	 	A—Documentary Conditions Precedent to Drawdown of the Original Facilities 

  

	1.	 	Formalities Certificate(s): a certificate from each Obligor and the Issuer in substantially the form set out in Schedule 10 signed by an authorised director or in the case of
a US Obligor, a duly appointed officer of such person, which in each case shall have attached to it the documents referred to in such certificate including, without limitation, the constitutional documents of such person and board and shareholder
resolutions (if required) approving the Yell Transaction Documents to which such person is a party all such documents to be in the agreed form (including, without limitation, all documentation required in relation to financial assistance laws (if
applicable). 

  

	2.	 	Senior Finance Documents: each of the following documents in the agreed form duly executed and delivered by all parties thereto: 

  

	 	(a)	 	this Agreement; 

  

	 	(b)	 	Accession Documents executed by the relevant members of the Group not party to this Agreement on the date hereof and pursuant to which such companies accede to this Agreement as
Borrowers and/or Guarantors. 

  

	 	(c)	 	each Original Security Document; 

  

	 	(d)	 	the Intercreditor Agreement; 

  

	 	(e)	 	the Yell Reports Side Letter; and 

  

	 	(f)	 	the Original Facilities Fees Letters and the Agency Fees Letter. 

  

	3.	 	Bridge Facility Finance Documents: certified copy of the Bridge Facility Agreement in the agreed form duly executed and delivered by all parties thereto and confirmation of
satisfaction of conditions precedent thereunder. 

  

	4.	 	Investor Documents: certified copies of the following documents in the agreed form duly executed and delivered by all parties thereto: 

  

	 	(a)	 	Initial Subordinated Loan Stock Instrument and the Initial Subordinated Loan Stock; 

  

	 	(b)	 	Vendor Loan Note Instrument and the Vendor Loan Note; 

  

	 	(c)	 	Vendor Loan Note Novation Agreements; 

  

	 	(d)	 	Original Subordination Agreement; 

  

	 	(e)	 	Investment Agreement; 

  

	 	(f)	 	Partnership Agreement; and 

  

	 	(g)	 	Shareholder Agreement. 

  

	5.	 	Yell Acquisition Documents: certified copies of the following documents in the agreed form duly executed and delivered by all parties thereto: 

  

	 	(a)	 	the Yell Acquisition Agreements; and 

  

 164 

	 	(b)	 	the Yell Transitional Services Agreement. 

  

	6.	 	Yell Structure Document: 

  

	 	(a)	 	a copy of the Yell Structure Document certified by a director of the Parent as true and correct; and 

  

	 	(b)	 	written confirmation from the Parent that all steps set out in the Yell Structure Document to take place on or before the Yell Completion Date have taken place other than those
dependent upon the making of the Drawings under the relevant Term Facilities. 

	

	7.	 	Funds Flow: The Yell Completion Funds Flow Statement and evidence satisfactory to the Facility Agent that the funds will be or have been applied in accordance with such
statement and evidence satisfactory to the Facility Agent of adequate funding to complete the Yell Acquisition and meet the Yell Transaction Costs. 

  

	8.	 	Reports: originals of each of the Yell Reports duly addressed to each of the Senior Finance Parties (and their permitted successors, assignees and transferees) or accompanied
by confirmation from the person that has produced the relevant Yell Report that the same may be relied upon by the Senior Finance Parties (and their permitted successors, assignees and transferees), such Yell Reports to contain confirmation of the
funds flow at the Yell Completion and confirmation that the proposed funds flow of the Group to service its Financial Indebtedness, including without limitation, the Original Facilities does not have adverse legal, tax or accounting consequences.

  

	9.	 	Certificates of Title: originals of each Certificate of Title duly addressed to each of the Senior Finance Parties (and their successors, assignees and transferees).

  

	10.	 	Financial Information: certified copies of: 

  

	 	(a)	 	the Latest Yell Audited Accounts and the consolidated audited accounts for the financial years ending 31 March 1998, 31 March 1999 and 31 March 2000; 

  

	 	(b)	 	the Latest Yell Management Accounts; and 

  

	 	(c)	 	the Agreed Financial Projections, the business plan for the Yell Business and the working capital analysis (prepared by Arthur Andersen). 

  

	11.	 	Security Releases and Financial Indebtedness: evidence that all Security Interests, including those over Intellectual Property in favour of third parties granted in respect
of or by any person comprised within the Yell Business or any part of the assets of the Yell Business (and which are not permitted under the terms of this Agreement) have been or will be discharged and released on the Yell Completion Date and that
all Financial Indebtedness which is not permitted by Clause 16.3(f) (Indebtedness) has been repaid and that any Guarantee which is not permitted by Clause 16.3(g) (Guarantees) has been or will be discharged on the Yell Completion Date.

  

	12.	 	Licences: certified copies of licences in favour of the relevant members of the Group in respect of the use of BT Shared Rights (as defined in the Umbrella Agreement).

  

	13.	 	Consents/Notices in respect of Security Interests: all third party consents which the Security Agent requires pursuant to the terms of the Original Security Documents in
connection with the creation or registration of any Security Interest contained in any Original Security Document and all notices of assignment or charge required to be given under the terms of the Original Security Documents.

  

 165 

	14.	 	Pension Schemes: evidence in form and substance satisfactory to the Facility Agent that as at the date of the last formal valuation of the YPSL Retirement Benefit Plan the
value of the liabilities of the YPSL Retirement Benefit Plan did not exceed the value of the assets of the Plan as determined in accordance with Section 56 of the Pensions Act 1995 and the regulations made thereunder. 

  

	15.	 	Share Certificates and Stock Transfers: share certificates together with stamped (where applicable), executed blank stock transfers or other relevant transfer documents in
respect of all shares in members of the Group charged or pledged under the Original Security Documents. 

  

	16.	 	Financial Assistance: evidence in form and substance satisfactory to the Facility Agent that: 

  

	 	(a)	 	the “share for share” exchange to be effected immediately after the Yell Completion occurring between UK Newco 3 and the UK Principal Borrower in respect of the shares in
Yellow Pages Sales Limited will be effected at such time; and 

  

	 	(b)	 	(if applicable) the requirements of sections 155-158 of the Companies Act 1985 (in the case of an Obligor incorporated in the United Kingdom) have been complied with so far as they
relate to any Finance Documents and the Yell Acquisition together with a letter from the Auditors in respect of each relevant Obligor addressed to the Senior Finance Parties and their successors, assignees and transferees in substantially the form
set out in Technical Release FRAG 26/94 issued in September 1994 on behalf of the Council of the Institute of Chartered Accountants in England and Wales. 

  

	17.	 	Company Searches: a search in respect of each member of the Group at the Companies Registry or other applicable commercial register showing, inter alia, no Security
Interests over any of its assets (other than Security Interests permitted under the terms of this Agreement) and no appointment of a receiver, liquidator or administrator or the presentation of any petition in respect of any of the same.

  

	18.	 	Consents and Filings: evidence that all clearances, consents and filings necessary for any of the transactions contemplated by the Finance Documents and the other Yell
Transaction Documents or provided for in any such document (including, without limitation, any necessary competition or anti-trust clearances including Hart-Scott-Rodino filings in the United States of America) and their validity and/or
enforceability have been obtained, are in full force and effect, all applicable waiting periods have expired or been terminated and are unconditional or subject to such conditions as all the Banks may approve except Minor Authorisations, Consent and
Filings. 

  

	19.	 	Intra-Group Loans: certified copies of any Initial Inter-Company Loan Agreements or other inter-company loan documentation between or involving Obligors in relation to any
loans made or to be made on or after the Yell Completion Date in respect of the financing of the Yell Acquisition. 

  

	20.	 	Completion: 

  

	 	(a)	 	Confirmation that all conditions precedent to the Yell Acquisition Documents (other than payment of the purchase price) have been satisfied, that the provisions of Clause 16.2(ii)
(Acquisition Documents) have been complied with and, where applicable, informing the Facility Agent of the waiver of any terms of the Yell Acquisition Documents; and 

  

	 	(b)	 	evidence that all conditions precedent to the Bridge Facility Finance Documents or (if appropriate) the Bond Finance Documents have been satisfied or waived.

  

	21.	 	Fees: an instruction to the Facility Agent that all fees payable in accordance with the Original Facilities Fees Letters and all other fees, costs and expenses (including,
without limitation, legal fees 

  

 166 

 and all costs of registration, property transfers, security or otherwise) details of which are known at
the Yell Completion may be deducted from the first Advance under this Agreement. 
  

	22.	 	Stamp Duty: evidence satisfactory to the Facility Agent that all stamp duty payable (if any) in connection with the Yell Acquisition has been paid or will be paid following
the Yell Completion within the prescribed time periods. 

  

	23.	 	Legal Opinions: 

  

	 	(a)	 	a legal opinion of Shearman & Sterling as to matters of English law in form and substance satisfactory to the Facility Agent; 

  

	 	(b)	 	a legal opinion of Shearman & Sterling as to matters of New York law in form and substance satisfactory to the Facility Agent; 

  

	 	(c)	 	a legal opinion of Weil, Gotshal and Manges as to matters of New York and Delaware law in form and substance satisfactory to the Facility Agent; 

  

	 	(d)	 	a legal opinion of Van Doorne as to matters of Dutch law in form and substance satisfactory to the Facility Agent; and 

  

	 	(e)	 	a legal opinion of Walkers as to matters of Cayman Islands law in form and substance satisfactory to the Facility Agent. 

  

	24.	 	Title Deeds: all original title deeds (if any) in respect of the relevant Obligor’s interest in real property together with such undertakings as to the safe custody and
delivery of documents of title and such copies of such documents as the Facility Agent may require. 

  

	25.	 	Property Registration Undertaking: a letter from Weil, Gotshal and Manges or such other firm of solicitors as the Security Agent may require addressed to the Security Agent
undertaking: 

  

	 	(a)	 	to deal with registration of the Security Agent’s legal charges over such of the relevant Obligors’ properties as are situate in England and Wales; and

  

	 	(b)	 	subject as required to comply with (a) above, to hold the title deeds to such properties to the order of the Security Agent. 

  

	26.	 	Property Searches: official priority searches relating to the properties charged under the Original Security Documents in favour of the Security Agent in respect of any
registered titles giving a sufficient period of priority and official priority searches relating to the properties charged under the Original Security Documents in favour of the Security Agent in respect of any unregistered land in respect of each
of the land charges registers giving a sufficient period of priority. 

  

	27.	 	Process Agent: written confirmation from the UK Principal Borrower being the person appointed by the Obligors as their agent for the acceptance of process to the effect that
such person accepts such appointment. 

  

	28.	 	US Conditions Precedent: 

  

	 	(a)	 	executed copies of Financing Statements (Form UCC-1) or appropriate local equivalent in appropriate form for filing under the Uniform Commercial Code of each applicable jurisdiction
as may be necessary to perfect the Security Interests purported to be created by each Original Security Document (including any assignment of any existing security) entered 

  

 167 

 into by each US Obligor or in respect of shares or indebtedness of any such company (each such Original
Security Document an “Original US Security Document”); 
  

	 	(b)	 	copies of Requests for Information or Copies (Form UCC-11), or equivalent reports, each of a recent date listing all effective Financing Statements that name the Business or any
member of the Group or a division or operating unit of any such person, as debtor and that are filed in the jurisdictions referred to in (a) above, together with copies of such Financing Statements in respect of all of which appropriate termination
statements executed by the secured lender thereunder shall be delivered to the Facility Agent (except in respect of financing statements related to Permitted Security Interests); 

  

	 	(c)	 	a solvency certificate issued by each US Obligor and addressed to the Facility Agent confirming the solvency of such Obligor immediately following entry by it into any Original US
Security Document to which it is a party; 

  

	 	(d)	 	delivery by each US Obligor of stock certificates, instruments and other collateral the delivery of which is required by the Security Agent pursuant to the Original US Security
Documents. 

  

	29.	 	OFT: copies of the Existing Undertakings. 

  

	30.	 	C-Don Partnership: A certified copy of the partnership agreement dated 11 October 1991 (as amended) pursuant to which the C-Don Partnership is established.

  

	31.	 	Yellow Book: The Yellow Book USA Management Incentive Compensation Plan or satisfactory evidence of its termination and discharge of all liabilities thereunder.

  

	32.	 	Term Sheets: Certified copies of the agreed form term sheets for the High Yield Notes and the Discount High Yield Notes. 

  

 168 

	 	Part	 	B—Documentary Conditions Precedent to Drawdown of the Tranche D Term Facility 

  

	1.	 	Formalities Certificate(s): a certificate from each Obligor and the Issuer in substantially the form set out in Schedule 10 and signed by an authorised director or in the
case of a US Obligor, a duly appointed officer of such person, which in each case shall have attached to it the documents referred to in such certificate including, without limitation, the constitutional documents of such person and board and
shareholder resolutions (if required) approving the McLeod Transaction Documents to which such person is a party all such documents to be in the agreed form. 

  

	2.	 	Senior Finance Documents: each of the following documents in the agreed form duly executed and delivered by all parties thereto: 

  

	 	(a)	 	the Fifth Amendment Agreement; 

  

	 	(b)	 	Accession Documents executed by the relevant members of the Group not party to this Agreement on the date of the Fifth Amendment Agreement and pursuant to which such companies will
accede to this Agreement as Borrowers and/or Guarantors. 

  

	 	(c)	 	each Tranche D Security Document; 

  

	 	(d)	 	the Intercreditor Agreement (as amended and restated on or before the McLeod Completion Date); 

  

	 	(e)	 	the McLeod Reports Side Letter; and 

  

	 	(f)	 	the Tranche D Fees Letter and the Agency Fees Letter. 

  

	3.	 	Bridge Notes Finance Documents: certified copies of the following documents in the agreed form duly executed and delivered by all parties thereto and confirmation of
satisfaction of conditions precedent thereunder: 

  

	 	(a)	 	Bridge Note Purchase Agreement; and 

  

	 	(b)	 	Bridge Notes. 

  

	4.	 	Investor Documents: certified copies of the following documents in the agreed form duly executed and delivered by all parties thereto: 

  

	 	(a)	 	Additional Subordinated Loan Stock Instrument and the Additional Subordinated Loan Stock; 

  

	 	(b)	 	Subordination Agreement; 

  

	 	(c)	 	Investment Agreement; 

  

	 	(d)	 	Partnership Agreement; and 

  

	 	(e)	 	Shareholder Agreement. 

  

	5.	 	McLeod Acquisition Documents: certified copies of the following documents in the agreed form duly executed and delivered by all parties thereto and confirmation of
satisfaction of conditions precedent thereunder (except for the payment of the purchase price for McLeod under the McLeod Acquisition Agreement): 

  

	 	(a)	 	the McLeod Acquisition Agreement; 

  

 169 

	 	(b)	 	the McLeod Transitional Services Agreement; and 

  

	 	(c)	 	the McLeod Publishing, Operating and Branding Agreement. 

  

	6.	 	McLeod Structure Document: 

  

	 	(a)	 	a copy of the McLeod Structure Document certified by a director of the Parent as true and correct; and 

  

	 	(b)	 	written confirmation from the Parent that all steps set out in the McLeod Structure Document to take place on or before the McLeod Completion Date have taken place other than those
dependent upon the making of the Drawing under the Tranche D Term Facility. 

  

	7.	 	Funds Flow: The McLeod Completion Funds Flow Statement and evidence satisfactory to the Facility Agent that the funds will be or have been applied in accordance with such
statement and evidence satisfactory to the Facility Agent of adequate funding to complete the McLeod Acquisition and meet the McLeod Transaction Costs. 

  

	8.	 	Reports: originals of each of the McLeod Reports and, in the case of legal due diligence report prepared by Weil, Gotshal & Manges LLP only, duly addressed to each of the
Senior Finance Parties (and their permitted successors, assignees and transferees) or accompanied by confirmation from Weil, Gotshal & Manges LLP that the legal due diligence report may be relied upon by the Senior Finance Parties (and their
permitted successors, assignees and transferees). 

  

	9.	 	Financial Information: certified copies of: 

  

	 	(a)	 	the Latest McLeod Audited Accounts; 

  

	 	(b)	 	the Latest McLeod Management Accounts; and 

  

	 	(c)	 	the Agreed Financial Projections (in the form delivered under Part A of Schedule 2 but revised to take account of the McLeod Acquisition) and the business plan for the Business.

  

	10.	 	Security Releases and Financial Indebtedness: evidence that all Security Interests, including those over Intellectual Property in favour of third parties granted in respect
of or by any person comprised within McLeod (and which are not permitted under the terms of this Agreement) have been or will be discharged and released on the McLeod Completion Date and that all Financial Indebtedness which is not permitted by
Clause (f) (Indebtedness) has been repaid and that any Guarantee which is not permitted by Clause (g) (Guarantees) has been or will be discharged on the McLeod Completion Date. 

  

	11.	 	Consents/Notices in respect of Security Interests: all third party consents which the Security Agent requires pursuant to the terms of the Tranche D Security Documents in
connection with the creation or registration of any Security Interest contained in any Tranche D Security Document and all notices of assignment or charge required to be given under the terms of the Tranche D Security Documents.

  

	12.	 	Share Certificates and Stock Transfers: to the extent not already delivered to the Security Agent either prior to the McLeod Completion Date or pursuant to paragraph
22(d) of Part B of this Schedule 3, share certificates together with stamped (where applicable), executed blank stock transfers or other relevant transfer documents in respect of all shares in members of the Group charged or pledged under the
Security Documents. 

  

	13.	 	Company Searches: a search in respect of each member of the Group incorporated in any part of the United Kingdom at the Companies Registry showing, inter alia, no
Security Interests over any of its assets (other than Security Interests permitted under the terms of this Agreement) and no appointment 

  

 170 

	 	 
of a receiver, liquidator or administrator or the presentation of any petition in respect of any of the same. 

  

	14.	 	Consents and Filings: evidence that all clearances, consents and filings necessary for any of the transactions contemplated by the Finance Documents and the other McLeod
Transaction Documents or provided for in any such document (including, without limitation, any necessary competition or anti-trust clearances including Hart-Scott-Rodino filings in the United States of America) and their validity and/or
enforceability have been obtained, are in full force and effect, all applicable waiting periods have expired or been terminated and are unconditional or subject to such conditions as all the Banks may approve except Minor Authorisations, Consent and
Filings. 

  

	15.	 	Intra-Group Loans: certified copies of (i) the Additional Inter-Company Loan Agreements and other inter-company loan documentation between or involving Obligors in relation
to any loans made after the Yell Completion Date as a consequence of the McLeod Acquisition and the Recapitalisation; and (ii) the Initial Inter-Company Loan Agreement between the Parent and the Issuer in the agreed form; 

 

	16.	 	Completion: 

  

	 	(a)	 	Confirmation that all conditions precedent to the McLeod Acquisition Documents (other than payment of the purchase price) have been satisfied, that the provisions of Clause 16.2(ii)
(Acquisition Documents) have been complied with and, where applicable, informing the Facility Agent of the waiver of any terms of the McLeod Acquisition Documents; and 

  

	 	(b)	 	evidence that all conditions precedent to the Bridge Notes Finance Documents have been satisfied or waived. 

  

	17.	 	Fees: an instruction to the Facility Agent that all fees payable in accordance with the Tranche D Fees Letter and the Agency Fees Letter and all other fees, costs and
expenses (including, without limitation, legal fees and all costs of registration, property transfers, security or otherwise) details of which are known on or prior to the McLeod Completion Date may be deducted from the Tranche D Advance.

  

	18.	 	Stamp Duty: evidence satisfactory to the Facility Agent that all stamp duty payable (if any) in connection with the McLeod Acquisition has been paid or will be paid following
the McLeod Completion within the prescribed time periods. 

  

	19.	 	Legal Opinions: 

  

	 	(a)	 	a legal opinion of Shearman & Sterling as to matters of English law in form and substance satisfactory to the Facility Agent; 

  

	 	(b)	 	a legal opinion of Shearman & Sterling as to matters of New York law in form and substance satisfactory to the Facility Agent; 

  

	 	(c)	 	a legal opinion of Weil, Gotshal and Manges as to matters of New York and Delaware law in form and substance satisfactory to the Facility Agent; 

  

	 	(d)	 	a legal opinion of Van Doorne as to matters of Dutch law in form and substance satisfactory to the Facility Agent; 

  

	 	(e)	 	a legal opinion of Oostvogels & De Meester as to matters of Luxembourg law in form and substance satisfactory to the Facility Agent; 

  

	 	(f)	 	a legal opinion of Iowa counsel to the Parent as to matters of Iowa law in form and substance satisfactory to the Facility Agent; 

  

 171 

	 	(g)	 	a legal opinion of Illinois counsel to the Parent as to matters of Illinois law in form and substance satisfactory to the Facility Agent; 

  

	 	(h)	 	a legal opinion of Nebraska counsel to the Parent as to matters of Nebraska law in form and substance satisfactory to the Facility Agent; 

  

	 	(i)	 	a legal opinion of Minnesota counsel to the Parent as to matters of Minnesota law in form and substance satisfactory to the Facility Agent; and 

  

	 	(j)	 	a legal opinion of Michigan counsel to the Parent as to matters of Michigan law in form and substance satisfactory to the Facility Agent. 

  

	20.	 	Process Agent: written confirmation from the UK Principal Borrower being the person appointed by the acceding Obligors as their agent for the acceptance of process to the
effect that such person accepts such appointment. 

  

	21.	 	US Conditions Precedent: 

  

	 	(a)	 	executed copies of Financing Statements (Form UCC-1) or appropriate local equivalent in appropriate form for filing under the Uniform Commercial Code of each applicable jurisdiction
as may be necessary to perfect the Security Interests purported to be created by each Tranche D Security Document (including any assignment of any existing security) entered into by each US Obligor or in respect of shares or indebtedness of any such
company (each such Tranche D Security Document a “Tranche D US Security Document”); 

  

	 	(b)	 	copies of Requests for Information or Copies (Form UCC-11), or equivalent reports, each of a recent date listing all effective Financing Statements that name the Tranche D Borrower
or any member of the McLeod Group or a division or operating unit of any such person, as debtor and that are filed in the jurisdictions referred to in (a) above, together with copies of such Financing Statements in respect of all of which
appropriate termination statements thereunder shall be delivered to the Facility Agent (except in respect of financing statements related to Permitted Security Interests) and copies of all related pay-off letters; 

  

	 	(c)	 	a solvency certificate issued by each US Obligor and addressed to the Facility Agent confirming the solvency of such Obligor immediately prior to and following entry by it into any
Tranche D US Security Document to which it is a party; and 

  

	 	(d)	 	delivery by each US Obligor to the Security Agent in New York of stock certificates (together with executed stock powers in blank), instruments and other collateral the delivery of
which is required by the Security Agent pursuant to the Tranche D US Security Documents. 

  

	22.	 	Recapitalisation: Certified copies of the following documents in the agreed form duly executed and delivered by all parties thereto: 

  

	 	(a)	 	the Recapitalisation Inter-Company Loan Agreements; 

  

	 	(b)	 	the Recapitalisation Assignment Agreements referred to in paragraphs (a) and (b) of the definition thereof; and 

  

	 	(c)	 	the Recapitalisation Swap Agreement; 

  

	23.	 	Bankruptcy Court Approval: The United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”) shall have entered an order (the
“Order”) (in form and substance reasonably satisfactory to the Facility Agent) approving the McLeod Acquisition Documents (to which 

  

 172 

	 	 
McLeodUSA Incorporated is a party) and such other matters as the Facility Agent may reasonably request, which Order shall be certified by the Clerk of the
Bankruptcy Court as having been duly entered (with a certified copy thereof being attached to the Formalities Certificate to be delivered by the Parent under paragraph 1 above) and the Order shall be in full force and effect and shall not have been
vacated, reversed, modified, amended or stayed without the consent of the Facility Agent (acting reasonably). 

  

 173 

	 	Part	 	C—Documentary Conditions Precedent to Drawdown of Tranche C3 Term Facility 

  

	1.	 	Formalities Certificate(s): a certificate from each relevant Obligor and the Issuer in substantially the form set out in Schedule 10 and signed by an authorised director or
in the case of a US Obligor, a duly appointed officer of such person, which in each case shall have attached to it the documents referred to in such certificate including, without limitation, the constitutional documents of such person and board and
shareholder resolutions (if required) approving the Bridge Note Refinancing Transaction Documents to which such person is a party all such documents to be in the agreed form, together with, in the case of each US Obligor, a solvency certificate
issued by such US Obligor and addressed to the Facility Agent confirming the solvency of such US Obligor immediately prior to and following the entry by it into the Sixth Amendment Agreement. 

  

	2.	 	Senior Finance Documents: the Sixth Amendment Agreement in the agreed form and the fourth amendment to the Intercreditor Deed in the agreed form, each duly executed and
delivered by all parties thereto. 

  

	3.	 	Required Cash Contribution and Excess Cash Contribution: a certificate from the Parent signed by an authorised director confirming that: 

  

	 	(a)	 	as at the date of the Drawing Request in respect of the Tranche C3 Term Facility, there were no available cash balances (other than de minimum amounts) in the Group which were
surplus to the working capital needs of the Group other than the Required Cash Contribution and the Excess Cash Contribution; 

  

	 	(b)	 	the Required Cash Contribution and the Excess Cash Contribution are surplus to the working capital needs of the Group; and 

  

	 	(c)	 	the aggregate of the Required Cash Contribution, the Excess Cash Contribution and the Tranche C3 Term Facility (to the extent reduced and cancelled in accordance with Clause 9.4
(Tranche C3 Term Facility)) are sufficient to fund the Bridge Note Refinancing and the Bridge Note Refinancing Transaction Costs in full. 

  

	4.	 	Funds Flow: The Bridge Note Refinancing Funds Flow Statement and evidence satisfactory to the Facility Agent that the funds will be or have been applied in accordance with
such statement and evidence satisfactory to the Facility Agent of adequate funding to complete the Bridge Note Refinancing and meet the Bridge Note Refinancing Transaction Costs. 

  

	5.	 	Company Searches: a search in respect of each member of the Group incorporated in any part of the United Kingdom at the Companies Registry showing, inter alia, no
Security Interests over any of its assets (other than Security Interests permitted under the terms of this Agreement) and no appointment of a receiver, liquidator or administrator or the presentation of any petition in respect of any of the same.

  

	6.	 	Consents and Filings (if any): evidence that all clearances, consents and filings necessary for any of the transactions contemplated by the Finance Documents and the other
Bridge Note Refinancing Transaction Documents or provided for in any such document (including in respect of the application of any Excess Cash Contribution) and their validity and/or enforceability have been obtained, are in full force and effect,
all applicable waiting periods have expired or been terminated and are unconditional or subject to such conditions as all the Banks may approve except Minor Authorisations, Consents and Filings. 

  

 174 

	7.	 	Tranche C3 Inter-Company Loans: certified copies of the Tranche C3 Inter-Company Loan Agreements and other inter-company loan documentation between or involving Obligors in
relation to any loans made after the McLeod Completion Date as a consequence of the Bridge Note Refinancing in the agreed form; 

  

	8.	 	Fees: an instruction to the Facility Agent that all fees, costs and expenses (including, without limitation, legal fees and all costs of registration, property transfers,
security or otherwise) details of which are known on or prior to the Bridge Note Refinancing Date may be deducted from the Tranche C3 Advance. 

  

	9.	 	Legal Opinions: 

  

	 	(a)	 	a legal opinion of Shearman & Sterling as to matters of English law in form and substance satisfactory to the Facility Agent; 

  

	 	(b)	 	a legal opinion of Weil, Gotshal and Manges as to matters of New York and Delaware law in form and substance satisfactory to the Facility Agent; 

  

	 	(c)	 	a legal opinion of Van Doorne as to matters of Dutch law in form and substance satisfactory to the Facility Agent; 

  

	 	(d)	 	a legal opinion of Oostvogels & De Meester as to matters of Luxembourg law in form and substance satisfactory to the Facility Agent; 

  

	 	(e)	 	a legal opinion of Iowa counsel to the Parent as to matters of Iowa law in form and substance satisfactory to Facility Agent; and 

  

	 	(f)	 	a legal opinion of Illinois counsel to the Parent as to matters of Illinois law in form and substance satisfactory to the Facility Agent. 

  

 175 

 SCHEDULE 4 
  
 Form of Drawing Request 
  

	 To:
	  	 
		
	 	  	 (as Facility Agent for the Banks)

		
	 Attention:
	  	 
		
	 Date:
	  	 
		
	 From:
	  	 [Name of Company]

  
 Dear Sirs, 
  
 Facilities Agreement dated 25 May 2001 (the “Facilities Agreement”)

  
 We request a Drawing of the [Tranche A Term/Tranche B Term/Tranche C1
Term/Tranche C2 Term/Tranche C3 Term/Tranche D Term/Revolving] Facility as follows: 
  
 [Advance] 
  

	1.	 	Amount: 

	2.	 	Facility: 

	3.	 	Drawing Date: 

	4.	 	Interest Period: 

	5.	 	Currency: 

	6.	 	Payment should be made to: 

	7.	 	Borrower: 

	[8.	 	Amount of Excess Cash Contribution:] 

	[9.	 	Amount of Operational Cash Flow Component:] 

  
 [Letter of Credit/Bank Guarantee] 
  

	1.	 	Amount: 

	2.	 	Drawing Date: 

	3.	 	Duration: 

	4.	 	Currency: 

	5.	 	Beneficiary: 

	6.	 	Borrower: 

	7.	 	Obligation Guaranteed: 

  
 We attach the form of the proposed Letter of Credit/Bank Guarantee.] 
  
 We confirm that: 
  

	 	(i)	 	the representations and warranties made in Clause 15 (Representations and Warranties) of the Facilities Agreement stipulated as being made or repeated on the date hereof and
on the date of the relevant Drawing are true and accurate as if made with respect to the facts and circumstances existing on such date; and 

  

	 	(ii)	 	no Event of Default or Potential Event of Default has occurred and is continuing or will occur as a result of the proposed Drawing being made. 

  

 176 

 Terms defined in the Facilities Agreement shall have the same meanings when used in this Drawing Request. 
  
 ........................... 
  
 [Authorised Signatory] 
 for and on behalf of 
  
 [Borrower/Obligors’ Agent] 
  

 177 

 SCHEDULE 5 
  
 Additional Costs Rate 
  

	1.	 	The Additional Costs Rate is an addition to the interest rate to compensate Banks for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial
Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank. 

  

	2.	 	On the first day of each Interest Period (or as soon as possible thereafter) the Facility Agent shall calculate, as a percentage rate, a rate (the “Additional Costs
Rate”) for each Bank, in accordance with the paragraphs set out below. The Additional Costs Rate will be calculated by the Facility Agent as a weighted average of the Banks’ Additional Costs Rates (weighted in proportion to the
percentage participation of each Bank in the relevant Advance and will be expressed as a percentage rate per annum). 

  

	3.	 	The Additional Costs Rate for any Bank lending from a Lending Office in a Participating Member State will be the percentage notified by that Bank to the Facility Agent. This
percentage will be certified by that Bank in its notice to the Facility Agent to be its reasonable determination of the cost (expressed as a percentage of that Bank’s participation in all Advances made from that Lending Office) of complying
with the minimum reserve requirements of the European Central Bank in respect of loans made from that Lending Office. 

  

	4.	 	The Additional Costs Rate for any Bank lending from a Lending Office in the United Kingdom will be calculated by the Facility Agent as follows: 

  

	(f)	 	(a)     relation to a Sterling Advance: 

  
 AB + C(B–D) + E x 0.01 % per annum 
 100 – (A+C) 
  

	 	(b)	 	in relation to an Advance in any currency other than Sterling: 

  
 E x 0.01 % per annum 
 300 
  
 Where on the day of
application of the formula: 
  

	 	A	 	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Bank is from time to time required to maintain as an interest free cash
ratio deposit with the Bank of England to comply with cash ratio requirements. 

  

	 	B	 	is the percentage rate of interest (excluding the Margin and the Additional Costs Rate and, if the relevant Advance is an unpaid sum, the additional rate of interest specified in
Clause 6.5 (Default Interest)) payable for the relevant Interest Period on the Advance. 

  

	 	C	 	is the percentage (if any) of Eligible Liabilities which that Bank is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

  

	 	D	 	is the percentage rate per annum payable by the Bank of England to the Facility Agent on interest bearing Special Deposits. 

  

 178 

	 	E	 	is designed to compensate lenders for amounts payable under the Fees Rules and is calculated by the Facility Agent as being the average of the most recent rates of change supplied
by the Reference Banks to the Facility Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000. 

  

	5.	 	For the purposes of this Schedule: 

  

	 	(a)	 	“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998
or (as may be appropriate) by the Bank of England; 

  

	 	(b)	 	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in
respect of the payment of fees for the acceptance of deposits; 

  

	 	(c)	 	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rates fee required
pursuant to the Fee Rules but taking into account any applicable discount rate; 

  

	 	(d)	 	“Tariff Base” has the meaning given to it, and will be calculated in accordance with, the Fees Rules. 

  

	6.	 	In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places. 

  

	7.	 	If requested by the Facility Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Facility Agent, the rate
of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Service Authority (calculated for this purpose by that Reference Bank as being the
average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank. 

  

	8.	 	Each Bank shall supply any information required by the Facility Agent for the purpose of calculating its Additional Costs Rate. In particular, but without limitation, each Bank
shall supply the following information in writing on or prior to the date on which it becomes a Bank: 

  

	 	(a)	 	the jurisdiction of its Lending Office; and 

  

	 	(b)	 	any other information that the Facility Agent may reasonably require for such purpose. 

  
 Each Bank shall promptly notify the Facility Agent in writing of any change to the information provided by it pursuant to
this paragraph. 
  

	9.	 	The percentages of each Bank for the purpose of A and C above and the rates of charge of each Reference Bank for the purposes of E above shall be determined by the Facility Agent
based upon the information supplied to it pursuant to paragraph 7 and 8 above and on the assumption that, unless a Bank notifies the Facility Agent to the contrary, each Bank’s obligations in relation to cash ratio deposits and Special Deposits
are the same as those of a typical bank from its jurisdiction of incorporation with a Lending Office in the same jurisdiction as its Lending Office. 

  

	10.	 	The Facility Agent shall have no liability to any person if such determination results in an Additional Costs Rate which over or under compensates any Bank and shall be entitled to
assume that the 

  

 179 

	 	 
information provided by any Bank or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects. 

 

	11.	 	The Facility Agent shall distribute the additional amounts received as a result of the Additional Costs Rate to the Banks on the basis of the Additional Costs Rate for each Bank
based on the information provided by each Bank and each Reference Bank pursuant to paragraphs 7 and 8 above. 

  

	12.	 	Any determination by the Facility Agent pursuant to this Schedule in relation to a formula, an Additional Costs Rate or any amount payable to a Bank shall, in the absence of
manifest error, be conclusive and binding on all parties. 

  

	13.	 	The Facility Agent may from time to time, after consultation with the Parent and the Banks, determine and notify to all parties any amendments which are required to be made to this
Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces
all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all parties. 

  

 180 

 SCHEDULE 6 
  
 Transfer Certificate 
  

	 To:
	 	 [Name of Facility Agent]

		
	 [Details]
	 	 
		
	 	 	 for and on behalf of the Obligors and the Banks

	 	 	 (each as defined in the Facilities Agreement referred to below).

  
 This transfer certificate (this
“Certificate”) relates to a Senior Facilities Agreement dated [•] 2001 and made between, inter alios, [•] as Parent, the banks and financial institutions named therein as Original Banks and [•] as Facility
Agent and [•] as Security Agent (the “Facilities Agreement” which expression includes any amendments or supplements thereto or restatements thereof). Terms defined in the Facilities Agreement shall, unless otherwise defined in
this Certificate, have the same meanings when used in this Certificate. 
  

	1.	 	Transferor Confirmation and Request: [Name of Transferor] (the “Transferor”) by its execution of this Certificate: 

  

	 	(a)	 	requests [name of Transferee] (the “Transferee”) to accept and procure, in accordance with Clause 20 (Assignments and Transfers) of the
Facilities Agreement, transfer to the Transferee of the portion of the Transferor’s participation in the Facilities as specified in the First Schedule of this Certificate (the “Transfer Rights”) by counter-signing this
Certificate and delivering it to the Facility Agent at its address for the giving of notices under the Facilities Agreement so as to take effect on the date specified in the Second Schedule of this Certificate (the “Transfer Date”);
and 

  

	 	(b)	 	confirms that the details which appear in the First Schedule of this Certificate accurately record respectively, the amount of the Transferor’s Commitment and the principal
amount of the Transfer Rights at the date of this Certificate. 

  

	2.	 	Transferee Request: The Transferee by its execution of this Certificate requests each Obligor, the Banks and the Facility Agent to accept this Certificate as being delivered
under and for the purposes of Clause 20.5 (Transfers by Banks) of the Facilities Agreement so as to take effect in accordance with the terms of that clause on the Transfer Date. 

  

	3.	 	[Transfer Fee: The Transferee undertakes to pay to the Facility Agent for the Facility Agent’s own account a transfer fee of £1,500 as provided in Clause
20.6 (Assignment and Transfer Fees) of the Facilities Agreement.]1 

  

	4.	 	Transferee Representations: The Transferee hereby: 

  

	 	(a)	 	confirms that it has received from the Transferor a copy of the Facilities Agreement together with such other documents and information as it has requested in connection with this
certificate; 

	1	 	Payment of the Transfer Fee by the Transferee is subject to Clause 20.6 (Assignment and Transfer Fees) of the Facilities Agreement. 

 

 181 

	 	(b)	 	confirms that it has not relied, and will not hereafter rely, on the Transferor or any Senior Finance Party to check or enquire on its behalf into the legality, validity,
effectiveness, adequacy, accuracy or completeness of any such documents or information; 

  

	 	(c)	 	agrees that it has not relied, and will not hereafter rely, on the Transferor or any other Senior Finance Party to assess or keep under review on its behalf the financial condition,
creditworthiness, condition, affairs, status or nature of any Obligor, any Subsidiary of any Obligor or any other party to the Facilities Agreement; and 

  

	 	(d)	 	represents and warrants to the Transferor and all other parties to the Facilities Agreement that it has power to become a party to the Facilities Agreement as a “Bank” on
the terms herein and therein set out and has taken all necessary steps to authorise execution and delivery of this Certificate. 

  

	5.	 	Transferee Covenants: The Transferee hereby undertakes with the Transferor and all other parties to the Facilities Agreement that it will perform in accordance with its terms
all those obligations which, by the terms of the Facilities Agreement, will be assumed by it following delivery of this Certificate to the Facility Agent. 

  

	6.	 	Exclusion of Transferor’s Liabilities: Neither the Transferor nor any other Senior Finance Party makes any representation or warranty nor assumes any responsibility with
respect to the legality, validity, effectiveness, adequacy or enforceability of the Senior Finance Documents or assumes any responsibility for the financial condition of any Obligor, any Subsidiary of any Obligor or any other party to the Senior
Finance Documents or for the performance and observance by any Obligor of any of its obligations under the Senior Finance Documents and any and all such conditions and warranties, whether express or implied by law or otherwise, are hereby excluded.

  

	7.	 	Novation: On execution of this Certificate by the Facility Agent the Transferee will become a party to the Facilities Agreement, on and with effect from the Transfer Date in
substitution for the Transferor with respect to those rights and obligations which by the terms of the Facilities Agreement and this Certificate are assumed by the Transferee. 

  

	8.	 	Law: This Certificate and the rights and obligations of the parties hereto shall be governed by and construed in accordance with English law. 

  
 AS WITNESS the hands of authorised signatories for and on behalf of the Transferor,
the Transferee and the Facility Agent on the respective dates appearing below. 
  

 182 

 First Schedule to the Transfer Certificate 
  
 Transferor’s Existing Term Commitment:

	(a)	 	Tranche A Term Facility 

	(b)	 	Tranche B Term Facility 

	(c)	 	Tranche C1 Term Facility 

	(d)	 	Tranche C2 Term Facility 

	(e)	 	Tranche C3 Term Facility 

	(f)	 	Tranche D Term Facility 

  
 Transferor’s Existing Revolving Commitment: 
  
 Portion of Transferor’s Existing [Term A/B/C1/C2/C3/D Commitment/participation in Term 
                           A/B/C1/C2/C3/D Advance] to be transferred:

  
 Portion of Transferor’s Existing Revolving Commitment to be transferred:

  
 [Participation in Revolving Advance(s) to be transferred2: 
  

	Revolving Advance 1:	 	 Participation: £
	 	 Interest Period:
	 	 months, Maturity Date:

				
	Revolving Advance 2:	 	 Participation: £
	 	 Interest Period:
	 	 months, Maturity Date:

				
	Revolving Advance [•]	 	 Participation: £
	 	 Interest Period:
	 	 months, Maturity Date:        ]

	2	 	Only relevant if Transfer Date is during an Interest Period.. 

  

 183 

 Second Schedule to the Transfer Certificate 
  
 Particulars relating to the Transferee 
  

	
	 Transfer Date:

	
	 Lending Office:

	
	 Contact Name:

	
	 Account for Payments:

	
	 Address for Notices:

	
	 Telephone:

	
	 Telex:

	
	 Facsimile:

	
	 E-mail addresses:

  
 Signature Clauses to Transfer
Certificate 
  

	 [Transferor]
	  	[Transferee]
		
	 By:...........................................
	  	 By:...........................................

		
	 Date:
	  	 Date:

		
	 [Facility Agent]
	  	 
		
	 By:...........................................
	  	 
		
	 Date:
	  	 

  

 184 

 SCHEDULE 7 
  
 Accession Document 
  
 THIS ACCESSION AGREEMENT is dated [·]

  
 BETWEEN: 
  

	(1)	 	[·] (registered no. [·]) (the “New [Borrower/Guarantor]”); 

  

	(2)	 	[·] (registered no. [·]) (the “Obligors’ Agent”); and 

  

	(3)	 	[·] in its capacity as Facility Agent under
the Facilities Agreement. 

  
 WHEREAS: 
  

	(A)	 	This Agreement is entered into in connection with a senior facilities agreement (the “Facilities Agreement”) dated [·] and made between, inter alia, the Parent, the banks and financial institutions named therein and [·] as Facility Agent. 

  

	(B)	 	This Agreement has been entered into to record the admission of the [New Borrower/Guarantor] as a [Borrower/Guarantor] under the Facilities Agreement.

  
 NOW IT IS HEREBY AGREED AS FOLLOWS: 
  

	1.	 	DEFINITIONS 

  
 Terms defined in the Facilities Agreement shall have the same meaning when used in this Agreement. 
  

	2.	 	ADMISSION OF NEW [BORROWER/GUARANTOR] 

  

	2.1	 	The New [Borrower/Guarantor] agrees to become a [Borrower/Guarantor] under the Facilities Agreement and agrees to be bound by the terms of the Facilities Agreement as
if it had been named as a [Borrower/Guarantor] thereunder. 

  

	2.2	 	The New [Borrower/Guarantor] thereby confirms the appointment of the Obligors’ Agent as its agent in each case on the terms provided for in the Facilities Agreement.

  

	2.3	 	The New [Borrower/Guarantor] confirms that its address details for notices under the Facilities Agreement is as follows: 

  
 Address: 
  
 Facsimile: 
  
 Telex: 
  
 Attention of: 
  

	2.4	 	By their signature below the parties to this Agreement (other than the New [Borrower/Guarantor]) confirm their acceptance of the New [Borrower/Guarantor] as a
[Borrower/Guarantor] for all purposes of the Facilities Agreement. 

  

 185 

	2.5	 	By its signature below, the Obligors’ Agent confirms the agreement of each of the existing Borrowers and Guarantors to the accession of the New [Borrower/Guarantor] to
the Facilities Agreement on the terms set out herein under the Senior Finance Documents. 

  

	3.	 	GOVERNING LAW AND SUBMISSION TO JURISDICTION 

  
 The provisions of Clause 26 (Governing Law and Submission to Jurisdiction) shall apply to this Accession Agreement as though set out in full
herein. 
  
 IN WITNESS whereof the parties have caused this Agreement to be
duly executed on the date first written above. 
  

 186 

 SCHEDULE 8 
  
 Ancillary Facilities 
  

	1.	 	Definitions: In this Schedule, unless the context otherwise requires, the following expressions have the following meanings: 

  
 “Ancillary Limit” means, in relation to an Ancillary Bank,
the maximum exposure (excluding accrued uncapitalised interest, fees and like charges) which it has agreed to accept (whether by way of loan or otherwise) by way of Ancillary Facilities in accordance with Clause 2.2 (Ancillary Facilities)
less that part thereof cancelled, reduced or terminated from time to time in accordance with this Agreement and/or the relevant Ancillary Documents; 
  
 “Ancillary Outstandings” means, in relation to an Ancillary Bank at any time, the aggregate outstanding amount of the Ancillary
Facilities due to that Ancillary Bank, at such time, calculated on the following basis: 
  

	 	(a)	 	all amounts of principal then outstanding under any overdraft or other current account facilities, calculated on a net basis in accordance with the usual practice of that Ancillary
Bank; 

  

	 	(b)	 	the amount of any outstanding utilisation of any BACS facilities made available by that Ancillary Bank (to the extent not included in the calculation of (a) above);

  

	 	(c)	 	the maximum liability under all guarantees, bonds and letters of credit then outstanding and issued under any guarantee, bonding or letter of credit facilities made available by
that Ancillary Bank; and 

  

	 	(d)	 	in respect of any other facility or financial accommodation, such other amount as that Ancillary Bank (acting reasonably) may determine represents the aggregate exposure of that
Ancillary Bank with respect thereto in accordance with its usual practice for calculating its exposure; 

  

	2.	 	Limitations: 

  

	 	(a)	 	The aggregate of the Advances drawn under the Revolving Facility, the total Contingent Liability in relation to Letters of Credit and Bank Guarantees issued under the Revolving
Facility and the total Ancillary Outstandings at any time may not exceed the aggregate of the Commitments of the Revolving Banks in relation to the Revolving Facility at that time (before (and ignoring) any reduction therein on account of any
Ancillary Limit). 

  

	 	(b)	 	The Ancillary Outstandings of an Ancillary Bank may not at any time exceed the Ancillary Limit of that Ancillary Bank. 

  

	 	(c)	 	In the event that the Ancillary Limit of an Ancillary Bank would exceed its Revolving Commitment it shall be entitled to reduce the Ancillary Limit applicable to the Ancillary
Facilities by an amount equal to the excess and require the Borrowers to prepay the Ancillary Outstandings in the amount necessary to procure that the Ancillary Outstandings do not exceed the Ancillary Limit. 

  

	 	(d)	 	No member of the Group which is not also a Borrower under this Agreement shall be permitted to draw the Ancillary Facilities. 

  

 187 

	 	(e)	 	Each Ancillary Document shall be in a form approved by the Facility Agent such approval not to be unreasonably withheld or delayed in the event that such Ancillary Document is in
compliance with the requirements of the Senior Finance Documents. 

  

	3.	 	Terms of Ancillary Facilities: The terms on which Ancillary Facilities are made available shall be as set out in the relevant Ancillary Document as amended from time to time
by agreement between the relevant Ancillary Bank and the Parent (with the prior written approval of the Facility Agent (such approval not to be unreasonably withheld)) provided always that the following provisions will apply to the Ancillary
Facilities: 

  

	 	(a)	 	that no drawing of the Ancillary Facilities will be permitted which gives rise to an actual or contingent liability of the relevant Borrower to the Ancillary Bank which may mature
after or otherwise extend beyond the Revolving Facility Repayment Date; 

  

	 	(b)	 	in any circumstances where the relevant Borrower would be obliged to prepay the Revolving Facility it will also prepay the Ancillary Facilities (or provide appropriate cash cover)
and the Ancillary Facilities shall be cancelled in an amount equal to each amount prepaid or provided as cash cover in accordance with this paragraph (b); 

  

	 	(c)	 	that unless the Majority Banks agree otherwise no utilisation of the Ancillary Facilities shall be permitted if as a result of the terms of Clause 4.4 (Additional Conditions
Precedent) the Borrowers would not be entitled to request a Revolving Advance or the issue of a Letter of Credit or Bank Guarantee. 

  

	4.	 	Fees: No Ancillary Bank shall charge interest or fees in relation to Ancillary Facilities any greater than those set out below: 

  

	 	(a)	 	a margin over cost of funds or base rate on any funded drawings under the Ancillary Facilities equal to the Margin in relation to the Revolving Facility; 

 

	 	(b)	 	a fee on the contingent liability of the Ancillary Bank in relation to any letter of credit, bank guarantee, performance bond or similar instrument issued by the Ancillary Bank
under the Ancillary Facilities equal to the Margin; and 

  

	 	(c)	 	usual bank charges and expenses payable in connection with the provision of the Ancillary Facilities as agreed between the Parent and the relevant Ancillary Bank.

  

 188 

 SCHEDULE 9 
  
 Provisions relating to Letters of Credit/Bank Guarantees 
  

	1.	 	Demands: Each Issuing Bank shall forthwith notify the Facility Agent of any demand received by it under and in accordance with any Letter of Credit or Bank Guarantee
(including details of the Letter of Credit or Bank Guarantee under which such demand has been received and the amount demanded) and the Facility Agent on receipt of any such notice shall forthwith notify the Parent, the Borrower for whose account
that Letter of Credit or Bank Guarantee was issued (the “Account Party”) and each of the Revolving Banks. 

  

	2.	 	Payments: 

  

	 	(a)	 	The Account Party shall immediately on receipt of any notice from the Facility Agent under paragraph 1 (Demands) of this Schedule pay to the Facility Agent for the account of
the relevant Issuing Bank the amount demanded from that Issuing Bank as notified to the Facility Agent in accordance with that paragraph less any amount standing to the credit of any Cash Collateral Account and which has been paid to the credit of
that Cash Collateral Account to provide cash cover in respect of the Letter of Credit or Bank Guarantee under which the relevant Issuing Bank has received demand. 

  

	 	(b)	 	The Facility Agent shall pay to the relevant Issuing Bank any amount received by it from the Account Party under paragraph 2(a) (Payments) of this Schedule together with any
amount standing to the credit of any Cash Collateral Account in respect of the Letter of Credit or Bank Guarantee under which such Issuing Bank has received demand. 

  

	3.	 	Authority to Pay: The Account Party hereby irrevocably authorises each Issuing Bank to pay without investigation or confirmation by it any demand which appears on its face to
be validly made under or pursuant to any Letter of Credit or Bank Guarantee issued by that Issuing Bank and agrees that as between itself, such Issuing Bank and the Banks, that any such demand (in the absence of manifest error) shall be conclusive
evidence that demand has been properly made. 

  

	4.	 	Indemnity: 

  

	 	(a)	 	The Account Party hereby irrevocably and unconditionally agrees to indemnify each Issuing Bank and keep each Issuing Bank indemnified on its first demand from and against all
actions, losses, damages, claims, proceedings, costs, demands and liabilities which may be suffered or incurred by that Issuing Bank under or in connection with any Letter of Credit or Bank Guarantee (including, without limitation, by making payment
of any amount which it is required to pay under paragraph 2(a) (Payments) of this Schedule). 

  

	 	(b)	 	Without prejudice to the Account Party’s obligations under paragraph 4(a) (Indemnity) of this Schedule, each Revolving Bank hereby irrevocably, unconditionally and
severally agrees to indemnify and pay to each Issuing Bank on its first demand an amount equal to its proportion (determined pursuant to Clause (e) (Basis of Participation) on the date of issue of the relevant Letter of Credit or Bank
Guarantee (subject as provided in Clause 20 (Assignments and Transfers)) of the amount which the Issuing Bank has paid under the relevant Letter of Credit or Bank Guarantee. 

  

	 	(c)	 	The Account Party hereby irrevocably and unconditionally agrees to indemnify and keep indemnified each Revolving Bank on its first demand from and against all actions, losses,
damages, claims, proceedings, costs, demands and liabilities which may be suffered or 

  
  

 189 

 incurred by such Revolving Bank as a result of the obligations assumed by it to each Issuing Bank under
paragraph 4(b) (Indemnity) of this Schedule. 
  

	5.	 	Interest: 

  

	 	(a)	 	The Account Party shall pay interest on all amounts paid by an Issuing Bank under or in connection with any Letter of Credit or Bank Guarantee or by any Revolving Bank under
paragraph 4(b) (Indemnity) of this Schedule from (and including) the date of payment by such Issuing Bank or such Revolving Bank until the date of indemnification calculated and payable in accordance with Clause 6.5 (Default Interest)
provided that the Issuing Bank will notify the Account Party of any such payment within 2 Business Days of it being made. 

  

	 	(b)	 	Amounts standing to the credit of any Cash Collateral Account opened with a Finance Party shall bear interest at the rate normally offered by such Finance Party to corporate
depositors of amounts similar to the relevant amount for periods of deposit similar to the anticipated period of deposit of the relevant amount. 

  

	6.	 	Cash Cover: 

  

	 	(a)	 	Any Obligor providing cash cover or paying any other sum to the credit of a Cash Collateral Account (including, without limitation, pursuant to Clause 8 (Prepayment)) in
accordance with the Senior Finance Documents shall (if such Cash Collateral Account is not already subject to a fixed charge under a Security Document) execute and deliver to the Security Agent an additional Security Document, in such form as the
Facility Agent shall reasonably require, constituting a first fixed charge over such Cash Collateral Account, together with such evidence of due execution of such Security Document as the Security Agent shall require and a legal opinion satisfactory
to the Security Agent. 

  

	 	(b)	 	The Facility Agent shall be and is hereby irrevocably authorised by the Account Party following a demand under and in accordance with any Letter of Credit or Bank Guarantee to apply
all amounts standing to the credit of any Cash Collateral Account in respect of that Letter of Credit or Bank Guarantee in satisfaction of the Account Party’s obligations in respect of that Letter of Credit or Bank Guarantee.

  

	7.	 	Protective Provisions: The following provisions shall apply to each of the indemnities (the “Indemnities”) contained in paragraph 4 (Indemnity) of
this Schedule. 

  

	 	(a)	 	Each of the Indemnities are and will remain in full force and effect by way of continuing security until such time as no amounts to which such Indemnities are expressed to relate
remain payable or capable of becoming payable under the Senior Finance Documents. Furthermore the Indemnities are additional to and not instead of any security or other guarantee at any time existing in favour of any person.

  

	 	(b)	 	Any settlement or discharge of any claim under any of the Indemnities shall be conditional upon no payment made under the Indemnities being avoided or set aside or ordered to be
refunded by virtue of any provision of any enactment relating to bankruptcy, insolvency, winding-up or liquidation. 

  

	 	(c)	 	The obligations arising under the Indemnities and any liability deriving therefrom shall not be discharged or affected by any circumstance which would so discharge or affect it but
for this provision including, without limitation: 

  

	 	(i)	 	any time, indulgence, waivers or consents given to any Obligor or any other person; 

  

 190 

	 	(ii)	 	any amendment, variation or modification of the Finance Documents or any other security or guarantee or any increase in the amount of the Facilities; 

  

	 	(iii)	 	the making or absence of any demand on any Obligor or any other person for payment or performance of any other obligations or the application of any moneys at any time received from
any Obligor or any other person; 

  

	 	(iv)	 	the enforcement, perfecting or protecting of or absence of enforcement, perfecting or protecting of any security, guarantee or undertaking (including, without limitation, all or any
of the obligations and liabilities of any Obligor); 

  

	 	(v)	 	the release, taking, giving or abstaining from taking of any security, guarantee or undertaking (including, without limitation, the Senior Finance Documents);

  

	 	(vi)	 	the insolvency, winding-up, administration, receivership or commencement of any other insolvency procedure under the laws of any relevant jurisdiction in relation to any Obligor,
any Senior Finance Party or any other person or the making or any arrangement or composition with or for the benefit of creditors by any Obligor, any Senior Finance Party or any other person; 

  

	 	(vii)	 	any amalgamation, merger or change in constitution in relation to any Obligor, any Senior Finance Party or any other person; and 

  

	 	(viii)	 	the illegality, invalidity or unenforceability of or any defect in any provision of any Finance Document or any security, obligations or liabilities arising or expressed to arise
thereunder; 

  

	8.	 	Subrogation: No Borrower shall by virtue of any payment made under the Indemnities claim any right of subrogation, contribution or indemnity against any person for so long as
any sum remains payable or capable of becoming payable under the Senior Finance Documents. 

  

 191 

 SCHEDULE 10 
  
 Formalities Certificate 
  
 [Insert name of Company] 
 (the
“Obligor”) 
  
 Facilities Agreement dated 25 May
2001 
 (the “Facilities Agreement”) 
  

	To:	 	[·] as Facility Agent under the Facilities Agreement. 

 
 I [·] being a [director] [corporate officer] of the Obligor and being duly authorised by the board of directors of the Obligor to deliver this Certificate hereby make the following certifications and
confirmations. 
  

	1.	 	Constitutional Documents 

  
 Attached hereto marked A are true, complete and up-to-date copies of: 
  

	 	(i)	 	the certificate of incorporation of the Obligor; 

  

	 	(ii)	 	all certificates of incorporation on change of name of the Obligor (if any); and 

  

	 	(iii)	 	the Constitutional Documents of the Obligor consisting of [·].

  

	2.	 	Extract Board Resolutions 

  
 Attached hereto marked B is a true and complete extract from the minutes of a meeting of the board of directors of the Obligor duly convened and held
(during which a quorum was present throughout) recording resolutions passed at such meeting (which resolutions are in full force and effect and have not been rescinded or varied) and which approve the Transaction Documents to which it is a party and
all transactions contemplated thereby. 
  

	3.	 	[Shareholder Resolutions 

  
 Attached hereto marked C is a true and complete copy of a resolution of all the shareholders of the Obligor unanimously passed authorising and
directing the execution and performance by the Obligor of the Transaction Documents to which it is a party.] 
  

	4.	 	Authorised Signatories 

  
 The following signatures are the specimen signatures of the persons authorised by resolution of the board of directors of the Obligor to execute all
Senior Finance Documents and other Transaction Documents to which it is a party, drawing requests under the Facilities Agreement and all other documents and notices required in connection therewith and who have signed such documents: 
  

	 Name

	 	 Position

	 	 Signature

  

	5.	 	No Breach of Borrowings Limit 

  
 I have examined the terms of the Transaction Documents, all shareholder agreements, the memorandum and articles of association and all other relevant
constitutional documents of the Obligor 
  

 192 

 (together the “Relevant Documents”) and I can confirm to you that entry into the
Transaction Documents and drawing of all amounts capable of being drawn by the Obligor under the Transaction Documents taking into account the terms of the Relevant Documents and any other Financial Indebtedness of the Obligor: 
  

	 	(i)	 	will be within the corporate powers of the Obligor; and 

  

	 	(ii)	 	does not or will not cause to be exceeded any limit or restriction on any of the powers of the Obligor or the right or ability of the directors of the Obligor to exercise such
powers. 

  
 Terms defined in the Facilities
Agreement shall bear the same meaning when used herein. 
  

		
	 Signed:
	 	 .........................

		
	 	 	DIRECTOR
		
	 Date:
	 	 .........................

  

 193 

 SCHEDULE 11 
  
 Forms of Letter of Credit/Bank Guarantee 
  
 Part I—Form of Letter of Credit 
  
 [HEADED NOTEPAPER OF ISSUING BANK] 
  

	To:	 	[Details] 

  
 [Date] 
  
 Dear Sirs 
  
 We hereby issue our irrevocable
non-transferable standby letter of credit no [details] the terms of which are set out below. 
  

	1.	 	In this standby letter of credit: 

  
 “Bank” means [details of Issuing Bank]; 
  

“Beneficiary” means [details]; 
  
 “Borrower” means [details]; 
  
 “Business Day” means a day (not being a Saturday or Sunday) on which banks are generally open for business (other than a day on which
banks are open only for the operation of business in euros) (i) in London and (ii) in [details—principal financial centre of currency of L.C.]3; 
  
 “Expiry Date” means [details]; 
  
 “Facility” means [details]; 
  
 “Maximum Amount” means [details]; 
  
 “Payment Amount” means the amount specified by the Beneficiary in the Required Documents; 
  
 “Required Document” means a request for payment in the form set out in Appendix A hereto completed in a manner consistent with the
requirements of this letter of credit and signed on behalf of the Beneficiary. 
  

	2.	 	Within five Business Days of receipt by the Bank at its offices at [details] (Attn: [details]) of the Required Document the Bank will pay to the Beneficiary the lesser
of: 

  

	 	(a)	 	the Payment Amount as stated in the Required Document; and 

  

	 	(b)	 	the Maximum Amount 

	3	 	Consider intended operation on TARGET days 

  

 194 

 provided that only one request for payment by delivery of the Required Document may be made hereunder and
the Bank shall not be obliged to make any payment hereunder at any time after the Expiry Date. 
  

	3.	 	Any payment made hereunder shall be made in [details—currency] by payment to the account of the Beneficiary at a principal bank in [details] specified in
the Required Document. 

  

	4.	 	This letter of credit is not assignable or transferable in whole or in part and shall be payable only against presentation of the Required Document. 

	5.	 	Save insofar as such provisions may be inconsistent with the express terms of this letter of credit, this letter of credit is subject to Uniform Customs and Practice for Documentary
Credits (1993 revision) ICC Publication no 500 (the “UCP”) (with the exception of Articles 22-44 inclusive (other than Articles 40a, 42 and 44a which shall each apply)). Notwithstanding Article 17 of the UCP if the Bank suffers an
interruption of business as described therein and the Expiry Date occurs during such interruption the Bank shall honour any demand made under this letter of credit at any time within 30 days after such interruption of business ends and shall notify
the Beneficiary promptly when it does so end. 

  

	6.	 	This letter of credit is governed by and shall be construed in accordance with English law. 

  
 Yours faithfully 
  
  
  
 For and on
behalf of 
 [ISSUING BANK] 
  

 195 

 APPENDIX A 
  
 [HEADED NOTEPAPER OF BENEFICIARY] 
  

	To:	 	[Name and address of 

 Issuing
Bank] 
  
 Letter of Credit No [·] (the “Letter of Credit”) 
  
 We refer to the Letter of Credit and certify that: 
  

	(a)	 	we have provided the Facility to the Borrower on the terms and conditions approved by you at the time of issue of the Letter of Credit; 

  

	(b)	 	the terms of the Facility are the same as those prevailing at the time of issue of the Letter of Credit (or, to the extent that they are not, any amendments thereto have been
approved by you); 

  

	(c)	 	an aggregate amount (the “Payment Amount”) of [·] (comprising
[·] of principal and [·] of interest and/or
other charges) fell due for payment in [·] by [·] on [·] and remains due and unpaid at the date of this letter. 

  
 Accordingly, we hereby request payment under the Letter of Credit of the Payment Amount.
Payment is to be made to our account (A/c No [·]) with [·] at [·]. 
  
 Terms defined in the Letter of Credit shall bear the same meaning in this letter. 
  

Yours faithfully 
  
  
  
 For and on behalf of 
  

 196 

 Part II—Form of Bank Guarantee 
  
 [HEADED NOTEPAPER OF ISSUING BANK] 
  

	To:	 	[Details] 

  
 [Date] 
  
 Ref: [Details] 
  
 Dear Sirs, 
  

	1.	 	In this letter: 

  
 “Bank” means [details of Issuing Bank] 
  

“Borrower” means [details]; 
  
 “Business Day” means a day (not being a Saturday or Sunday) on which banks are generally open for business (other than a day on which
banks are open only for the operation of business in euros) (i) in London and (ii) in [details—principal financial centre of currency of L.C.]4; 
  
 “Expiry Date” means [details]; 
  
 “Facility” means [details]; 
  
 “Payment Date” means the date for payment of a demand being [details—minimum five] Business Days after the date of receipt of demand. 
  

	2.	 	In consideration of your agreeing to make available the Facility the Bank irrevocably and unconditionally guarantees to you on receipt of written demand, the payment and discharge
by the Borrower of all amounts payable or expressed to be payable to you pursuant to the Facility. This guarantee is given subject as follows: 

  

	 	(a)	 	Any demand made hereunder shall be made in writing addressed to the Bank or its offices at [details] (Attention: [details]) in the form provided in Appendix A;

  

	 	(b)	 	The maximum aggregate liability of the Bank hereunder (inclusive of all principal, interest, costs and expenses) is [details]; 

  

	 	(c)	 	No demand may be made hereunder after the Expiry Date and only one demand may be made hereunder. 

  

	3.	 	Any payment made hereunder shall be made on the Payment Date in [details—currency] by payment to the account of the Beneficiary at a principal bank in [details]
specified in the demand. 

	4	 	Consider intended operation on TARGET days 

  

 197 

	4.	 	This guarantee is not assignable or transferable in whole or in part. 

  

	5.	 	This guarantee shall be construed in accordance with English law. 

  
 Yours faithfully 
  
 For and on behalf of 
 [ISSUING BANK] 
  

 198 

 APPENDIX A 
  
 [HEADED NOTEPAPER OF BENEFICIARY] 
  

	To:	 	[Name and address of 

 Issuing Bank] 
  
 Bank Guarantee Ref No [•]
(the “Bank Guarantee”) 
  
 We refer to the Bank Guarantee
and certify that: 
  

	(a)	 	we have provided the Facility to the Borrower on the terms and conditions approved by you at the time of issue of the Bank Guarantee; 

  

	(b)	 	the terms of the Facility are the same as those prevailing at the time of issue of the Bank Guarantee (or, to the extent that they are not, any amendments thereto have been approved
by you); 

  

	(c)	 	an aggregate amount (the “Payment Amount”) of [•] (comprising [•] of principal and [•] of interest and/or other charges) fell due for payment in
[•] by [•] on [•] and remains due and unpaid at the date of this letter. 

  
 Accordingly, we hereby request payment under the Bank Guarantee of the Payment Amount. Payment is to be made to our account (A/c No [•]) with [•] at [•]. 
  
 Terms defined in the Bank Guarantee shall bear the same meaning in this letter. 

 
 Yours faithfully 
  
 For and on behalf of 
  

 199 

 SCHEDULE 12 
  
 Part A—Original Security Documents 
  

	1.	 	New York law Security Agreement dated 22 June 2001 entered into by each US Obligor (as at the Yell Completion Date) in favour of the Security Agent. 

  

	2.	 	New York law Intellectual Property Security Agreement dated 22 June 2001 entered into by each US Obligor (as at the Yell Completion Date) in favour of the Security Agent.

  

	3.	 	New York law Pledge Agreement dated 22 June 2001 by UK Newco 5 of shares in US Newco 1 in favour of the Security Agent. 

  

	4.	 	English law Debenture dated 22 June 2001 entered into by each UK Obligor (other than the Parent) in favour of the Security Agent. 

  

	5.	 	Luxembourg law share pledge agreement dated 30 October 2001 by UK Newco 5 of shares in Luxco in favour of the Security Agent. 

  

	6.	 	Luxembourg law receivables pledge agreement dated 30 October 2001 by UK Newco 5 in favour of the Security Agent. 

  

	7.	 	New York law Pledge Agreement dated 26 October 2001 by Luxco of shares in US Newco 1, stock, other equity interests, indebtedness and other investment property in favour of the
Security Agent. 

  
 Part B—Tranche D Security
Documents 
  

	1.	 	New York law Security Agreement Supplement dated on or before the McLeod Completion Date entered into by the Tranche D Borrower and each acceding US Obligor (as at the McLeod
Completion Date) in favour of the Security Agent. 

  

	2.	 	New York law Intellectual Property Security Agreement Supplement dated on or before the McLeod Completion Date entered into by the Tranche D Borrower and each acceding US Obligor
(as at the McLeod Completion Date) in favour of the Security Agent. 

  

	3.	 	English law Debenture dated on or before the McLeod Completion Date entered into by each UK Obligor (other than the Parent) in favour of the Security Agent.

  

 200 

 SCHEDULE 13 
  
 Recapitalisation Steps 
  

	 Step

	  	 Description

	 1.
	  	The UK Principal Borrower assigns its US$248,897,251.39 receivable (plus interest) (the “YBUSA Receivable”) from Yellow Book USA, Inc. (“YBUSA”)
to UK Newco 3 in consideration for the reduction of the Sterling loan from UK Newco 3 to the UK Principal Borrower by an equivalent amount of Sterling.
		
	 2.
	  	The Subordinated Guarantor assigns its US$9.1 million receivable (the “CGC Receivable” and together with the YBUSA Receivable, the “Receivables”)
to UK Newco 3 in consideration for the issue of shares by UK Newco 3 to the Subordinated Guarantor in an equivalent amount (which shall be subject to the Security Interests granted to the Security Agent pursuant to the Security
Documents).
		
	 3.
	  	UK Newco 3 assigns the Receivables to UK Newco 5 (a company with Sterling and US Dollar denominated share capital) in consideration for the issue of US Dollar denominated shares
by UK Newco 5 to UK Newco 3 in an equivalent amount (which shall be subject to the Security Interests granted to the Security Agent pursuant to the Security Documents).
		
	 4.
	  	The Subordinated Guarantor issues US$350 million loan notes to the Issuer in consideration for the reduction of the existing Sterling loan from the Issuer to the Subordinator
Guarantor by an equivalent amount of Sterling. The loan notes will mirror the terms of the Issuer’s US Dollar High Yield Notes and US Dollar Discount High Yield Notes. No cash movement.
		
	 5.
	  	The Subordinated Guarantor enters into a cross currency swap with YBUSA for the principal amount of the Tranche C2 Term Facility (being £52,241,919.42) thereby creating a
synthetic US Dollar liability and Sterling asset for YBUSA and a synthetic Sterling liability and US Dollar asset for the Subordinated Guarantor which matches & hedges the Sterling Tranche C2 Term Facility liability.
		
	 6.
	  	UK Newco 3 issues US$275 million loan notes to the Subordinated Guarantor in consideration for the reduction of the existing Sterling loan from the Subordinated Guarantor by an
equivalent amount of Sterling. The loan notes will mirror the terms of those agreed by the Subordinated Guarantor with the Issuer and will reflect those of the US Dollar High Yield Notes and US Dollar Discount High Yield Notes. No cash
movement.
		
	 7.
	  	UK Newco 3 makes a matching election with the UK Inland Revenue to offset its US$275 million liability to the Subordinated Guarantor against its equity investment in UK Newco
5.

  

 201 

 SCHEDULE 14 
  
 The Mortgages and Related Documentation 
  

	(a)	 	the Mortgages; 

  

	(b)	 	mortgage title insurance policies (or binding commitments to issue such title insurance policies) issued by title insurers reasonably satisfactory to the Facility Agent (the
“Mortgagee Policies”) on terms and in amounts reasonably satisfactory to the Facility Agent and assuring the Security Agent that the mortgages created under the Tranche D Security Documents in respect of the Mortgaged Property are
valid and enforceable Security Interests on the respective properties subject only to such exceptions to title as shall be reasonably acceptable to the Security Agent and containing such endorsements and affirmative insurance as the Facility Agent
in its discretion may reasonably request; 

  

	(c)	 	current American Land Title Association form surveys in respect of the Mortgaged Property, certified to the Facility Agent and the issuer of the Mortgage Policies in a manner
reasonably satisfactory to the Facility Agent by a certified land surveyor and such surveys to be in form and substance acceptable to the Facility Agent; 

  

	(d)	 	such consents and agreements of lessors and other third parties, and such estoppel letters and other confirmations, as the Facility Agent may reasonably deem necessary or desirable;

  

	(e)	 	evidence of the insurance required by the terms of the Mortgages; and 

  

	(f)	 	legal opinions from counsel to the Parent in form and substance satisfactory to the Facility Agent. 

  
  

 202 

 SIGNATORIES 
  
 PARENT 
  
 YELL GROUP plc 
  
 By: RICHARD LENANE 
  
  
 OBLIGORS 
  
  
 YELLOW PAGES LIMITED 
  
 By: RICHARD LENANE 
  
  
 YELL HOLDINGS
2 LIMITED 
  
 By: RICHARD LENANE 

 
  
 YELL
LIMITED 
  
 By: RICHARD LENANE 
  
  
 YH LIMITED

  
 By: RICHARD LENANE 
  
  
 YELL SarL

  
 By: STEPHEN GREEN 
  

 203 

 YELLOW BOOK GROUP, INC 
  
 By: STEPHAN LOBMEYR 
  
  
 YELLOW BOOK HOLDINGS, INC. 
  
 By: STEPHAN LOBMEYR 
  
  
 YELLOW BOOK
USA, INC. 
  
 By: STEPHAN LOBMEYR 

 
  
 YELLOW
BOOK OF NEW YORK, INC. 
  
 By: STEPHAN
LOBMEYR 
  
  
 YELLOW BOOK OF PENNYSLVANIA, INC. 
  
 By: STEPHAN LOBMEYR 
  
  
 GENERAL ART SERVICES LIMITED 
  
 By: JOHN CONDRON 
  
  
 YELLOW PAGES SALES LIMITED 
  
 By: JOHN CONDRON 

 YELLOW BOOK/MCLEOD HOLDINGS, INC 
  
 By: STEPHAN LOBMEYR 
  
  
 McLEODUSA MEDIA GROUP, INC. 
  
 By: STEPHAN LOBMEYR 
  
  
 CONSOLIDATED
COMMUNICATIONS 
 DIRECTORIES, INC. 
  
 By: STEPHAN LOBMEYR 
  
  
 McLEODUSA PUBLISHING COMPANY 
  
 By: STEPHAN LOBMEYR 
  
  
 TRANCHE C3
MANDATED LEAD ARRANGER 
  
 CIBC WORLD MARKETS plc 
  
 By: JONATHAN ROWLAND 
  
  
 TRANCHE C3
JOINT LEAD ARRANGER 
  
 CREDIT SUISSE FIRST BOSTON 
  
 By: DAVID SLADE 
 ROBERT WILLOUGHBY 

 TRANCHE C3 ARRANGERS 
  
 BARCLAYS BANK CAPITAL (THE 
 INVESTMENT BANKING DIVISION OF 
 BARCLAYS BANK PLC 
  
 By: TIM AUSTRUP 
  
  
 DEUTSCHE BANK AG LONDON 
  
 By: MILES TADMAN 
 MARK DIXSON 
  
  
 MERRILL LYNCH INTERNATIONAL 
  
 By: ANDREW McCULLAGH 
  
  
 TRANCHE C3
JOINT BOOKRUNNERS 
  
 CIBC WORLD MARKETS plc 
  
 By: JONATHAN ROWLAND 
  
  
 CREDIT SUISSE
FIRST BOSTON 
  
 By: DAVID SLADE 

ROBERT WILLOUGHBY 

 TRANCHE C3 SYNDICATION AGENT 
  
 CIBC WORLD MARKETS plc 
  
 By: JONATHAN ROWLAND 
  
  
 ORIGINAL TRANCHE C3 BANKS 
  
 BARCLAYS BANK PLC 
  
 By: TIM AUSTRUP 
  
  
 CIBC WORLD MARKETS PLC 
  
 By: JONATHAN ROWLAND 
  
  
 CREDIT SUISSE FIRST BOSTON 
  
 By: DAVID SLADE 
 ROBERT WILLOUGHBY 
  
  
 DEUTSCHE BANK AG LONDON 
  
 By: MILES TADMAN 
 MARK DIXSON 
  
  
 MERRILL LYNCH CAPITAL CORPORATION 
  
 By: ANTHONY LAFAIRE 

 FACILITY AGENT AND SECURITY AGENT 
  
 DEUTSCHE BANK AG LONDON 
  
 By: RON LANE-SMITH 
 CHRISTOPHER BENHAM

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00053-of-00352.parquet"}]]