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Exhibit 10.29  

CONFORMED
COPY 

$750,000,000 

CREDIT
AGREEMENT 

dated
as of 

February 5,
2004 

among

Qwest
Services Corporation

Qwest Communications International Inc. 

The
Lenders Listed Herein 

and 

Bank
of America, N.A.,

as Administrative Agent 

J.P.
Morgan Securities Inc.

Wachovia Capital Markets, LLC

Co-Lead Arrangers

and Joint Bookrunners 

JPMorgan
Chase Bank

Wachovia Bank, N.A.

Co-Syndication Agents 

Lehman
Commercial Paper Inc.

UBS Securities LLC

Co-Documentation Agents 

   TABLE OF CONTENTS  

	 
	 	 
	 	Page

	 	 	ARTICLE 1

Definitions	 	 
	Section 1.01.	 	The Definitions	 	1
	Section 1.02.	 	Accounting Terms and Determinations	 	15
	Section 1.03.	 	Types and Tranches of Borrowings of Loans	 	15
	

 	
 	
ARTICLE 2

The Credits	
 	

 
	Section 2.01.	 	Commitments to Lend	 	15
	Section 2.02.	 	Notice of Borrowing	 	15
	Section 2.03.	 	Notice to Lenders; Funding of Loans	 	16
	Section 2.04.	 	Evidence of Debt	 	17
	Section 2.05.	 	Maturity of Loans	 	17
	Section 2.06.	 	Interest Rates	 	17
	Section 2.07.	 	Commitment Fees	 	18
	Section 2.08.	 	Termination or Reduction of Commitments; Scheduled Amortization of Term Loans	 	19
	Section 2.09.	 	Method of Electing Interest Rates	 	19
	Section 2.10.	 	Prepayments	 	20
	Section 2.11.	 	General Provisions as to Payments	 	20
	Section 2.12.	 	Funding Losses	 	21
	Section 2.13.	 	Computation of Interest and Fees	 	21
	Section 2.14.	 	Change of Control	 	21
	Section 2.15.	 	Increase In Commitments; New Term Tranche	 	22
	

 	
 	
ARTICLE 3

Conditions	
 	

 
	Section 3.01.	 	Closing	 	23
	Section 3.02.	 	Condition To Term Loans	 	24
	Section 3.03.	 	All Borrowings	 	24
	

 	
 	
ARTICLE 4

Representations And Warranties	
 	

 
	Section 4.01.	 	Corporate Existence and Power	 	25
	Section 4.02.	 	Corporate and Governmental Authorization; No Contravention	 	25
	Section 4.03.	 	Binding Effect	 	25
	Section 4.04.	 	Financial Information	 	25
	Section 4.05.	 	Litigation	 	26
	Section 4.06.	 	Compliance with ERISA	 	26
	Section 4.07.	 	Environmental Matters	 	26
	Section 4.08.	 	Taxes	 	26
	Section 4.09.	 	Subsidiaries	 	27
	Section 4.10.	 	Not an Investment Company	 	27
	Section 4.11.	 	Full Disclosure	 	27
	Section 4.12.	 	Solvency	 	27
	 	 	 	 	 

i

 

	

 	
 	
ARTICLE 5

Covenants	
 	

 
	Section 5.01.	 	Information	 	27
	Section 5.02.	 	Maintenance of Property; Insurance	 	30
	Section 5.03.	 	Maintenance of Existence	 	30
	Section 5.04.	 	Compliance with Laws	 	30
	Section 5.05.	 	Inspection of Property, Books and Records	 	30
	Section 5.06.	 	Financial Covenants	 	30
	Section 5.07.	 	Negative Pledge	 	30
	Section 5.08.	 	Consolidations, Mergers and Sales of Assets	 	32
	Section 5.09.	 	Use of Proceeds	 	33
	Section 5.10.	 	Restricted Payments and Payments of Certain Other Debt	 	33
	Section 5.11.	 	Limitations on Restrictions Affecting Subsidiaries	 	34
	Section 5.12.	 	Limitations on Debt	 	34
	Section 5.13.	 	Limitations on Investments; Loans, Advances, Guarantees and Acquisitions	 	37
	Section 5.14.	 	Further Assurances Regarding Collateral and Guaranty Requirement	 	38
	Section 5.15.	 	Borrower A Holding Company	 	38
	

 	
 	
ARTICLE 6

Defaults	
 	

 
	Section 6.01.	 	Events of Default	 	38
	Section 6.02.	 	Notice of Default	 	40
	

 	
 	
ARTICLE 7

The Administrative Agent	
 	

 
	Section 7.01.	 	Appointment and Authorization	 	40
	Section 7.02.	 	Administrative Agent and Affiliates	 	40
	Section 7.03.	 	Action by Administrative Agent	 	40
	Section 7.04.	 	Consultation with Experts	 	41
	Section 7.05.	 	Delegation of Duties	 	41
	Section 7.06.	 	Liability of Administrative Agent	 	41
	Section 7.07.	 	Indemnification	 	41
	Section 7.08.	 	Credit Decision; Disclosure of Information by Administrative Agent	 	41
	Section 7.09.	 	Successor Administrative Agent	 	42
	Section 7.10.	 	Administrative Agent's Fee	 	42
	

 	
 	
ARTICLE 8

Changes In Circumstances	
 	

 
	Section 8.01.	 	Basis for Determining Interest Rate Inadequate or Unfair	 	42
	Section 8.02.	 	Illegality	 	43
	Section 8.03.	 	Increased Cost and Reduced Return	 	43
	Section 8.04.	 	Taxes	 	44
	Section 8.05.	 	Domestic Loans Substituted for Affected Euro-Dollar Loans	 	45
	Section 8.06.	 	Substitution of Lender	 	46
	 	 	 	 	 

ii

 

	

 	
 	
ARTICLE 9

Guaranty	
 	

 
	Section 9.01.	 	The Guaranty	 	46
	Section 9.02.	 	Guaranty Unconditional	 	46
	Section 9.03.	 	Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances	 	47
	Section 9.04.	 	Waiver by the Guarantor	 	47
	Section 9.05.	 	Subrogation	 	47
	Section 9.06.	 	Stay of Acceleration	 	47
	

 	
 	
ARTICLE 10

Miscellaneous	
 	

 
	Section 10.01.	 	Notices	 	47
	Section 10.02.	 	No Waivers	 	48
	Section 10.03.	 	Expenses; Indemnification	 	48
	Section 10.04.	 	Sharing of Set-offs	 	48
	Section 10.05.	 	Amendments and Waivers	 	49
	Section 10.06.	 	Successors and Assigns	 	49
	Section 10.07.	 	Governing Law; Submission to Jurisdiction	 	51
	Section 10.08.	 	Counterparts; Integration	 	51
	Section 10.09.	 	WAIVER OF JURY TRIAL	 	52
	Section 10.10.	 	Confidentiality	 	52
	Section 10.11.	 	No Reliance on Margin Stock	 	52
	Section 10.12.	 	Co-Lead Arrangers, Joint Bookrunners, Co-Syndication Agents and Co-Documentation Agents	 	52
	Section 10.13.	 	Payments Set Aside	 	52
	Section 10.14.	 	USA Patriot Act Notice	 	52

Commitment
Schedule 

	Schedule 4.05	 	—	 	Litigation
	

Schedule 4.07	
 	

—	
 	

Environmental Matters
	

Schedule 5.07	
 	

—	
 	

Existing Liens
	

Schedule 5.12	
 	

—	
 	

Existing Debt
	

Schedule 5.13	
 	

—	
 	

Existing Investments
	

Exhibit A	
 	

—	
 	

Note
	

Exhibit B	
 	

—	
 	

Security and Pledge Agreement
	

Exhibit C	
 	

—	
 	

Term Loan Addendum
	

Exhibit D	
 	

—	
 	

Opinions of Counsel for the Loan Parties
	

Exhibit E	
 	

—	
 	

Assignment and Assumption Agreement
	

Exhibit F	
 	

—	
 	

Notice of Borrowing

iii

 
 

CREDIT AGREEMENT    
    

        AGREEMENT dated as of February 5, 2004 among QWEST SERVICES CORPORATION, QWEST COMMUNICATIONS INTERNATIONAL INC., the LENDERS listed on the
signature pages hereof and BANK OF AMERICA, N.A., as Administrative Agent. 

ARTICLE 1

Definitions  

        Section 1.01. The Definitions.

        The
following terms, as used herein, have the following meanings: 

        "Adjusted London Interbank Offered Rate" has the meaning set forth in Section 2.06. 

        "Administrative Agent" means Bank of America, N.A., in its capacities as administrative agent and collateral agent for the Lenders under
the Loan Documents, and its successors in such capacity. 

        "Administrative Agent-Related Person" means the Administrative Agent, together with its Affiliates, and the officers, directors,
employees, agents and attorneys-in-fact of such Persons and Affiliates. 

        "Administrative Questionnaire" means, with respect to each Lender, an administrative questionnaire in the form prepared by the
Administrative Agent and submitted to the Administrative Agent (with a copy to the Company) duly completed by such Lender. 

        "Affiliate", as applied to any Person, means any other Person directly or indirectly controlling, controlled by, or under common control
with, that Person. For the purposes of this definition, "control" (including, with correlative meanings, the terms "controlling", "controlled by" and "under common control with"), as applied to any
Person, means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities or by contract or otherwise. 

        "Aggregate Commitment" means the Commitments of all the Lenders. 

        "Agreement" means this Credit Agreement dated as of February 5, 2004, as the same may from time to time be amended, amended and
restated, modified or supplemented. 

        "Applicable Lending Office" means, with respect to any Lender, (i) in the case of its Domestic Loans, its Domestic Lending Office
and (ii) in the case of its Euro-Dollar Loans, its Euro-Dollar Lending Office. 

        "Applicable Margin" means, from time to time, the following percentages per annum, based upon the Debt Rating as set forth below: 

	Applicable Margin
 
	 
	Pricing Level
	 	Debt Ratings

S&P/Moody's
	 	Commitment Fee
	 	Euro-Dollar

Revolver Loans
	 	Domestic Revolver

Loans
	 
	1	 	BBB- or Baa3 or better	 	0.250	%	1.00	%	0.00	%
	2	 	BB+ or Ba1	 	0.375	%	1.75	%	0.75	%
	3	 	BB or Ba2	 	0.500	%	2.00	%	1.00	%
	4	 	BB- or Ba3	 	0.500	%	2.25	%	1.25	%
	5	 	B+ or B1	 	0.500	%	2.50	%	1.50	%
	6	 	B/B2 or worse	 	0.750	%	3.00	%	2.00	%

        For
purposes of this definition, "Debt Rating" means, as of any date of determination, the rating as determined by each of S&P and Moody's
(collectively, the "Debt Ratings") of the Debt under this Agreement (or, if ratings of such Debt are not issued by both S&P and Moody's, of the
Company's senior unsecured long-term debt (Guaranteed by the Borrower on a subordinated basis, with the Guaranty secured on a junior lien basis);  provided that if there is a split in the Debt Ratings,
then the Pricing Level that is one level higher than the Pricing Level of the lower Debt Rating
shall apply (with 

 

the
Debt Rating for Pricing Level 1 being the highest and the Debt Rating for Pricing Level 6 being the lowest), and if Debt Ratings are not issued by both S&P and Moody's, Pricing Level 6 shall
apply. Each change in the Applicable Margin resulting from a publicly announced change in the Debt Rating shall be effective during the period commencing on the date of the public announcement thereof
and ending on the date immediately preceding the effective date of the next such change. 

        "Asset Sale" means, with respect to any Person, any sale, transfer or other disposition (including pursuant to a sale and leaseback
transaction) of any property of such Person, except (i) sales of inventory, customer premises equipment and other equipment, conduit, fiber and capacity (including indefeasible rights of use),
Permitted Investments and sales or licenses of technology, in each case in the ordinary course of business, (ii) write-offs of accounts receivable or settlements of accounts
receivable for less than the total unpaid balance thereof, in each case in the ordinary course of business and consistent with such Person's historical collection practices, (iii) sales or
dispositions of
shares of Equity Interests in any of its Subsidiaries in order to qualify members of the governing body of the Subsidiary, if required by applicable laws and in such amounts as required by applicable
laws, (iv) any transfer of assets pursuant to any merger or consolidation permitted by Section 5.08(a) and (v) any sale, transfer or other disposition of assets from any
Subsidiary of the Company (other than the Borrower or a Corp. Company (other than of or from Wireless)) to any other Subsidiary of the Company other than to a Corp. Company. Nothing in this definition
shall be construed to limit or modify any restriction contained in Sections 5.08(a), 5.08(b) or 5.08(e). 

        "Asset Swap" means any Asset Sale or portion thereof the sole consideration for which is substantially similar assets used in the same
line of business as the assets being sold, transferred or otherwise disposed pursuant thereto and of substantially equivalent fair market value. 

        "Assignee" has the meaning set forth in Section 10.06(c). 

        "Available Increase Amount" means on each day the amount, if any, by which (a) the Maximum Amount exceeds (b) the sum of the
Aggregate Commitments and the Term Outstandings (after giving effect to any Term Loan Borrowings on such day). 

        "Available Net Proceeds" means, with respect to any Net Proceeds referred to in Section 5.08(d), 50% of such Net Proceeds. 

        "Base Rate" means, for any day, a rate per annum equal to the higher of (i) the Prime Rate for such day and (ii) the sum of
1/2 of 1% plus the Federal Funds Rate for such day. 

        "Benefit Arrangement" means at any time an employee benefit plan within the meaning of Section 3(3) of ERISA which is not a
Plan or a Multiemployer Plan and which is maintained or otherwise contributed to by any member of the ERISA Group. 

        "Borrower" means Qwest Services Corporation, a Colorado corporation and its successors. 

        "Borrowing" has the meaning set forth in Section 1.03. 

        "Capital Funding" means Qwest Capital Funding, Inc., a Colorado corporation, and its successors. 

        "Closing Date" means the date on which the Administrative Agent shall have received the documents or evidence specified in or pursuant to
Section 3.01. 

        "Collateral" means any and all "Collateral", as defined in any Collateral Document. 

        "Collateral Agent" has the meaning set forth in the Security and Pledge Agreement. 

        "Collateral and Guaranty Requirement" means the requirement that: 

        (a)   the
Collateral Agent shall have received from the Borrower a counterpart of the Security and Pledge Agreement duly executed and delivered on behalf of the Borrower; 

2

 

        (b)   all
outstanding Equity Interests constituting Collateral shall have been pledged pursuant to the Security and Pledge Agreement and the Collateral Agent shall have
received all certificates or other instruments representing all outstanding Equity Interests of Corp. and all outstanding Equity Interests of QwestDex, in each case together with stock powers or other
instruments of transfer with respect thereto endorsed in blank; 

        (c)   all
Instruments constituting Collateral shall have been pledged pursuant to the Security and Pledge Agreement and the Collateral Agent shall have received all such
Instruments (subject to any limitations set forth in the Security and Pledge Agreement), together with instruments of transfer with respect thereto endorsed in blank; 

        (d)   all
documents and instruments, including Uniform Commercial Code financing statements, required by law or reasonably requested by the Collateral Agent to be filed,
registered or recorded to create the Liens intended to be created by the Security and Pledge Agreement and perfect or record such Liens to the extent, and with the priority, required by the Security
and Pledge Agreement, shall have been filed, registered or recorded or delivered to the Collateral Agent for filing, registration or recording; and 

        (e)   the
Borrower shall have obtained all consents and approvals required to be obtained by it in connection with (i) the execution and delivery of the Security and
Pledge Agreement and (ii) subject to
any limitations set forth in the Security and Pledge Agreement, the performance of its obligations thereunder and the granting of the Liens purported to be granted by it thereunder. 

        "Collateral Documents" means the Security and Pledge Agreement and each other security agreement, pledge agreement, instrument or document
executed and delivered pursuant to Section 5.14 to secure any of the Lender Secured Obligations (as defined in the Security and Pledge Agreement). 

        "Commitment" means, with respect to each Revolver Lender, the amount set forth opposite the name of such Lender on the Commitment Schedule
attached hereto or in the applicable Assignment and Assumption Agreement, as such amount may be reduced from time to time pursuant to Section 2.08 or increased from time to time pursuant to
Section 2.15(a). For the avoidance of doubt, the term "Commitment" refers to the obligation of a Revolver Lender to make Revolver Loans and not to any obligation to make Term Loans, which is in
addition to, and separate from, such Commitment. 

        "Company" means Qwest Communications International Inc., a Delaware corporation, and its successors. 

        "Company Consolidated Leverage Ratio" means the ratio of Debt of the Company and its Consolidated Subsidiaries, determined on a
consolidated basis as of the last day of each fiscal quarter of the Company, to Consolidated Company EBITDA, determined for the four consecutive fiscal quarters ending on such date. 

        "Company's 2002 Form 10-K" means the Company's annual report on Form 10-K for 2002, as filed with
the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934. 

        "Consolidated Company EBITDA" means, for any period, the net income of the Company and its Consolidated Subsidiaries determined on a
consolidated basis for such period (adjusted to exclude the effect of (r) cash charges of up to $20,000,000 in respect of severance costs paid in the fiscal year ended December 31, 2003,
(s) any loss reflected in net income all or any portion of which is paid or reimbursed by an insurer, indemnitor or other third party source to the extent such payment or reimbursement is not
reflected in net income, (t) any payment, charge or reserve for payment made or taken in connection with the restructuring or termination of an Outstanding UPO, to the extent such payment,
charge or reserve exceeds the amount that would otherwise have been payable during the fiscal quarter in which such payment, charge or reserve was made or taken with respect to such 

3

 

Outstanding
UPO, (u) any non-cash losses as a result of impairment of goodwill as required by Statement of Financial Accounting Standards No. 142, (v) equity gains or
losses in unconsolidated Persons, (w) any preferred dividend income and any extraordinary or other non-recurring non-cash gain or loss,  provided that any cash payments received or made as a result
of such gain or loss (regardless of when the gain or loss was incurred) shall be included
in the calculation of EBITDA for the period in which they are received or made (unless previously included for purposes of this calculation), (x) any gain or loss on the disposition of
investments, (y) income (or loss) of any Person, or attributable to any assets, disposed of during such period and (z) income (or loss) of any Person, or attributable to any assets,
accrued prior to the date of acquisition of such Person or assets), plus, to the extent deducted in determining such adjusted net income, the aggregate
amount of (i) interest expense, (ii) income tax expense, (iii) depreciation, amortization, reserves and other non-cash charges, and (iv) transaction costs
incurred in connection with this Agreement, and minus, to the extent included in determining such adjusted net income, the aggregate amount of
(1) interest income and (2) income tax benefit. 

        "Consolidated Corp. EBITDA" means, for any period, the net income of Corp. and its Consolidated Subsidiaries determined on a consolidated
basis for such period (adjusted to exclude the effect of (r) cash charges of up to $20,000,000 in respect of severance costs paid in the fiscal year ended December 31, 2003,
(s) any loss reflected in net income all or any portion of which is paid or reimbursed by an insurer, indemnitor or other third party source to the extent such payment or reimbursement is not
reflected in net income, (t) any payment, charge or reserve for payment made or taken in connection with the restructuring or termination of an Outstanding UPO, to the extent such payment,
charge or reserve exceeds the amount that would otherwise have been payable during the fiscal quarter in which such payment, charge or reserve was made or taken with respect to such Outstanding UPO,
(u) any non-cash losses as a result of impairment of goodwill as required by Statement of Financial Accounting Standards No. 142, (v) equity gains or losses in
unconsolidated Persons, (w) any preferred dividend income and any extraordinary or other non-recurring non-cash gain or loss,  provided that any cash payments received or made as a result of such
gain or loss (regardless of when the gain or loss was incurred) shall be included
in the calculation of EBITDA for the period in which they are received or made (unless previously included for purposes of the calculation), (x) any gain or loss on the disposition of
investments, (y) income (or loss) of any Person, or attributable to any assets, disposed of during such period and (z) income (or loss) of any Person, or attributable to any assets,
accrued prior to the date of acquisition of such Person or assets), plus, to the extent deducted in determining such adjusted net income, the aggregate
amount of (i) interest expense, (ii) income tax expense, (iii) depreciation, amortization, reserves and other non-cash charges, and (iv) transaction costs
incurred in connection with this Agreement,
and minus, to the extent included in determining such adjusted net income, the aggregate amount of (1) interest income and (2) income tax
benefit. 

        "Consolidated Subsidiary" means at any date any Subsidiary or other entity the accounts of which would be consolidated with those of the
Company, the Borrower or Corp., as applicable, in its consolidated financial statements if such statements were prepared as of such date. 

        "Corp." means Qwest Corporation, a Colorado corporation, and its successors. 

        "Corp. Company" means Corp. or any of its Subsidiaries. 

        "Corp. Equity Collateral" has the meaning set forth in the Security and Pledge Agreement. 

        "Corp. Qualifying Asset Sale" means any Asset Sale by a Corp. Company (other than a disposition of or by Wireless), except (i) any
Asset Sale to any Corp. Company, and (ii) any other single disposition or series of related dispositions resulting in aggregate Net Proceeds not exceeding $100,000,000 for any single
disposition or series of related dispositions or $1,000,000,000 in the aggregate. 

4

 

        "Debt" of any Person means at any date, without duplication, (i) all obligations of such Person for borrowed money, (ii) all
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all obligations of such Person to pay the deferred purchase price of property or services,
except trade accounts payable arising in the ordinary course of business, (iv) all obligations of such Person as lessee which are capitalized in accordance with generally accepted accounting
principles, (v) all Debt secured by a Lien on any asset of such Person, whether or not such Debt is otherwise an obligation of such Person, and (vi) all Debt of others Guaranteed by such
Person. Notwithstanding the foregoing, for purposes of Section 5.06 Debt shall in no event include the following: 

        (x)   Debt
of Persons which are not Consolidated Subsidiaries ("Joint Ventures") (i) which is secured by a Lien on the
assets or capital stock of a Minor Subsidiary or the equity interests in such Joint Ventures or is Guaranteed by a Minor Subsidiary, which Lien or Guaranty is incurred in connection with the
operations of the Company and its Subsidiaries, and (ii) for the payment of which no other recourse may be had to the Company or any of its Subsidiaries; 

        (y)   Debt
of the Company or the Borrower issued in connection with the issuance of Trust Originated Preferred Securities or substantially similar securities, so long as such
Debt is subordinated and junior in right of payment to substantially all liabilities of the Company or the Borrower, as the case may be, including, without limitation, the Loans; and 

        (z)   any
mandatorily convertible equity-linked securities issued by the Company, so long as any such securities satisfy each of the following conditions: (i) the terms
thereof require no repayments or prepayments and no mandatory redemptions or repurchases, in each case prior to the Outside Date in effect as of the date such securities are issued, and
(ii) such securities are subordinated and junior in right of payment to all obligations of the Company, as the case may be, for or in respect of borrowed money (unless the instrument governing
such obligations expressly provides that such obligations are not senior or superior to such securities or are subordinated or junior in right of payment to them), including, without limitation, to
all obligations under the Loan Documents. 

        "Default" means any condition or event which constitutes an Event of Default or which with the giving of notice or lapse of time or both
would, unless cured or waived, become an Event of Default. 

        "Domestic Business Day" means any day except a Saturday, Sunday or other day on which commercial banks in New York City, New York or
Dallas, Texas are authorized by law to close. 

        "Domestic Lending Office" means, as to each Lender, its office located at its address set forth in its Administrative Questionnaire (or
identified in its Administrative Questionnaire as its Domestic Lending Office) or such other office as such Lender may hereafter designate as its Domestic Lending Office by notice to the Company and
the Administrative Agent. 

        "Domestic Loan" means (i) a Loan which bears interest at the Base Rate pursuant to the applicable Notice of Borrowing or Notice of
Interest Rate Election or the provisions of Article 8 or (ii) an overdue amount which was a Domestic Loan immediately before it became overdue. 

        "Eligible Assignee" means a Lender; a Lender Affiliate; and any other Person approved pursuant to Section 10.06(c). 

        "Environmental Laws" means any and all federal, state, local and foreign statutes, laws, judicial decisions, regulations, ordinances,
rules, judgments, orders, decrees, plans, injunctions, permits, concessions, grants, franchises, licenses, agreements and other governmental restrictions relating to the environment, the effect of the
environment on human health or to emissions, discharges or releases of pollutants, contaminants, Hazardous Substances or wastes into the environment including, without limitation, ambient air, surface
water, ground water, or land, or otherwise relating to the manufacture, 

5

 

processing,
distribution, use, treatment, storage, disposal, transport or handling of pollutants, contaminants, Hazardous Substances or wastes or the clean-up or other remediation thereof. 

        "Equity Interests" means (i) shares of capital stock, partnership interests, membership interests in a limited liability company,
beneficial interests in a trust or other equity ownership interests in a Person or (ii) any warrants, options or other rights to acquire such shares or interests. 

        "Equity/Income Basket" means, on any date, the cumulative sum as of such date of (i) the Net Proceeds of issuances after the
Closing Date by the Company of common stock and preferred stock (other than Mandatorily Redeemable Equity)(including the principal amount of Debt and Mandatorily Redeemable Equity converted to common
stock of the Company when converted) and (ii) consolidated net income of the Company for the period starting January 1, 2004 and ending on the last day of the fiscal quarter of the
Company most recently ended on or prior to such date (calculated as a single accounting period). 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended, or any successor statute. 

        "ERISA Group" means the Company, any Subsidiary and all members of a controlled group of corporations and all trades or businesses
(whether or not incorporated) under common control which, together with the Company or any Subsidiary, are treated as a single employer under Section 414 of the Internal Revenue Code. 

        "Euro-Dollar Business Day" means any Domestic Business Day on which commercial banks are open for international business
(including dealings in dollar deposits) in London. 

        "Euro-Dollar Lending Office" means, as to each Lender, its office, branch or affiliate located at its address set forth in its
Administrative Questionnaire (or identified in its Administrative Questionnaire as its Euro-Dollar Lending Office) or such other office, branch or
affiliate of such Lender as it may hereafter designate as its Euro-Dollar Lending Office by notice to the Company and the Administrative Agent. 

        "Euro-Dollar Loan" means (i) a Loan which bears interest at a Euro-Dollar Rate pursuant to the applicable
Notice of Borrowing or Notice of Interest Rate Election or (ii) an overdue amount which was a Euro-Dollar Loan before it became overdue. 

        "Euro-Dollar Rate" means a rate of interest determined pursuant to Section 2.06 on the basis of an Adjusted London
Interbank Offered Rate. 

        "Euro-Dollar Reserve Percentage" has the meaning set forth in Section 2.06. 

        "Event of Default" has the meaning set forth in Section 6.01. 

        "Existing Credit Agreement" means the Second Amended and Restated Credit Agreement dated as of May 4, 2001, amended and restated as
of March 12, 2002, further amended and restated as of August 30, 2002, and further amended by Amendments Nos. 1 and 2 thereto among the Borrower, the Company, QwestDex,
QwestDex Inc., the banks party thereto and Bank of America, N.A., as Administrative Agent. 

        "Existing Debt" means Debt of the Company or any Subsidiary existing on the Closing Date, as in effect on the Closing Date and listed in
Schedule 5.12. 

        "Existing Notes" means, collectively, the QCII Notes Issued 1998 and the QSC Notes Issued 2002. 

        "Facility Liens" has the meaning set forth in Section 5.07(i). 

6

   
        "Federal Funds Rate" means, for any day, the rate per annum (rounded upward, if necessary, to the nearest 1/100th of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank
of New York on the Domestic Business Day next succeeding such day, provided that (i) if such day is not a Domestic Business Day, the Federal
Funds Rate for such day shall be such rate on such transactions on the next preceding Domestic Business Day as so published on the next succeeding Domestic Business Day, and (ii) if no such
rate is so published on such next succeeding Domestic Business Day, the Federal Funds Rate for such day shall be the average rate quoted to Bank of America, N.A., on such day on such transactions as
determined by the Administrative Agent. 

        "Foreign Subsidiary" means any Subsidiary of the Borrower (other than a Corp. Company) that is not incorporated or organized in the United
States or any State thereof. 

        "Group of Loans" means at any time a group of Loans consisting of (i) all Loans which are Domestic Loans at such time or
(ii) all Loans which are Euro-Dollar Loans having the same Interest Period at such time; provided that, if a Loan of any particular
Lender is converted to or made as a Domestic Loan pursuant to Section 8.02 or 8.05, such Loan shall be included in the same Group or Groups of Loans from time to time as it would have been in
if it had not been so converted or made. 

        "Guaranteed Obligations" means, with respect to the Guarantor, all advances to, and debts, liabilities (including without limitation the
Loans), obligations, covenants and duties of, the Borrower, arising under any Loan Document, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to
become due, now existing or hereafter arising and including interest and fees that accrue after, or would accrue but for, the commencement of an insolvency proceeding, whether or not allowed or
allowable in such proceeding. 

        "Guarantor" means the Company. 

        "Guaranty" by any Person means any obligation, contingent or otherwise, of such Person directly or indirectly guaranteeing any Debt or
other obligation of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Debt or other obligation (whether arising by virtue of partnership arrangements, by agreement to keep-well, to purchase
assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or otherwise)
or (ii) entered into for the purpose of assuring in any other manner the obligee of such Debt or other obligation of the payment thereof or to protect such obligee against loss in respect
thereof (in whole or in part), provided that the term Guaranty shall not include endorsements for collection or deposit in the ordinary course of
business. The term "Guarantee" used as a verb has a corresponding meaning. 

        "Hazardous Substances" means any toxic, radioactive, caustic or otherwise hazardous substance, including petroleum, its derivatives,
by-products and other hydrocarbons, or any substance having any constituent elements displaying any of the foregoing characteristics. 

        "Indemnitee" has the meaning set forth in Section 10.03(b). 

        "Instrument" has the meaning set forth in the Security and Pledge Agreement. 

        "Interest Period" means, with respect to each Euro-Dollar Loan, a period commencing on the date of borrowing specified in the
applicable Notice of Borrowing or the date specified in the applicable Notice of Interest Rate Election and ending one, two, three, six or (if requested by the 

7

 

Borrower
and consented to by all the applicable Lenders) twelve months thereafter, as the Borrower may elect in the applicable notice; provided  that: 

        (a)   any
Interest Period which would otherwise end on a day which is not a Euro-Dollar Business Day shall be extended to the next succeeding
Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding
Euro-Dollar Business Day; 

        (b)   any
Interest Period which begins on the last Euro-Dollar 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, subject to clause (c) below, end on the last Euro-Dollar Business Day of a calendar month; and 

        (c)   any
Interest Period beginning prior to the Revolver Maturity Date (in the case of any Revolver Loan) or the Term Maturity Date (in the case of any Term Loan) which would
otherwise end after such date shall end on such date. 

        "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended, or any successor statute. 

        "Legal Matter Costs" means any liability with respect to (i) any judgments, fines, levies, settlement or other payments made or
agreed to be made in connection with any agreements with, or judgments sought or obtained by, any governmental agency or regulator, including but not limited to the United States Department of
Justice, the Securities and Exchange Commission and any other federal or state enforcement agencies or regulators, with respect to the Pending Matters, or (ii) any payments made or agreed to be
made in satisfaction of any civil judgments or awards obtained by a private plaintiff or class thereof, including any award of attorneys' fees and/or costs, with respect to the Pending Matters, or any
settlement payments made to a private plaintiff or class thereof that settle, compromise and/or terminate any legal proceeding based upon any Pending Matters. 

        "Lender" means a Revolver Lender or a Term Lender. 

        "Lender Affiliate" means, (a) with respect to any Lender, (i) an Affiliate of such Lender or (ii) an entity (whether
a corporation, partnership, trust or otherwise) that is engaged in making, purchasing, holding or otherwise investing in bank loans and similar extensions of credit in the ordinary course of its
business and is administered or managed by a Lender or an Affiliate of such Lender and (b) with respect to any Lender that is a fund which invests in bank loans and similar extensions of
credit, any other fund that invests in bank loans and similar extensions of credit and is managed by the same investment advisor as such Lender or by an affiliate of such investment advisor. 

        "Lien" means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind, or any other
type of preferential arrangement that has the practical effect of creating a security interest, in respect of such asset. For the purposes of this Agreement, the Company or any Subsidiary shall be
deemed to own subject to a Lien any asset which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention
agreement relating to such asset. 

        "Loan" means a Revolver Loan or a Term Loan; provided that if any such loan or loans are
combined or subdivided pursuant to a Notice of Interest Rate Election, the term "Loan" shall refer to the combined principal amount resulting from such combination or to each of the separate principal
amounts resulting from such subdivision, as the case may be. 

        "Loan Documents" means this Agreement, the Notes and the Collateral Documents. 

        "Loan Party" means the Company and the Borrower. 

        "London Interbank Offered Rate" has the meaning set forth in Section 2.06. 

8

 

        "Mandatorily Redeemable Equity" of any Person means Equity Interests of such Person which are subject to redemption, repurchase or
retirement prior to the date that falls 90 days after the Revolver Maturity Date other than at the sole option of such Person. 

        "Mandatory Reduction Period" means the period from and including the Closing Date to but excluding the date on which a certificate is
delivered pursuant to Section 5.01(c) establishing that the Company Consolidated Leverage Ratio, determined as of the end of the most recently ended fiscal quarter of the Company, is
3.5:1 or less. 

        "Margin Stock" means "margin stock" as such term is defined in Regulation U of the Board of Governors of the Federal Reserve
System, as in effect from time to time. 

        "Material Adverse Change" means a material adverse change in the financial condition or results of operations of the Company and its
Subsidiaries, taken as a whole. 

        "Material Debt" means Debt (other than the Loans) of the Company and/or one or more of its Subsidiaries, arising in one or more related or
unrelated transactions, in an aggregate principal amount exceeding $100,000,000. 

        "Material Plan" means at any time a Plan or Plans having aggregate Unfunded Liabilities in excess of $100,000,000. 

        "Maximum Amount" means $1,750,000,000. 

        "Minor Subsidiary" means, for purposes of the last sentence of the definition of Debt and of Section 5.07(f) (the
"Relevant Provisions"), any Subsidiary (other than the Borrower or Wireless) which, at the time of the issuance of a Guaranty or grant of a Lien
referred to in the Relevant Provisions, had assets which, when taken together with all assets of Subsidiaries at any earlier time when such Subsidiaries were deemed to be Minor Subsidiaries pursuant
to this definition, did not exceed $250,000,000. 

        "Multiemployer Plan" means at any time an employee pension benefit plan within the meaning of Section 4001(a)(3) of ERISA to
which any member of the ERISA Group is then making or accruing an obligation to make contributions or has within the preceding five plan years made contributions, including for these purposes
any Person which ceased to be a member of the ERISA Group during such five year period. 

        "Net Proceeds" means, with respect to any event, the cash proceeds received in respect of such event including, without limitation, any
cash received in respect of any non-cash proceeds, but only as and when received, in each case net of the sum of (1) all reasonable fees and out-of-pocket
costs and expenses paid (or reasonably estimated to be payable) by a Prepayment Party to third parties (other than Affiliates) in connection with such event, (2) in the case of a sale, transfer
or other disposition of an asset (including, without limitation, pursuant to a sale and leaseback transaction), the amount of all payments required to be made by a Prepayment Party as a result of such
event to repay Debt secured by such asset or otherwise subject to mandatory prepayment as a result of such event (but excluding (x) the Loans and (y) any Debt secured by such asset if
such Debt or the Lien securing such Debt is subordinated (or is required to be subordinated) to the Loans, and (3) the amount of all taxes paid (or reasonably estimated to be payable) by a
Prepayment Party, the amount of any reserves established by a Prepayment Party to fund contingent liabilities reasonably estimated to be payable and the amount of capital and operating expenditures
that would not otherwise have been incurred and are required in writing or by application of policy by a public utility commission to be incurred as a condition to its consent, in each case during the
year that such event occurred or the next succeeding year and that are directly attributable to such event (as determined reasonably and in good faith by the chief financial officer, treasurer or
assistant treasurer (or any such officer's designee, designated in writing by such officer) of the Company); provided that "Net Proceeds" shall not
include (a) any cash payment received 

9

 

by
a Prepayment Party and constituting a deposit or advance with respect to an Asset Sale that has not been consummated on or prior to the date of receipt thereof (it being understood that upon
consummation of such Asset Sale such cash payment shall constitute "Net Proceeds" with respect thereto) and (b) any cash proceeds received by any Foreign Subsidiary from any Asset Sale to the
extent relating to assets held by Foreign Subsidiaries. 

        "New Holding Company" means any direct or indirect wholly-owned Subsidiary of the Company (other than the Borrower, any Subsidiary of the
Borrower, Capital Funding or any Subsidiary of Capital Funding) created after the Closing Date. 

        "New QSC Security and Pledge Agreement" means the Security and Pledge Agreement dated as of February 5, 2004 between QSC and BNY
Asset Solutions LLC, as Collateral Agent. 

        "Notes" means promissory notes of the Borrower, substantially in the form of Exhibit A hereto, evidencing the obligation of the
Borrower to repay the Loans made to it, and "Note" means any one of such promissory notes issued hereunder. 

        "Notice of Borrowing" has the meaning set forth in Section 2.02. 

        "Outside Date" means the date that falls 90 days after the later of the Revolver Maturity Date and, if one is in effect, the Term
Maturity Date. 

        "Outstanding Amount" means with respect to Revolver Loans on any date, the aggregate outstanding principal amount thereof after giving
effect to any Revolver Borrowings and prepayments of Revolver Loans occurring on such date. 

        "Outstanding UPO" has the meaning set forth in Section 5.12(g). 

        "Parent" means, with respect to any Lender, any Person controlling such Lender. 

        "Participant" has the meaning set forth in Section 10.06(b). 

        "Payments Basket" means, on any date, the sum of (i) the Equity/Income Basket on such date and (ii) $1,400,000,000. 

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

        "Pending Matters" means the matters that are specifically identified on Schedule 4.05. 

        "Permitted Corp. Exchange Debt" has the meaning set forth in Section 5.12(d). 

        "Permitted Investments" means investments in: 

        (a)   direct
obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States), in each case maturing within one year from the date of acquisition thereof; 

        (b)   commercial
paper maturing within one year from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from
Standard & Poor's or from Moody's Investors Service, Inc.; 

        (c)   certificates
of deposit, banker's acceptances and time deposits maturing within one year from the date of acquisition thereof issued or guaranteed by or placed with, and
money market deposit accounts issued or offered by, any domestic office of any commercial lender organized under the laws of the United States or any State thereof which has a combined capital and
surplus and undivided profits of at least $500,000,000; 

10

 

        (d)   fully
collateralized repurchase agreements with a term of not more than 30 days for securities described in clause (a) above and entered into with a
financial institution satisfying the criteria described in clause (c) above; 

        (e)   in
the case of any Foreign Subsidiary, (i) marketable direct obligations issued by, or unconditionally guaranteed by, the sovereign nation in which such Person is
organized and is conducting business or issued by any agency of such sovereign nation and backed by the full faith and credit of such sovereign nation, in each case maturing within one year from the
date of acquisition, so long as the indebtedness of such sovereign nation is rated at least A by Standard & Poor's, A2 by Moody's Investors Service, Inc. or A mid by Dominion Bond Rating
Service Limited or carries an equivalent rating from a comparable foreign rating agency or (ii) investments of the type and maturity described in clauses (b) through (d) above of
foreign obligors, which investments or obligors have ratings described in such clauses or equivalent ratings from comparable foreign rating agencies; and 

        (f)    any
other Investments made in compliance with the Cash Management Investment Policy of the cash management group of the Borrower with respect to cash investments,
substantially as in effect on the Closing Date. 

        "Permitted Non-Corp. Exchange Debt" has the meaning set forth in Section 5.12(c). 

        "Permitted Payments" means, on any date, the sum of all Restricted Payments made in reliance on Section 5.10(a)(iv), payments made
in reliance on Section 5.10(b)(viii) and investments made in reliance on Section 5.13(m). 

        "Permitted Purchase Money Debt" has the meaning set forth in Section 5.12(m). 

        "Permitted QCII/ QCF Unsecured Debt" has the meaning set forth in Section 5.12(h)(i). 

        "Permitted QSC Junior Lien Debt" has the meaning set forth in Section 5.12(i). 

        "Permitted QSC Senior Secured Debt" has the meaning set forth in Section 5.12(k). 

        "Permitted QSC Senior Unsecured Debt" has the meaning set forth in Section 5.12(j). 

        "Permitted QSC Subordinated Unsecured Debt" has the meaning set forth in Section 5.12(h)(ii). 

        "Permitted QSC Subsidiary Debt" has the meaning set forth in Section 5.12(l). 

        "Permitted UPO Retirement Debt" has the meaning set forth in Section 5.12(g). 

        "Person" means an individual, a corporation, a partnership, an association, a trust or any other entity or organization, including a
government or political subdivision or an agency or instrumentality thereof. 

        "Plan" means at any time an employee pension benefit plan (other than a Multiemployer Plan) which is covered by Title IV of ERISA
or subject to the minimum funding standards under Section 412 of the Internal Revenue Code and either (i) is maintained, or contributed to, by any member of the ERISA Group for employees
of any member of the ERISA Group or (ii) has at any time within the preceding five years been maintained, or contributed to, by any Person which was at such time a member of the ERISA
Group for employees of any Person which was at such time a member of the ERISA Group. 

        "Prepayment Party" means the Company, the Borrower or any of their respective Subsidiaries. 

        "Prime Rate" means the rate of interest publicly announced by Bank of America, N.A., from time to time as its Prime Rate. 

11

 

        "Pro Rata Share" means, with respect to each Revolver Lender at any time, a fraction (expressed as a percentage, carried out to the ninth
decimal place), the numerator of which is the amount of the Commitment of such Revolver Lender at such time and the denominator of which is the amount of the Aggregate Commitments at such time;  provided
that if the commitment of each Revolver Lender to make Loans has been terminated pursuant to Section 6.01, then the Pro Rata Share of
each Revolver Lender shall be determined based on the Pro Rata Share of such Revolver Lender immediately prior to such termination and after giving effect to any subsequent assignments made pursuant
to the terms hereof. The initial Pro Rata Share of each Revolver Lender is set forth opposite the name of such Revolver Lender on the Commitment Schedule or in the Assignment and Assumption pursuant
to which such Revolver Lender becomes a party hereto, as applicable. 

        "Purchase Money Debt" means Debt of any Person incurred for the purpose of financing all or any part of the cost of the acquisition of any
asset by such Person, so long as the proceeds of any such Debt are applied by such Person upon receipt thereof (and in any event within ten (10) Business Days after receipt thereof) to acquire
such asset. 

        "Purchase Money Obligor" has the meaning set forth in Section 5.07(c). 

        "QCC" means Qwest Communications Corporation, a Delaware corporation, and its successors. 

        "QCC 2007 Notes" means those certain notes issued by QCC under an Indenture dated June 23, 1997, between QCC and First Trust
National Association, as Trustee. 

        "QCII Notes Issued 1998" means the "Existing 2008 Notes" (as defined in the QSC Notes Security and Pledge Agreement). 

        "QSC Notes Indenture" means the indenture dated December 26, 2002 between the Borrower, the guarantors named therein and Bank One
Trust Company, N.A., as Trustee. 

        "QSC Notes Issued 2002" means the notes issued by the Borrower pursuant to the QSC Notes Indenture. 

        "QSC Notes Security and Pledge Agreement" means the Security and Pledge Agreement dated December 26, 2002, between the Borrower and
BNY Asset Solutions LLC, as successor to Bank of America, N.A. as Collateral Agent. 

        "Qualifying Terms" means, with respect to any Debt, each of the following terms: (i) such Debt does not mature prior to the Outside
Date in effect as of the date such Debt is incurred, (ii) no payments with respect to such Debt (including without limitation scheduled amortization payments and mandatory prepayments) are
required to be made prior to the Outside Date in effect as of the date such Debt is incurred (other than regularly scheduled interest payments with respect thereto), (iii) the terms and
conditions governing such Debt (including without limitation covenants and events of default) are no more restrictive in any material respect than the terms and conditions applicable to the Loans and
(iv) such Debt is subordinated to the Loans (or the Guaranty thereof pursuant to Article 9, as applicable) in an insolvency proceeding to the prior payment in full of the Loans (or the
payment in full of the Guaranty of the Loans, as the case may be) and is otherwise subordinated to the Loans (or to the Guaranty thereof pursuant to Article 9, as applicable), pursuant to
subordination arrangements reasonably satisfactory to the Administrative Agent. 

        "QwestDex" means Qwest Dex Holdings, Inc., a Delaware corporation, and its successors. 

        "QwestDex Company" means QwestDex or any of its Subsidiaries. 

        "QwestDex Inc." means Qwest Dex, Inc., a Colorado corporation, and its successors. 

        "Qwest Entity" has the meaning set forth in Section 7.02. 

        "Required Lenders" means at any time the Lenders holding a majority of the Total Exposure. 

12

 

        "Required Revolver Lenders" means at any time the Revolver Lenders holding a majority of the Aggregate Commitments, if any Commitments are
still in existence, or the Revolver Outstandings, if all the Commitments have been terminated. 

        "Restricted Payment" means any dividend or other distribution (whether in cash, securities or other property, including without limitation
pursuant to a "spin-off" or other distribution to equity holders generally) with respect to any Equity Interest of the Company or any of its Subsidiaries, or any payment (whether in cash,
securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such Equity Interest. 

        "Revolver Credit Period" means the period from and including the Closing Date to but excluding the Revolver Maturity Date. 

        "Revolver Lenders" means each lender listed on the signature pages hereof, each lender executing a joinder agreement pursuant to
Section 2.15(a), each Assignee which becomes a Revolver Lender pursuant to Section 10.06(c), and their respective successors. 

        "Revolver Lender Obligations" has the meaning set forth in the Security and Pledge Agreement. 

        "Revolver Loan" means a loan made or to be made by a Revolver Lender pursuant to Section 2.01(a). 

        "Revolver Maturity Date" means February 5, 2007, or, if such day is not a Euro-Dollar Business Day, the next preceding
Euro-Dollar Business Day. 

        "Revolver Outstandings" means the aggregate Outstanding Amount of all Revolver Loans. 

        "Revolver Portion" means on any date, prior to giving effect to any mandatory Commitment reduction or mandatory prepayment on such date, a
fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the Aggregate Commitments on such date and the denominator of which is the sum of the Total
Exposure and the aggregate principal and face amount of Permitted QSC Senior Secured Debt then outstanding which, by its terms, is required to share in such reduction or prepayment. 

        "Revolver Replacement Debt" means Debt of the Company or any of its Subsidiaries prior to or concurrently with the incurrence of which the
Borrower permanently reduces the Commitments in an amount equal to the aggregate principal amount of such Debt. 

        "Security and Pledge Agreement" means the Security and Pledge Agreement, substantially in the form of Exhibit B, dated as of the
Closing Date among the Borrower and the Collateral Agent, as amended from time to time. 

        "Significant Subsidiary" means any Subsidiary which would meet the definition of "significant subsidiary" contained as of the date hereof
in Regulation S-X of the Securities and Exchange Commission. 

        "Subject Debt" means (i) Existing Debt (other any Debt of Corp. and its Subsidiaries) and (ii) Permitted
Non-Corp. Exchange Debt, Permitted QCII/QCF Unsecured Debt, Permitted QSC Junior Lien Debt, Permitted QSC Subordinated Unsecured Debt and Permitted UPO Retirement Debt. 

        "Subsidiary" means any corporation or other entity of which securities or other ownership interests having ordinary voting power to elect
a majority of the board of directors or other persons performing similar functions are at the time directly or indirectly owned by the Company. 

        "Super-Majority Lenders" means at any time Lenders having at least 85% of the Total Exposure. 

13

   
        "Term Lender" means each lender executing the Term Loan Addendum pursuant Section 2.15(d), each Assignee which becomes a Term
Lender pursuant to Section 10.06(c), and their respective successors.

        "Term Loan Addendum" means the Term Loan Addendum substantially in the form of Exhibit C. 

        "Term Loan" means a loan made or to be made by a Lender pursuant to Section 2.01(b). 

        "Term Maturity Date" means the "Term Maturity Date" set forth in the Term Loan Addendum. 

        "Term Outstandings" means with respect to Term Loans on any date, the aggregate outstanding principal amount thereof after giving effect
to any prepayments of Term Loans on such date. 

        "Term Portion" means on any date, prior to giving effect to any mandatory Commitment reduction or mandatory prepayment on such date, a
fraction (expressed as a percentage, carried out to the ninth decimal place), the numerator of which is the Term Outstandings on such date and the denominator of which is the sum of the Total Exposure
and the aggregate principal and face amount of Permitted QSC Senior Secured Debt then outstanding which, by its terms, is required to share in such reduction or prepayment. 

        "Term Secured Obligations" has the meaning set forth in the Security and Pledge Agreement. 

        "Total Exposure" means, at any time, the sum of (i) the Aggregate Commitments, if any Commitments are still in existence, or the
Revolver Outstandings, if all the Commitments have been terminated and (ii) the Term Outstandings. 

        "Total Outstandings" means, at any time, the sum of the Revolver Outstandings and the Term Outstandings. 

        "Unsubordinated Qualifying Terms" means, with respect to any Debt, each of the following terms: (i) such Debt does not mature prior
to the date that falls 90 days after the Revolver Maturity Date, and (ii) no payments with respect to such Debt (including without limitation scheduled amortization payments and
mandatory prepayments) are required to be made prior to the date that falls 90 days after the Revolver Maturity Date (other than regularly scheduled interest payments with respect thereto and
scheduled amortization payments not to exceed 1% of the principal amount of such Debt in any year). 

        "Unused Commitments" means on any day the amount, if any, by which the Aggregate Commitments exceed the Revolver Outstandings. 

        "Unfunded Liabilities" means, with respect to any Plan at any time, the amount (if any) by which (i) the value of all benefit
liabilities under such Plan, determined on a plan termination basis using the assumptions prescribed by the PBGC for purposes of Section 4044 of ERISA, exceeds (ii) the fair market value
of all Plan assets allocable to such liabilities under Title IV of ERISA (excluding any accrued but unpaid contributions), all determined as of the then most recent valuation date for such
Plan, but only to the extent that such excess represents a potential liability of a member of the ERISA Group to the PBGC or any other Person under Title IV of ERISA. 

        "United States" means the United States of America, including the States and the District of Columbia, but excluding its territories and
possessions. 

        "Wireless" means Qwest Wireless LLC, a Delaware limited liability company, and its successors. 

        "Wireless Assets" means any Equity Interests in Wireless and any assets held by Wireless. 

        "Wireless/Borrower Debt" has the meaning set forth in Section 5.12(e). 

        "Wireless Intercompany Debt" has the meaning set forth in Section 5.12(e). 

14

 

        "Wireless Note" means the $1,794,210,000 Loan Agreement dated as of January 8, 2004, governing loans from Capital Funding to
Wireless and the Debt outstanding thereunder. 

        Section 1.02. Accounting Terms and Determinations. Unless otherwise specified herein, all accounting terms used herein shall be
interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered hereunder shall be prepared in accordance with generally accepted accounting
principles as in effect from time to time in the United States, applied on a basis consistent (except for changes concurred in by the Company's independent public accountants) with the most recent
audited consolidated financial statements of the Company and its Consolidated Subsidiaries or Corp. and its Consolidated Subsidiaries, as the case may be, in each case delivered to the Lenders;  provided that, if the Company notifies the Administrative Agent that the Company wishes to amend any covenant in Article 5 to eliminate the
effect of any change in such generally accepted accounting principles on the operation of such covenant (or if the Administrative Agent notifies the Company that the Required Lenders wish to amend
Article 5 for such purpose), then compliance with such covenant shall be determined on the basis of generally accepted accounting principles in effect in the United States immediately before
the relevant change in generally accepted accounting principles became effective, until either such notice is withdrawn or such covenant is amended in a manner satisfactory to the Company and the
Required Lenders. 

        Section 1.03. Types and Tranches of Borrowings of Loans. The term "Borrowing"
denotes the aggregation of Loans of one or more Lenders to be made to the Borrower or converted or continued, pursuant to Article 2 on a single date, all of which Loans are of the same type and
tranche (subject to Article 8) and, except in the case of Domestic Loans, have the same Interest Period or initial Interest Period. Borrowings are classified for purposes of this Agreement and
referred to by reference to the type (e.g., a "Euro-Dollar Borrowing" or a "Domestic
Borrowing") or tranche (e.g., a "Revolver Borrowing" or a "Term Borrowing") of
Loans comprising such Borrowing. Loans are classified for purposes of this Agreement and referred to by reference to type (e.g., a
"Euro-Dollar Loan") or by tranche (e.g., a "Revolver
Loan") or by type and tranche (e.g., a "Euro-Dollar Revolver Loan"
or a "Domestic Revolver Loan"). 

ARTICLE 2

The Credits  

        Section 2.01. Commitments to Lend. (a) Revolver
Loans. During the Revolver Credit Period each Lender severally agrees, on the terms and conditions set forth in this Agreement, to make loans to the Borrower from time to time
in amounts such that such Lender's Pro Rata Share of the Revolver Outstandings shall not exceed the amount of its Commitment. Each Borrowing under this Section shall be in an aggregate
principal amount of $25,000,000 or any larger multiple of $5,000,000 (except that any such Borrowing may be in the aggregate amount available in accordance with Section 3.03(c)) and shall be
made from each Lender in accordance with its Pro Rata Share. Within the foregoing limits, the Borrower may borrow, repay, or to the extent permitted by Section 2.10, prepay Loans and reborrow
at any time prior to the Revolver Maturity Date. The Commitments shall terminate at the close of business on the Revolver Maturity Date. 

        (b)   Term Loans. Each Term Lender severally agrees, on the terms and conditions set forth in this Agreement and in the Term
Loan Addendum, to make Term Loans in the amounts and on the date set forth in the Term Loan Addendum to the Borrower. 

        Section 2.02. Notice of Borrowing. The Borrower shall give the Administrative Agent notice, substantially in the form of
Exhibit F (a "Notice of Borrowing"), not later than 10:30 A.M. (New York City time) on (x) the date of each Domestic Borrowing, and
(y) the third Euro-Dollar Business Day before each Euro-Dollar Borrowing; provided that if the Borrower wishes to request
a Euro-Dollar Borrowing having an Interest Period twelve months in duration as provided in the definition of 

15

 

"Interest
Period", the applicable notice must be received by the Administrative Agent not later than 11:00 A.M. four Euro-Dollar Business Days prior to the requested date of such
Borrowing, whereupon the Administrative Agent shall give prompt notice to the Lenders of such request and determine whether the requested Interest Period is acceptable to all of them. Not later than
11:00 A.M., three Business Days before the requested date of such Borrowing, the Administrative Agent shall notify the Borrower (which notice may be by telephone) whether or not the requested
Interest Period has been consented to by all the Lenders. Each Notice of Borrowing shall specify: 

        (i)    the
date of such Borrowing, which shall be a Domestic Business Day in the case of a Domestic Borrowing or a Euro-Dollar Business Day in the case of a
Euro-Dollar Borrowing, 

        (ii)   the
aggregate amount of Loans comprising such Borrowing and whether they are Revolver Loans or Term Loans, 

        (iii)  whether
the Loans comprising such Borrowing bear interest initially at the Base Rate or at a Euro-Dollar Rate, and 

        (iv)  in
the case of a Euro-Dollar Borrowing, the duration of the initial Interest Period applicable thereto, subject to the provisions of the definition of
Interest Period. 

        Section 2.03. Notice to Lenders; Funding of Loans. (a) Upon receipt of a Notice of Borrowing, the Administrative Agent shall
promptly notify each Revolver Lender or Term Lender, as applicable, of the contents thereof and of such Lender's share of such Borrowing and such Notice of Borrowing shall not thereafter be revocable
by the Borrower. 

        (b)   Not
later than 1:00 P.M. (New York City time) on the date of each Borrowing, each Lender shall (except as provided in subsection (c) of this
Section) make available its share of such Borrowing, in Federal or other funds immediately available in New York City, to the Administrative Agent at its address referred to in Section 10.01.
Unless any applicable condition specified in Article 3 has not been satisfied, as determined by the Administrative Agent in accordance with Article 3, the Administrative Agent will make
the funds so received from the Lenders immediately available to the Borrower at the Administrative Agent's aforesaid address. 

        (c)   If
any Lender makes a new Loan hereunder on a day on which the Borrower is to repay all or any part of an outstanding Loan from such Lender, such Lender shall apply the
proceeds of its new Loan to make such repayment and only an amount equal to the difference (if any) between the amount being borrowed by the Borrower and the amount being repaid shall be made
available by such Lender to the Administrative Agent as provided in subsection (b) of this Section, or remitted by the Borrower to the Administrative Agent as provided in
Section 2.11, as the case may be. 

        (d)   Unless
the Administrative Agent shall have received notice from a Lender prior to the date of any Borrowing (or, in the case of a Base Rate Borrowing, prior to Noon (New
York City time) on the date of such Borrowing) that such Lender will not make available to the Administrative Agent such Lender's share of such Borrowing, the Administrative Agent may assume that such
Lender has made such share available to the Administrative Agent on the date of such Borrowing in accordance with subsections (b) and (c) of this Section 2.03 and the
Administrative Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such share
available to the Administrative Agent, such Lender and the Borrower severally agree to repay to the Administrative Agent forthwith on demand such corresponding amount together with interest thereon,
for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Administrative Agent, at (i) in the case of the Borrower, a rate per annum
equal to the higher of the Federal Funds Rate and the interest rate applicable thereto pursuant to Section 2.06 and (ii) in the case of such Lender, the Federal Funds Rate. If such
Lender shall repay to the Administrative Agent such corresponding amount, such amount so repaid shall constitute such Lender's Loan included in such Borrowing for 

16

 

purposes
of this Agreement. If the Borrower shall have repaid such corresponding amount of such Lender, such Lender shall reimburse the Borrower for any loss on account thereof incurred by the
Borrower. Nothing contained in the foregoing shall be construed as relieving a Lender of its obligation to fund a Loan when required under the terms of this Agreement. 

        Section 2.04. Evidence of Debt. The Loans made by each Lender shall be evidenced by one or more accounts or records maintained by
such Lender and by the Administrative Agent in the ordinary course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error
of the amount of the Loans made by the Lenders to the Borrower and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect
the obligation of the Borrower to pay any amount owing with respect to its obligations under the Loan Documents. In the event of any conflict between the accounts and records maintained by any Lender
and the accounts and records of the Administrative Agent in respect of such
matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the Borrower shall
execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender's Loans in addition to such accounts or records. Each Lender may attach schedules to its
Note and endorse thereon the date, type, tranche, amount and maturity of its Loans and payments with respect thereto. 

        Section 2.05. Maturity of Loans. Each Revolver Loan shall mature, and the principal amount thereof shall be due and payable,
together with accrued interest thereon, on the Revolver Maturity Date. Each Term Loan shall mature, and the principal amount thereof shall be due and payable, together with accrued interest thereon,
on the Term Maturity Date. 

        Section 2.06. Interest Rates. (a) Each Domestic Revolver Loan shall bear interest on the outstanding principal amount
thereof, for each day from the date such Loan is made until it becomes due, at a rate per annum equal to the sum of the Applicable Margin plus the Base
Rate for such day. Such interest shall be payable quarterly in arrears on the last day of each calendar quarter and, with respect to the principal amount of any Domestic Revolver Loan converted to a
Euro-Dollar Loan, on each date a Domestic Revolver Loan is so converted. Any overdue principal of or interest on any Domestic Revolver Loan shall bear interest, payable on demand, for each
day until paid at a rate per annum equal to the sum of 2% plus the rate otherwise applicable to Domestic Revolver Loans for such day. 

        (b)   Each
Euro-Dollar Revolver Loan shall bear interest on the outstanding principal amount thereof, for the Interest Period applicable thereto, at a rate per
annum equal to the sum of the Applicable Margin plus the applicable Adjusted London Interbank Offered Rate. Such interest shall be payable for each
Interest Period on the last day thereof and, if such Interest Period is longer than three months, at intervals of three months after the first day thereof. 

        The
"Adjusted London Interbank Offered Rate" applicable to any Interest Period means a rate per annum equal to the quotient obtained
(rounded upward, if necessary, to the next higher 1/100 of 1%) by dividing (i) the applicable London Interbank Offered Rate by (ii) 1.00 minus  the Euro-Dollar Reserve Percentage. 

        The
"London Interbank Offered Rate" applicable to any Interest Period means: 

        (i)    the
rate per annum equal to the rate determined by the Administrative Agent to be the offered rate that appears on the page of the Telerate screen (or any
successor thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in dollars (for delivery on the first day of such Interest Period) with a term equivalent
to such Interest Period, determined as of approximately 11:00 A.M. (London time) two Euro-Dollar Business Days prior to the first day of such Interest Period, or 

17

 

        (ii)   if
the rate referenced in the preceding clause (i) does not appear on such page or service or such page or service shall cease to be
available, the rate per annum equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service that displays an average British Bankers
Association Interest Settlement Rate for deposits in dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately
11:00 A.M. (London time) two Euro-Dollar Business Days prior to the first day of such Interest Period, or 

        (iii)  if
the rates referenced in the preceding clauses (i) and (ii) are not available, the rate per annum determined by the Administrative Agent as the rate of
interest at which deposits in dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Euro-Dollar Loan being made, continued or
converted by Bank of America, N.A., and with a term equivalent to such Interest Period, would be offered by Bank of America, N.A.'s London Branch to major banks in the London interbank eurodollar
market at their request at approximately 4:00 P.M. (London time) two Euro-Dollar Business Days prior to the first day of such Interest Period. 

        "Euro-Dollar Reserve Percentage" means for any day that percentage (expressed as a decimal) which is in effect on such day, as
prescribed by the Board of Governors of the Federal Reserve System (or any successor) for determining the maximum reserve requirement for a member bank of the Federal Reserve System in New York City
with deposits exceeding five billion dollars in respect of "Eurocurrency liabilities" (or in respect of any other category of liabilities which includes deposits by reference to which the
interest rate on Euro-Dollar Loans is determined or any category of extensions of credit or other assets which includes loans by a non-United States office of any Lender to
United States residents). The Adjusted London Interbank Offered Rate shall be adjusted automatically on and as of the effective date of any change in the Euro-Dollar Reserve Percentage. 

        (c)   Any
overdue principal of or interest on any Euro-Dollar Revolver Loan shall bear interest, payable on demand, for each day from and including the date
payment thereof was due to but excluding the date of actual payment, at a rate per annum equal to the sum of 2% plus the higher of (i) the
Applicable Margin plus the quotient obtained (rounded upward, if necessary, to the next higher 1/100 of 1%) by dividing (x) the rate per annum at
which one day (or, if such amount due remains unpaid more than three Euro-Dollar Business Days, then for such other period of time not longer than six months as the Administrative
Agent may select) deposits in dollars in an amount approximately equal to such overdue payment due to Bank of America, N.A. are offered to Bank of America, N.A., in the London interbank market for the
applicable period determined as provided above by (y) 1.00 minus the Euro-Dollar Reserve Percentage (or, if the circumstances
described in clause (a) or (b) of Section 8.01 shall exist, at a rate per annum equal to the sum of 2% plus the rate
applicable to Domestic Loans for such day) and (ii) the sum of the Applicable Margin plus the Adjusted London Interbank Offered Rate applicable
to such Loan at the date such payment was due. 

        (d)   Each
Term Loan shall bear interest on the outstanding principal amount thereof from the date such Term Loan is made until it becomes due at the rate or rates per annum
provided in the Term Loan Addendum and such interest shall be payable on the dates set forth in the Term Loan Addendum. 

        (e)   The
Administrative Agent shall determine each interest rate applicable to the Loans hereunder. The Administrative Agent shall give prompt notice to the Borrower and the
Lenders of each rate of interest so determined, and its determination thereof shall be conclusive in the absence of manifest error. 

        Section 2.07. Commitment Fees. (a) The Company shall pay to the Administrative Agent for the account of each Revolver Lender
in accordance with its Pro Rata Share a commitment fee at a rate per annum equal to the Applicable Margin. Such commitment fee shall accrue from and including the 

18

 

Closing
Date to but excluding the Revolver Maturity Date (or earlier date of termination of the Commitments in their entirety), on the actual daily amount of the Unused Commitments, and shall be
payable quarterly in arrears on the last day of each calendar quarter and upon the date of termination of the Commitments in their entirety. 

        (b)   The
Company shall pay to the Administrative Agent for the account of each Term Lender such fees in such amounts and at such times as shall be set forth in the Term Loan
Addendum. 

        Section 2.08. Termination or Reduction of Commitments; Scheduled Amortization of Term Loans.
(a) Optional Reductions. During the Revolver Credit Period, the Company may, upon at least three Domestic Business Days' notice to the
Administrative Agent, (i) terminate the Commitments at any time, if no Loans are outstanding at such time or (ii) ratably reduce from time to time by an aggregate amount of $25,000,000
or any larger multiple of $5,000,000, the Aggregate Commitments in excess of the Revolver Outstandings. 

        (b)   Scheduled Amortization of Term Loans. The Borrower shall repay the Term Loans in accordance with the amortization
schedule set forth in the Term Loan Addendum. 

        Section 2.09. Method of Electing Interest Rates. (a) The Loans included in each Borrowing shall bear interest initially at
the type of rate specified by the Borrower in the applicable Notice of Borrowing. Thereafter, the Borrower may from time to time elect to change or continue the type of interest rate borne by each
Group of Loans (subject in each case to the provisions of Article 8), as follows: 

        (i)    if
such Loans are Domestic Loans, the Borrower may elect to convert such Loans to Euro-Dollar Loans as of any Euro-Dollar Business Day; and 

        (ii)   if
such Loans are Euro-Dollar Loans, the Borrower may elect to convert such Loans to Domestic Loans or elect to continue such Loans as
Euro-Dollar Loans for an additional Interest Period, in each case effective on the last day of the then current Interest Period applicable to such Loans. 

Each
such election shall be made by delivering a notice (a "Notice of Interest Rate Election") to the Administrative Agent at least three
Euro-Dollar Business Days (or, if the Borrower wishes to request an Interest Period of twelve months, four Euro-Dollar Business Days, subject to the notice and consent
conditions set forth in Section 2.02) before the conversion or continuation selected in such notice is to be effective. A Notice of Interest Rate Election may, if it so specifies, apply to only
a portion of the aggregate principal amount of the relevant Group of Loans; provided that (i) such portion is allocated ratably among the Loans
comprising such Group and (ii) the portion to which such Notice applies, and the remaining portion to which it does not apply, are each $25,000,000 or any larger multiple of $5,000,000. 

        (b)   Each
Notice of Interest Rate Election shall specify: 

        (i)    the
Group of Loans (or portion thereof) to which such notice applies; 

        (ii)   the
date on which the conversion or continuation selected in such notice is to be effective, which shall comply with the applicable clause of
subsection (a) above; 

        (iii)  if
the Loans comprising such Group are to be converted, the new type of Loans and, if such new Loans are Euro-Dollar Loans, the duration of the initial
Interest Period applicable thereto; and 

        (iv)  if
such Loans are to be continued as Euro-Dollar Loans for an additional Interest Period, the duration of such additional Interest Period. 

19

 

Each
Interest Period specified in a Notice of Interest Rate Election shall comply with the provisions of the definition of Interest Period. 

        (c)   Upon
receipt of a Notice of Interest Rate Election from the Borrower pursuant to subsection (a) above, the Administrative Agent shall promptly notify each
Lender of the contents thereof and such notice shall not thereafter be revocable by the Borrower. If the Borrower fails to deliver a timely Notice of Interest Rate Election to the Administrative Agent
for any Group of Euro-Dollar Loans, such Loans shall be converted into Domestic Loans on the last day of the then current Interest Period applicable thereto. 

        Section 2.10. Prepayments.

        (a)   Subject
in the case of any Euro-Dollar Loans to Section 2.12, the Borrower may, upon at least one Domestic Business Day's notice to the Administrative
Agent, prepay the Group of Domestic Revolver Loans, or, upon three Euro-Dollar Business Days' notice to the Administrative Agent, prepay any Group of Euro-Dollar Revolver
Loans, in each case in whole at any time, or from time to time in part in amounts aggregating $25,000,000 or any larger multiple of $5,000,000, by paying the principal amount to be prepaid together
with accrued interest thereon to the date of prepayment. 

        (b)   Upon
receipt of a notice of prepayment pursuant to this Section or Section 5.08(d) or the Term Loan Addendum, the Administrative Agent shall promptly
notify each applicable Lender of the contents thereof and of such Lender's ratable share of such prepayment and such notice shall not thereafter be revocable by the Borrower or the Company. Each such
prepayment shall be applied to prepay ratably the Loans of the several Lenders included in the relevant Group or Borrowing. 

        (c)   On
the date of any reduction of Commitments pursuant to Section 2.08, the Borrower shall repay such principal amount (together with accrued interest thereon) of
outstanding Revolver Loans in an aggregate amount equal to the amount, if any, by which the Revolver Outstandings exceed the Aggregate Commitments as then reduced. Each prepayment of the Revolver
Loans pursuant to this subsection (c) shall be applied to prepay ratably the Revolver Loans of all the Revolver Lenders, and shall be applied to prepay such Group or Groups of Loans as
shall have been designated in the applicable notice (or, if no such designation shall have been made, as the Administrative Agent shall select in its discretion). 

        Section 2.11. General Provisions as to Payments. (a) The Borrower shall make each payment of principal of, and interest on,
the Loans and of fees and other amounts payable hereunder, not later than 12:00 Noon (New York City time) on the date when due, in Federal or other funds immediately available in New York City,
without off set or counterclaim, to the Administrative Agent at its address referred to in Section 10.01. The Administrative Agent will promptly distribute to each Lender its ratable share of
each such payment received by the Administrative Agent for the account of the Lenders. Whenever any payment of principal of, or interest on, the Domestic Loans or of fees or other amounts payable
hereunder shall be due on a day which is not a Domestic Business Day, the date for payment thereof shall be extended to the next succeeding Domestic Business Day. Whenever any payment of principal of,
or interest on, the Euro-Dollar Loans shall be due on a day which is not a Euro-Dollar Business Day, the date for payment thereof shall be extended to the next succeeding
Euro-Dollar Business Day unless such Euro-Dollar Business Day falls in another calendar month, in which case the date for payment thereof shall be the next preceding
Euro-Dollar Business Day. 

        (b)   Unless
the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due from the Borrower to the Lenders hereunder
that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the
Administrative Agent may, 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
Borrower shall not have so 

20

 

made
such payment, each Lender shall repay to the Administrative Agent forthwith 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. 

        Section 2.12. Funding Losses. If the Borrower makes any payment of principal with respect to any Euro-Dollar Loan or
any Euro-Dollar Loan is converted to a Domestic Loan (pursuant to Articles 2, 6 or 8 or otherwise) on any day other than the last day of an Interest Period applicable thereto, or the last
day of an applicable period fixed pursuant to Section 2.06(c), or if the Borrower fails to borrow, convert, continue or prepay any Euro-Dollar Loans after notice has been given to
any Lender in accordance with Sections 2.10(a) or 5.08(d), the Company shall reimburse each Lender within 15 days after written demand for any resulting loss or expense incurred
by it (or by an existing or prospective Participant in the related Loan), including (without limitation)
any loss incurred in obtaining, liquidating or employing deposits from third parties, but excluding loss of margin for the period after any such payment or conversion or failure to borrow or prepay,  provided that such Lender shall have delivered to the Company a certificate as to the amount of such loss or expense, which certificate shall be
conclusive in the absence of manifest error. Any Lender requesting compensation pursuant to this Section 2.12 shall notify the Borrower of such request on or before the date that is three
Euro-Dollar Business Days after the event giving rise to such request. 

        Section 2.13. Computation of Interest and Fees. Interest based on the Prime Rate hereunder and commitment fees hereunder shall be
computed on the basis of a year of 365 days (or 366 days in a leap year) and paid for the actual number of days elapsed (including the first day but excluding the last day). All
other interest and fees hereunder shall be computed on the basis of a year of 360 days and paid for the actual number of days elapsed (including the first day but excluding the last
day). 

        Section 2.14. Change of Control. If a Change of Control shall occur, the Company will, within ten days after the occurrence
thereof, give each Lender notice thereof, which notice shall describe in reasonable detail the facts and circumstances giving rise thereto and shall specify an Optional Termination Date for purposes
of this Section (the "Optional Termination Date") which date shall not be less than 30 nor more than 60 days after the date of such
notice. Each Lender may, by notice to the Company and the Administrative Agent given not less than three Domestic Business Days prior to the Optional Termination Date, terminate its Commitment (if
any), which shall thereupon be terminated, and declare the Note held by it (together with accrued interest thereon) and any other amounts payable hereunder for its account to be, and such
Note and such other amounts shall thereupon become, due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Company and the
Borrower, in each case effective on the Optional Termination Date. 

        A
"Change of Control" shall occur if any person or group of persons (within the meaning of Section 13(d) of the Securities
Exchange Act of 1934, as amended), other than Philip F. Anschutz, Anschutz Company or any of their Affiliates, obtain ownership or control (whether in one transaction or one or more series of
transactions) of more than 50% of the outstanding shares of common stock of the Company or of the shares of the Company entitled to vote on the election of members of the board of directors of the
Company or if a change of control event shall occur under any agreement or instrument evidencing any Material Debt. 

21

   
        Section 2.15. Increase In Commitments; New Term Tranche.

        (a)   Provided
there exists no Default, upon notice to the Administrative Agent (which shall promptly notify the Revolver Lenders), the Borrower may from time to time, request
an increase in the Aggregate Commitments in an amount equal to the lesser of $50,000,000 and the Available Increase Amount. At the time of sending such notice, the Borrower (in consultation with the
Administrative Agent) shall specify the time period within which each Revolver Lender is requested to respond (which shall in no event be less than ten Domestic Business Days from the date of delivery
of such notice to the Revolver Lenders). Each Revolver Lender shall notify the Administrative Agent within such time period whether or not it agrees to increase its Commitment and, if so, whether by
an amount equal to, greater than, or less than its Pro Rata Share of such requested increase. Any Revolver Lender not responding within such time period shall be deemed to have declined to increase
its Commitment. The Administrative Agent shall notify the Borrower and each Revolver Lender of the Lenders' responses to each request made hereunder. To achieve the full amount of a requested
increase, the Borrower may also invite additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and substance reasonably satisfactory to the Administrative Agent. 

        (b)   If
the Aggregate Commitments are increased in accordance with this Section, the Administrative Agent and the Borrower shall determine the effective date (the
"Increase Effective Date") and the final allocation of such increase. The Administrative Agent shall promptly notify the Borrower and the Revolver
Lenders of the final allocation of such increase and the Increase Effective Date. As a condition precedent to such increase, the Borrower shall deliver to the Administrative Agent a certificate of
each Loan Party dated as of the Increase Effective Date (in sufficient copies for each Revolver Lender) signed by the chief financial officer, treasurer or assistant treasurer (or any such officer's
designee, designated in writing by such officer) of such Loan Party (i) certifying and attaching the resolutions adopted by such Loan Party approving or consenting to such increase and
(ii) in the case of the Company and the Borrower, certifying that, before and after giving effect to such increase, (A) the representations and warranties contained in Article 4
and the other Loan Documents are true and correct (or, with respect to any representation or warranty which is not qualified by materiality or material adverse effect, shall be true in all material
respects) on and as of the Increase Effective Date except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of
such earlier date, (B) no Default exists and (C) the sum of the Aggregate Commitments and the Outstanding Amount of the Term Loans does not exceed the Maximum Amount. The Borrower shall
prepay any Revolver Loans outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to Section 2.12) to the extent necessary to keep the outstanding Revolver
Loans ratable with any revised Pro Rata Shares arising from any nonratable increase in the Commitments under this Section. 

        (c)   This
Section shall supersede any provisions in Sections 10.04 or 10.05 to the contrary. 

        (d)   At
any one time during the Revolver Credit Period, the Borrower may arrange for any one or more Lenders or other financial institutions (approved by the Administrative
Agent, acting in its reasonable discretion) to provide Term Loans on the terms hereof, as supplemented by a Term Loan Addendum; provided that
(i) immediately after giving effect to the Term Borrowing in the aggregate principal amount permitted under the Term Loan Addendum, the Total Exposure shall not exceed the Maximum Amount;
(ii) as of the date of the Term Loan Addendum, the incurrence of the additional Debt in the form of Term Loans in the aggregate principal amount permitted under the Term Loan Addendum and the
Liens securing such Term Loans under the Collateral Documents are permitted under each then outstanding indenture of the Company and its Subsidiaries; (iii) the Term Maturity Date shall not be
prior to the Revolver Maturity Date; and (iv) if, pursuant to the Term Loan Addendum any scheduled amortizations of the Term Loans during a calendar year will exceed 1% of the Term Outstandings
in such year, such scheduled amortizations shall have been approved by the Administrative Agent. Upon execution and delivery by the Company, the Borrower, the Administrative 

22

 

Agent
and each Lender or other financial institution party thereto of the Term Loan Addendum, each such Lender or other financial institution shall be a "Term Lender" for all purposes hereunder with
all rights and obligations of a Term Lender hereunder and the Term Loans made pursuant to such Term Loan Addendum shall be "Term Loans" for all purposes hereunder. 

ARTICLE 3

Conditions  

        Section 3.01. Closing. The closing hereunder shall occur upon receipt by the Administrative Agent (or its
counsel) of the following (in the case of any document, dated the Closing Date unless otherwise indicated): 

        (a)   duly
executed counterparts hereof signed by each of the Borrower, the Guarantor, the Revolver Lenders and the Administrative Agent (or, in the case of any party as to
which an executed counterpart shall not have been received, written evidence satisfactory to the Administrative Agent (which may include telecopy transmission of a signed signature page) that such
party has signed a counterpart hereof); 

        (b)   a
duly executed Note for the account of each Revolver Lender requesting a Note, dated on or before the Closing Date; 

        (c)   (i) duly
executed counterparts of the Security and Pledge Agreement and (ii) evidence satisfactory to the Administrative Agent that the Collateral and
Guaranty Requirement shall have been satisfied; 

        (d)   opinions
of John K. Lines, associate general counsel of the Company and the Borrower, O'Melveny & Myers LLP, special counsel to the Loan Parties, Gibson,
Dunn & Crutcher LLP, special counsel to the Loan Parties, and Hogan and Hartson, L.L.P., special regulatory counsel to the Loan Parties, covering the matters set forth in
Exhibit D-1, D-2, D-3 and D-4 hereto, respectively, and such additional matters relating to the transactions contemplated hereby as the Required
Lenders may reasonably request; 

        (e)   evidence
satisfactory to the Administrative Agent of the payment of all fees and other amounts payable to the Administrative Agent for the account of the Lenders or the
Administrative Agent on or prior to the Closing Date, including, to the extent invoiced, reimbursement of all out-of-pocket expenses (including, without limitation, legal fees
and expenses) required to be reimbursed or paid by the Borrower or the Company hereunder; 

        (f)    (i) a
copy of the Wireless Note and each other note in existence on the Closing Date evidencing Debt owed by the Company, the Borrower or any Corp. Company
to the Company or any Subsidiary and outstanding on the Closing Date, (ii) a certificate of the Assistant Treasurer of Capital Funding certifying that Capital Funding has delivered pursuant to
clause (i) a copy of each note described in clause (i) and that each such copy is a true, correct and complete copy of the original note as in effect on the Closing Date,
and (iii) evidence satisfactory to the Administrative Agent that the Wireless Note is subordinated to the Loans and the Guarantee hereunder on terms and conditions satisfactory to the
Administrative Agent; 

        (g)   a
certificate signed by the chief financial officer, treasurer or assistant treasurer (or any such officer's designee, designated in writing by such officer) of the
Company certifying (A) as to the facts specified in clauses (d) and (e) of Section 3.03 as of the Closing Date, and (B) that if Loans were outstanding the Company
and Corp. would be in compliance with Section 5.06 as of September 30, 2003, calculated on a pro forma basis after giving effect to the consummation of the offers to purchase outstanding
notes and debt for equity exchanges completed in the fiscal quarter ended December 31, 2003, and attaching a calculation on such basis of each of the ratios set forth in Section 5.06 as
of such date; 

23

 

        (h)   evidence
satisfactory to the Administrative Agent that all commitments under the Existing Credit Agreement have been or concurrently with the Closing Date are being
terminated, all loans outstanding thereunder have been repaid in full (together with accrued and unpaid interest thereon, any applicable breakage costs and accrued fees and expenses), all Liens
securing obligations under the Existing Credit Agreement have been or concurrently with the Closing Date are being released and the Company's guarantee under the Existing Credit Agreement has been or
concurrently with the Closing Date is being released; and 

        (i)    all
documents the Administrative Agent may reasonably request relating to the existence of the Company and its Subsidiaries, the corporate authority for and the validity
of the Loan Documents, and any other matters relevant hereto, all in form and substance satisfactory to the Administrative Agent. 

        The
Administrative Agent shall promptly notify the Company and the Lenders of the Closing Date, and such notice shall be conclusive and binding on all parties hereto. 

        Section 3.02. Condition To Term Loans. The obligation of any Term Lender to make a Term Loan shall be subject to the satisfaction
of the following conditions: 

        (a)   the
Administrative Agent (or its counsel) shall have received counterparts of the Term Loan Addendum signed by the Borrower and the Company and each of the Term Lenders
listed on the signature pages thereof (or, in the case of any party as to which an executed counterpart shall not have been received, receipt by the Administrative Agent in form satisfactory to
it of telex, facsimile or other written confirmation from such party that it has executed a counterpart thereof); 

        (b)   the
Administrative Agent shall have received such evidence (including such opinions of counsel to the Loan Parties) as it may reasonably request to confirm the
Borrower's due authorization of the transactions contemplated by the Term Loan Addendum and the validity and enforceability of the obligations of the Borrower and the Company resulting therefrom; 

        (c)   the
fact that immediately after such Term Loan is made, the limitation in Section 2.15(d)(i) shall have been complied with; and 

        (d)   any
other conditions set forth in the Term Loan Addendum. 

        Section 3.03. All Borrowings. The obligation of any Lender to make a Loan on the occasion of any Borrowing is subject to the
satisfaction of the following conditions: 

        (a)   the
fact that the Closing Date shall have occurred on or prior to February 27, 2004; 

        (b)   receipt
by the Administrative Agent of a Notice of Borrowing as required by Section 2.02; 

        (c)   the
fact that, immediately before and after such Borrowing, the Total Outstandings do not exceed the Total Exposure; 

        (d)   the
fact that, immediately before and after such Borrowing, no Default shall have occurred and be continuing; 

        (e)   the
fact that the representations and warranties of the Loan Parties contained in the Loan Documents shall be true (or, with respect to any representation and warranty
which is not qualified by materiality or material adverse effect, shall be true in all material respects) on and as of the date of such Borrowing, except to the extent such representations and
warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true (or, with respect to any such representation and warranty which is not
qualified by materiality or material adverse effect, shall be true in all material respects) on and as of such earlier date; and 

        (f)    if
no Loans were outstanding as of the last day of the most recently ended fiscal quarter for which financial statements are required to have been delivered pursuant to
Section 5.01, the fact that 

24

 

the
Company and Corp. would have been in compliance with Section 5.06 had Loans been outstanding on such date. 

        Each
Borrowing hereunder shall be deemed to be a representation and warranty by the Borrower on the date of such Borrowing as to the facts specified in clauses (c), (d), (e) and
(f) of this Section. 

ARTICLE 4

Representations And Warranties  

        Each of the Loan Parties party to this Agreement represents and warrants that: 

        Section 4.01. Corporate Existence and Power. Each Loan Party is a corporation duly incorporated, validly existing and in good
standing under the laws of the state of its incorporation, and has all corporate powers and all material governmental licenses, authorizations, qualifications, consents and approvals required to carry
on its business as now conducted. 

        Section 4.02. Corporate and Governmental Authorization; No Contravention. The execution, delivery and performance by each Loan
Party of each Loan Document to which it is a party are within such Person's corporate powers, have been duly authorized by all necessary corporate action, require no action by or in respect of, or
filing with, any governmental body, agency or official except, with respect to the Security and Pledge Agreement and the transactions contemplated thereby, as set forth in the Collateral Documents,
and do not contravene, or constitute a default under, any provision of applicable law or regulation or of the certificate of incorporation or by-laws of such Person or of any material
agreement (including in any event the QSC Notes Indenture), judgment, injunction, order, decree or other instrument binding upon such Person or any Significant Subsidiary or result in the creation or
imposition of any Lien on any material asset of such Person or any Significant Subsidiary (other than the Liens created by the Collateral Documents). 

        Section 4.03. Binding Effect. Each Loan Document (other than the Notes) constitutes a valid and binding agreement of each Loan
Party thereto, and the Notes, when executed and delivered in accordance with this Agreement, will constitute valid and binding obligations of the Borrower, in each case enforceable in accordance with
its terms except as the same may be limited by bankruptcy, insolvency or similar laws affecting creditors' rights generally and by general principles of equity. 

        Section 4.04. Financial Information.

        (a)   (i) The
restated consolidated balance sheet of the Company and its Consolidated Subsidiaries as of each of December 31, 2000, December 31, 2001 and
December 31, 2002 and the related consolidated statements of income and cash flows for each fiscal year then ended, reported on by KPMG and set forth in the Company's 2002
Form 10-K and (ii) the consolidated balance sheet of the Company and its Consolidated Subsidiaries as of September 30, 2003 and the related consolidated statements of
income and cash flows for the portion of the Company's fiscal year ended at the end of such quarter and set forth on the Company's Form 10-Q, a copy of each of which has been made
available to each of the Lenders, taken together, fairly present in all material respects, in conformity with generally accepted accounting principles, the consolidated financial position of the
Company and its Consolidated Subsidiaries as of such date specified therein and their consolidated results of operations and cash flows for such period specified therein, subject, in the case of the
financial statements described in clause (ii) of this Section 4.04(a), to changes resulting from audit and year-end adjustments and the absence of footnotes. 

        (b)   (i) The
restated consolidated balance sheet of Corp. as of each of December 31, 2000, December 31, 2001 and December 31, 2002 and the related
consolidated statement of income and cash flows for each fiscal year then ended, reported on by KPMG and (ii) the consolidated balance sheet of Corp. as of September 30, 2003 and the
related consolidated statements of income and cash flows for the portion of Corp.'s fiscal year then ended, a copy of each of which has been made available to each 

25

 

of
the Lenders, fairly present in all material respects, in conformity with generally accepted accounting principles, the consolidated financial position of Corp. and its Consolidated Subsidiaries as
of the date specified therein and their consolidated results of operations for the period specified therein, subject, in the case of the financial statements described in clause (ii) of
this Section 4.04(b), to changes resulting from audit and year-end adjustments and the absence of footnotes. 

        (c)   Except
as set forth in Schedule 4.05, since December 31, 2002, there has been no Material Adverse Change. 

        Section 4.05. Litigation. Except for the Pending Matters, to the knowledge of the Company there is no action, suit or proceeding
pending, against the Company or any of its Subsidiaries before any court or arbitrator or any governmental body, agency or official in which there is a reasonable possibility of an adverse decision
which would materially adversely affect the consolidated financial position or consolidated results of operations of the Company and its Consolidated Subsidiaries, considered as a whole, or which in
any manner draws into question the validity of any Loan Document. 

        Section 4.06. Compliance with ERISA. Each member of the ERISA Group has fulfilled its obligations under the minimum funding
standards of ERISA and the Internal Revenue Code with respect to each Plan and is in compliance in all respects with the presently applicable provisions of ERISA and the Internal Revenue Code with
respect to each Plan, except where failure to comply would not have a material adverse effect on the consolidated financial position or consolidated results of operations of the Company and its
Consolidated Subsidiaries, considered as a whole. No member of the ERISA Group has (i) sought a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code in
respect of any Plan, (ii) failed to make any contribution or payment to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement, or made any amendment to any Plan or Benefit
Arrangement, in either case which has resulted or could reasonably be expected to result in the imposition of a Lien or the posting of a bond or other security under ERISA or the Internal Revenue
Code, or (iii) incurred any liability under Title IV of ERISA other than a liability to the PBGC for premiums under Section 4007 of ERISA. 

        Section 4.07. Environmental Matters. (a) The operations of the Company and each of its Subsidiaries comply in all respects
with all Environmental Laws except such non-compliance which would not (if enforced in accordance with applicable law) reasonably be expected to result, individually or in the aggregate,
in a material adverse effect on the financial position or results of operations of the Company and its Consolidated Subsidiaries, considered as a whole. 

        (b)   Except
as specifically identified in Schedule 4.07, the Company and each of its Subsidiaries have obtained all material licenses, permits, authorizations and
registrations required under any Environmental Laws ("Environmental Permits") necessary for their respective operations, and all such Environmental
Permits are in good standing, and the Company and each of its Subsidiaries is in compliance with all material terms and conditions of such Environmental Permits. 

        (c)   Except
as specifically identified in Schedule 4.07, there are neither any conditions or circumstances known to the Company which may give rise to any claims or
liabilities respecting any Environmental Laws or Hazardous Substances arising from the operations of the Company or its Subsidiaries (including, without limitation, off-site liabilities),
nor any additional costs of compliance with Environmental Laws, which collectively have an aggregate potential liability in excess of $50,000,000. 

        Section 4.08. Taxes. United States Federal income tax returns of the Company and its Subsidiaries have been examined and closed
through the fiscal year ended December 31, 1992. The Company and its Subsidiaries have filed all United States Federal income tax returns and all other material tax returns which are required
to be filed by them and have paid all taxes due pursuant to such returns or pursuant to any assessment received by the Company or any Subsidiary, except for taxes the amount, 

26

 

applicability
or validity of which is being contested in good faith by appropriate proceedings. The charges, accruals and reserves on the books of the Company and its Subsidiaries in respect of taxes
or other governmental charges are, in the opinion of the Company, adequate. 

        Section 4.09. Subsidiaries. Each of the Company's corporate Significant Subsidiaries (including, but not limited to, the Borrower)
is a corporation duly incorporated, validly existing and in good standing under the laws of its jurisdiction of incorporation, and has all corporate powers and all material governmental licenses,
authorizations, qualifications, consents and approvals required to carry on its business as now conducted. 

        Section 4.10. Not an Investment Company. No Loan Party is an "investment company" within the meaning of the Investment Company Act
of 1940, as amended. 

        Section 4.11. Full Disclosure. All written information heretofore furnished by any Loan Party to the Administrative Agent or any
Lender for purposes of or in connection with the Loan Documents or any transaction contemplated hereby is, and all such information hereafter furnished by any Loan Party to the Administrative Agent or
any Lender will be, true and accurate in all material respects on the date as of which such information is stated or certified, in each case in light of the circumstances in which the same were made.
Any projections or pro forma financial information contained in such materials are based upon good faith estimates and assumptions believed by the applicable Loan Party to be
reasonable at the time they were made, it being recognized that such projections are not to be viewed as facts and that actual results may differ and such differences may be material. 

        Section 4.12. Solvency. On the Closing Date, immediately after giving effect to the transactions contemplated herein (including
without limitation or the application of the proceeds of any Loans made on the Closing Date) (a) the fair value of the assets of each Loan Party, at a fair valuation, will exceed its debts and
liabilities, subordinated, contingent or otherwise, (b) the present fair saleable value of the properties of each Loan Party will exceed the amount that will be required to pay the probable
liability of its debts and other liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (c) each Loan Party will be able to pay its debts
and other liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, and (d) no Loan Party will have unreasonably small capital with which to
conduct the business in which it is engaged as such business is now conducted and proposed to be conducted after the Closing Date. 

ARTICLE 5

Covenants  

        The Company agrees that, so long as any Lender has any Commitment hereunder or any Loan or any other amount payable under any Loan Document remains unpaid: 

        Section 5.01. Information. The Company will deliver to the Administrative Agent for distribution to each of the Lenders: 

        (a)   (i) as
soon as available and in any event within 90 days after the end of each fiscal year of the Company, a consolidated balance sheet of the Company and
its Consolidated Subsidiaries as of the end of such fiscal year and the related consolidated statements of income and cash flows for such fiscal year, setting forth in each case in comparative form
the figures for the previous fiscal year, all reported on in a manner acceptable to the Securities and Exchange Commission by KPMG or other independent public accountants of nationally recognized
standing, (ii) as soon as available and in any event within 90 days after the end of each fiscal year of Corp., a consolidated balance sheet of Corp. and its Consolidated Subsidiaries as
of the end of such fiscal year and the related consolidated statements of income and cash flows for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal
year, all reported on in a manner acceptable to the Securities and Exchange 

27

 

Commission
by KPMG or other independent public accountants of nationally recognized standing, and (iii) as soon as available and in any event within 90 days after the end of each fiscal
year of the Borrower (provided that in the case of the fiscal year ended December 31, 2003, such information need only be provided on or before
May 31, 2004), an unaudited consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as of the end of such fiscal year and the related consolidated statements of income for
such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all certified (subject to the absence of footnotes) as to fairness of presentation, generally
accepted accounting principles and consistency by the chief financial officer, the chief accounting officer treasurer or assistant treasurer (or any such officer's designee, designated in writing by
such officer) of the Company; 

        (b)   (i) as
soon as available and in any event within 50 days after the end of each of the first three quarters of each fiscal year of the Company, a
consolidated balance sheet of the Company and its Consolidated Subsidiaries as of the end of such quarter and the related consolidated statements of income and cash flows for such quarter and for the
portion of the Company's fiscal year ended at the end of such quarter, setting forth in the case of such statements of income and cash flows in comparative form the figures for the corresponding
quarter and the corresponding portion of the Company's previous fiscal year, all certified (subject to changes resulting from audit, year-end adjustments and absence of footnotes) as to
fairness of presentation, generally accepted accounting principles and consistency by the chief financial officer, chief accounting officer, treasurer or assistant treasurer (or any such officer's
designee, designated in writing by such officer) of the Company, (ii) as soon as available and in any event within 50 days after the end of each of the first three quarters of each
fiscal year of Corp., a consolidated balance sheet of Corp. and its Consolidated Subsidiaries as of the end of such quarter and the related consolidated statements of income and cash flows for such
quarter and for the portion of Corp.'s fiscal year ended at the end of such quarter, setting forth in the case of such statements of income and cash flows in comparative form the figures for the
corresponding quarter and the corresponding portion of Corp.'s previous fiscal year, all certified (subject to changes resulting from audit, year-end adjustments and absence of footnotes)
as to fairness of presentation, generally accepted accounting principles and consistency by the chief financial officer, the chief accounting officer, treasurer or assistant treasurer (or any such
officer's designee, designated in writing by such officer) of Corp., and (iii) as soon as available and in any event within 50 days after the end of each of the first three quarters of
each fiscal year of the Borrower, an unaudited consolidated balance sheet of the Borrower and its Consolidated Subsidiaries as of the end of such quarter and the related consolidated statements of
income for such quarter and for the portion of the Borrower's fiscal year ended at the end of such quarter, setting forth in the case of such statements of income in comparative form the figures for
the corresponding quarter and the corresponding portion of the Borrower's previous fiscal year, all certified (subject to changes resulting from audit, year-end adjustments and absence of
footnotes) as to fairness of presentation, generally accepted accounting principles and consistency by the chief financial officer, the chief accounting officer treasurer or assistant treasurer (or
any such officer's designee, designated in writing by such officer) of the Company; 

        (c)   simultaneously
with the delivery of each set of financial statements referred to in clauses (a) and (b) above, a certificate of the chief financial
officer, treasurer or assistant treasurer (or any such officer's designee, designated in writing by such officer) or the chief accounting officer of the Company, (i) (x) in the case of
financial statements of the Company, setting forth in reasonable detail the calculations required to establish whether the Company was in compliance with the requirements of
Sections 5.06(a) (or, if no Loans were outstanding, setting forth in reasonable detail the calculation of the Company Consolidated Leverage Ratio), 5.07, 5.10, 5.12, and 5.13 on the date
of such financial statements and (y) in the case of financial statements of Corp., setting forth in reasonable detail the calculations required to establish whether Corp. was in compliance with
the requirements of Section 5.06(b) (or, if no Loans were outstanding, setting forth in reasonable detail the calculation of 

28

 

the
ratio described in Section 5.06(b)) on the date of such financial statements, (ii) describing in reasonable detail the investments of the type described in
Section 5.13(f)(i) of the relevant Loan Party and its Subsidiaries outstanding on the date of such financial statements, and (iii) stating whether any Default exists on the date
of such certificate and, if any Default then exists, setting forth the details thereof and the action which the Company, Corp. or the Borrower, as applicable, is taking or proposes to take with
respect thereto; 

        (d)   within
five Domestic Business Days after any officer of the Company or the Borrower obtains knowledge of any Default, if such Default is then continuing, a certificate
of the chief financial officer, the chief accounting officer, treasurer or assistant treasurer (or any such officer's designee, designated in writing by such officer) of the Company or the Borrower
setting forth the details thereof and the action which the Company or the Borrower is taking or proposes to take with respect thereto; 

        (e)   promptly
upon the mailing thereof to the shareholders of the Company generally, copies of all financial statements, reports and proxy statements so mailed; 

        (f)    promptly
upon the filing thereof, copies of all registration statements (other than the exhibits thereto and any registration statements on Form S-8
or its equivalent) and reports on Forms 10-K, 10-Q and 8-K (or their equivalents) (other than any amendment on Form 8-K the sole purpose of which
is to file exhibits relating to Existing Debt meeting the requirements of clause (ii) of the definition of Debt) which the Company shall have filed with the Securities and Exchange
Commission; 

        (g)   if
and when any member of the ERISA Group (i) gives or is required to give notice to the PBGC of any "reportable event" (as defined in Section 4043 of
ERISA) with respect to any Plan which might constitute grounds for a termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required
to give notice of any such reportable event, a copy of the notice of such reportable event given or required to be given to the PBGC, (ii) receives notice of complete or partial withdrawal
liability under Title IV of ERISA or notice that any Multiemployer Plan is in reorganization, is insolvent or has been terminated, a copy of such notice, (iii) receives notice from the
PBGC under Title IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or appoint a trustee to administer any Plan,
a copy of such notice, (iv) applies for a waiver of the minimum funding standard under Section 412 of the Internal Revenue Code, a copy of such application, (v) gives notice of
intent to terminate any Plan under Section 4041(c) of ERISA, a copy of such notice and other information filed with the PBGC, (vi) gives notice of withdrawal from any Plan
pursuant to Section 4063 of ERISA, a copy of such notice, or (vii) fails to make any payment or contribution to any Plan or Multiemployer Plan or in respect of any Benefit Arrangement or
makes any amendment to any Plan or Benefit Arrangement, in either case which has resulted or could reasonably be expected to result in the imposition of a Lien or the posting of a bond or other
security, a certificate of the chief financial officer, chief accounting officer, treasurer or assistant treasurer (or any such officer's designee, designated in writing by such officer) of the
Company setting forth details as to such occurrence and action, if any, which the Company or applicable member of the ERISA Group is required or proposes to take; and 

        (h)   from
time to time such additional information regarding the financial position or business of the Company and its Subsidiaries and the Borrower and its Subsidiaries as
the Administrative Agent, at the request of any Lender, may reasonably request. 

Information
required to be delivered pursuant to clauses 5.01(a), (b), (e), or (f) above shall be deemed to have been delivered on the date on which the Company provides notice to the Lenders
that such information has been posted on the Company's website on the Internet at the website address listed on the signature pages hereof, at sec.gov/edaux/searches.htm or at another website
identified in such notice and accessible by the Lenders without charge; provided that (i) such notice may be included in a certificate delivered
pursuant to clause 5.01(c) and (ii) the Company shall deliver paper copies of the information referred to in clauses 5.01(a), (b), (e), or (f) to any Lender which requests
such delivery. 

29

   
        Section 5.02. Maintenance of Property; Insurance. (a) The Company will keep, and will cause each other Loan Party and each
Significant Subsidiary to keep, all property useful and necessary in its business in good working order and condition, ordinary wear and tear excepted. 

        (b)   The
Company will maintain, and will cause each other Loan Party and each Significant Subsidiary to maintain (either in the name of the Borrower or in such Loan Party's
or Significant Subsidiary's own name), with financially sound and responsible insurance companies, insurance on all their respective properties in at least such amounts and against at least such risks
(and with such risk retention) as are usually insured against in the same general area by companies of established repute engaged in the same or a similar business; and will furnish to the Lenders,
upon request from the Administrative Agent, information presented in reasonable detail as to the insurance so carried; provided that, in lieu of any
such insurance, the Company and any other Loan Party and any Significant Subsidiary may maintain a system or systems of self-insurance and reinsurance which will accord with sound
practices of similarly situated corporations maintaining such systems and with respect to which the Company or such other Loan Party or such Significant Subsidiary will maintain adequate insurance
reserves, all in accordance with generally accepted accounting principles and in accordance with sound insurance principles and practice. 

        Section 5.03. Maintenance of Existence. The Company will, and will cause each other Loan Party and each Significant Subsidiary to,
preserve, renew and keep in full force and effect their respective corporate existence and their respective material rights, privileges, franchises and licenses necessary or desirable in the normal
conduct of business. 

        Section 5.04. Compliance with Laws. The Company will comply, and will cause each other Loan Party and each Significant Subsidiary
to comply, in all material respects with all applicable laws, ordinances, rules, regulations, and requirements of governmental authorities (including, without limitation, Environmental Laws and ERISA
and the rules and regulations thereunder), except where the necessity of compliance therewith is contested in good faith by appropriate proceedings and for which adequate reserves in conformity with
generally accepted accounting principles have been established. 

        Section 5.05. Inspection of Property, Books and Records. The Company will keep, and will cause each other Loan Party and each
Significant Subsidiary to keep, proper books of record and account in accordance with generally accepted accounting principles in which full, true and correct entries shall be made of all dealings and
transactions in relation to its business and activities; and will permit, and will cause each other Loan Party and each Significant Subsidiary to permit, representatives of any Lender at such Lender's
expense to visit and inspect any of their respective properties, to examine and make abstracts from any of their respective books and records and to discuss their respective affairs, finances
and accounts with their respective officers, employees and independent public accountants, all at such reasonable times and as often as may reasonably be desired. 

        Section 5.06.  Financial Covenants. (a) Company Consolidated Leverage Ratio.
The Company Consolidated Leverage Ratio as of the last day of each fiscal quarter when Loans are outstanding shall not be greater than 6:1. 

        (b)   Corp. Consolidated Leverage Ratio. The ratio of Debt of Corp. and its Consolidated Subsidiaries (other than the Wireless
Intercompany Debt), determined on a consolidated basis as of the last day of each fiscal quarter of Corp. when Loans are outstanding, to Consolidated Corp. EBITDA, determined for the four consecutive
fiscal quarters ending on such date, shall not be greater than 2.5:1. 

        Section 5.07. Negative Pledge. Neither the Company nor the Borrower will, and the Company will not permit any Subsidiary to,
create, assume or suffer to exist any Lien on any asset now owned or hereafter acquired by it, except: 

        (a)   Liens
existing on the Closing Date and listed in Schedule 5.07; 

30

 

        (b)   any
Lien existing on any asset of any corporation at the time such corporation becomes a Subsidiary and not created in contemplation of such event; 

        (c)   any
Lien on any asset of the Company or any of its Subsidiaries (other than the Borrower) (each, a "Purchase Money
Obligor") securing Purchase Money Debt incurred by such Purchase Money Obligor in connection with the purchase of such asset (but not any other Purchase Money Obligor) and
permitted under Section 5.12; provided that such Lien attaches to such asset concurrently with or within 180 days after the incurrence of
such Purchase Money Debt; 

        (d)   any
Lien on any asset of any corporation existing at the time such corporation is merged or consolidated with or into the Company or a Subsidiary (to the extent any such
merger or consolidation is permitted under Section 5.08(a)) and not created in contemplation of such event; 

        (e)   any
Lien existing on any asset prior to the acquisition thereof by the Company or a Subsidiary (to the extent such acquisition is permitted under this Agreement) and not
created in contemplation of such acquisition; 

        (f)    any
Lien on assets or capital stock of Minor Subsidiaries which secures Debt of Persons which are not Consolidated Subsidiaries in which the Company or any of its
Subsidiaries has made investments ("Joint Ventures"), but for the payment of which Debt no other recourse may be had to the Company or any Subsidiaries
("Limited Recourse Debt"), or any Lien on equity interests in a Joint Venture securing Limited Recourse Debt of such Joint Venture; 

        (g)   any
Lien (other than Liens on the Collateral) arising out of the refinancing, replacement, extension, renewal or refunding of any Debt secured by any Lien permitted by
any of the foregoing clauses of this Section; provided that such Debt is not increased and is not secured by any additional assets and the refinancing,
replacement, extension, renewal or refunding of any such Debt is permitted pursuant to Section 5.12; 

        (h)   (x) Liens
arising in the ordinary course of business which (i) do not secure Debt, (ii) do not secure any obligation in an amount exceeding
$100,000,000 and (iii) do not in the aggregate materially detract from the value of the grantor's assets or materially impair the use thereof in the operation of its business, and
(y) Liens not described in clause (x) on cash and cash equivalents and securities (other than the Collateral) which Liens secure any obligation with respect to letters of credit
or surety bonds, which obligation in each case does not exceed $100,000,000; 

        (i)    (i) Liens
("Facility Liens") on the Collateral pursuant to the Collateral Documents securing Debt under this
Agreement, (ii) junior Liens on the Collateral securing the Existing Notes so long as the Liens described in this clause (ii) shall be junior and subordinated to the Facility
Liens, as provided in the QSC Notes Security and Pledge Agreement (or on other terms and conditions reasonably approved by the Administrative Agent), (iii) Liens on (x) the Collateral
securing Permitted QSC Junior Lien Debt (including pursuant to clause (x) of the last sentence of Section 5.12) and (y) on any Collateral (other than the Corp. Equity
Collateral) securing Permitted QSC Senior Unsecured Debt (including pursuant to clause (x) of the last sentence of Section 5.12), so long as the Liens described in this
clause (iii) shall, in each case, be junior and subordinated to the Facility Liens (A) as provided in the QSC Notes Security and Pledge Agreement, with respect to any obligation
designated as "Additional Pari Passu Secured Obligations" under (and as defined in) the QSC Notes Security and Pledge Agreement, (B) as provided in the New QSC Security and Pledge Agreement or
(C) on other terms and conditions satisfactory to the Administrative Agent), (iv) Liens securing Permitted QSC Senior Secured Debt (including pursuant to clause (x) of the
last sentence of Section 5.12) which are secured equally and ratably with the Facility Liens on terms and conditions reasonably approved by the Administrative Agent, and (v) Liens on the
Collateral securing Revolver Cash Management Obligations or Hedging Obligations (each as defined in the Security and Pledge Agreement) pursuant to the Security and Pledge Agreement (in each case, it
being understood that monetary obligations under or 

31

 

related
to any such Debt (but not constituting Debt) may be secured by Liens securing such related Debt pursuant to this subsection (i)); 

        (j)    Liens
on any assets of any Subsidiary of the Company other than the Borrower or a Corp. Company; and 

        (k)   Liens
(other than Liens on any Collateral) not otherwise permitted by and in addition to the foregoing clauses of this Section 5.07 securing Debt permitted under
Section 5.12 (and on terms permitted under Section 5.12). 

        Section 5.08. Consolidations, Mergers and Sales of Assets. (a) No Loan Party or any of its Subsidiaries will merge or
consolidate with or into any other Person; provided that (i) any Corp. Company may merge with or into any other Corp. Company (other than
Wireless), (ii) any QwestDex Company may merge with or into any other QwestDex Company or any Corp. Company (other than Wireless) (so long as a Corp. Company is the Person surviving any such
merger), (iii) any Foreign Subsidiary may merge or consolidate with or into any other Foreign Subsidiary, and (iv) any Subsidiary (other than the Borrower or a Corp. Company, but
excluding Wireless) may merge into any other Subsidiary of the Company other than the Borrower or a Corp. Company (other than Wireless); provided that,
in the case of clause (i) and (ii), after giving effect to any such merger, no Default has occurred and is continuing. 

        (b)   The
Company will not sell, lease or otherwise transfer, directly or indirectly, all or substantially all of the assets of the Company and its Subsidiaries, taken as a
whole, to any other Person; provided that nothing in this subsection (b) shall be construed to prohibit the contribution to any single New
Holding Company by the Company of the capital stock of the Borrower or any other direct Subsidiary of the Company. No Corp. Company will sell, lease or otherwise transfer, directly or indirectly, any
of its assets (other than the Wireless Assets) to the Company or any of its Subsidiaries, other than to another Corp. Company (other than Wireless). 

        (c)   None
of the Company, the Borrower or any Corp. Company shall consummate any Asset Sale (except any single disposition or series of related dispositions for which the
aggregate consideration does not exceed $100,000,000) unless at least 75% of the aggregate consideration therefor (other than any portion of such Asset Sale which constitutes an Asset Swap) shall
consist of cash payable at closing and Debt (other than subordinated Debt) of the transferor which is expressly assumed by the transferee. Any Corp. Company may consummate any Asset Sale that does not
satisfy the requirements of the immediately preceding sentence to the extent such Asset Sale is an Asset Swap and, after giving effect thereto, the aggregate amount of assets that have been sold,
transferred or otherwise disposed of by the Corp. Companies on or after the Closing Date pursuant to Asset Swaps shall not exceed 10% of the consolidated tangible assets of the Corp. Companies. 

        (d)   The
Available Net Proceeds of any Corp. Qualifying Asset Sale received during the Mandatory Reduction Period shall only be (i) applied to permanently retire Debt
owing by Corp. or to acquire assets similar to the assets disposed of in such sale or other productive assets of the general type used in the business of a Corp. Company, (ii) held by Corp. in
cash or Permitted Investments, or (iii) applied to reduce ratably the Commitments in an amount equal to the Revolver Portion of such Available Net Proceeds, prepay the Term Loans ratably in an
amount equal to the Term Portion of such Available Net Proceeds, and make any other payments of Debt that may be required concurrently with such reduction and prepayment. The Company shall notify the
Administrative Agent by telephone (confirmed by telecopy) of the proposed consummation of any Corp. Qualifying Asset Sale not later than 10:30 A.M., New York City time, on the date of the
proposed consummation thereof. Each such notice shall specify (i) the date of consummation of the applicable Corp. Qualifying Asset Sale, (ii) a reasonably detailed calculation of the
Net Proceeds thereof, and (iii) anticipated Available Net Proceeds as a result of such Corp. Qualifying Asset Sale. Upon receipt of a notice of a Corp. 

32

 

Qualifying
Asset Sale pursuant to this subsection, the Administrative Agent shall promptly notify each Lender of the contents thereof. 

        (e)   The
Company will retain ownership, directly or indirectly, of 100% of the capital stock and the voting power of the Borrower and the Borrower will retain ownership,
directly, of 100% of the capital stock and the voting power of Corp. 

        Section 5.09. Use of Proceeds. The proceeds of the Revolver Loans made under this Agreement will be used by the Borrower for
general corporate purposes. None of the proceeds of the Revolver Loans
shall be used directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of paying Legal Matter Costs or making Restricted Payments. None of the proceeds of any Loans will be
used, directly or indirectly, in violation of any applicable law or regulation, and no use of such proceeds will include any use for the purpose, whether immediate, incidental or ultimate, of buying
or carrying any Margin Stock. 

        Section 5.10. Restricted Payments and Payments of Certain Other Debt. (a) Neither the Company nor any of its Subsidiaries
will declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or otherwise) to do so, except that (i) any Subsidiary may
declare and pay dividends with respect to its Equity Interests, (ii) the Company may make Restricted Payments pursuant to and in accordance with stock or other benefit plans for management or
employees of the Company and its Subsidiaries, (iii) the Company may declare and pay stock dividends on its capital stock so long as the stock dividends (which may include options or warrants)
are of the same class of capital stock, and (iv) the Company may make other Restricted Payments, so long as, in the case of this clause (iv), after giving effect to any such dividend on
any date, the aggregate amount of Permitted Payments declared or paid by the Borrower does not exceed the Equity/Income Basket during the Mandatory Reduction Period and the Payments Basket thereafter;  provided that, in the case of clause (iv), immediately before and after giving effect to any such dividend, no Default has occurred and is
continuing. 

        (b)   Neither
the Company nor any of its Subsidiaries will, directly or indirectly (including without limitation through any Person that has received the proceeds of any
investment permitted by Section 5.13), refinance, redeem, retire, purchase, repurchase, acquire, defease, exchange or otherwise make any payment in respect of the principal of any Subject Debt,
other than: 

        (i)    mandatory
interest or principal payments, so long as such payments were required on such dates as of the Closing Date (in the case of Existing Debt) or on the date such
Debt was incurred (in the case of other Subject Debt), 

        (ii)   any
of the foregoing made with Equity Interests of the Company (other than Mandatorily Redeemable Equity), 

        (iii)  any
payments with respect to Debt incurred by the Borrower in lieu of Corp. in reliance on clause (x) of the last sentence of Section 5.12, 

        (iv)  any
payments with respect to the QCC 2007 Notes, 

        (v)   refinancings,
repurchases and redemptions of Subject Debt of the Company or Capital Funding that matures prior to the Revolver Maturity Date
("Inside Maturity Debt"), using as consideration cash or the Net Proceeds of Debt permitted by Section 5.12 and incurred within 181 days
(or, after the
Mandatory Reduction Period, 365 days) prior to the scheduled maturity of the applicable Inside Maturity Debt, 

        (vi)  any
payments from the Net Proceeds of issuances by the Company of common stock interests, 

33

 

        (vii) refinancings,
repurchases and redemptions of callable Subject Debt ("Callable Debt") of the Borrower, using as
consideration the Net Proceeds of Debt permitted by Section 5.12 and incurred within 181 days (or, (x) in the case of a tender offer for the Borrower's Notes due 2014 made in
connection with refinancing of the Borrower's Notes due 2010 and not financed with Revolver Borrowings, or (y) after the Mandatory Reduction Period, within 365 days) prior to the first
scheduled call date for such Callable Debt, and 

        (viii)   payments
with respect to other subordinated Debt and redemptions of Mandatorily Redeemable Equity of the Borrower,  provided that the aggregate amount of Permitted Payments declared or paid does not exceed the
Payments Basket. 

Neither
the Company nor any of its Subsidiaries will consent to or solicit any amendment, supplement, or other modification of any agreement or instrument evidencing or governing any Subject Debt if
the effect of such amendment, supplement or modification, together with all other amendments, supplements or modifications made, is to increase materially the obligations of the obligor thereunder or
to confer any additional rights on the holders thereof which would be materially adverse to the Company or its Subsidiaries (it being understood that any such modification that further restricts the
ability of any Subsidiaries of the Company to agree or be subject to the types of restrictions described in Section 5.11 or that has the effect of causing the terms of such Debt to no longer
comply with the provisions of Section 5.12 on the basis of which such Subject Debt was incurred shall not be a permitted modification of such terms). 

        Section 5.11. Limitations on Restrictions Affecting Subsidiaries. Neither the Company nor any of its Subsidiaries will enter into,
or suffer to exist, any agreement with any Person (other than a written agreement with, or an agreement resulting from the application of a law, policy, rule or regulation by, a public utility
commission or other governmental authority) which prohibits or limits the ability of any Subsidiary to (i) pay dividends or make other distributions or pay any Debt owed to the Company or any
other Subsidiary, (ii) make loans or advances to the Company or any other Subsidiary, (iii) transfer any of its properties or assets to the Company or any other Subsidiary,
(iv) create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or hereafter acquired, or on capital stock or equity interests issued by
it, or (v) create, incur assume or suffer to exist any Debt; provided that the following shall be permitted: (1) agreements governing Debt
as in effect on the Closing Date, and agreements which are no more restrictive in any material respect (or, in the case of any restriction on the incurrence of Debt or Liens, in any respect) than such
agreements,
(2) agreements granting Liens permitted under Section 5.07 containing restrictions on the ability to transfer or grant Liens on the assets subject to such Liens, (3) restrictions
contained in agreements of any Person at the time such Person becomes a Subsidiary, which restrictions are applicable solely to such Person (including to Equity Interests in such Person),
(4) customary restrictions contained in stock purchase agreements, asset sale agreements limiting the transfer of assets pending the closing of the sale and customary non-assignment
provisions in leases and other contracts entered into in the ordinary course of business, and (5) restrictions contained in the Loan Documents. 

        Section 5.12. Limitations on Debt. Neither the Company nor any Subsidiary will create, incur, assume or permit to exist any Debt,
except: 

        (a)   Debt
created under the Loan Documents; 

        (b)   Existing
Debt; 

34

   
        (c)   Debt of the Company or any of its Subsidiaries (other than Corp. and its Subsidiaries) so long as (i) the issuance thereof does not generate any cash proceeds,
(ii) such Debt is issued to the holders thereof in exchange for, or as consideration for the repurchase or tender, of Existing Debt (or Subject Debt previously incurred in reliance on this
subsection (c)) held by such holders, (iii) the maturity of such Debt is on or after the Outside Date in effect on the date of incurrence of such Debt, (iv) no payments with
respect to such Debt (including without limitation required amortization payments and mandatory prepayments) are required to be made prior to the Outside Date in effect on the date of incurrence of
such Debt (other than regularly scheduled interest payments with respect thereto) except to the same or lesser extent of required payments under the Subject Debt being exchanged, repurchased or
tendered for, (v) the terms and conditions governing such Debt (including without limitation covenants and events of default) are no more restrictive in any material respect than the terms and
conditions applicable to such Debt as of the Closing Date or such terms and conditions otherwise approved by the Administrative Agent, and (vi) any Debt of the Borrower incurred in reliance on
this Section 5.12(c) is subordinated to the Loans in an insolvency proceeding to the prior payment in full of the Loans and is otherwise subordinated to the Loans on the same basis as
the QSC Notes Issued 2002 are subordinated pursuant to the QSC Notes Indenture or pursuant to other subordination arrangements reasonably satisfactory to the Administrative Agent (Debt outstanding in
reliance on this Section 5.12(c) being referred to as "Permitted Non-Corp. Exchange Debt"); 

        (d)   Debt
of Corp. so long as (i) the maturity of such Debt is on or after the Outside Date in effect on the date of incurrence of such Debt and (ii) such Debt
is issued to the holders thereof in exchange for, or as consideration for the repurchase or tender, of Existing Debt of Corp. (Debt outstanding in reliance on this Section 5.12(d) being
referred to as "Permitted Corp. Exchange Debt"); 

        (e)   (i) Debt
evidenced by the Wireless Note in an aggregate principal amount not to exceed $1,794,210,000 and (A) Debt owed by Wireless to the Borrower
in an aggregate principal amount not to exceed at any time $400,000,000 (the "Wireless/Borrower Debt" and, together with the Wireless Note, the
"Wireless Intercompany Debt"), so long as such Debt is evidenced by a promissory note that constitutes Collateral and ranks senior to the Wireless Note; 

        (f)    (i) Debt
of any Corp. Company owed to any other Corp. Company (other than Wireless), and (ii) Debt of any Subsidiary of the Company (other than a Corp.
Company) to any other Subsidiary of the Company (other than a Corp. Company); provided that, in the case of any Debt owed to the Borrower, if such Debt
is evidenced by an Instrument, the Instrument shall have been delivered to the Collateral Agent in accordance with the Security and Pledge Agreement, and in the case of any Debt owed by the Borrower,
such Debt represents obligations of the Borrower arising in the ordinary course of business as a result of intra-day balances and/or pooling of cash in connection with the cash management
program conducted by the Borrower on behalf of the Company and its Subsidiaries; 

        (g)   Debt
of the Borrower not otherwise permitted by the foregoing subsections, so long as (i) the aggregate principal and face amount of Debt outstanding from time to
time in reliance on this subsection (g) shall not exceed $750,000,000, (ii) the proceeds of such Debt do not exceed the cash consideration paid to retire unconditional purchase
obligations of QCC and the Company outstanding on the Closing Date (each such obligation, an "Outstanding UPO"), and (iii) such Debt shall be on
Qualifying Terms (except that (A) such Debt may provide for scheduled principal payments with respect thereto in an amount not greater than the scheduled payments required to be made with
respect to the Outstanding UPO that has been replaced by such Debt (as such Outstanding UPO was in effect on the Closing Date) and (B) the terms and conditions governing such Debt may be more
restrictive than the Loans so long as they are no more restrictive in any material respect than the terms and conditions applicable to the Outstanding UPO being replaced by such Debt) (Debt
outstanding in reliance on this Section 5.12(g) being referred to as "Permitted UPO Retirement Debt"); 

35

 

        (h)   (i) unsecured
Debt issued by the Company (or any of its Subsidiaries other than the Borrower and its Subsidiaries) (Debt outstanding in reliance on this
Section 5.12(h)(i) being referred to as "Permitted QCII/QCF Unsecured Debt") and (ii) unsecured Debt of the Borrower issued on
Qualifying Terms (Debt outstanding in reliance on this Section 5.12(h)(ii) being referred to as "Permitted QSC Subordinated Unsecured
Debt"), so long as the aggregate principal and face amount of all Debt outstanding in reliance on this subsection (h) at any time shall not exceed $4,000,000,000; 

        (i)    Debt
of the Borrower secured by Liens on the Collateral, so long as (i) the Debt incurred under this subsection (i) shall be on Qualifying Terms,
(ii) the Liens on the Collateral securing such Debt shall be junior and subordinated to the Facility Liens as provided in the New QSC Security and Pledge Agreement (or on other terms and
conditions reasonably approved by the Administrative Agent) and (iii) the aggregate principal and face amount of the Debt outstanding in reliance on this subsection (i) at any
time shall not exceed $3,000,000,000 (Debt outstanding in reliance on this Section 5.12(i) being referred to as "Permitted QSC Junior Lien
Debt") (it being understood that if and when any such junior liens initially securing any such Permitted QSC Junior Lien Debt are released, the subordination provisions
relating to such debt may terminate and such debt may thereafter be deemed to be outstanding under clause (j) below as described in the last sentence of this Section 5.12); 

        (j)    Debt
of the Borrower, so long as (i) the Debt incurred under this subsection (j) shall (except as provided below) be on Unsubordinated Qualifying Terms,
(ii) such Debt is not secured by Liens on the Corp. Equity Collateral and to the extent such Debt is secured by Liens on any other Collateral such Liens shall be junior and subordinated to the
Facility Liens as provided in the New QSC Security and Pledge Agreement (or on other terms and conditions reasonably approved by the Administrative Agent) and (iii) the aggregate principal and
face amount of the Debt outstanding in reliance on this subsection (j) at any time shall not exceed $3,700,000,000 (Debt outstanding in reliance on this
Section 5.12(j) being referred to as "Permitted QSC Senior Unsecured Debt"); 

        (k)   secured
Debt of the Borrower, so long as (i) the Debt incurred under this subsection (k) shall (except as provided below) be on Unsubordinated
Qualifying Terms, (ii) any Liens on the Collateral securing such Debt shall rank equally and ratably with the Liens on such Collateral securing the Revolver Lender Obligations on terms and
conditions reasonably approved by the Administrative Agent and (iii) the aggregate principal and face amount of the Debt outstanding in reliance on this subsection (k) at any time
shall not exceed $1,000,000,000 plus the aggregate principal amount of Revolver Replacement Debt then outstanding and  minus the aggregate principal amount
of Term Loans then outstanding (Debt outstanding in reliance on this Section 5.12(k) being referred
to as "Permitted QSC Senior Secured Debt"); 

        (l)    Debt
of Corp. and its Subsidiaries and Debt of other Subsidiaries of the Borrower, so long as the aggregate principal and face amount of the Debt outstanding in reliance
on this subsection (l) shall not exceed $3,000,000,000 (Debt outstanding in reliance on this Section 5.12(l) being referred to as "Permitted QSC Subsidiary
Debt"); and 

        (m)  Purchase
Money Debt of QCC or any other Subsidiary of the Company other than the Borrower in an aggregate principal amount not in excess of $250,000,000 (Debt
outstanding in reliance on this Section 5.12(m) being referred to as "Permitted Purchase Money Debt"). 

        Notwithstanding
anything in this Section 5.12 to the contrary: 

        (x)   on
any day, an amount equal to the principal and face amount of Debt then permitted to be incurred pursuant to subsection (i) above may instead be incurred in the
aggregate under subsections (h) and (j) above; an amount equal to the principal and face amount of Debt then permitted to be incurred under subsection (j) above may
instead be incurred in the aggregate under subsections (h) and (i) above; an amount equal to the principal and face amount of Debt 

36

 

then
permitted to be incurred under subsection (k) above may instead be incurred or be outstanding in the aggregate under subsections (h), (i) and (j) above; and an
amount equal to the principal and face amount of Debt then permitted to be incurred under subsection (l) above may instead be incurred or be outstanding in the aggregate under
subsections (h), (i), (j) and (k) above (and, if so incurred or outstanding under subsection (j) and (k), need not be on Unsubordinated Qualifying Terms). Each
incurrence of Debt under a subsection (or reallocation of outstanding Debt under a subsection) other than the one originally contemplated (the "Original
Subsection") shall reduce the amount permitted to be outstanding under the Original Subsection by the principal and face amount of such Debt outstanding from time to
time; and 

        (y)   the
aggregate outstanding principal and face amount of Debt of the Borrower (other than Permitted QSC Subordinated Unsecured Debt and Permitted UPO Retirement Debt)
shall not at any time exceed (i) the sum of $10,700,000,000 plus Revolver Outstandings plus the
aggregate outstanding principal
amount of Revolver Replacement Debt minus (ii) the aggregate principal and face amount of Permitted QSC Subsidiary Debt. 

        Section 5.13. Limitations on Investments; Loans, Advances, Guarantees and Acquisitions. Neither the Company nor any Subsidiary will
purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary before such merger) any Equity Interest in or evidence of indebtedness or other
security (including any option, warrant or other right to acquire any of the foregoing) of, make, hold or permit to exist any loan or advance to, Guarantee any obligation of, or make, hold or permit
to exist any investment or other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of any other Person constituting a business
unit (any such transaction or event, an "investment"), except: 

        (a)   Permitted
Investments; 

        (b)   investments
existing on the Closing Date and listed in Schedule 5.13; 

        (c)   investments
by the Company and its Subsidiaries in Equity Interests in their respective Subsidiaries; provided that any
such Equity Interest of Corp. or QwestDex shall be pledged pursuant to the Security and Pledge Agreement to the extent required thereunder; 

        (d)   investments
constituting Debt permitted by Section 5.12; 

        (e)   investments
received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each
case in the ordinary course of business; 

        (f)    (i) interest
rate swap agreements, interest rate cap agreements, interest rate collar agreements or other similar agreements or arrangements or
(ii) foreign exchange contracts, currency swap agreements, futures contracts, option contracts, synthetic caps or other similar agreements or arrangements, in each case designed to hedge
against fluctuations in interest rates or currency values, respectively; 

        (g)   instruments
or assets received as consideration for an Asset Sale as permitted by Section 5.08(c); 

        (h)   (x) investments
constituting Guarantees by the Borrower, any QwestDex Companies or any Corp. Companies of performance obligations of the Borrower, any QwestDex
Companies or any Corp. Companies, and (y) investments constituting Guarantees by the Company or any of its Subsidiaries (other than the Borrower, any QwestDex Companies or any Corp. Companies)
of performance obligations of the Company or any of its Subsidiaries; 

        (i)    the
acquisition of assets and associated revenue streams from Allegiance Company, Inc.; 

        (j)    acquisition
by Corp. of in-region wirelines as part of its capital expenditures program; 

37

 

        (k)   investments
in assets of any Person constituting a business unit or in Persons in an aggregate amount not to exceed $2,000,000,000,  provided that investments in joint ventures and Persons which, as a result thereof,
 do not become wholly-owned Subsidiaries in reliance on this
subsection (j) shall not exceed $500,000,000; 

        (l)    any
investment (or portion thereof) made with Equity Interests of the Company not constituting Mandatorily Redeemable Equity; and 

        (m)  any
investments not otherwise permitted by any of the foregoing clauses, provided that the aggregate amount of Permitted
Payments declared or paid does not exceed the Equity/Income Basket during the Mandatory Reduction Period and the Payments Basket thereafter. 

Nothing
contained in the foregoing is intended to restrict the Company and its Subsidiaries from purchasing any assets other than those expressly prohibited above or from making any capital
expenditures. 

        Section 5.14.  Further Assurances Regarding Collateral and Guaranty Requirement. Each Loan Party will execute and deliver any and
all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording of financing statements, fixture filings, mortgages,
deeds of trust and other documents), that may be required under any applicable law, or that the Administrative Agent or the Required Lenders may reasonably request, to cause the Collateral and
Guaranty Requirement to be and remain satisfied, all at the Borrower's expense. The Company and the Borrower will provide to the Administrative Agent, from time to time upon request,
evidence reasonably satisfactory to the Administrative Agent as to the perfection and priority of the Liens created or intended to be created by the Collateral Documents. 

        Section 5.15. Borrower A Holding Company. The Borrower shall not engage in any business activities other than those engaged in or
substantially similar to those engaged in as of the Closing Date as an intermediate holding company of Subsidiaries, including, without limitation, treasury, accounting, financing, investment, cash
management and overhead management for it and its Consolidated Subsidiaries, and activities reasonably related thereto or necessary or desirable to perform the obligations and agreements of the
Borrower under the Loan Documents. 

Article 6

Defaults  

        Section 6.01. Events of Default. If one or more of the following events shall have occurred and be
continuing: 

        (a)   any
principal of any Loan shall not be paid when due, or any interest, any fees or any other amount payable hereunder shall not be paid within five days of the due date
thereof; 

        (b)   any
Loan Party shall fail to observe or perform any covenant contained in Section 5.01(d) or Sections 5.06 to 5.13, inclusive; 

        (c)   any
Loan Party shall fail to observe or perform any covenant or agreement contained in any Loan Document (other than those covered by clause (a) or
(b) above) for 30 days after the earlier of a senior officer's knowledge of such failure or written notice thereof has been given to the Company by the Administrative Agent at the
request of any Lender; 

        (d)   any
representation, warranty, certification or statement made by any Loan Party in any Loan Document or in any certificate, financial statement or other document
delivered pursuant thereto shall prove to have been incorrect in any material respect when made (or deemed made); 

38

 

        (e)   the
Company or any Subsidiary shall fail to make any payment or payments, in the aggregate in excess of $100,000,000, in respect of any Material Debt when due or within
any applicable grace period; 

        (f)    any
event or condition shall occur which results in the acceleration of the maturity of any Material Debt; 

        (g)   the
Company or any Loan Party or any Significant Subsidiary shall commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with
respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or other
similar official of it or any substantial part of its property, or shall consent to any such relief or to the appointment of or taking possession by any such official in an involuntary case or other
proceeding commenced against it, or shall make a general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any corporate action to
authorize or otherwise acquiesce in any of the foregoing; 

        (h)   an
involuntary case or other proceeding shall be commenced against the Company or any Loan Party or any Significant Subsidiary seeking liquidation, reorganization or
other relief with respect to it or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian
or other similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a period of 60 days; or an order
for relief shall be entered against the Company or any Loan Party or any Significant Subsidiary under the federal bankruptcy laws as now or hereafter in effect; 

        (i)    any
member of the ERISA Group shall fail to pay when due an amount or amounts aggregating in excess of $100,000,000 which it shall have become liable to pay under
Title IV of ERISA; or notice of intent to terminate a Material Plan shall be filed under Title IV of ERISA by any member of the ERISA Group, any plan administrator or any combination of
the foregoing; or the PBGC shall institute proceedings under Title IV of ERISA to terminate, to impose liability (other than for premiums under Section 4007 of ERISA) in respect of, or
to cause a trustee to be appointed to administer any Material Plan; or a condition specified in Section 4042(a) of ERISA shall exist by reason of which the PBGC would be entitled to
obtain a decree adjudicating that any Material Plan must be terminated; or there shall occur a complete or partial withdrawal from, or a default, within the meaning of
Section 4219(c)(5) of ERISA, with respect to, one or more Multiemployer Plans which could cause one or more members of the ERISA Group to incur a current payment obligation in excess of
$100,000,000; 

        (j)    a
judgment or order for the payment of money in excess of $100,000,000 shall be rendered against the Company or any Subsidiary and such judgment or order shall be
enforceable and shall continue unsatisfied, in effect and unstayed for a period of 60 days (or such longer period of time after which the judgment holder may cause the creation of Liens against
or seizure of any property of the Company or such Subsidiary) (it being understood that in any event an administrative order of a public utility commission shall not constitute an "order" for purposes
of this clause (j) so long as (x) no one is seeking to enforce such order in an action, suit or proceeding before a court and (y) reserves in the full amount of the cost of
such order are maintained on the books of the Company and its Subsidiaries); 

        (k)   the
Guarantor shall repudiate in writing any of its obligations under Article 9 or any such obligation shall be unenforceable against the Guarantor in accordance
with its terms, or the Company or any of its Subsidiaries shall so assert in writing; or 

        (l)    any
Lien purported to be created under any Collateral Document shall cease to be, or shall be asserted by the Company or any of its Subsidiaries not to be, a valid and
perfected Lien on any Collateral, with the priority required by the applicable Collateral Document, except (i) as a result of a 

39

 

sale
or other disposition of the applicable Collateral in a transaction permitted under the Loan Documents, (ii) as a result of the Administrative Agent's failure to maintain possession of any
stock certificates, promissory notes or other documents delivered to it under the Security and Pledge Agreement or (iii) as a result of the operation of Section 2(k) of the
Security and Pledge Agreement, so long as the Borrower shall have complied with its obligations thereunder; 

then,
and in every such event, the Administrative Agent shall (i) if requested by Lenders having more than 50% in aggregate amount of the Aggregate Commitments, by notice to the Company
terminate the Commitments and the Commitments and such obligations shall thereupon terminate, and/or (ii) if requested by Lenders holding more than 50% in aggregate principal amount of the
Loans, by notice to the Company declare the Loans (together with accrued interest thereon) to be, and the Loans shall thereupon become, immediately due and payable without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Company and the Borrower; provided that in the case of any of the Events of Default
specified in clause (g) or (h) above with respect to the Company or the Borrower, without any notice to the Company or the Borrower or any other act by the Administrative Agent or
the Lenders, the Commitments shall thereupon automatically terminate and the Loans (together with accrued interest thereon) shall become immediately due and payable without presentment, demand,
protest or other notice of any kind, all of which are hereby waived by the Company and the Borrower. 

        Section 6.02. Notice of Default. The Administrative Agent shall give notice to the Company under
Section 6.01(c) promptly upon being requested to do so by any Lender and shall thereupon notify all the Lenders thereof. 

ARTICLE 7

The Administrative Agent  

        Section 7.01. Appointment and Authorization. Each Lender irrevocably appoints and authorizes the
Administrative Agent to take such action (including without limitation entering into the Security and Pledge Agreement) as administrative agent on its behalf and to exercise such powers under the Loan
Documents as are delegated to the Administrative Agent by the terms thereof, together with all such powers as are reasonably incidental thereto. 

        Section 7.02. Administrative Agent and Affiliates. Bank of America, N.A., 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, underwriting or other business with each of the
Company, the Borrower or any Subsidiary or Affiliate of the Company or the Borrower (each, a "Qwest Entity") as though Bank of America, N.A., were not
the Administrative Agent hereunder and without notice to or consent of the Lenders. The Lenders acknowledge that, pursuant to such activities, Bank of America, N.A., or its Affiliates may receive
information regarding any Qwest Entity (including information that may be subject to confidentiality obligations in favor of such Qwest Entity) and acknowledge that the Administrative Agent shall be
under no obligation to provide such information to them. With respect to its Loans, Bank of America, N.A., shall have the same rights and powers under this Agreement as any other Lender and may
exercise such rights and powers as though it were not the Administrative Agent, and the terms "Lender" and "Lenders" include Bank of America, N.A. in its individual capacity. 

        Section 7.03. Action by Administrative Agent. The obligations of the Administrative Agent under the Loan Documents are only those
expressly set forth therein. Without limiting the generality of the foregoing, the Administrative Agent shall not be required to take any action with respect to any Default, except as expressly
provided in the Loan Documents. The Administrative Agent shall not have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement 

40

 

or
otherwise exist against the Administrative Agent. Without limiting the generality of the foregoing sentence, the use of the term "agent" in any Loan Document with reference to the Administrative
Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used merely as a matter of market
custom, and is intended to create or reflect only an administrative relationship between independent contracting parties. 

        Section 7.04. Consultation with Experts. The Administrative Agent may consult with legal counsel (who may be counsel for the
Company or the Borrower), independent public accountants and other experts
selected by it and shall not be liable for any action taken or omitted to be taken by it in good faith in accordance with the advice of such counsel, accountants or experts. 

        Section 7.05. Delegation of Duties. The Administrative Agent may execute any of its duties under the Loan Documents by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts 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 in the absence of gross negligence or willful
misconduct. 

        Section 7.06. Liability of Administrative Agent. Neither the Administrative Agent nor any of its Affiliates nor any of their
respective directors, officers, agents or employees shall be liable for any action taken or not taken by it in connection with any Loan Document (i) with the consent or at the request of the
Required Lenders or (ii) in the absence of its own gross negligence or willful misconduct. Neither the Administrative Agent nor any of its Affiliates nor any of their respective directors,
officers, agents or employees shall be responsible for or have any duty to ascertain, inquire into or verify (i) any statement, warranty or representation made in connection with any Loan
Document or any borrowing hereunder; (ii) the performance or observance of any of the covenants or agreements of any Loan Party; (iii) the satisfaction of any condition specified in
Article 3, except receipt of items required to be delivered to the Administrative Agent; (iv) the existence or sufficiency of the Collateral; or (v) the validity, effectiveness or
genuineness of any Loan Document or any other instrument or writing furnished in connection therewith. None of the Administrative Agent, its Affiliates and their respective directors, officers, agents
and employees shall be under any obligation to any Lender or participant to inspect the properties, books or records of any Qwest Entity. The Administrative Agent shall not incur any liability by
acting in reliance upon any notice, consent, certificate, statement, or other writing (which may be a bank wire, telex or similar writing) believed by it to be genuine or to be signed by the proper
party or parties. 

        Section 7.07. Indemnification. Each Lender shall, ratably in accordance with its Commitment, indemnify the Administrative Agent,
its Affiliates and their respective directors, officers, agents and employees (to the extent not reimbursed by the Loan Parties) against any cost, expense (including reasonable counsel fees and
disbursements), claim, demand, action, loss or liability (except such as result from such indemnitees' gross negligence or willful misconduct) that such indemnitees may suffer or incur in connection
with the Loan Documents or any action taken or omitted by such indemnitees thereunder. No action taken with the consent or at the request of the Required Lenders shall be deemed to constitute gross
negligence or willful misconduct for purposes of this Section. 

        Section 7.08. Credit Decision; Disclosure of Information by Administrative Agent. Each Lender acknowledges that no Administrative
Agent-Related Person has made any representation or warranty to it, and that no act by the Administrative Agent hereafter taken, including any consent to and acceptance of any assignment or review of
the affairs of any Qwest Entity, shall be deemed to constitute any representation or warranty by the Administrative Agent or any other Person to any Lender as to any matter, including whether
Administrative Agent-Related Persons have disclosed material information in their possession. Each Lender represents to the Administrative Agent that it has, independently and without reliance upon
any Administrative Agent-Related Person and based on 

41

 

such
documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition and
creditworthiness of the Qwest Entities, and all applicable bank or other regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to
extend credit hereunder. Each Lender also represents that it will, independently and without reliance upon any Administrative Agent-Related Person 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 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 Qwest Entities. Except for the notices, reports and other
documents expressly required to be furnished to the Lenders by the Administrative Agent herein, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit
or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any of the Qwest Entities which may come into the possession of any
Administrative Agent-Related Person. 

        Section 7.09. Successor Administrative Agent. The Administrative Agent may resign at any time by giving notice thereof to the
Lenders and the Company. Upon any such resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent (with the consent of the Company, such consent not to be
unreasonably withheld). If no successor Administrative Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring
Administrative Agent gives notice of resignation, then the retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent (with the consent of the Company, such
consent not to be unreasonably withheld), which shall be a commercial bank organized or licensed under the laws of the United States of America or of any State thereof and having a combined capital
and surplus of at least $400,000,000. Upon the acceptance of its appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor Administrative Agent shall thereupon
succeed to and become vested with all the rights and duties of the retiring Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and obligations hereunder.
After any retiring Administrative Agent's resignation hereunder as Administrative Agent, the provisions of this Article shall inure to its benefit as to any actions taken or omitted to be taken
by it while it was Administrative Agent. If no successor Administrative Agent has accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative
Agent's notice of resignation, the retiring Administrative Agent's resignation shall at its election nevertheless thereupon become effective and the Lenders shall perform all of the duties of the
Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided above. The Administrative Agent, if it so elects, may resign as administrative
agent but not collateral
agent or vice versa, and if it so elects, then the provisions of this Section and the rest of this Article shall apply separately to each of those separate capacities of the
Administrative Agent. 

        Section 7.10. Administrative Agent's Fee. The Company shall pay to the Administrative Agent for its own account fees in the amounts
and at the times previously agreed upon between the Company and the Administrative Agent. 

ARTICLE 8

Changes In Circumstances  

        Section 8.01. Basis for Determining Interest Rate Inadequate or Unfair. If on or prior to the first day of
any Interest Period for any Euro-Dollar Loan: 

        (a)   the
Administrative Agent determines (which determination will be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the
Adjusted London Interbank Offered Rate for such Interest Period, or 

42

   
        (b)   in the case of Euro-Dollar Loans, Lenders having 50% or more of the aggregate amount of the Euro-Dollar Loans advise the Administrative Agent
that the Adjusted London Interbank Offered Rate as determined by the Administrative Agent will not adequately and fairly reflect the cost to such Lenders of funding their Euro-Dollar Loans
for such Interest Period, 

the
Administrative Agent shall forthwith give notice thereof to the Company and the Lenders, whereupon until the Administrative Agent notifies the Company that the circumstances giving rise to such
suspension no longer exist, (i) the obligations of the Lenders to make Euro-Dollar Loans or to convert outstanding Loans into Euro-Dollar Loans shall be suspended and
(ii) each outstanding Euro-Dollar Loan shall be converted into a Domestic Loan on the last day of the then current Interest Period applicable thereto. Unless the Borrower notifies
the Administrative Agent at least two Domestic Business Days before the date of any Euro-Dollar Borrowing for which a Notice of Borrowing has previously been given that it elects not to
borrow on such date, such Borrowing shall instead be made as a Domestic Borrowing. 

        Section 8.02. Illegality. If, on or after the date of this Agreement, the adoption of any applicable law, rule or regulation, or
any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender (or its Euro-Dollar Lending Office) with any request or directive (whether or not having the force of law) of any such
authority, central bank or comparable agency shall make it unlawful or impossible for any Lender (or its Euro-Dollar Lending Office) to make, maintain or fund its Euro-Dollar
Loans and such Lender shall so notify the Administrative Agent, the Administrative Agent shall forthwith give notice thereof to the other Lenders and the Company, whereupon until such Lender notifies
the Company and the Administrative Agent that the circumstances giving rise to such suspension no longer exist, the obligation of such Lender to make Euro-Dollar Loans, or to convert
outstanding Loans into Euro-Dollar Loans, shall be suspended. Before giving any notice to the Administrative Agent pursuant to this Section, such Lender shall designate a different
Euro-Dollar Lending Office if such designation will avoid the need for giving such notice and will not, in the judgment of such Lender, be otherwise disadvantageous to such Lender. If such
notice is given, each Euro-Dollar Loan of such Lender then outstanding shall be converted to a Domestic Loan either (a) on the last day of the then current Interest Period
applicable to such Euro-Dollar Loan if such Lender may lawfully continue to maintain and fund such Loan to such day or (b) immediately if such Lender shall determine that it may not
lawfully continue to maintain and fund such Loan to such day. 

        Section 8.03. Increased Cost and Reduced Return. (a) If on or after the date hereof, the adoption of any applicable law,
rule or regulation, or any change in any applicable law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance by any Lender (or its Applicable Lending Office) with any request or directive (whether or not having the force of law)
of any such authority, central bank or comparable agency shall impose, modify or deem applicable any reserve (including, without limitation, any such requirement imposed by the Board of Governors of
the Federal Reserve System with respect to any Euro-Dollar Loan any such requirement included in an applicable Euro-Dollar Reserve Percentage), special deposit, insurance
assessment or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (or its Applicable Lending Office) or shall impose on any Lender (or its
Applicable Lending Office) or on the United States market for certificates of deposit or the London interbank market any other condition affecting its Euro-Dollar Loans, its Note or
its obligation to make Euro-Dollar Loans and the result of any of the foregoing is to increase the cost to such Lender (or its Applicable Lending Office) of making or maintaining any
Euro-Dollar Loan, or to reduce the amount of any sum received or receivable by such Lender (or its Applicable Lending Office) under this Agreement or under its Note with respect
thereto, by an amount deemed by such Lender to be material, then, within 15 days 

43

 

after
demand by such Lender (with a copy to the Administrative Agent), the Company shall pay to such Lender such additional amount or amounts as will compensate such Lender for such increased cost or
reduction. 

        (b)   If
any Lender shall have determined that, after the date hereof, the adoption of any applicable law, rule or regulation regarding capital adequacy, or any change in any
such law, rule or regulation, or any change in the interpretation or administration thereof by any governmental authority, central bank or comparable agency charged with the interpretation or
administration thereof, or any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the
effect of reducing the rate of return on capital of such Lender (or its Parent) as a consequence of such Lender's obligations hereunder to a level below that which such Lender (or its Parent) could
have achieved but for such adoption, change, request or directive (taking into consideration its policies with respect to capital adequacy) by an amount deemed by such Lender to be material, then from
time to time, within 15 days after demand by such Lender (with a copy to the Administrative Agent), the Company shall pay to such Lender such additional amount or amounts as will compensate
such Lender (or its Parent) for such reduction. 

        (c)   Each
Lender will promptly notify the Company and the Administrative Agent of any event of which it has knowledge, occurring after the date hereof, which will entitle
such Lender to compensation pursuant to this Section and will designate a different Applicable Lending Office if such designation will avoid the need for, or reduce the amount of, such
compensation and will not, in the judgment of such Lender, be otherwise disadvantageous to such bank. A certificate of any Lender claiming compensation under this Section and setting forth the
additional amount or amounts to be paid to it hereunder shall be conclusive in the absence of manifest error. In determining such amount, such Lender may use any reasonable averaging and attribution
methods. 

        Section 8.04. Taxes. (a) Any and all payments by any Loan Party to or for the account of any Lender or the Administrative
Agent under any Loan Document shall be made free and clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding, (x) in the case of each Lender and the Administrative Agent, taxes imposed on its income or profits,
and franchise taxes imposed on it, by the jurisdiction under the laws of which such Lender or the Administrative Agent (as the case may be) is organized or any political subdivision thereof,
(y) in the case of each Lender, taxes imposed on its income or profits, and franchise or similar taxes imposed on it, by the jurisdiction of such Lender's Applicable Lending Office or any
political subdivision thereof, taxes that are imposed by any jurisdiction by reason of such Lender doing or having done business in such jurisdiction other than solely as a result of the Loan
Documents or any transaction contemplated thereby, and (z) in the case of each Lender and the Administrative Agent, any branch profits taxes imposed by the United States or any similar tax
imposed by any other jurisdiction in which such Lender or the Administrative Agent is organized or in which its Applicable Lending Office is located or any political subdivision thereof (all such
non-excluded taxes, duties, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as "Taxes"). If
any Loan Party shall be required by law to deduct any Taxes from or in respect of any sum payable under any Loan Document to any Lender or the Administrative Agent, (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 8.04) such Lender or the Administrative Agent
(as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Person shall make such deductions, (iii) such Person shall pay
the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law, and (iv) such Person shall furnish to the Administrative Agent, at its address
referred to in Section 10.01, the original or a certified copy of a receipt evidencing payment thereof. 

44

 

        (b)   In
addition, each Loan Party agrees to pay any present or future stamp or documentary taxes and any other excise or property taxes, or charges or similar levies which
arise from any payment made under any Loan Document or from the execution or delivery of, or otherwise with respect to, any Loan Document (hereinafter referred to as "Other
Taxes"). 

        (c)   Each
Loan Party agrees to indemnify each Lender and the Administrative Agent for the full amount of Taxes or Other Taxes (including, without limitation, any Taxes or
Other Taxes imposed or asserted by any jurisdiction on amounts payable under this Section 8.04) paid by such Lender or the Administrative Agent (as the case may be) and any liability (including
penalties, interest and expenses) arising therefrom or with respect thereto; provided that the indemnification obligation under this
Section 8.04(c) shall be only with respect to Taxes, Other Taxes and liabilities related to payments made by a Loan Party under any Loan Document. This indemnification shall be made within
15 days from the date such Lender or the Administrative Agent (as the case may be) makes written demand therefor. 

        (d)   Each
Lender organized under the laws of a jurisdiction outside the United States, on or prior to the date of its execution and delivery of this Agreement in the case of
each Lender listed on the signature pages hereof, on or prior to the date on which it becomes a Lender in the case of each other Lender, on or prior to the date on which any such Lender grants
any participating interest pursuant to Section 10.06 or otherwise ceases to act for its own account with respect to any portion of any sums payable to it under this Agreement, and from time to
time thereafter if requested in writing by the Company (but only so long as such Lender remains lawfully able to do so), shall provide the Company with Internal Revenue Service
form W-8BEN, W-8ECI and/or W-8IMY, as appropriate, or any successor form prescribed by the Internal Revenue Service (together with any form, documentation or
information such Lender is required or chooses to transmit with any such forms), certifying that such Lender is entitled to benefits under an income tax treaty to which the United States is a party
which reduces the rate of withholding tax on payments of interest or certifying that the income receivable pursuant to this Agreement is effectively connected with the conduct of a trade or business
in the United States and/or certifying as provided on Form W-8IMY. If the form provided by a Lender at the time such Lender first becomes a party to this Agreement indicates a
United States interest withholding tax rate in excess of zero, withholding tax at such rate shall be considered excluded from "Taxes" as defined in Section 8.04(a) imposed by the United
States. 

        (e)   For
any period with respect to which a Lender has failed to provide the Company with the appropriate form pursuant to Section 8.04(d) (unless such failure is due
to a change in treaty, law or regulation occurring subsequent to the date on which a form originally was required to be provided), such Lender shall not be entitled to indemnification under
Section 8.04(c) with respect to Taxes imposed by the United States; provided, however,
that should a Lender, which is otherwise exempt from or subject to a reduced rate of withholding tax, become subject to Taxes because of its failure to deliver a form required hereunder, the Company
shall take such steps as such Lender shall reasonably request to assist such Lender to recover such Taxes. 

        (f)    If
any Loan Party is required to pay additional amounts to or for the account of any Lender pursuant to this Section 8.04, then such Lender will change the
jurisdiction of its Applicable Lending Office so as to eliminate or reduce any such additional payment which may thereafter accrue if such change, in the judgment of such Lender, is not otherwise
disadvantageous to such Lender. 

        Section 8.05. Domestic Loans Substituted for Affected Euro-Dollar Loans. If (i) the obligation of any Lender to
make Euro-Dollar Loans to the Borrower has been suspended pursuant to Section 8.02 or (ii) any Lender has demanded compensation under Section 8.03 with respect to its
Euro-Dollar Loans and the Borrower shall, by at least five Euro-Dollar Business Days' prior notice to such Lender through the Administrative Agent, have elected that the
provisions of this Section shall apply to such Lender, 

45

 

then,
unless and until such Lender notifies the Company that the circumstances giving rise to such suspension or demand for compensation no longer exist: 

        (a)   all
Loans which would otherwise be made by such Lender as (or continued as or converted into) Euro-Dollar Loans shall instead be Domestic Loans (on which
interest and principal shall be payable contemporaneously with the related Euro-Dollar Loans of the other Lenders), and 

        (b)   after
each of its Euro-Dollar Loans has been repaid (or converted to a Domestic Loan), all payments of principal which would otherwise be applied to repay
such Euro-Dollar Loans shall be applied to repay its Domestic Loans instead. 

If
such Lender notifies the Borrower that the circumstances giving rise to such notice no longer apply, the principal amount of each such Domestic Loan shall be converted into a
Euro-Dollar Loan on the first day of the next succeeding Interest Period applicable to the related Euro-Dollar Loans of the other Lenders. 

        Section 8.06. Substitution of Lender. If (i) the obligation of any Lender to make Euro-Dollar Loans has been
suspended pursuant to Section 8.02, (ii) any Lender has demanded compensation under Section 8.03 or (iii) any Lender has not signed an amendment or waiver which must be
signed by all the Lenders to become effective, and such amendment or waiver has been signed by the Super-Majority Lenders, the Company shall have the right, with the assistance of the Administrative
Agent, to seek a mutually satisfactory substitute bank or banks (which may be one or more of the Lenders) to purchase the Loans (by paying to such Lender the principal amount of such Loans, together
with accrued interest thereon and any other amounts payable to such Lender hereunder) and assume the Commitment of such Lender. 

Article 9

Guaranty  

        Section 9.01. The Guaranty. The Guarantor hereby unconditionally guarantees the full and punctual payment
(whether at stated maturity, upon acceleration or otherwise) of the Guaranteed Obligations. Upon failure by the Borrower to pay or perform punctually any Guaranteed Obligation, the Guarantor shall
forthwith on demand pay or perform such Guaranteed Obligation in the manner specified in the relevant Loan Document. 

        Section 9.02. Guaranty Unconditional. The obligations of the Guarantor hereunder shall be unconditional, irrevocable and absolute
and, without limiting the generality of the foregoing, shall not be released, discharged or otherwise affected by: 

        (i)    any
extension, renewal, settlement, compromise, waiver or release in respect of any obligation of any other Loan Party under any Loan Document, by operation of law or
otherwise; 

        (ii)   any
modification or amendment of or supplement to any Loan Document; 

        (iii)  any
release, impairment, non-perfection or invalidity of any direct or indirect security for any obligation of any other Loan Party under any Loan
Document; 

        (iv)  any
change in the corporate existence, structure or ownership of any other Loan Party or any insolvency, bankruptcy, reorganization or other similar proceeding
affecting any other Loan Party or any of its assets or any resulting release or discharge of any obligation of any other Loan Party contained in any Loan Document; 

        (v)   the
existence of any claim, set-off or other rights which the Guarantor may have at any time against any other Loan Party, the Administrative Agent, any
Lender or any other Person, whether in connection herewith or any unrelated transactions, provided that nothing herein shall prevent the assertion of
any such claim by separate suit or compulsory counterclaim; 

46

 

        (vi)  any
invalidity or unenforceability relating to or against any other Loan Party for any reason of any Loan Document, or any provision of applicable law or regulation
purporting to prohibit the payment by any other Loan Party of the principal of or interest on any Loan or any other amount payable by it under the Loan Document; or 

        (vii) any
other act or omission to act or delay of any kind by any other Loan Party, the Administrative Agent, any Lender or any other Person or any other circumstance
whatsoever which might, but for the provisions of this paragraph, constitute a legal or equitable discharge of the Guarantor's obligations hereunder. 

        Section 9.03. Discharge Only upon Payment in Full; Reinstatement in Certain Circumstances. The Guarantor's obligations hereunder
shall remain in full force and effect until the Commitments shall have terminated and the principal of and interest on the Loans and all other amounts payable by the Borrower under the Loan Documents
shall have been indefeasibly paid in full. If at any time any payment of the principal of or interest on any Loan or any other amount payable by the Borrower under the Loan Documents is rescinded or
must be otherwise restored or returned upon the insolvency, bankruptcy or reorganization of the Borrower or otherwise, the Guarantor's obligations hereunder with respect to such payment shall be
reinstated at such time as though such payment had been due but not made at such time. 

        Section 9.04. Waiver by the Guarantor. The Guarantor irrevocably waives acceptance hereof, presentment, demand, protest and any
notice not provided for herein, as well as any requirement that at any time any action be taken by any Person against any other Loan Party or any other Person. 

        Section 9.05. Subrogation. The Guarantor irrevocably waives any and all rights to which it may be entitled, by operation of law or
otherwise, upon making any payment hereunder to be subrogated to the rights of the payee against the Borrower with respect to such payment or against any direct or indirect security therefor, or
otherwise to be reimbursed, indemnified or exonerated by or for the account of the Borrower in respect thereof until (i) the Commitments shall have terminated and (ii) all Loans and all
other obligations under this Agreement and the other Loan Documents have been paid in full in cash. 

        Section 9.06.
Stay of Acceleration. In the event that acceleration of the time for payment of any amount payable by the Borrower
under the Loan Documents is stayed upon insolvency, bankruptcy or reorganization of the Borrower, all such amounts otherwise subject to acceleration under the terms of this Agreement shall nonetheless
be payable by the Guarantor hereunder forthwith on demand by the Administrative Agent made at the request of the Required Lenders. 

ARTICLE 10

Miscellaneous  

        Section 10.01. Notices. All notices, requests and other communications to any party hereunder shall be in
writing (including bank wire, telex, facsimile transmission or similar writing) and shall be given to such party: (x) in the case of any Loan Party hereto or the Administrative Agent, at its
address or facsimile number set forth on the signature pages hereof, (y) in the case of any Lender, at its address or facsimile number set forth in its Administrative Questionnaire or
(z) in the case of any party, such other address or facsimile number as such party may hereafter specify for the purpose by notice to the Administrative Agent and the Company. Each such notice,
request or other communication shall be effective (i) if given by mail, 72 hours after such communication is deposited in the mails with first class postage prepaid, addressed as
aforesaid, (ii) if given by facsimile transmission, when such facsimile is transmitted to the facsimile number specified pursuant to this Section 10.01 and telephonic confirmation of
receipt thereof is received, or (iii) if given by any other means, when delivered at the address specified in this Section; provided that notices
to the Administrative Agent under Article 2 or Article 8 shall not be effective until received. 

47

 

        Section 10.02. No Waivers. No failure or delay by the Administrative Agent or any Lender in exercising any right, power or
privilege under any Loan Document shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any
other right, power or privilege. The rights and remedies provided in the Loan Document shall be cumulative and not exclusive of any rights or remedies provided by law. 

        Section 10.03. Expenses; Indemnification. (a) The Borrower shall pay (i) all reasonable
out-of-pocket expenses of the Administrative Agent, including reasonable fees and disbursements of special counsel for the Administrative Agent, in connection with the
preparation and administration of the Loan Documents, any waiver or consent hereunder or any amendment hereof or any Default or alleged Default hereunder and (ii) if an Event of Default occurs,
all out-of-pocket expenses incurred by the Administrative Agent and each Lender, including reasonable fees and disbursements of counsel, in connection with such Event of
Default and collection, bankruptcy, insolvency and other enforcement proceedings resulting therefrom. 

        (b)   The
Borrower agrees to indemnify each Administrative Agent-Related Person and each Lender, their respective Affiliates and the respective directors, officers, agents and
employees of the foregoing (each an "Indemnitee") and hold each Indemnitee harmless from and against any and all liabilities, losses, damages, costs and
expenses of any kind, including, without limitation, the reasonable fees and disbursements of counsel, which may be incurred by such Indemnitee in connection with any investigative, administrative or
judicial proceeding (whether or not such Indemnitee shall be designated a party thereto) brought or threatened relating to or arising out of the Loan Documents or any actual or proposed use of
proceeds of Loans hereunder; provided that (i) no Indemnitee shall have the right to be indemnified hereunder for such Indemnitee's own gross
negligence or willful misconduct as determined by a court of competent jurisdiction and (ii) the Company shall not be liable for any settlement entered into by an Indemnitee without its consent
(which shall not be unreasonably withheld). 

        (c)   Each
Indemnitee agrees to give the Company prompt written notice after it receives any notice of the commencement of any action, suit or proceeding for which such
Indemnitee may wish to claim indemnification pursuant to subsection (b). The Company shall have the right, exercisable by giving written notice within fifteen Domestic Business Days after the
receipt of notice from such Indemnitee of such commencement, to assume, at the Company's expense, the defense of any such action, suit or proceeding;  provided, that such Indemnitee shall have the right
to employ separate counsel in any such action, suit or proceeding and to participate in the defense
thereof, but the fees and expenses of such separate counsel shall be at such Indemnitee's expense unless (1) the Company shall have agreed to pay such fees and expenses; (2) the Company
shall have failed to assume the defense of such action, suit or proceeding or shall have failed to employ counsel reasonably satisfactory to such Indemnitee in any such action, suit or proceeding; or
(3) such Indemnitee shall have been advised by independent counsel in writing (with a copy to the Company) that there may be one or more defenses available to such Indemnitee which are in
conflict with those available to the Company (in which case, if such Indemnitee notifies the Company in writing that it elects to employ separate counsel at the Company's expense, the Company shall be
obligated to assume the expense, it being understood, however, that the Company shall not be liable for the fees or expenses of more than one separate firm of attorneys, which firm shall be designated
in writing by such Indemnitee). 

        Section 10.04. Sharing of Set-offs. Each Lender agrees that if it shall, by exercising any right of set-off
or counterclaim or otherwise, receive payment of a proportion of the aggregate amount of principal and interest due with respect to any Note held by it which is greater than the proportion
received by any other Lender in respect of the aggregate amount of principal and interest due with respect to any Note held by such other Lender, the Lender receiving such proportionately
greater payment shall purchase such participations in the Notes held by the other Lenders, and such other adjustments shall be made, as may be required so that all such payments of principal and
interest with 

48

 

respect
to the Notes held by the Lenders shall be shared by the Lenders pro rata; provided that nothing in this Section shall impair the right of
any Lender to exercise any right of set-off or counterclaim it may have and to apply the amount subject to such exercise to the payment of indebtedness of the Borrower other than its
indebtedness hereunder. The Borrower agrees, to the fullest extent it may effectively do so under applicable law, that any holder of a participation in a Note, whether or not acquired pursuant to the
foregoing arrangements, may exercise rights of set-off or counterclaim and other rights with respect to such participation as fully as if such holder of a participation were a direct
creditor of the Borrower in the amount of such participation. 

        Section 10.05. Amendments and Waivers. (a) Any provision of this Agreement or the Notes may be amended or waived if, but
only if, such amendment or waiver is in writing and is signed by the Company, the Borrower and the Required Lenders (and, if the rights or duties of the Administrative Agent are affected thereby, by
the Administrative Agent); provided that no such amendment or waiver shall, unless signed by each affected Lender, (i) increase or decrease the
Commitment of any Lender (except for a ratable decrease in the Commitments of all Lenders) or subject any Lender to any additional obligation (it being understood that an increase or decrease pursuant
to Section 8.06 or 10.06 shall not constitute an amendment or waiver for this purpose), (ii) reduce the principal of or rate of interest on any Loan or any fees hereunder,
(iii) postpone the date fixed for any payment of principal of or interest on any Loan or any fees hereunder or for any reduction or termination of any Commitment and (iv) amend or waive
the provisions of Article 9; and provided further that 

        (i)    no
such amendment or waiver shall, unless signed by all the Lenders, change the percentage of the Commitments or of the Total Exposure, or the number of Lenders, which
shall be required for the Lenders or any of them to take any action under this Section or any other provision of this Agreement; 

        (ii)   no
such amendment or waiver shall, unless signed by the Required Revolver Banks, alter any condition to a Revolver Borrowing set forth in Section 3.03; 

        (iii)  subject
to clause (i) of this proviso, any waiver, amendment or modification of this Agreement that by its terms expressly modifies the rights or duties
under this Agreement of the Lenders of any tranche but not the Lenders of any other tranche may be effected by an agreement or agreements in writing entered into by the Borrower and the requisite
percentage in interest of the Lenders of the affected
tranche that would be required to consent thereto under this Section if the Lenders of such tranche were the only Lenders hereunder at the time; and 

        (iv)  no
such amendment or waiver shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of
the Administrative Agent under this Agreement or any other Loan Document. 

For
avoidance of doubt, neither the increase of Commitments pursuant to Section 2.15(a) nor the addition of Term Loans pursuant to Section 2.15(b) shall require the consent or agreement
of any Lender other than the financial institutions agreeing to provide such additional Commitments or Term Loans 

        (b)   Any
provision of any Collateral Document may be amended or waived if, but only if, such amendment or waiver is entered into in accordance with the terms thereof. 

        Section 10.06. Successors and Assigns. (a) The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns, except that no Loan Party may assign or otherwise transfer any of its rights under this Agreement without the prior written consent
of all Lenders. 

49

   
        (b)   Any Lender may at any time grant to one or more banks or other institutions (each a "Participant") participating
interests in its Commitment or any or all of its Loans. In the event of any such grant by a Lender of a participating interest to a Participant, such Lender shall remain responsible for the
performance of its obligations hereunder, and the Loan Parties and the Administrative Agent shall continue to deal solely and directly with such Lender in connection with such Lender's rights and
obligations under this Agreement. Any agreement pursuant to which any Lender may grant such a participating interest shall provide that such Lender shall retain the sole right and responsibility to
enforce the obligations of the Loan Parties hereunder including, without limitation, the right to approve any amendment, modification or waiver of any provision of this Agreement;  provided that such
participation agreement may provide that such Lender will not agree to any modification, amendment or waiver of this Agreement
described in clause (i), (ii) or (iii) of the first proviso to Section 10.05 without the consent of the Participant. The Borrower agrees that each Participant shall, to the
extent provided in its participation agreement and subject to subsection (e) below, be entitled to the benefits of Article 8 with respect to its participating interest. An
assignment or other transfer which is not permitted by subsection (c) or (d) below but which is consented to in accordance with this subsection (b) shall be given
effect for purposes of this Agreement only to the extent of a participating interest granted in accordance with this subsection (b). 

        (c)   Any
Lender may at any time assign to one or more banks or other institutions (each an "Assignee") all or any portion of
its rights and obligations under this Agreement and any Notes, and such Assignee shall assume such rights and obligations, pursuant to an Assignment and Assumption Agreement in substantially the form
of Exhibit E hereto executed by such Assignee and such transferor Lender, with (and subject to) the subscribed consent of the Company and the Administrative Agent, which consents shall not be
unreasonably withheld or delayed (it being understood that it shall not be unreasonable for the Company to withhold its consent to an assignment of a Commitment or Revolver Loans to a hedge fund);  provided that (i) if an Assignee is a Lender Affiliate or is another Lender, no such consent shall be required; (ii) any assignment of a
Commitment or Revolver Loan shall be in a minimum amount of $5,000,000 (or shall be an assignment of all of the assignor's Commitment and Revolver Loans; (iii) any assignment of Term Loans
shall be in a minimum amount of $1,000,000 (or shall be an assignment of all of the assignor's Term Loans); and (iv) any consent of the Company otherwise required under this
subsection shall not be required if an Event of Default has occurred and is continuing. Upon execution and delivery of such instrument and payment by such Assignee to such transferor Lender of
an amount equal to the purchase price agreed between such transferor Lender and such Assignee, such Assignee shall be a Lender party to this Agreement and shall have all the rights and obligations of
a Lender with a Commitment as set forth in such instrument of assumption, and the transferor Lender shall be released from its obligations hereunder to a corresponding extent, and no further consent
or action by any party shall be required. Upon the consummation of any assignment pursuant to this subsection (c), the transferor Lender, the Administrative Agent and the Borrower shall make
appropriate arrangements so that, if required, a new Note is issued to the Assignee. In connection with any such assignment, the transferor Lender shall pay to the Administrative Agent an
administrative fee for processing such assignment in the amount of $3,500. If the Assignee is not incorporated under the laws of the United States of America or a state thereof, it shall deliver to
the Company and the Administrative Agent certification as to exemption from deduction or withholding of any United States federal income taxes in accordance with Section 8.04. 

        (d)   Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement and its Notes to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal Reserve Lender; provided that no such pledge or assignment shall release
the transferor Lender from its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. In the case of any Lender that is a fund that invests in bank loans,
such Lender may, without the consent of the Borrower or the Administrative Agent, assign or pledge all or any portion of its rights under this Agreement, including the Loans and 

50

 

Notes
or any other instrument evidencing its rights as a Lender under this Agreement, to any holder of, trustee for, or any other representative of holders of, obligations owed or securities issued,
by such fund, as security for such obligations or securities; provided that any foreclosure or similar action by such trustee or representative shall be
subject to the provisions of this Section 10.06(d) concerning assignments. 

        (e)   No
Assignee, Participant or other transferee of any Lender's rights shall be entitled to receive any greater payment under Section 8.03 or 8.04 than such Lender
would have been entitled to receive with respect to the rights transferred, unless such transfer is made with the Company's prior written consent or by reason of the provisions of Section 8.02,
8.03 or 8.04 requiring such Lender to designate a different Applicable Lending Office under certain circumstances or at a time when the circumstances giving rise to such greater payment did not exist. 

        (f)    Notwithstanding
anything to the contrary contained herein, 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 by the Granting Lender to the Administrative
Agent and the Company, the option to provide all or any part of any Loan that such Granting Lender would otherwise be obligated to make hereunder,  provided that (i) nothing herein shall constitute
a commitment to make any Loan by any SPC and (ii) if an 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 a 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 agrees that no SPC shall be liable for any payment under this
Agreement for which a Lender would otherwise be liable, for so long as, and to the extent, the related Granting Lender makes such payment. In furtherance of the foregoing, each party hereto hereby
agrees that, prior to the date that is one year and one day after the payment in full of all outstanding senior indebtedness of any SPC, 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 or any State thereof. In
addition, notwithstanding anything to the contrary contained in this Section 10.06, any SPC may (i) with notice to, but without the prior written consent of, the Company or the
Administrative Agent and without paying any processing fee therefor, assign all or portion of its interests in any Loans to its Granting Lender or to any financial institutions (if consented to by the
Company and the Administrative Agent) 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 (ii) disclose on a confidential basis any non-public information relating to its Loans to any rating agency, commercial paper dealer or provider of a
surety, guarantee or credit or liquidity enhancement to such SPC. 

        Section 10.07. Governing Law; Submission to Jurisdiction. This Agreement and each Note shall be governed by and construed in
accordance with the laws of the State of New York. Each Loan Party party hereto hereby submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New
York and of any New York State court sitting in New York City for purposes of all legal proceedings arising out of or relating to the Loan Documents or the transactions contemplated thereby, and
irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim
that any such proceeding brought in such a court has been brought in an inconvenient forum. 

        Section 10.08. Counterparts; Integration. This Agreement may be signed in any number of counterparts, each of which shall be an
original, with the same effect as if the signatures thereto and hereto were upon the same instrument. This Agreement constitutes the entire agreement and understanding among the parties hereto and
supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof. 

51

 

        Section 10.09. WAIVER OF JURY TRIAL. EACH OF THE LOAN PARTIES PARTY HERETO, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY
IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED THEREBY. 

        Section 10.10. Confidentiality. Each of the Administrative Agent and the Lenders agrees to use its reasonable best efforts to keep
confidential any information delivered or made available by or on behalf of the Loan Parties to it (including without limitation any information obtained through any financial advisor);  provided that
nothing herein shall prevent the Administrative Agent or any Lender from disclosing such information (i) to the Administrative
Agent or any other Lender in connection with the transactions contemplated hereby, (ii) to its officers, directors, employees, agents, attorneys and accountants who have a need to know such
information in accordance with customary banking practices and who receive such information having been made aware of the restrictions set forth in this Section, (iii) upon the order of any
court or administrative agency, (iv) upon the request or demand of any regulatory agency or authority having jurisdiction over such party, (v) which has been publicly disclosed (by a
Person other than such Administrative Agent or Lender), (vi) which has been obtained from any Person other than the Company and its Subsidiaries,  provided that such Person is not (x) known to
it to be bound by a confidentiality agreement with the Company or its Subsidiaries or any other
obligation not to disclose or (y) known to it to be otherwise prohibited from transmitting the information to it by a contractual, legal or fiduciary obligation, (vii) in connection with
the exercise of any remedy under the Loan Documents, or (viii) to any actual or proposed participant or assignee of all or any of its rights hereunder, or to any actual or proposed counterparty
to any swap, hedge or similar account relating to the Loans which, in each case, has agreed in writing to be bound by the provisions of this Section. No party to this Agreement intends to treat the
Loans and related transactions as being a "reportable transaction" (within the meaning of Treasury Regulation section 1.6011-4). 

        Section 10.11. No Reliance on Margin Stock. Each Lender represents to the Administrative Agent and each of the other Lenders that
it in good faith is not relying upon any Margin Stock as collateral in the extension or maintenance of the credit provided for in this Agreement. 

        Section 10.12. Co-Lead Arrangers, Joint Bookrunners, Co-Syndication Agents and Co-Documentation
Agents. No Person identified on the cover page of this Agreement as a co-lead arranger, joint bookrunner, co-syndication agent or
co-documentation agent shall have any right, power, obligation, liability, responsibility or duty under the Loan Documents in such capacity. 

        Section 10.13.  Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is made to the Administrative
Agent or any Lender, or the Administrative Agent or any Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any bankruptcy, insolvency or other similar law or otherwise, then (a) to the extent
of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
set-off had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so recovered from or repaid by the
Administrative Agent,  plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time to
time in effect. 

        Section 10.14. USA Patriot Act Notice. Each Lender and the Administrative Agent (for itself and not on behalf of any Lender) hereby
notifies the Borrower that pursuant to the requirements of the 

52

 

USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the "Act"), it is required to obtain, verify and
record information that identifies the Loan Parties, which information includes the name and address of each Loan Party and other information that will allow such Lender or the Administrative Agent,
as applicable, to identify such Loan Party in accordance with the Act. 

53

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

	

 	
 	

QWEST SERVICES CORPORATION
	

 	
 	

By:	
 	

/s/  OREN SHAFFER      
 Name: Oren Shaffer

Title: Vice Chairman and Chief Financial Officer
	

 	
 	

1801 California Street

Denver, CO 80202

Attn: Chief Financial Officer

Fax: (303) 296-4920
	

 	
 	

with a copy to:
	

 	
 	

1801 California Street

Denver, CO 80202

Attn: General Counsel

Fax: (303) 296-5974
	

 	
 	

QWEST COMMUNICATIONS INTERNATIONAL INC.
	

 	
 	

By:	
 	

/s/  OREN SHAFFER      
 Name: Oren Shaffer

Title: Vice Chairman and Chief Financial Officer
	

 	
 	

1801 California Street

Denver, CO 80202

Attn: Chief Financial Officer

Fax: (303) 296-4920
	

 	
 	

with a copy to:
	

 	
 	

1801 California Street

Denver, CO 80202

Attn: General Counsel

Fax: (303) 296-5974
	

 	
 	

website: www.qwest.com
	 	 	 	 	 

	

 	
 	

BANK OF AMERICA, N.A., as Administrative Agent
	

 	
 	

By:	
 	

/s/  MICKEY MCLEAN      
 Name: Mickey McLean

Title: Vice President
	

 	
 	

Bank of America, N.A.

TX1-492-14-11

901 Main Street, 14th Floor

Dallas, TX 75202-3714

Attn: Mickey McLean

Fax: (214) 290-9508
	

 	
 	

BANK OF AMERICA, N.A.
	

 	
 	

By:	
 	

/s/  RICHARD PECK      
 Name: Richard Peck

Title: Principal
	

 	
 	

JPMORGAN CHASE BANK
	

 	
 	

By:	
 	

/s/  PETER B. THAUER      
 Name: Peter B. Thauer

Title: Vice President
	

 	
 	

WACHOVIA BANK, N.A.
	

 	
 	

By:	
 	

/s/  MICHAEL E. MCDUFFIE      
 Name: Michael E. McDuffie

Title: Vice President
	

 	
 	

CREDIT SUISSE FIRST BOSTON, Acting Through Its Cayman Islands Branch
	

 	
 	

By:	
 	

/s/  SOVONNA DAY-GOINS      
 Name: Sovonna Day-Goins

Title: Director
	

 	
 	

By:	
 	

/s/  CASSANDRA DROOGAN      
 Name: Cassandra Droogan

Title: Associate
	 	 	 	 	 

	

 	
 	

LEHMAN COMMERCIAL PAPER INC.
	

 	
 	

By:	
 	

/s/  G. ROBERT BERZINS      
 Name: G. Robert Berzins

Title: Vice President
	

 	
 	

MERRILL LYNCH CAPITAL CORPORATION
	

 	
 	

By:	
 	

/s/  ANTHONY J. LAFAIRE      
 Name: Anthony J. Lafaire

Title: Director
	

 	
 	

UBS LOAN FINANCE LLC
	

 	
 	

By:	
 	

/s/  PATRICIA O'KICKI      
 Name: Patricia O'Kicki

Title: Director
	

 	
 	

By:	
 	

/s/  JOSELIN FERNANDES      
 Name: Joselin Fernandes

Title: Associate Director Banking Products Services, US
	

 	
 	

DEUTSCHE BANK TRUST COMPANY AMERICAS
	

 	
 	

By:	
 	

/s/  DAVID MAYHEW      
 Name: David Mayhew

Title: Director
	

 	
 	

GOLDMAN SACHS CREDIT PARTNERS L.P.
	

 	
 	

By:	
 	

/s/  STEPHEN KING      
 Name: Stephen King

Title: Authorized Signatory
	

 	
 	

MORGAN STANLEY SENIOR FUNDING, INC.
	

 	
 	

By:	
 	

/s/  JAAP L. TONCKENS      
 Name: Jaap L. Tonckens

Title: Vice President Morgan Stanley Senior Funding

QuickLinks

CREDIT AGREEMENT<Page>

                                                                     EXHIBIT 4.9

                                                               EXECUTION VERSION

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

                           IRON MOUNTAIN INCORPORATED

                           THE GUARANTORS NAMED HEREIN

                                       AND

                              THE BANK OF NEW YORK,
                                   as Trustee

                    6-5/8% Senior Subordinated Notes due 2016

                          SECOND SUPPLEMENTAL INDENTURE

                            Dated as of June 20, 2003

                                       TO

                           SUBORDINATED DEBT INDENTURE

                          Dated as of December 30, 2002

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

<Page>

                                TABLE OF CONTENTS

<Table>
<Caption>
                                                                                                   Page
                                                                                                   ----
<S>                                                                                                  <C>
ARTICLE 1. DEFINITIONS................................................................................1

   Section 1.1.    DEFINITIONS........................................................................1

ARTICLE 2. FORM AND TERMS OF THE NOTES...............................................................15

   Section 2.1.    FORM AND DATING...................................................................15
   Section 2.2.    EXECUTION AND AUTHENTICATION......................................................16
   Section 2.3.    DEPOSITORY AND PAYING AGENT FOR NOTES.............................................16
   Section 2.4.    TRANSFER AND EXCHANGE OF NOTES....................................................16
   Section 2.5.    REDEMPTION........................................................................18
   Section 2.6.    COVENANTS.........................................................................21
      (a)     Restricted Payments....................................................................21
      (b)     Incurrence of Indebtedness and Issuance of Preferred Stock.............................24
      (c)     Liens..................................................................................25
      (d)     Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries..............25
      (e)     Transactions with Affiliates...........................................................26
      (f)     Certain Senior Subordinated Debt.......................................................27
      (g)     Additional Subsidiary Guarantees.......................................................27
      (h)     Designation of Unrestricted Subsidiaries...............................................28
      (i)     Limitation on Sale and Leaseback Transactions..........................................29
      (j)     Asset Sales............................................................................30
      (k)     Change of Control Offer................................................................32
   Section 2.7.    SUBSIDIARY GUARANTEES.............................................................33
   Section 2.8.    LEGAL DEFEASANCE AND COVENANT DEFEASANCE..........................................33
   Section 2.9.    SUBORDINATION.....................................................................34

ARTICLE 3. MISCELLANEOUS.............................................................................34

   Section 3.1.    EFFECT OF HEADINGS................................................................34
   Section 3.2.    SUCCESSORS AND ASSIGNS............................................................34
   Section 3.3.    SEPARABILITY CLAUSE...............................................................34
   Section 3.4.    GOVERNING LAW.....................................................................34
   Section 3.5.    FIRST SUPPLEMENT TO SUPERSEDE INDENTURE...........................................34
</Table>

EXHIBITS

Exhibit A         FORM OF NOTES
Exhibit B         FORM OF SUPPLEMENTAL INDENTURE

                                        i
<Page>

               THIS SECOND SUPPLEMENTAL INDENTURE, dated as of June 20, 2003
("SECOND SUPPLEMENTAL INDENTURE"), is by and between IRON MOUNTAIN INCORPORATED,
a Pennsylvania corporation (the "COMPANY"), having its principal office at 745
Atlantic Avenue, Boston, Massachusetts 02111, the Guarantors signatory hereto,
and THE BANK OF NEW YORK, a New York banking corporation, as trustee (the
"TRUSTEE"), having its principal corporate trust office at 101 Barclay Street, 8
Floor West, New York, NY 10286.

                                   WITNESSETH:

               WHEREAS, the Company and The Bank of New York, acting as trustee,
executed and delivered a Subordinated Indenture, dated as of December 30, 2002
(the "INDENTURE"), to provide for the issuance by the Company from time to time
of Securities to be issued in one or more series as provided in the Indenture;

               WHEREAS, the issuance and sale of up to $250,000,000 aggregate
principal amount of a series of the Company's Securities (the "NOTES") have been
authorized by resolutions adopted by the Executive Committee of the Board of
Directors of the Company on June 16, 2003;

               WHEREAS, the Company desires to issue and sell $150,000,000
aggregate principal amount of the Notes on the date hereof;

               WHEREAS, the Company desires to enter into this Second
Supplemental Indenture pursuant to Section 9.1(e) of the Indenture to supplement
the Indenture to establish the form and terms of the Notes; and

               NOW, THEREFORE, for and in consideration of the premises stated
herein and the purchase of the Notes by the Holders thereof, the parties hereto
hereby enter into this Second Supplemental Indenture, for the equal and
proportionate benefit of all Holders of Notes, as follows:

                                   ARTICLE 1.

                                   DEFINITIONS

Section 1.1.   DEFINITIONS.

               (a)    All of the terms used in this Second Supplemental
Indenture that are defined in the Indenture shall have the meanings specified in
the Indenture, unless otherwise defined herein (in which case they shall have
the meanings defined herein for the purposes of the Indenture as well as for the
Second Supplemental Indenture) or unless the context otherwise requires, and for
the purposes of this Second Supplemental Indenture, the following terms have the
meanings set forth in this Section:

               "ACQUIRED DEBT" means, with respect to any specified Person:

               (1)    Indebtedness of any other Person, existing at the time
                      such other Person merged with or into or became a
                      Subsidiary of such specified Person, including
                      Indebtedness incurred in connection with, or in
                      contemplation of, such other Person merging with or into
                      or becoming a Subsidiary of such specified Person; and

               (2)    Indebtedness encumbering any asset acquired by such
                      specified Person.

<Page>

               "ACQUISITION EBITDA" means, as of any date of determination, with
respect to an Acquisition EBITDA Entity, the sum of:

               (1)    EBITDA of such Acquisition EBITDA Entity for its last
                      fiscal quarter for which financial statements are
                      available at such date of determination (adjusted to give
                      pro forma effect to any acquisition or disposition of a
                      business or Person by such Acquisition EBITDA Entity
                      consummated during the period covered by, or after the
                      date of, such quarterly financial statements), multiplied
                      by four (or if such quarterly statements are not
                      available, EBITDA for the most recent fiscal year for
                      which financial statements are available), plus

               (2)    projected quantifiable improvements in operating results
                      (on an annualized basis) due to cost reductions calculated
                      in good faith by the Company or one of its Restricted
                      Subsidiaries, as certified by an Officers' Certificate
                      filed with the Trustee, without giving effect to any
                      operating losses of the acquired Person.

               "ACQUISITION EBITDA ENTITY" means, as of any date of
determination, a business or Person:

               (1)    which has been acquired by the Company or one of its
                      Restricted Subsidiaries and with respect to which
                      financial results on a consolidated basis with the Company
                      have not been made available for an entire fiscal quarter;
                      or

               (2)    which is to be acquired in whole or in part with
                      Indebtedness, the incurrence of which will require the
                      calculation on such date of the Acquisition EBITDA of such
                      Acquisition EBITDA Entity for purposes of Section 2.6(b)
                      of this Second Supplemental Indenture (Section 4.9 of the
                      Indenture).

               "ADDITIONAL NOTES" means such amount of the Company's 6-5/8%
Senior Subordinated Notes due 2016 (other than the Initial Notes) as the Company
may issue from time to time under this Second Supplemental Indenture in
accordance with Section 2.2 hereof as part of the same series as the Initial
Notes.

               "ADJUSTED EBITDA" means, as of any date of determination and
without duplication, the sum of:

               (1)    EBITDA of the Company and its Restricted Subsidiaries for
                      the most recent fiscal quarter for which internal
                      financial statements are available at such date of
                      determination, multiplied by four; and

               (2)    Acquisition EBITDA of each business or Person that is an
                      Acquisition EBITDA Entity as of such date of
                      determination, multiplied by a fraction, (i) the numerator
                      of which is three minus the number of months (and/or any
                      portion thereof) in such most recent fiscal quarter for
                      which the financial results of such Acquisition EBITDA
                      Entity are included in the EBITDA of the Company and its
                      Restricted Subsidiaries under clause (1) above, and (ii)
                      the denominator of which is three. The effects of unusual
                      items, including merger-related expenses permitted to be
                      shown as a separate line item on a statement of operations
                      in accordance with GAAP, or non-recurring items in respect
                      of the Company, a Restricted

                                        2
<Page>

                      Subsidiary or an Acquisition EBITDA Entity occurring in
                      any period shall be excluded in the calculation of
                      Adjusted EBITDA.

               "AGENT MEMBERS" means members of, or participants in, the
               Depository.

               "ATTRIBUTABLE INDEBTEDNESS" in respect of a Sale and Leaseback
Transaction means, as of the time of determination, the greater of:

               (1)    the fair market value of the property subject to such
                      arrangement (as determined by the Board of Directors of
                      the Company); and

               (2)    the present value (discounted at the rate of interest
                      implicit in such transaction) of the total obligations of
                      the lessee for rental payments during the remaining terms
                      of the lease included in such Sale and Leaseback
                      Transaction (including any period for which such lease has
                      been extended).

               "CANADA COMPANY" means Iron Mountain Canada Corporation, a Wholly
Owned Subsidiary of the Company, formerly known as Pierce Leahy Canada Company.

               "CASH EQUIVALENTS" means:

               (1)    securities with maturities of one year or less from the
                      date of acquisition, issued, fully guaranteed or insured
                      by the United States Government or any agency thereof;

               (2)    certificates of deposit, time deposits, overnight bank
                      deposits, bankers acceptances and repurchase agreements
                      issued by a Qualified Issuer having maturities of 270 days
                      or less from the date of acquisition;

               (3)    commercial paper of an issuer rated at least A-2 by
                      Standard & Poor's Rating Group, a division of McGraw Hill,
                      Inc., or P-2 by Moody's Investors Service, or carrying an
                      equivalent rating by a nationally recognized rating agency
                      if both of the two named rating agencies cease publishing
                      ratings of investments and having maturities of 270 days
                      or less from the date of acquisition;

               (4)    money market accounts or funds with or issued by Qualified
                      Issuers; and

               (5)    Investments in money market funds substantially all of the
                      assets of which are comprised of securities and other
                      obligations of the types described in clauses (1) through
                      (3) above.

               "CHANGE OF CONTROL" means the occurrence of any of the following
events:

               (1)    any "person" or "group" (as such terms are used in
                      Sections 13(d) and 14(d) of the Exchange Act), other than
                      the Principal Stockholders (or any of them), is or becomes
                      the "beneficial owner" (as defined in Rules 13d-3 and
                      13d-5 under the Exchange Act), directly or indirectly, of
                      more than a majority of the voting power of all classes of
                      Voting Stock of the Company;

               (2)    the Company consolidates with, or merges with or into,
                      another Person or conveys, transfers, leases or otherwise
                      disposes of all or substantially all of its

                                        3
<Page>

                      assets to any Person, or any Person consolidates with,
                      or merges with or into, the Company, in any such event
                      pursuant to a transaction in which the outstanding Voting
                      Stock of the Company is converted into or exchanged for
                      cash, securities or other property, other than any such
                      transaction where (i) the outstanding Voting Stock of the
                      Company is not converted or exchanged at all (except to
                      the extent necessary to reflect a change in the
                      jurisdiction of incorporation) or is converted into or
                      exchanged for (A) Voting Stock (other than Disqualified
                      Stock) of the surviving or transferee Person or (B) cash,
                      securities and other property (other than Capital Stock
                      described in the foregoing clause (A)) of the surviving or
                      transferee Person in an amount that could be paid as a
                      Restricted Payment pursuant to Section 2.6(a) of the
                      Second Supplemental Indenture (Section 4.8 of the
                      Indenture) and (ii) immediately after such transaction, no
                      "person" or "group" (as such terms are used in Sections
                      13(d) and 14(d) of the Exchange Act), other than the
                      Principal Stockholders (or any of them), is the
                      "beneficial owner" (as defined in Rules 13d-3 and 13d-5
                      under the Exchange Act), directly or indirectly, of more
                      than a majority of the total outstanding Voting Stock of
                      the surviving or transferee Person;

               (3)    during any consecutive two-year period, individuals who at
                      the beginning of such period constituted the Board of
                      Directors (together with any new directors whose election
                      to such Board of Directors, or whose nomination for
                      election by the stockholders of the Company, was approved
                      by a vote of 66 2/3% of the directors then still in office
                      who were either directors at the beginning of such period
                      or whose election or nomination for election was
                      previously so approved) cease for any reason to constitute
                      a majority of the Board of Directors then in office; or

               (4)    the Company is liquidated or dissolved or adopts a plan of
                      liquidation or dissolution other than in a transaction
                      which complies with Section 5.1 of the Indenture.

               "CONSOLIDATED ADJUSTED NET INCOME" means, for any period, the net
income (or net loss) of the Company and its Restricted Subsidiaries for such
period as determined on a consolidated basis in accordance with GAAP, adjusted
to the extent included in calculating such net income or loss by excluding:

               (1)    any net after-tax extraordinary gains or losses (less all
                      fees and expenses relating thereto);

               (2)    any net after-tax gains or losses (less all fees and
                      expenses relating thereto) attributable to Asset Sales;

               (3)    the portion of net income (or loss) of any Person (other
                      than the Company or a Restricted Subsidiary), including
                      Unrestricted Subsidiaries, in which the Company or any
                      Restricted Subsidiary has an ownership interest, except to
                      the extent of the amount of dividends or other
                      distributions actually paid to the Company or any
                      Restricted Subsidiary in cash dividends or distributions
                      by such Person during such period; and

                                        4
<Page>

               (4)    the net income (or loss) of any Person combined with the
                      Company or any Restricted Subsidiary on a "pooling of
                      interests" basis attributable to any period prior to the
                      date of combination.

               "CONSOLIDATED INCOME TAX EXPENSE" means, for any period, the
provision for federal, state, local and foreign income taxes of the Company and
its Restricted Subsidiaries for such period as determined on a consolidated
basis in accordance with GAAP.

               "CONSOLIDATED INTEREST EXPENSE" means, for any period, without
duplication, the sum of:

               (1)    the amount which, in conformity with GAAP, would be set
                      forth opposite the caption "interest expense" (or any like
                      caption) on a consolidated statement of operations of the
                      Company and its Restricted Subsidiaries for such period,
                      including, without limitation:

                      (i)     amortization of debt discount;

                      (ii)    the net cost of interest rate contracts (including
                              amortization of discounts);

                      (iii)   the interest portion of any deferred payment
                              obligation;

                      (iv)    amortization of debt issuance costs; and

                      (v)     the interest component of Capital Lease
                              Obligations of the Company and its Restricted
                              Subsidiaries; plus

               (2)    all interest on any Indebtedness of any other Person
                      guaranteed and paid by the Company or any of its
                      Restricted Subsidiaries;

provided, however, that Consolidated Interest Expense will not include any gain
or loss from extinguishment of debt, including write-off of debt issuance costs.

               "CONSOLIDATED NON-CASH CHARGES" means, for any period, the
aggregate depreciation, amortization and other non-cash expenses of the Company
and its Restricted Subsidiaries (including without limitation any minority
interest) reducing Consolidated Adjusted Net Income for such period, determined
on a consolidated basis in accordance with GAAP (excluding any such non-cash
charge to the extent that it requires an accrual of or reserve for cash charges
for any future period).

               "CREDIT AGENT" means JPMorgan Chase Bank, in its capacity as
administrative agent for the lenders party to the Credit Agreement, or any
successor or successors party thereto.

               "CREDIT AGREEMENT" means that certain Fifth Amended and Restated
Credit Agreement, dated as of March 15, 2002, as amended, among the Company,
Canada Company, the lenders party thereto and the Credit Agent, as amended,
restated, supplemented, modified, renewed, refunded, increased, extended,
replaced or refinanced from time to time.

               "DEFINITIVE NOTES" means Notes that are in the form of the Notes
attached hereto as Exhibit A, that do not include the information called for by
Section 2.15 of the Indenture.

                                        5
<Page>

               "EBITDA" means for any period Consolidated Adjusted Net Income
for such period increased by:

               (1)    Consolidated Interest Expense for such period; plus

               (2)    Consolidated Income Tax Expense for such period; plus

               (3)    Consolidated Non-Cash Charges for such period.

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

               "EQUITY PROCEEDS" means:

               (1)    with respect to Equity Interests (or debt securities
                      converted into Equity Interests) issued or sold for cash
                      Dollars, the aggregate amount of such cash Dollars; and

               (2)    with respect to Equity Interests (or debt securities
                      converted into Equity Interests) issued or sold for any
                      consideration other than cash Dollars, the aggregate
                      Market Price thereof computed on the date of the issuance
                      or sale thereof.

               "EXCLUDED RESTRICTED SUBSIDIARY" means any Restricted Subsidiary
organized under the laws of a jurisdiction other than the United States (as
defined in Regulation S under the Securities Act) and that has not delivered a
Subsidiary Guarantee.

               "EXISTING INDEBTEDNESS" means Indebtedness of the Company and its
Subsidiaries (other than under the Credit Agreement) in existence on the date of
the Indenture, until such amounts are repaid.

               "GLOBAL NOTE" means a permanent global Note that contains the
paragraph referred to in Section 2.15.3 of the Indenture and the additional
Schedule of Exchanges of Notes to the form of the Note attached hereto as
Exhibit A, and that is deposited with and registered in the name of the
Depository.

               "INITIAL NOTES" means the first $150,000,000 aggregate principal
amount of 6-5/8% Senior Subordinated Notes due 2016 that are issued under this
Second Supplemental Indenture, as amended or supplemented from time to time
pursuant to the Indenture.

               "INVESTMENTS" means, with respect to any Person, all investments
by such Person in other Persons (including Affiliates) in the forms of loans
(including Guarantees), advances or capital contributions (excluding commission,
travel and similar advances to officers and employees made in the ordinary
course of business), purchases or other acquisitions for consideration of
Indebtedness, Equity Interests or other securities and all other items that are
or would be classified as investments on a balance sheet prepared in accordance
with GAAP.

               "LEVERAGE RATIO" means, at any date, the ratio of:

               (1)    the aggregate principal amount of Indebtedness of the
                      Company and its Restricted Subsidiaries outstanding as of
                      the most recent available quarterly or annual balance
                      sheet, to

                                        6
<Page>

               (2)    Adjusted EBITDA, after giving pro forma effect, without
                      duplication, to

                      (i)     the incurrence, repayment or retirement of any
                              Indebtedness by the Company or its Restricted
                              Subsidiaries since the last day of the most recent
                              full fiscal quarter of the Company;

                      (ii)    if the Leverage Ratio is being determined in
                              connection with the incurrence of Indebtedness by
                              the Company or a Restricted Subsidiary, such
                              Indebtedness; and

                      (iii)   the Indebtedness to be incurred in connection with
                              the acquisition of any Acquisition EBITDA Entity.

               "LIEN" means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected under applicable
law (including any conditional sale or other title retention agreement, any
lease in the nature thereof, any option or other agreement to sell or give a
security interest in and any filing of or agreement to give any financing
statement under the Uniform Commercial Code, or equivalent statutes, of any
jurisdiction).

               "MAKE-WHOLE AMOUNT" means, with respect to any Note, an amount
equal to the excess, if any, of:

               (1)    the present value of the remaining principal, premium and
                      interest payments that would be payable with respect to
                      such Note if such Note were redeemed on July 1, 2008,
                      computed using a discount rate equal to the Treasury Rate
                      plus 75 basis points, over

               (2)    the outstanding principal amount of such Note.

               "MAKE-WHOLE AVERAGE LIFE" means, with respect to any date of
redemption of Notes, the number of years (calculated to the nearest one-twelfth)
from such redemption date to July 1, 2008.

               "MAKE-WHOLE PRICE" means, with respect to any Note, the greater
of:

               (1)    the sum of the principal amount of and Make-Whole Amount
                      with respect to such Note; and

               (2)    the redemption price of such Note on July 1, 2008.

               "MARKET PRICE" means:

               (1)    with respect to the calculation of Equity Proceeds from
                      the issuance or sale of debt securities which have been
                      converted into Equity Interests, the value received upon
                      the original issuance or sale of such converted debt
                      securities, as determined reasonably and in good faith by
                      the Board of Directors; and

               (2)    with respect to the calculation of Equity Proceeds from
                      the issuance or sale of Equity Interests, the average of
                      the daily closing prices for such Equity Interests for the
                      20 consecutive trading days preceding the date of such
                      computation.

                                        7
<Page>

               The closing price for each day shall be:

               (1)    if such Equity Interests are then listed or admitted to
                      trading on the New York Stock Exchange, the closing price
                      on the NYSE Consolidated Tape (or any successor
                      consolidated tape reporting transactions on the New York
                      Stock Exchange) or, if such composite tape shall not be in
                      use or shall not report transactions in such Equity
                      Interests, or if such Equity Interests shall be listed on
                      a stock exchange other than the New York Stock Exchange
                      (including for this purpose the Nasdaq National Market),
                      the last reported sale price regular way for such day, or
                      in case no such reported sale takes place on such day, the
                      average of the closing bid and asked prices regular way
                      for such day, in each case on the principal national
                      securities exchange on which such Equity Interests are
                      listed or admitted to trading (which shall be the national
                      securities exchange on which the greatest number of such
                      Equity Interests have been traded during such 20
                      consecutive trading days); or

               (2)    if such Equity Interests are not listed or admitted to
                      trading on any such exchange, the average of the closing
                      bid and asked prices thereof in the over-the-counter
                      market as reported by the National Association of
                      Securities Dealers Automated Quotation System or any
                      successor system, or if not included therein, the average
                      of the closing bid and asked prices thereof furnished by
                      two members of the National Association of Securities
                      Dealers selected reasonably and in good faith by the Board
                      of Directors for that purpose. In the absence of one or
                      more such quotations, the Market Price for such Equity
                      Interests shall be determined reasonably and in good faith
                      by the Board of Directors.

               "NET PROCEEDS" means the aggregate cash proceeds received by the
Company or any of its Restricted Subsidiaries in respect of any Asset Sale,
which amount is equal to the excess, if any, of:

               (1)    the cash received by the Company or such Restricted
                      Subsidiary (including any cash payments received by way of
                      deferred payment pursuant to, or monetization of, a note
                      or installment receivable or otherwise, but only as and
                      when received) in connection with such disposition, over

               (2)    the sum of:

                      (i)     the amount of any Indebtedness which is secured by
                              such asset and which is required to be repaid in
                              connection with the disposition thereof; plus

                      (ii)    the reasonable out-of-pocket expenses incurred by
                              the Company or such Restricted Subsidiary, as the
                              case may be, in connection with such disposition
                              or in connection with the transfer of such amount
                              from such Restricted Subsidiary to the Company;
                              plus

                      (iii)   provisions for taxes, including income taxes,
                              attributable to the disposition of such asset or
                              attributable to required prepayments or repayments
                              of Indebtedness with the proceeds thereof; plus

                                        8
<Page>

                      (iv)    if the Company does not first receive a transfer
                              of such amount from the relevant Restricted
                              Subsidiary with respect to the disposition of an
                              asset by such Restricted Subsidiary and such
                              Restricted Subsidiary intends to make such
                              transfer as soon as practicable, the out-of-pocket
                              expenses and taxes that the Company reasonably
                              estimates will be incurred by the Company or such
                              Restricted Subsidiary in connection with such
                              transfer at the time such transfer is expected to
                              be received by the Company (including, without
                              limitation, withholding taxes on the remittance of
                              such amount).

               "NOTES" has the meaning assigned to it in the preamble to this
Second Supplemental Indenture. The Initial Notes and any Additional Notes shall
be treated as a single class for all purposes under this Second Supplemental
Indenture and the Indenture.

               "PERMITTED INVESTMENTS" means:

               (1)    any Investments in the Company or in a Restricted
                      Subsidiary (other than an Excluded Restricted Subsidiary)
                      of the Company, including without limitation the Guarantee
                      of Indebtedness permitted under Section 2.6(b) of the
                      Second Supplemental Indenture (Section 4.9 of the
                      Indenture);

               (2)    any Investments in Cash Equivalents;

               (3)    Investments by the Company or any Restricted Subsidiary of
                      the Company in a Person, if as a result of such
                      Investment;

                      (i)     such Person becomes a Restricted Subsidiary (other
                              than an Excluded Restricted Subsidiary) of the
                              Company; or

                      (ii)    such Person is merged, consolidated or amalgamated
                              with or into, or transfers or conveys
                              substantially all of its assets to, or is
                              liquidated into, the Company or a Restricted
                              Subsidiary (other than an Excluded Restricted
                              Subsidiary) of the Company;

               (4)    Investments in assets (including accounts and notes
                      receivable) owned or used in the ordinary course of
                      business;

               (5)    Investments for any purpose related to the Company's
                      records and information management business (including,
                      without limitation, the Company's confidential destruction
                      and fulfillment businesses) in an aggregate outstanding
                      amount not to exceed $10.0 million; and

               (6)    Investments by the Company or a Restricted Subsidiary
                      (other than an Excluded Restricted Subsidiary) in one or
                      more Excluded Restricted Subsidiaries, the aggregate
                      outstanding amount of which does not exceed 10% of the
                      consolidated assets of the Company and its Restricted
                      Subsidiaries.

               "PERMITTED LIENS" means:

               (1)    Liens existing as of the date of issuance of the Notes;

                                        9
<Page>

               (2)    Liens on property or assets of the Company or any
                      Restricted Subsidiary securing Senior Debt;

               (3)    Liens on any property or assets of a Restricted Subsidiary
                      granted in favor of the Company or any Wholly Owned
                      Restricted Subsidiary;

               (4)    Liens securing the Notes or the Guarantees;

               (5)    any interest or title of a lessor under any Capital Lease
                      Obligation or Sale and Leaseback Transaction so long as
                      the Indebtedness, if any, secured by such Lien does not
                      exceed the principal amount of Indebtedness permitted
                      under Section 2.6(b) of the Second Supplemental Indenture
                      (Section 4.9 of the Indenture);

               (6)    Liens securing Acquired Debt created prior to (and not in
                      connection with or in contemplation of) the incurrence of
                      such Indebtedness by the Company or any Restricted
                      Subsidiary; provided that such Lien does not extend to any
                      property or assets of the Company or any Restricted
                      Subsidiary other than the assets acquired in connection
                      with the incurrence of such Acquired Debt;

               (7)    Liens securing Hedging Obligations permitted to be
                      incurred pursuant to clause (7) of Section 2.6(b) of the
                      Second Supplemental Indenture (clause (7) of Section 4.9
                      of the Indenture);

               (8)    Liens arising from purchase money mortgages and purchase
                      money security interests, or in respect of the
                      construction of property or assets, incurred in the
                      ordinary course of the business of the Company or a
                      Restricted Subsidiary; provided that (i) the related
                      Indebtedness is not secured by any property or assets of
                      the Company or any Restricted Subsidiary other than the
                      property and assets so acquired or constructed and (ii)
                      the Lien securing such Indebtedness is created within 60
                      days of such acquisition or construction;

               (9)    statutory Liens or landlords' and carriers',
                      warehousemen's, mechanics', suppliers', materialmen's,
                      repairmen's or other like Liens arising in the ordinary
                      course of business and with respect to amounts not yet
                      delinquent or being contested in good faith by appropriate
                      proceedings, if a reserve or other appropriate provision,
                      if any, as shall be required in conformity with GAAP shall
                      have been made therefor;

               (10)   Liens for taxes, assessments, government charges or claims
                      with respect to amounts not yet delinquent or that are
                      being contested in good faith by appropriate proceedings
                      diligently conducted, if a reserve or other appropriate
                      provision, if any, as is required in conformity with GAAP
                      has been made therefor;

               (11)   Liens incurred or deposits made to secure the performance
                      of tenders, bids, leases, statutory obligations, surety
                      and appeal bonds, government contracts, performance bonds
                      and other obligations of a like nature incurred in the
                      ordinary course of business (other than contracts for the
                      payment of money);

                                       10
<Page>

               (12)   easements, rights-of-way, restrictions and other similar
                      charges or encumbrances not interfering in any material
                      respect with the business of the Company or any Restricted
                      Subsidiary incurred in the ordinary course of business;

               (13)   Liens arising by reason of any judgment, decree or order
                      of any court so long as such Lien is adequately bonded and
                      any appropriate legal proceedings that may have been duly
                      initiated for the review of such judgment, decree or order
                      shall not have been finally terminated or the period
                      within which such proceedings may be initiated shall not
                      have expired;

               (14)   Liens arising under options or agreements to sell assets;

               (15)   other Liens securing obligations incurred in the ordinary
                      course of business, which obligations do not exceed $10.0
                      million in the aggregate at any one time outstanding; and

               (16)   any extension, renewal or replacement, in whole or in
                      part, of any Lien described in the foregoing clauses (1)
                      through (15); provided that any such extension, renewal or
                      replacement shall not extend to any additional property or
                      assets.

               "PRINCIPAL STOCKHOLDERS" means each of Vincent J. Ryan, Schooner
Capital LLC, C. Richard Reese, Kent P. Dauten, B. Thomas Golisano and their
respective Affiliates.

               "QUALIFIED EQUITY OFFERING" means an offering of Capital Stock,
other than Disqualified Stock, of the Company for Dollars, whether registered or
exempt from registration under the Securities Act.

               "QUALIFIED ISSUER" means:

               (1)    any lender party to the Credit Agreement; or

               (2)    any commercial bank:

                      (i)     which has capital and surplus in excess of
                              $500,000,000; and

                      (ii)    the outstanding short-term debt securities of
                              which are rated at least A-2 by Standard & Poor's
                              Rating Group, a division of McGraw-Hill, Inc. or
                              at least P-2 by Moody's Investors Service, or
                              carry an equivalent rating by a nationally
                              recognized rating agency if both of the two named
                              rating agencies cease publishing ratings of
                              investments.

               "QUALIFYING SALE AND LEASEBACK TRANSACTION" means any Sale and
Leaseback Transaction between the Company or any of its Restricted Subsidiaries
and any bank, insurance company or other lender or investor providing for the
leasing to the Company or such Restricted Subsidiary of any property (real or
personal) which has been or is to be sold or transferred by the Company or such
Restricted Subsidiary to such lender or investor or to any Person to whom funds
have been or are to be advanced by such lender or investor and where the
property in question has been constructed or acquired after the date of the
Second Supplemental Indenture.

                                       11
<Page>

               "REFINANCING INDEBTEDNESS" means new Indebtedness incurred or
given in exchange for, or the proceeds of which are used to repay, redeem,
defease, extend, refinance, renew, replace or refund, other Indebtedness;
provided, however, that:

               (1)    the principal amount of such new Indebtedness shall not
                      exceed the principal amount of Indebtedness so repaid,
                      redeemed, defeased, extended, refinanced, renewed,
                      replaced or refunded (plus the amount of fees, premiums,
                      consent fees, prepayment penalties and expenses incurred
                      in connection therewith);

               (2)    such Refinancing Indebtedness shall have a Weighted
                      Average Life to Maturity equal to or greater than the
                      Weighted Average Life to Maturity of the Indebtedness so
                      repaid, redeemed, defeased, extended, refinanced, renewed,
                      replaced or refunded or shall mature after the maturity
                      date of the Notes;

               (3)    to the extent such Refinancing Indebtedness refinances
                      Indebtedness that has a final maturity date occurring
                      after the initial scheduled maturity date of the Notes,
                      such new Indebtedness shall have a final scheduled
                      maturity not earlier than the final scheduled maturity of
                      the Indebtedness so repaid, redeemed, defeased, extended,
                      refinanced, renewed, replaced or refunded and shall not
                      permit redemption at the option of the holder earlier than
                      the earliest date of redemption at the option of the
                      holder of the Indebtedness so repaid, redeemed, defeased,
                      extended, refinanced, renewed, replaced or refunded;

               (4)    to the extent such Refinancing Indebtedness refinances
                      Indebtedness subordinate to the Notes, such Refinancing
                      Indebtedness shall be subordinated in right of payment to
                      the Notes and to the extent such Refinancing Indebtedness
                      refinances Notes or Indebtedness PARI PASSU with the
                      Notes, such Refinancing Indebtedness shall be PARI PASSU
                      with or subordinated in right of payment to the Notes, in
                      each case on terms at least as favorable to the holders of
                      Notes as those contained in the documentation governing
                      the Indebtedness so repaid, redeemed, defeased, extended,
                      refinanced, renewed, replaced or refunded; and

               (5)    with respect to Refinancing Indebtedness incurred by a
                      Restricted Subsidiary, such Refinancing Indebtedness shall
                      rank no more senior, and shall be at least as
                      subordinated, in right of payment to the Subsidiary
                      Guarantee of such Restricted Subsidiary as the
                      Indebtedness being extended, refinanced, renewed, replaced
                      or refunded.

               "RESTRICTED SUBSIDIARY" means:

               (1)    each direct or indirect Subsidiary of the Company existing
                      on the date of the Second Supplemental Indenture (other
                      than Iron Mountain (Netherlands) B.V. and its subsidiaries
                      (including Iron Mountain Europe Limited), Iron Mountain
                      Cayman Ltd. and its subsidiaries, Iron Mountain Mexico,
                      S.A. de R.L. de C.V. and its subsidiaries, Iron Mountain
                      Assurance Corporation and Upper Providence Venture I,
                      L.P.); and

               (2)    any other direct or indirect Subsidiary of the Company
                      formed, acquired or existing after the date of the Second
                      Supplemental Indenture (including an Excluded Restricted
                      Subsidiary),

                                       12
<Page>

which, in the case of (1) or (2), is not designated by the Board of Directors as
an "Unrestricted Subsidiary."

               "SALE AND LEASEBACK TRANSACTION" means any transaction or series
of related transactions pursuant to which a Person sells or transfers any
property or asset in connection with the leasing, or the resale against
installment payments, of such property or asset to the seller or transferor.

               "SENIOR BANK DEBT" means all Obligations outstanding under or in
connection with the Credit Agreement (including Guarantees of such Obligations
by Subsidiaries of the Company).

               "SENIOR DEBT" means:

               (1)    the Senior Bank Debt; and

               (2)    any other Indebtedness permitted to be incurred by the
                      Company or any Restricted Subsidiary, as the case may be,
                      under the terms of the Second Supplemental Indenture or
                      the Indenture, unless the instrument under which such
                      Indebtedness is incurred expressly provides that it is:

                      (i)     on a parity with or subordinated in right of
                              payment to the Notes; or

                      (ii)    subordinated to Senior Debt on terms substantially
                              similar to those of the Notes.

               Notwithstanding anything to the contrary in the foregoing, Senior
Debt shall not include:

               (1)    any liability for federal, state, local or other taxes
                      owed or owing by the Company;

               (2)    any Indebtedness of the Company to any of its Subsidiaries
                      or other Affiliates;

               (3)    any trade payables; or

               (4)    any Indebtedness that is incurred in violation of the
                      Second Supplemental Indenture or the Indenture, provided
                      that such Indebtedness shall be deemed not to have been
                      incurred in violation of the Second Supplemental Indenture
                      or the Indenture for purposes of this clause (4) if, in
                      the case of any obligations under the Credit Agreement,
                      the holders of such obligations or their agent or
                      representative shall have received a representation from
                      the Company to the effect that the incurrence of such
                      Indebtedness does not violate the provisions of the Second
                      Supplemental Indenture or the Indenture.

               "TREASURY RATE" means, at any time of computation, the yield to
maturity at such time (as compiled by and published in the most recent Federal
Reserve Statistical Release H.15(519), which has become publicly available at
least two business days prior to the date of the redemption notice or, if such
Statistical Release is no longer published, any publicly available source of
similar market data) of United States Treasury securities with a constant
maturity most nearly equal to the Make-Whole Average Life; provided, however,
that if the Make-Whole Average Life is not equal to the constant maturity of the
United States Treasury security for which a weekly average yield is given, the
Treasury Rate shall be obtained by linear interpolation (calculated to the
nearest one-twelfth of a year) from the weekly average yields of United States
Treasury securities for which such yields are given, except that if the
Make-Whole

                                       13
<Page>

Average Life is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity of one year
shall be used.

               "UNRESTRICTED SUBSIDIARY" means:

               (1)    any Subsidiary that is designated by the Board of
                      Directors as an Unrestricted Subsidiary in accordance with
                      Section 2.6(h) of the Second Supplemental Indenture
                      (Section 4.15 of the Indenture); and

               (2)    any Subsidiary of an Unrestricted Subsidiary.

               As of the date hereof, the following Subsidiaries of the Company
have been designated as Unrestricted Subsidiaries: Iron Mountain (Netherlands)
B.V. and its subsidiaries (including Iron Mountain Europe Limited), Iron
Mountain Cayman Ltd. and its subsidiaries, Iron Mountain Mexico, S.A. de R.L. de
C.V. and its subsidiaries, Iron Mountain Assurance Corporation and Upper
Providence Venture I, L.P.

               "VOTING STOCK" means any class or classes of Capital Stock
pursuant to which the holders thereof have the general voting power under
ordinary circumstances to elect at least a majority of the board of directors,
managers or trustees of any Person (irrespective of whether or not, at the time,
stock of any other class or classes has, or might have, voting power by reason
of the happening of any contingency).

               "WEIGHTED AVERAGE LIFE TO MATURITY" means, when applied to any
Indebtedness at any date, the number of years obtained by dividing:

               (1)    the sum of the products obtained by multiplying (x) the
                      amount of each then remaining installment, sinking fund,
                      serial maturity or other required payment of principal,
                      including payment at final maturity, in respect thereof,
                      by (y) the number of years (calculated to the nearest
                      one-twelfth) that will elapse between such date and the
                      making of such payment, by

               (2)    the then outstanding principal amount of such
                      Indebtedness.

               "WHOLLY OWNED RESTRICTED SUBSIDIARY" means any Restricted
Subsidiary of the Company all of the outstanding Capital Stock or other
ownership interests of which (other than directors' qualifying shares) shall at
the time be owned by the Company or by one or more Wholly Owned Restricted
Subsidiaries of the Company.

               "1996 INDENTURE DATE" means October 1, 1996.

               "1999 INDENTURE DATE" means April 26, 1999.

               "7 3/4 % NOTES" means the Company's 7 3/4% Senior Subordinated
Notes due 2015 issued pursuant to the Indenture.

               "8 1/8% NOTES" means Canada Company's 8 1/8% Senior Notes due
2008 issued pursuant to the indenture dated as of April 7, 1998, by and among
Canada Company, as issuer, the Company and The Bank of New York, as trustee.

                                       14
<Page>

               "8 1/4% NOTES" means the Company's 8 1/4% Senior Subordinated
Notes due 2011 issued pursuant to the indenture dated April 26, 1999, by and
among the Company, certain of its subsidiaries and The Bank of New York, as
trustee.

               "8 5/8% NOTES" means the Company's Senior Subordinated Notes
due 2013 issued pursuant to the indenture dated April 3, 2001, by and among the
Company, certain of its subsidiaries and The Bank of New York, as trustee.

               (b)    Other Definitions.

               The definitions of the following terms may be found in the
Sections indicated as follows:

<Table>
<Caption>
                      Term                                            Defined in Section
                      <S>                                             <C>
                      "Affiliate Transaction"                         2.6(e)
                      "Asset Sale"                                    2.6(j)
                      "Asset Sale Offer"                              2.6(j)
                      "Change of Control Offer"                       2.6(k)
                      "Change of Control Payment"                     2.6(k)
                      "Change of Control Payment Date"                2.6(k)
                      "Commencement Date"                             2.6(j)
                      "Company"                                       Preamble
                      "DTC"                                           2.3
                      "Excess Proceeds"                               2.6(j)
                      "Second Supplemental Indenture"                 Preamble
                      "Indenture"                                     Recitals
                      "Restricted Payments"                           2.6(a)
                      "Trustee"                                       Preamble
</Table>

                                   ARTICLE 2.

                           FORM AND TERMS OF THE NOTES

Section2.1.    FORM AND DATING. GENERAL. The Notes and the Trustee's
certificate of authentication shall be substantially in the form of Exhibit A
attached hereto. The Notes may have notations, legends or endorsements required
by law, stock exchange rule or usage. Each Note shall be dated the date of its
authentication. The Notes shall be in denominations of $1,000 and integral
multiples thereof.

               The terms and provisions contained in the Notes shall constitute,
and are hereby expressly made, a part of the Second Supplemental Indenture and
the Indenture and the Company, the Guarantors and the Trustee, by their
execution and delivery of the Second Supplemental Indenture and the Indenture
(or in the case of any Guarantor that becomes such after the date hereof, a
supplemental indenture pursuant to Section 2.6(g) of this Second Supplemental
Indenture (Section 4.14 of the Indenture)), expressly agree to such terms and
provisions and to be bound thereby. However, to the extent any provision of any
Note conflicts with the express provisions of the Indenture (as supplemented by
this Second Supplemental Indenture), the provisions of the Indenture shall
govern and be controlling.

               (b)    GLOBAL NOTES. Notes shall be issued initially in the form
of the Global Notes, which shall be deposited on behalf of the purchasers of the
Notes represented thereby with the Depository at its New York office, and
registered in the name of the Depository or a nominee of the Depository, duly

                                       15
<Page>

executed by the Company and authenticated by the Trustee as hereinafter
provided. The aggregate principal amount of the Global Notes may from time to
time be increased or decreased by adjustments made on the records of the Trustee
and the Depository or its nominee as hereinafter provided.

               Each Global Note shall represent such of the outstanding Notes as
shall be specified therein and each shall provide that it represents the
aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate amount of outstanding Notes represented thereby
may from time to time be reduced or increased, as appropriate, to reflect
exchanges and redemptions. Any endorsement of a Global Note to reflect the
amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby shall be made by the Trustee or the
Service Agent, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.4 hereof.

               (c)    BOOK-ENTRY PROVISIONS. This Section 2.1(c) shall apply
only to the Global Notes deposited with or on behalf of the Depository.

               The Company shall execute and the Trustee shall, in accordance
with this Section 2.1(c), authenticate and deliver the Global Notes that (i)
shall be registered in the name of the Depository or the nominee of the
Depository and (ii) shall be delivered by the Trustee to the Depository or
pursuant to the Depository's instructions or held by the Service Agent.

               Agent Members shall have no rights either under the Second
Supplemental Indenture or the Indenture with respect to any Global Notes held on
their behalf by the Depository or by the Service Agent or under such Global
Notes, and the Depository may be treated by the Company, the Trustee and any
agent of the Company or the Trustee as the absolute owner of such Global Notes
for all purposes whatsoever.

               (d)    DEFINITIVE NOTES. Notes issued in certificated form shall
be substantially in the form of Exhibit A attached hereto (but without including
the text referred to in Section 2.15.3 of the Indenture). Except as provided in
Section 2.4, owners of beneficial interests in the Global Notes will not be
entitled to receive physical delivery of certificated Securities.

Section 2.2.   EXECUTION AND AUTHENTICATION.

               The Trustee shall, upon a written order of the Company signed by
an Officer, authenticate up to $150,000,000 aggregate principal amount of
Initial Notes and such amount of Additional Notes as the Company may issue from
time to time.

Section 2.3.   DEPOSITORY AND PAYING AGENT FOR NOTES.

               The Company initially appoints The Depository Trust Company
("DTC") to act as Depository with respect to the Global Notes. The Company
initially appoints the Trustee to act as the Registrar, Paying Agent and Service
Agent with respect to the Global Notes.

Section 2.4.   TRANSFER AND EXCHANGE OF NOTES.

               (a)    TRANSFER AND EXCHANGE OF GLOBAL NOTES. The transfer and
exchange of beneficial interests in the Global Notes shall be effected through
the Depository, in accordance with the Second

                                       16
<Page>

Supplemental Indenture and the Indenture and the procedures of the Depository
therefor. Beneficial interests in the Global Notes may be transferred to Persons
who take delivery thereof in the form of a beneficial interest in the Global
Notes.

               (b)    TRANSFER AND EXCHANGE OF DEFINITIVE NOTES. When Definitive
Notes are presented by a Holder to the Registrar with a request:

                      (x)     to register the transfer of the Definitive Notes;
                              or

                      (y)     to exchange such Definitive Notes for an equal
                              principal amount of Definitive Notes of other
                              authorized denominations, the Registrar shall
                              register the transfer or make the exchange as
                              requested if its requirements for such
                              transactions are met; PROVIDED, HOWEVER, that the
                              Definitive Notes presented or surrendered for
                              register of transfer or exchange shall be duly
                              endorsed or accompanied by a written instruction
                              of transfer in form satisfactory to the Registrar
                              duly executed by such Holder or by his attorney,
                              duly authorized in writing.

               (c)    RESTRICTIONS ON TRANSFER AND EXCHANGE OF GLOBAL NOTES.
Notwithstanding any other provision of the Second Supplemental Indenture or the
Indenture (other than the provisions set forth in subsection (d) of this Section
2.4), the Global Notes may not be transferred as a whole except by the
Depository to a nominee of the Depository, by a nominee of the Depository to the
Depository or to another nominee of the Depository, or by the Depository or any
such nominee to a successor Depository or a nominee of such successor
Depository.

               (d)    AUTHENTICATION OF DEFINITIVE NOTES IN ABSENCE OF
DEPOSITORY. If at any time:

                      (i)     the Depository for the Notes notifies the Company
                              that the Depository is unwilling or unable to
                              continue as Depository for the Global Notes and a
                              successor Depository for the Global Notes is not
                              appointed by the Company within 90 days after
                              delivery of such notice; or

                      (ii)    the Company at its sole discretion, notifies the
                              Trustee in writing that it elects to cause the
                              issuance of Definitive Notes under the Second
                              Supplemental Indenture and the Indenture,

then the Company shall execute, and the Trustee shall, upon receipt of an
authentication order in accordance with Section 2.2 hereof, authenticate and
deliver, Definitive Notes in an aggregate principal amount equal to the
principal amount of the Global Notes in exchange for such Global Notes.

               (e)    CANCELLATION AND/OR ADJUSTMENT OF THE GLOBAL NOTES. At
such time as all beneficial interests in a particular Global Note have been
exchanged for Definitive Notes or a particular Global Note has been redeemed,
repurchased or canceled in whole and not in part, each such Global Note shall be
returned to or retained and canceled by the Trustee in accordance with Section
2.12 of the Indenture. At any time prior to such cancellation, if any beneficial
interest in a Global Note is exchanged for or transferred to a Person who will
take delivery thereof in the form of a beneficial interest in another Global
Note or for Definitive Notes, the principal amount of Notes represented by the
Global Note shall be reduced accordingly and an endorsement shall be made on
such Global Note by the Trustee or by the Depository at the direction of the
Trustee to reflect such reduction; and if the beneficial interest is being
exchanged for or transferred to a Person who will take delivery thereof in the
form of a beneficial interest

                                       17
<Page>

in another Global Note, such other Global Note shall be increased accordingly
and an endorsement will be made on such Global Note by the Trustee or by the
Depository at the direction of the Trustee to reflect such increase.

               (f)    GENERAL PROVISIONS RELATING TO TRANSFERS AND EXCHANGES.

                      (i)     To permit registrations of transfers and
                              exchanges, the Company shall execute and the
                              Trustee shall authenticate Global Notes and
                              Definitive Notes upon receipt of an Authentication
                              Order in accordance with Section 2.2 hereof or at
                              the Registrar's request.

                      (ii)    No service charge shall be made to a Holder of a
                              Global Note or to a Holder of a Definitive Note
                              for any registration of transfer or exchange, but
                              the Company may require payment of a sum
                              sufficient to cover any transfer tax or similar
                              governmental charge payable in connection
                              therewith (other than any such transfer taxes or
                              similar governmental charge payable upon exchange
                              or transfer pursuant to Section 2.4 hereof).

                      (iii)   All Global Notes and Definitive Notes issued upon
                              any registration of transfer or exchange of Global
                              Notes or Definitive Notes shall be the valid
                              obligations of the Company, evidencing the same
                              debt, and entitled to the same benefits under the
                              Second Supplemental Indenture and the Indenture,
                              as the Global Notes or Definitive Notes
                              surrendered upon such registration of transfer or
                              exchange.

                      (iv)    The Company shall not be required to register the
                              transfer of or to exchange a Note between a record
                              date and the next succeeding interest payment
                              date.

                      (iv)    Prior to due presentment for the registration of a
                              transfer of any Note, the Trustee, any Agent, the
                              Company and any Guarantor may deem and treat the
                              Person in whose name any Note is registered as the
                              absolute owner of such Note for all purposes,
                              including receiving payment of principal of and
                              interest on such Notes, and neither the Trustee,
                              any Agent, the Company nor any Guarantor shall be
                              affected by notice to the contrary.

                      (v)     The Trustee shall authenticate Definitive Notes
                              and the Global Notes in accordance with the
                              provisions of Section 2.2 hereof and Section 2.3
                              of the Indenture.

                      (vi)    All certifications, certificates and opinions of
                              counsel required to be submitted to the Registrar
                              pursuant to this Section 2.4 to effect a
                              registration of transfer or exchange may be
                              submitted by facsimile.

Section 2.5.   REDEMPTION.

               With respect to the Notes issued under this Second Supplemental
Indenture, the following Sections supplement Article III of the Indenture:

                                       18
<Page>

               Section  3.7.  OPTIONAL REDEMPTION.

               Prior to July 1, 2008, the Notes shall be subject to redemption
at any time at the option of the Company, in whole or in part, upon not less
than 10 nor more than 60 days' notice, at the Make-Whole Price, plus accrued and
unpaid interest, to but excluding the applicable redemption date. On and after
July 1, 2008, the Notes will be subject to redemption at any time at the option
of the Company, in whole or in part, upon not less than 10 nor more than 60
days' notice, at the redemption price (expressed as percentages of principal
amount) set forth below, plus accrued and unpaid interest to but excluding the
applicable redemption date, if redeemed during the twelve-month period beginning
on July 1 of the years indicated below:

<Table>
<Caption>
               YEAR                                                 PERCENTAGE
               ----                                                 ----------
               <S>                                                    <C>
               2008..............................................     103.313%
               2009..............................................     102.208%
               2010..............................................     101.104%
               2011 and thereafter...............................     100.000%
</Table>

               Notwithstanding the foregoing, at any time prior to July 1, 2006
the Company may on any one or more occasions redeem the Notes at a redemption
price of 106.625% of the principal amount thereof, plus accrued and unpaid
interest, and Liquidated Damages if any, to the redemption date, with the net
cash proceeds of one or more Qualified Equity Offerings; provided that:

               (1)    at least $100.0 million in the aggregate principal amount
                      of the Notes (including any Additional Notes) issued under
                      the Indenture remains outstanding immediately after the
                      occurrence of such redemption (excluding Notes held by the
                      Company and the Company's Subsidiaries); and

               (2)    the redemption must occur within six months of the date of
                      the closing of any such Qualified Equity Offering.

               Section 3.8.   MANDATORY REDEMPTION.

               The Company shall not be required to make mandatory redemption
payments or sinking fund payments with respect to the Notes.

               Section 3.9    ASSET SALE OFFERS.

               In the event that the Company shall commence an Asset Sale Offer
pursuant to Section 4.17 hereof, it shall follow the procedures specified below:

               The Asset Sale Offer shall remain open for 20 Business Days after
the Commencement Date relating to such Asset Sale Offer, except to the extent
required to be extended by applicable law (as so extended, the "OFFER PERIOD").
No later than one Business Day after the termination of the Offer Period (the
"PURCHASE DATE"), the Company shall purchase the principal amount (the "OFFER
AMOUNT") of Notes required to be purchased in such Asset Sale Offer pursuant to
Sections 3.2 and 4.17 hereof or, if less than the Offer Amount has been
tendered, all Notes tendered in response to the Asset Sale Offer.

                                       19
<Page>

               If the Purchase Date is on or after an interest payment record
date and on or before the related interest payment date, any interest accrued to
such Purchase Date shall be paid to the Person in whose name a Note is
registered at the close of business on such record date, and no additional
interest shall be payable to Holders who tender Notes pursuant to the Asset Sale
Offer.

               On the Commencement Date of any Asset Sale Offer, the Company
shall send or cause to be sent, by first class mail, a notice to each of the
Holders, with a copy to the Trustee. Such notice, which shall govern the terms
of the Asset Sale Offer, shall contain all instructions and materials necessary
to enable the Holders to tender Notes pursuant to the Asset Sale Offer and shall
state:

               (1)    that the Asset Sale Offer is being made pursuant to this
                      Section 3.9 and Section 4.17 hereof and the length of time
                      the Asset Sale Offer shall remain open;

               (2)    the Offer Amount, the purchase price and the Purchase
                      Date;

               (3)    that any Note not tendered or accepted for payment shall
                      continue to accrue interest;

               (4)    that, unless the Company defaults in the payment of the
                      purchase price, any Note accepted for payment pursuant to
                      the Asset Sale Offer shall cease to accrue interest after
                      the Purchase Date;

               (5)    that Holders electing to have a Note purchased pursuant to
                      any Asset Sale Offer shall be required to surrender the
                      Note, with the form entitled "Option of Holder to Elect
                      Purchase" on the reverse of the Note completed, to the
                      Company, a depositary, if appointed by the Company, or a
                      Paying Agent at the address specified in the notice prior
                      to the close of business on the Business Day preceding the
                      Purchase Date;

               (6)    that Holders shall be entitled to withdraw their election
                      if the Company, depositary or Paying Agent, as the case
                      may be, receives, not later than the close of business on
                      the Business Day preceding the termination of the Offer
                      Period, a facsimile transmission or letter setting forth
                      the name of the Holder, the principal amount of the Note
                      the Holder delivered for purchase and a statement that
                      such Holder is withdrawing such Holder's election to have
                      the Note purchased;

               (7)    that, if the aggregate principal amount of Notes
                      surrendered by Holders exceeds the Offer Amount, the
                      Trustee shall select the Notes to be purchased on a PRO
                      RATA basis (with such adjustments as may be deemed to be
                      appropriate by the Company so that only Notes in
                      denominations of $1,000, or integral multiples thereof,
                      shall be purchased); and

               (8)    that Holders whose Notes were purchased only in part shall
                      be issued new Notes equal in principal amount to the
                      unpurchased portion of the Notes surrendered.

               On or before 12:00 noon on each Purchase Date, the Company shall
irrevocably deposit with the Trustee or Paying Agent in immediately available
funds the aggregate purchase price with respect to a principal amount of Notes
equal to the Offer Amount, together with accrued interest thereon, to be held
for payment in accordance with the terms of this Section 3.9. On the Purchase
Date, the Company shall, to the extent lawful, (i) accept for payment, on a PRO
RATA basis to the extent necessary, an

                                       20
<Page>

aggregate principal amount equal to the Offer Amount of Notes and other notes
(in accordance with the terms of Section 4.17 of the Indenture) tendered
pursuant to the Asset Sale Offer, or if less than the Offer Amount has been
tendered, all Notes and such other notes or portions thereof tendered, (ii)
deliver or cause the Paying Agent or depositary, as the case may be, to deliver
to the Trustee Notes so accepted and (iii) deliver to the Trustee an Officers'
Certificate stating that such Notes or portions thereof were accepted for
payment by the Company in accordance with the terms of this Section 3.9. The
Company, depositary or Paying Agent, as the case may be, shall promptly (but in
any case not later than three Business Days after the Purchase Date) mail or
deliver to each tendering Holder an amount equal to the purchase price with
respect to the Notes tendered by such Holder and accepted by the Company for
purchase, and the Company shall promptly issue a new Note, and the Trustee shall
authenticate and mail or deliver such new Note, to such Holder, equal in
principal amount to any unpurchased portion of such Holder's Notes surrendered.
Any Note not accepted in the Asset Sale Offer shall be promptly mailed or
delivered by the Company to the Holder thereof. The Company shall publicly
announce in a newspaper of general circulation the results of the Asset Sale
Offer on the Purchase Date.

               The Asset Sale Offer shall be made by the Company in compliance
with all applicable laws, including, without limitation, Regulation 14E of the
Exchange Act and the rules thereunder, to the extent applicable, and all other
applicable federal and state securities laws.

               Each purchase pursuant to this Section 3.9 shall be made pursuant
to the provisions of Sections 3.1 through 3.6 hereof to the extent applicable.

               In the event the amount of Excess Proceeds to be applied to an
Asset Sale Offer would result in the purchase of a principal amount of Notes
which is not evenly divisible by $1,000, the Trustee shall promptly refund to
the Company the portion of such Excess Proceeds that is not necessary to
purchase the immediately lesser principal amount of Notes that is so divisible.

Section 2.6.   COVENANTS.

               With respect to the Notes issued under this Second Supplemental
Indenture, Sections 2.6(a) through 2.6(k) are added to Article IV of the
Indenture.

               (a)    RESTRICTED PAYMENTS.

               Section 4.8. RESTRICTED PAYMENTS. The Company shall not, and
shall not permit any of its Restricted Subsidiaries to, directly or indirectly:

               (1)    declare or pay any dividend or make any distribution on
                      account of the Company's or any of its Restricted
                      Subsidiaries' Equity Interests (other than dividends or
                      distributions payable in Equity Interests (other than
                      Disqualified Stock) of the Company or such Restricted
                      Subsidiary or dividends or distributions payable to the
                      Company or any Restricted Subsidiary);

               (2)    purchase, redeem or otherwise acquire or retire for value
                      any Equity Interests of the Company or any Restricted
                      Subsidiary or other Affiliate of the Company (other than
                      any such Equity Interests owned by the Company or any
                      Restricted Subsidiary);

               (3)    purchase, redeem or otherwise acquire or retire prior to
                      scheduled maturity for value any Indebtedness that is
                      subordinated in right of payment to the Notes; or

                                       21
<Page>

               (4)    make any Investment other than a Permitted Investment (all
                      such payments and other actions set forth in clauses (1)
                      through (4) above being collectively referred to as
                      "RESTRICTED PAYMENTS");

unless, at the time of such Restricted Payment:

                      (i)     no Default or Event of Default shall have occurred
                              and be continuing or would occur as a consequence
                              thereof; and

                      (ii)    the Company would, at the time of such Restricted
                              Payment and after giving pro forma effect thereto,
                              have been permitted to incur at least $1.00 of
                              additional Indebtedness pursuant to the test set
                              forth in the first paragraph of Section 4.9 of the
                              Indenture; and

                      (iii)   such Restricted Payment, together with the
                              aggregate of all other Restricted Payments made by
                              the Company and its Restricted Subsidiaries after
                              the 1996 Indenture Date is less than (x) the
                              cumulative EBITDA of the Company, minus 1.75 times
                              the cumulative Consolidated Interest Expense of
                              the Company, in each case for the period (taken as
                              one accounting period) from June 30, 1996, to the
                              end of the Company's most recently ended fiscal
                              quarter for which internal financial statements
                              are available at the time of such Restricted
                              Payment, plus (y) the aggregate net Equity
                              Proceeds received by the Company from the issuance
                              or sale since the 1996 Indenture Date of Equity
                              Interests of the Company or of debt securities of
                              the Company that have been converted into such
                              Equity Interests (other than Equity Interests or
                              convertible debt securities sold to a Restricted
                              Subsidiary of the Company and other than
                              Disqualified Stock or debt securities that have
                              been converted into Disqualified Stock), plus (z)
                              $2.0 million.

               The foregoing provisions will not prohibit:

               (1)    the payment of any dividend within 60 days after the date
                      of declaration thereof, if at said date of declaration
                      such payment would have complied with the provisions of
                      the Indenture;

               (2)    the redemption, repurchase, retirement or other
                      acquisition or retirement for value of any Equity
                      Interests of the Company in exchange for, or with the net
                      cash proceeds of, the substantially concurrent sale (other
                      than to a Restricted Subsidiary of the Company) of other
                      Equity Interests of the Company (other than any
                      Disqualified Stock);

               (3)    the defeasance, redemption, repurchase, retirement or
                      other acquisition or retirement for value of Indebtedness
                      that is subordinated in right of payment to the Notes in
                      exchange for, or with the net cash proceeds of, a
                      substantially concurrent issuance and sale (other than to
                      a Restricted Subsidiary of the Company) of Equity
                      Interests of the Company (other than Disqualified Stock);

               (4)    the defeasance, redemption, repurchase, retirement or
                      other acquisition or retirement for value of Indebtedness
                      that is subordinated in right of payment to

                                       22
<Page>

                      the Notes in exchange for, or with the net cash proceeds
                      of, a substantially concurrent issue and sale (other than
                      to the Company or any of its Restricted Subsidiaries) of
                      Refinancing Indebtedness;

               (5)    the repurchase of any Indebtedness subordinated in right
                      of payment to the Notes at a purchase price not greater
                      than 101% of the principal amount of such Indebtedness in
                      the event of a Change of Control in accordance with
                      provisions similar to the covenant set forth in Section
                      4.18 of the Indenture, provided that prior to or
                      contemporaneously with such repurchase the Company has
                      made the Change of Control Offer as provided in such
                      covenant with respect to the Notes and has repurchased all
                      Notes validly tendered for payment in connection with such
                      Change of Control Offer; and

               (6)    additional payments to current or former employees or
                      directors of the Company for repurchases of stock, stock
                      options or other equity interests, provided that the
                      aggregate amount of all such payments under this clause
                      (6) does not exceed $0.5 million in any year and $2.0
                      million in the aggregate.

               The Restricted Payments described in clauses (2), (3), (5) and
(6) of the immediately preceding paragraph shall be Restricted Payments that
shall be permitted to be taken in accordance with such paragraph but shall
reduce the amount that would otherwise be available for Restricted Payments
under clause (iii) of the first paragraph of this Section, and the Restricted
Payments described in clauses (1) and (4) of the immediately preceding paragraph
shall be Restricted Payments that shall be permitted to be taken in accordance
with such paragraph and shall not reduce the amount that would otherwise be
available for Restricted Payments under clause (iii) of the first paragraph of
this Section.

               If an Investment results in the making of a Restricted Payment,
the aggregate amount of all Restricted Payments deemed to have been made as
calculated under the foregoing provision shall be reduced by the amount of any
net reduction in such Investment (resulting from the payment of interest or
dividends, loan repayment, transfer of assets or otherwise) to the extent such
net reduction is not included in the Company's EBITDA; PROVIDED, HOWEVER, that
the total amount by which the aggregate amount of all Restricted Payments may be
reduced may not exceed the lesser of (a) the cash proceeds received by the
Company and its Restricted Subsidiaries in connection with such net reduction
and (b) the initial amount of such Investment.

               If the aggregate amount of all Restricted Payments calculated
under the foregoing provision includes an Investment in an Unrestricted
Subsidiary or other Person that thereafter becomes a Restricted Subsidiary, such
Investment will no longer be counted as a Restricted Payment for purposes of
calculating the aggregate amount of Restricted Payments. For the purpose of
making any calculations under the Indenture:

               (1)    an Investment shall include the fair market value of the
                      net assets of any Restricted Subsidiary at the time that
                      such Restricted Subsidiary is designated an Unrestricted
                      Subsidiary and shall exclude the fair market value of the
                      net assets of any Unrestricted Subsidiary that is
                      designated as a Restricted Subsidiary;

               (2)    any property transferred to or from an Unrestricted
                      Subsidiary shall be valued at fair market value at the
                      time of such transfer, provided that, in each case, the
                      fair market value of an asset or property is as determined
                      by the Board of Directors in good faith; and

                                       23
<Page>

               (3)    subject to the foregoing, the amount of any Restricted
                      Payment, if other than cash, shall be determined by the
                      Board of Directors, whose good faith determination shall
                      be conclusive.

               The Board of Directors may designate a Restricted Subsidiary to
be an Unrestricted Subsidiary in compliance with the Section 4.15 of the
Indenture. Upon such designation, all outstanding Investments by the Company and
its Restricted Subsidiaries (except to the extent repaid in cash) in the
Subsidiary so designated will be deemed to be Restricted Payments made at the
time of such designation and will reduce the amount available for Restricted
Payments under the first paragraph of this covenant. Such designation will only
be permitted if such Restricted Payment would be permitted at such time and if
such Restricted Subsidiary otherwise meets the definition of an Unrestricted
Subsidiary.

               (b) INCURRENCE OF INDEBTEDNESS AND ISSUANCE OF PREFERRED STOCK.

               Section 4.9. INCURRENCE OF INDEBTEDNESS AND ISSUANCE OF PREFERRED
STOCK. The Company shall not, and shall not permit any of its Restricted
Subsidiaries to, directly or indirectly, create, incur, issue, assume, guaranty
or otherwise become directly or indirectly liable with respect to (collectively,
"INCUR") any Indebtedness (including Acquired Debt) and the Company shall not
permit any of its Restricted Subsidiaries to issue any shares of preferred
stock; provided, however, that the Company may incur Indebtedness and may permit
a Restricted Subsidiary to incur Indebtedness if at the time of such incurrence
and after giving effect thereto the Leverage Ratio would be less than 6.5 to
1.0.

               The foregoing limitations shall not apply to:

               (1)    the incurrence by the Company or any Restricted Subsidiary
                      of Senior Bank Debt in an aggregate amount not to exceed
                      $100.0 million at any one time outstanding;

               (2)    the issuance by the Restricted Subsidiaries of Subsidiary
                      Guarantees;

               (3)    the incurrence by the Company and its Restricted
                      Subsidiaries of the Existing Indebtedness;

               (4)    the issuance by the Company of the Notes;

               (5)    the incurrence by the Company and its Restricted
                      Subsidiaries of Capital Lease Obligations and/or
                      additional Indebtedness constituting purchase money
                      obligations up to an aggregate of $5.0 million at any one
                      time outstanding, provided that the Liens securing such
                      Indebtedness constitute Permitted Liens;

               (6)    the incurrence of Indebtedness between (i) the Company and
                      its Restricted Subsidiaries and (ii) the Restricted
                      Subsidiaries;

               (7)    Hedging Obligations that are incurred for the purpose of
                      fixing or hedging interest rate risk with respect to any
                      floating rate Indebtedness that is permitted by the terms
                      of the Indenture to be outstanding;

               (8)    the incurrence by the Company and its Restricted
                      Subsidiaries of Indebtedness arising out of letters of
                      credit, performance bonds, surety bonds and bankers'
                      acceptances incurred in the ordinary course of business up
                      to an aggregate of $5.0 million at any one time
                      outstanding;

                                       24
<Page>

               (9)    the incurrence by the Company and its Restricted
                      Subsidiaries of Indebtedness consisting of guarantees,
                      indemnities or obligations in respect of purchase price
                      adjustments in connection with the acquisition or
                      disposition of assets, including, without limitation,
                      shares of Capital Stock; and

               (10)   the incurrence by the Company and its Restricted
                      Subsidiaries of Refinancing Indebtedness issued in
                      exchange for, or the proceeds of which are used to repay,
                      redeem, defease, extend, refinance, renew, replace or
                      refund, Indebtedness referred to in clauses (2) through
                      (5) above, and this clause (10) or that was otherwise
                      permitted to be incurred pursuant to the test set forth in
                      the first paragraph of this Section 4.9.

               (c)    LIENS.

               Section 4.10. LIENS. Neither the Company nor any of its
Restricted Subsidiaries may directly or indirectly create, incur, assume or
suffer to exist any Lien (other than a Permitted Lien) upon any property or
assets now owned or hereafter acquired, or any income, profits or proceeds
therefrom, or assign or otherwise convey any right to receive income therefrom,
unless (a) in the case of any Lien securing any Indebtedness that is subordinate
to the Notes, the Notes are secured by a Lien on such property, assets or
proceeds that is senior in priority to such Lien and (b) in the case of any
other Lien, the Notes are equally and ratably secured with the obligation or
liability secured by such Lien.

               (d) DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING RESTRICTED
SUBSIDIARIES.

          Section 4.11. DIVIDEND AND OTHER PAYMENT RESTRICTIONS AFFECTING
RESTRICTED SUBSIDIARIES. The Company shall not, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any encumbrance or restriction on the
ability of any Restricted Subsidiary to:

               (1)    (i) pay dividends or make any other distributions to the
                      Company or any of its Restricted Subsidiaries (A) on its
                      Capital Stock or (B) with respect to any other interest or
                      participation in, or measured by, its profits, or (ii) pay
                      any Indebtedness owed to the Company or any of its
                      Restricted Subsidiaries;

               (2)    make loans or advances to the Company or any of its
                      Restricted Subsidiaries; or

               (3)    transfer any of its properties or assets to the Company or
                      any of its Restricted Subsidiaries.

               However, the preceding restrictions will not apply to
encumbrances or restrictions existing under or by reason of:

               (1)    Existing Indebtedness;

               (2)    the Credit Agreement as in effect as of the date of the
                      Indenture, and any amendments, modifications,
                      restatements, renewals, increases, supplements,
                      refundings, replacements or refinancing thereof, provided
                      that such amendments, modifications, restatements,
                      renewals, increases, supplements, refundings, replacements
                      or refinancings are no more restrictive in the aggregate
                      with respect

                                       25
<Page>

                      to such dividend and other payment restrictions than those
                      contained in the Credit Agreement as in effect on the date
                      of the Indenture;

               (3)    the Indenture and the Notes;

               (4)    applicable law;

               (5)    any instrument governing Indebtedness or Capital Stock of
                      a Person acquired by the Company or any of its Restricted
                      Subsidiaries as in effect at the time of such acquisition
                      (except to the extent such Indebtedness was incurred in
                      connection with or in contemplation of such acquisition),
                      which encumbrance or restriction is not applicable to any
                      Person, or the properties or assets of any Person, other
                      than the Person, or the property or assets of the Person,
                      so acquired, provided that the EBITDA of such Person is
                      not taken into account in determining whether such
                      acquisition was permitted by the terms of the Indenture;

               (6)    customary non-assignment provisions in leases entered into
                      in the ordinary course of business and consistent with
                      past practices;

               (7)    restrictions on the transfer of property subject to
                      purchase money obligations or Capital Lease Obligations
                      otherwise permitted by clause (5) of Section 4.9 of the
                      Indenture;

               (8)    permitted Refinancing Indebtedness, provided that the
                      restrictions contained in the agreements governing such
                      Refinancing Indebtedness are no more restrictive in the
                      aggregate than those contained in the agreements governing
                      the Indebtedness being refinanced; or

               (9)    any agreement or instrument governing Indebtedness of an
                      Excluded Restricted Subsidiary provided that (i) at the
                      time such agreement or instrument is entered into, such
                      Excluded Restricted Subsidiary and its Restricted
                      Subsidiaries have a Leverage Ratio of less than 6.5 to 1.0
                      and (ii) neither such Excluded Restricted Subsidiary nor
                      any of its Restricted Subsidiaries shall, directly or
                      indirectly, incur any Indebtedness (including Acquired
                      Debt) unless at the time of such incurrence and after
                      giving effect thereto, the Leverage Ratio for such
                      Excluded Restricted Subsidiary and its Restricted
                      Subsidiaries would be less than 6.5 to 1.0. For purposes
                      of determining the Leverage Ratio under this clause (9)
                      only, all references to the "Company" and its "Restricted
                      Subsidiaries" or similar references in the definition of
                      "Leverage Ratio" and other defined terms necessary to
                      determine the Leverage Ratio shall be deemed to refer to
                      such Excluded Restricted Subsidiary and its Restricted
                      Subsidiaries, respectively.

               (e) TRANSACTIONS WITH AFFILIATES.

               Section 4.12. TRANSACTIONS WITH AFFILIATES. The Company shall
not, and shall not permit any of its Restricted Subsidiaries to, sell, lease,
transfer or otherwise dispose of any of its properties or assets to, or purchase
any property or assets from, or enter into any contract, agreement,
understanding, loan, advance or guarantee with, or for the benefit of, any
Affiliate (each of the foregoing, an "AFFILIATE TRANSACTION"), unless:

                                       26
<Page>

               (a)    such Affiliate Transaction is on terms that are no less
                      favorable to the Company or the relevant Restricted
                      Subsidiary than those that would have been obtained in a
                      comparable transaction by the Company or such Restricted
                      Subsidiary with a non-Affiliated Person; and

               (b)    the Company delivers to the Trustee:

                      (i)     with respect to any Affiliate Transaction
                              involving aggregate payments in excess of $5.0
                              million, a resolution of the Board of Directors
                              set forth in an Officers' Certificate certifying
                              that such Affiliate Transaction complies with
                              clause (a) above and such Affiliate Transaction is
                              approved by a majority of the disinterested
                              members of the Board of Directors; and

                      (ii)    with respect to any Affiliate Transaction
                              involving aggregate payments in excess of $10.0
                              million, an opinion as to the fairness to the
                              Company or such Restricted Subsidiary from a
                              financial point of view issued by an investment
                              banking firm of national standing.

               The following items shall not be deemed Affiliate Transactions
and therefore, will not be subject to the provisions of the prior paragraph:

               (1)    any employment agreement entered into by the Company or
                      any of its Restricted Subsidiaries in the ordinary course
                      of business and consistent with the past practice of the
                      Company or such Restricted Subsidiary;

               (2)    transactions between or among the Company and/or its
                      Restricted Subsidiaries;

               (3)    transactions permitted by the provisions of Section 4.8 of
                      the Indenture; and

               (4)    the grant of stock, stock options or other equity
                      interests to employees and directors of the Company and
                      any Restricted Subsidiary in accordance with duly adopted
                      Company stock grant, stock option and similar plans.

               The provisions set forth in clause (b) above shall not apply to
sales of inventory by the Company or any Restricted Subsidiary to any Affiliate
in the ordinary course of business. The provisions of clause (b) (ii) above
shall not apply to loans or advances to the Company or any Restricted Subsidiary
from, or equity investments in the Company or any Restricted Subsidiary by, any
Affiliate to the extent permitted by the provisions of Section 4.9 of the
Indenture.

               (f) CERTAIN SENIOR SUBORDINATED DEBT.

               Section 4.13. CERTAIN SENIOR SUBORDINATED DEBT. The Company shall
not incur any Indebtedness that is subordinated or junior in right of payment to
any Senior Debt of the Company and senior in any respect in right of payment to
the Notes. The Company shall not permit any Restricted Subsidiary to incur any
Indebtedness that is subordinated or junior in right of payment to its Senior
Debt and senior in any respect in right of payment to its Subsidiary Guarantee.

               (g) ADDITIONAL SUBSIDIARY GUARANTEES.

                                       27
<Page>

               Section 4.14. ADDITIONAL SUBSIDIARY GUARANTEES. If any entity
(other than an Excluded Restricted Subsidiary) shall become a Restricted
Subsidiary after the date of the Second Supplemental Indenture, then such
Restricted Subsidiary shall execute a supplemental indenture in the form of
Exhibit B attached hereto, pursuant to which it shall provide a Subsidiary
Guarantee and deliver an Opinion of Counsel with respect thereto, in accordance
with the terms of the Indenture.

               No Restricted Subsidiary (including any Excluded Restricted
Subsidiary) shall consolidate with or merge with or into (whether or not such
Restricted Subsidiary is the surviving Person), another Person (other than the
Company) whether or not affiliated with such Restricted Subsidiary unless:

               (1)    subject to the provisions of the following paragraph, the
                      Person formed by or surviving any such consolidation or
                      merger (if other than such Restricted Subsidiary) assumes
                      all the obligations of such Restricted Subsidiary under
                      its Subsidiary Guarantee (except in the case of an
                      Excluded Restricted Subsidiary) pursuant to a supplemental
                      indenture in form and substance reasonably satisfactory to
                      the Trustee;

               (2)    immediately after giving effect to such transaction, no
                      Default or Event of Default exists; and

               (3)    such Restricted Subsidiary, or any Person formed by or
                      surviving any such consolidation or merger, would be
                      permitted to incur, immediately after giving effect to
                      such transaction, at least $1.00 of additional
                      Indebtedness pursuant to the test set forth in the first
                      paragraph of Section 4.9 of the Indenture.

In the event of:

               (1)    a sale or other disposition of all of the assets of any
                      Restricted Subsidiary, by way of merger, consolidation or
                      otherwise;

               (2)    a sale or other disposition of all of the capital stock of
                      any Restricted Subsidiary; or

               (3)    the designation of a Restricted Subsidiary as an
                      Unrestricted Subsidiary in accordance with the terms of
                      Section 4.15 of the Indenture,

then such Restricted Subsidiary (in the event of a sale or other disposition, by
way of such a merger, consolidation or otherwise, of all of the capital stock of
such Restricted Subsidiary or in the event of the designation of such Restricted
Subsidiary as an Unrestricted Subsidiary) or the Person acquiring the property
(in the event of a sale or other disposition of all of the assets of such
Restricted Subsidiary) will be released and relieved of any obligations under
its Subsidiary Guarantee, provided that the Net Proceeds of such sale or other
disposition are applied in accordance with the applicable provisions of Section
4.17 of the Indenture.

               (h) DESIGNATION OF UNRESTRICTED SUBSIDIARIES.

               Section 4.15. DESIGNATION OF UNRESTRICTED SUBSIDIARIES. The Board
of Directors may designate any Subsidiary (including any Restricted Subsidiary
or any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary so long as:

                                       28
<Page>

               (1)    neither the Company nor any Restricted Subsidiary is
                      directly or indirectly liable for any Indebtedness of such
                      Subsidiary;

               (2)    no default with respect to any Indebtedness of such
                      Subsidiary would permit (upon notice, lapse of time or
                      otherwise) any holder of any other Indebtedness of the
                      Company or any Restricted Subsidiary to declare a default
                      on such other Indebtedness or cause the payment thereof to
                      be accelerated or payable prior to its stated maturity;

               (3)    any Investment in such Subsidiary deemed to be made as a
                      result of designating such Subsidiary an Unrestricted
                      Subsidiary will not violate the provisions of Section 4.8
                      of the Indenture;

               (4)    neither the Company nor any Restricted Subsidiary has a
                      contract, agreement, arrangement, understanding or
                      obligation of any kind, whether written or oral, with such
                      Subsidiary other than (A) those that might be obtained at
                      the time from Persons who are not Affiliates of the
                      Company or (B) administrative, tax sharing and other
                      ordinary course contracts, agreements, arrangements and
                      understandings or obligations entered into in the ordinary
                      course of business; and

               (5)    neither the Company nor any Restricted Subsidiary has any
                      obligation to subscribe for additional shares of Capital
                      Stock or other Equity Interests in such Subsidiary, or to
                      maintain or preserve such Subsidiary's financial condition
                      or to cause such Subsidiary to achieve certain levels of
                      operating results other than as permitted under Section
                      4.8 of the Indenture.

               Notwithstanding the foregoing, the Company may not designate as
an Unrestricted Subsidiary any Subsidiary which, on the 1999 Indenture Date, was
a Significant Subsidiary, and may not sell, transfer or otherwise dispose of any
properties or assets of any such Significant Subsidiary to an Unrestricted
Subsidiary, other than in the ordinary course of business, in each case other
than Iron Mountain Global, Inc. and its Subsidiaries (including without
limitation Iron Mountain Europe Limited and its Subsidiaries).

               The Board of Directors may designate any Unrestricted Subsidiary
as a Restricted Subsidiary; provided that such designation will be deemed to be
an incurrence of Indebtedness by a Restricted Subsidiary of any outstanding
Indebtedness of such Unrestricted Subsidiary and such designation will only be
permitted if:

               (1)    such Indebtedness is permitted under Section 4.9 of the
                      Indenture; and

               (2)    no Default or Event of Default would occur as a result of
                      such designation.

               (i) LIMITATION ON SALE AND LEASEBACK TRANSACTIONS.

               Section 4.16. LIMITATION ON SALE AND LEASEBACK TRANSACTIONS. The
Company will not, and will not permit any Restricted Subsidiary to, enter into
any Sale and Leaseback Transaction unless:

               (1)    the consideration received in such Sale and Leaseback
                      Transaction is at least equal to the fair market value of
                      the property sold, as determined by a resolution of the
                      Board of Directors; and

                                       29
<Page>

               (2)    the Company or such Restricted Subsidiary could incur the
                      Attributable Indebtedness in respect of such Sale and
                      Leaseback Transaction in compliance with Section 4.9 of
                      the Indenture.

               (j) ASSET SALES.

               Section 4.17. ASSET SALES. The Company shall not, and shall not
permit any of its Restricted Subsidiaries to:

               (1)    sell, lease, convey or otherwise dispose of any assets
                      (including by way of a Sale and Leaseback Transaction, but
                      excluding a Qualifying Sale and Leaseback Transaction)
                      other than sales of inventory in the ordinary course of
                      business (provided that the sale, lease, conveyance or
                      other disposition of all or substantially all of the
                      assets of the Company will be governed by the provisions
                      of Section 4.18 of the Indenture and/or the provisions of
                      Section 5.1 of the Indenture and not by the provisions of
                      this Section 4.17); or

               (2)    issue or sell Equity Interests of any of its Restricted
                      Subsidiaries

that in the case of either clause (1) or (2) above, whether in a single
transaction or a series of related transactions:

               (i)    have a fair market value in excess of $2.0 million; or

               (ii)   result in Net Proceeds in excess of $2.0 million (each of
                      the foregoing, an "ASSET SALE"), unless (x) the Company
                      (or the Restricted Subsidiary, as the case may be)
                      receives consideration at the time of such Asset Sale at
                      least equal to the fair market value (evidenced by an
                      Officers' Certificate delivered to the Trustee, and for
                      Asset Sales having a fair market value or resulting in Net
                      Proceeds in excess of $10.0 million, evidenced by a
                      resolution of the Board of Directors set forth in an
                      Officers' Certificate delivered to the Trustee) of the
                      assets sold or otherwise disposed of and (y) at least 75%
                      of the consideration therefor received by the Company or
                      such Restricted Subsidiary is in the form of cash or
                      like-kind assets (in each case as determined in good faith
                      by the Company, evidenced by a resolution of the Board of
                      Directors and certified by an Officers' Certificate
                      delivered to the Trustee);

provided, however, that the amount of:

               (A)    any liabilities (as shown on the Company's or such
                      Restricted Subsidiary's most recent balance sheet or in
                      the notes thereto) of the Company or such Restricted
                      Subsidiary (other than liabilities that are by their terms
                      subordinated to the Notes or any Subsidiary Guarantee)
                      that are assumed by the transferee of any such assets; and

               (B)    any notes or other obligations received by the Company or
                      such Restricted Subsidiary from such transferee that are
                      immediately converted by the Company or such Restricted
                      Subsidiary into cash (to the extent of the cash received)
                      or Cash Equivalents,

                                       30
<Page>

shall be deemed to be cash for purposes of this provision; and provided,
further, that the 75% limitation referred to in the foregoing clause (ii) (y)
shall not apply to any Asset Sale in which the cash portion of the consideration
received therefrom is equal to or greater than what the after-tax proceeds would
have been had such Asset Sale complied with the aforementioned 75% limitation.

               A transfer of assets or issuance of Equity Interests by the
Company to a Wholly Owned Restricted Subsidiary or by a Wholly Owned Restricted
Subsidiary to the Company or to another Wholly Owned Restricted Subsidiary will
not be deemed to be an Asset Sale.

               Within 360 days of any Asset Sale, the Company may, at its
option, apply an amount equal to the Net Proceeds from such Asset Sale either:

               (1)    to permanently reduce Senior Debt; or

               (2)    to an investment in a Restricted Subsidiary or in another
                      business or capital expenditure or other
                      long-term/tangible assets, in each case, in the same line
                      of business as the Company or any of its Restricted
                      Subsidiaries was engaged in on the date of the Second
                      Supplemental Indenture or in businesses similar or
                      reasonably related thereto.

               Pending the final application of any such Net Proceeds, the
Company may temporarily reduce Senior Bank Debt or otherwise invest such Net
Proceeds in any manner that is not prohibited by the Indenture. Any Net Proceeds
from such Asset Sale that are not applied or invested as provided in the first
sentence of this paragraph will be deemed to constitute "EXCESS PROCEEDS." When
the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company shall
make an offer to all Holders of the Notes, all holders of the 8 1/4% Notes, the
8 1/8% Notes, the 8 5/8% Notes and the 7 3/4% Notes and the holders of any
future Indebtedness ranking PARI PASSU with the Notes, which Indebtedness
contains similar provisions requiring the Company to repurchase such
Indebtedness (an "ASSET SALE OFFER"), to purchase the maximum principal amount
of Notes and such other Indebtedness that may be purchased out of the Excess
Proceeds, at an offer price in cash in an amount equal to 100% of the principal
amount thereof plus accrued and unpaid interest, if any, to the date of
purchase, in accordance with the procedures set forth in the Indenture. To the
extent that the aggregate amount of Notes and other PARI PASSU Indebtedness
(including the 8 1/4% Notes, the 8 1/8% Notes, the 8 5/8% Notes and the 7 3/4%
Notes) tendered pursuant to an Asset Sale Offer is less than the Excess
Proceeds, the Company may use any remaining Excess Proceeds for general
corporate purposes. If the aggregate principal amount of Notes and such other
Indebtedness surrendered by Holders thereof exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such other Indebtedness to be
purchased on a pro rata basis. Upon completion of such offer to purchase, the
amount of Excess Proceeds shall be reset at zero.

               The Company shall comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder
to the extent those laws and regulations are applicable in connection with each
repurchase of Notes pursuant to an Asset Sale Offer. To the extent that the
provisions of any securities laws or regulations conflict with the provisions of
this Section 4.17, the Company shall comply with the applicable securities laws
and regulations and shall not be deemed to have breached its obligations under
the Asset Sale provisions of the Indenture by virtue of such conflict.

               An Asset Sale Offer shall be made pursuant to the provisions of
Section 3.9 hereof. No later than the date which is five Business Days after the
date on which the aggregate amount of Excess Proceeds exceeds $10.0 million, the
Company shall notify the Trustee of such Asset Sale Offer and provide the
Trustee with an Officers' Certificate setting forth the calculations used in
determining the

                                       31
<Page>

amount of Net Proceeds to be applied to the purchase of Notes. The Company shall
commence or cause to be commenced the Asset Sale Offer on a date no later than
15 Business Days after such notice (the "COMMENCEMENT DATE").

               (k) CHANGE OF CONTROL OFFER.

               Section 4.18. CHANGE OF CONTROL OFFER.

               (a) Upon the occurrence of a Change of Control, each Holder of
Notes shall have the right to require the Company to repurchase all or any part
(equal to $1,000 or an integral multiple thereof) of such Holder's Notes
pursuant to the offer described below (the "CHANGE OF CONTROL OFFER") at an
offer price in cash equal to 101% of the aggregate principal amount thereof plus
accrued and unpaid interest to but excluding the date of repurchase (the "CHANGE
OF CONTROL PAYMENT").

               Within 30 calendar days following any Change of Control, the
Company shall mail a notice to each Holder, with a copy to the Trustee, stating:

               (1)    that the Change of Control Offer is being made pursuant to
                      this Section 4.18 and that all Notes tendered shall be
                      accepted for payment;

               (2)    the purchase price and the purchase date, which shall be
                      no earlier than 30 calendar days nor later than 60
                      calendar days from the date such notice is mailed (the
                      "CHANGE OF CONTROL PAYMENT DATE");

               (3)    that any Note not tendered shall continue to accrue
                      interest;

               (4)    that, unless the Company defaults in the payment of the
                      Change of Control Payment, all Notes accepted for payment
                      pursuant to the Change of Control Offer shall cease to
                      accrue interest on and after the Change of Control Payment
                      Date;

               (5)    that Holders electing to have any Notes purchased pursuant
                      to a Change of Control Offer shall be required to
                      surrender the Notes, with the form entitled "Option of
                      Holder to Elect Purchase" on the reverse of the Notes
                      completed, to the Paying Agent at the address specified in
                      such notice prior to the close of business on the fifth
                      Business Day preceding the Change of Control Payment Date;

               (6)    that Holders will be entitled to withdraw their election
                      if the Paying Agent receives, not later than the close of
                      business on the second Business Day preceding the Change
                      of Control Payment Date, facsimile transmission or letter
                      setting forth the name of the Holder, the principal amount
                      of Notes delivered for purchase, and a statement that such
                      Holder is withdrawing its election to have such Notes
                      purchased; and

               (7)    that Holders whose Notes are being purchased only in part
                      will be issued new Notes equal in principal amount to the
                      unpurchased portion of the Notes surrendered, which
                      unpurchased portion must be equal to $1,000 in principal
                      amount or an integral multiple thereof.

               The Company shall comply with the requirements of Rule 14e-1
under the Exchange Act and any other securities laws and regulations thereunder,
to the extent such laws and regulations are

                                       32
<Page>

applicable to the repurchase of the Notes in connection with a Change of
Control. To the extent that the provisions of any securities laws or regulations
conflict with this Section 4.18, the Company shall comply with the applicable
securities laws and regulations and shall not be deemed to have breached its
obligations under the Change of Control provisions of the Indenture or the
Second Supplemental Indenture by virtue of such conflict.

               (b)    On the Change of Control Payment Date, the Company shall,
to the extent lawful:

               (1)    accept for payment Notes or portions thereof tendered
                      pursuant to the Change of Control Offer;

               (2)    deposit with the Paying Agent an amount equal to the
                      Change of Control Payment in respect of all Notes or
                      portions thereof so tendered; and

               (3)    deliver or cause to be delivered to the Trustee the Notes
                      so accepted together with an Officers' Certificate stating
                      the Notes or portions thereof tendered to the Company.

               The Paying Agent shall promptly mail to each Holder of Notes so
accepted the Change of Control Payment for such Notes, and the Trustee shall
promptly authenticate and mail to each Holder a new Note equal in principal
amount to any unpurchased portion of the Notes surrendered, if any; provided
that each such new Note shall be in a principal amount of $1,000 or an integral
multiple thereof. Prior to complying with the provisions of this Section 4.18,
but in any event within 90 calendar days following a Change of Control, the
Company shall either repay all outstanding Senior Debt or obtain the requisite
consents, if any, under all agreements governing outstanding Senior Debt to
permit the repurchase of Notes required by this Section 4.18. The Company shall
publicly announce in The Wall Street Journal, or if no longer published, a
national newspaper of general circulation, the results of the Change of Control
Offer on or as soon as practicable after the Change of Control Payment Date.

               The Company shall not be required to make a Change of Control
Offer upon a Change of Control if a third party makes the Change of Control
Offer in the manner, at the times and otherwise in compliance with the
requirements set forth in this Section 4.18 applicable to a Change of Control
Offer made by the Company and purchases all Notes properly tendered and not
withdrawn under the Change of Control Offer.

Section 2.7.   SUBSIDIARY GUARANTEES.

               With respect to the Notes issued under this Supplemental
Indenture, Article XII of the Indenture shall apply, and the Notes shall
constitute a Series to be guaranteed by the Guarantors pursuant to Article XII
of the Indenture.

Section 2.8.   LEGAL DEFEASANCE AND COVENANT DEFEASANCE.

               With respect to the Notes issued under this Supplemental
Indenture, Article VIII of the Indenture shall apply, and the Company shall have
the option to effect Legal Defeasance or Covenant Defeasance pursuant to Article
VIII of the Indenture. In connection with any Covenant Defeasance, the Company
shall be released from its obligations under the covenants specified in Section
5.1 of the Indenture and Section 2.6 of this Second Supplemental Indenture.

                                       33
<Page>

Section 2.9.   SUBORDINATION

               With respect to the Notes issued under this Supplemental
Indenture, Article XIII of the Indenture shall apply, and the Notes shall be
subject to subordination pursuant to Article XIII of the Indenture.

                                   ARTICLE 3.

                                  MISCELLANEOUS

Section 3.1.   EFFECT OF HEADINGS.

               The Article and Section headings herein are for convenience only
and shall not affect the construction hereof.

Section 3.2.   SUCCESSORS AND ASSIGNS.

               All covenants and agreements in this Second Supplemental
Indenture by the Company shall bind its successors and assigns, whether so
expressed or not.

Section 3.3.   SEPARABILITY CLAUSE.

               In case any provision in this Second Supplemental Indenture or in
the Notes shall be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired thereby.

Section 3.4.   GOVERNING LAW.

               This Second Supplemental Indenture and the Notes created hereby
shall be governed by and construed in accordance with the laws of the State of
New York without giving effect to any conflicts of law provisions (other than
Section 5-1401 of the New York General Obligations Law) that might cause this
Second Supplemental Indenture and the Notes to be governed by or construed or
enforced in accordance with the laws of any other jurisdiction.

Section 3.5.   SECOND SUPPLEMENT TO SUPERSEDE INDENTURE.

               The Indenture, as supplemented by the Second Supplemental
Indenture, remains in full force and effect as of the date hereof.
Notwithstanding the foregoing, to the extent that any provision of the Indenture
shall conflict with any provision of this Second Supplemental Indenture, the
terms of this Second Supplemental Indenture shall be deemed controlling and the
conflicting provision of the Indenture shall be null and void to the extent of
such conflict.

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                                       34
<Page>

               IN WITNESS WHEREOF, the parties have caused this Second
Supplemental Indenture to be duly executed, and attested, all as of the date and
year first written above.

                                         Iron Mountain Incorporated

                                         By:    /s/ C. Richard Reese
                                         Name:  C. Richard Reese
                                         Title: President

                                         COMAC, Inc., Data Security and
                                         Storage, Inc., DSI Technology
                                         Escrow Services, Inc., Iron
                                         Mountain Global, Inc., Iron
                                         Mountain Information Management,
                                         Inc., Mountain Real Estate Assets,
                                         Inc., Mountain Reserve I, Inc. and
                                         Mountain Reserve II, Inc.

                                         By:   /s/ C. Richard Reese
                                         Name: C. Richard Reese
                                         Title: Sole Director

                                         Iron Mountain Global, LLC

                                         By: Iron Mountain Global, Inc.,
                                                    its sole member

                                         By:   /s/ C. Richard Reese
                                         Name: C. Richard Reese
                                         Title: Sole Director

                                         Iron Mountain Business Trust #1

                                         By:   /s/ C. Richard Reese
                                         Name: C. Richard Reese
                                         Title: Trustee

                                         By:   /s/ John F. Kenny, Jr.
                                         Name: John F. Kenny, Jr.
                                         Title: Trustee

                                         By:   /s/ Garry B. Watzke
                                         Name: Garry B. Watzke
                                         Title: Trustee

                 [Second Supplemental Indenture Signature Page]

<Page>

                                         THE BANK OF NEW YORK, as Trustee

                                         By:   /s/ Kisha A. Holder
                                         Name: Kisha A. Holder
                                         Title:  Assistant Vice President

                 [Second Supplemental Indenture Signature Page]

<Page>

                                                                       Exhibit A

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

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

                                 [Face of Note]
                    6-5/8% Senior Subordinated Notes due 2016

CUSIP No.  462846 AC 0                                              $150,000,000

                           IRON MOUNTAIN INCORPORATED

promises to pay to CEDE & Co. or registered assigns, the principal sum of One
Hundred Fifty Million Dollars on January 1, 2016.

               Interest Payment Dates: January 1 and July 1

               Record Dates: December 15 and June 15

               Dated: June 20, 2003

                                         IRON MOUNTAIN INCORPORATED

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

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

                                     (SEAL)

This is one of the Notes
referred to in the within-
mentioned Indenture:

THE BANK OF NEW YORK,
as Trustee

By:
     ------------------------------------
             Authorized Signature

<Page>

                    6-5/8% Senior Subordinated Notes due 2016

               This Security is a Global Security within the meaning of the
Indenture hereinafter referred to and is registered in the name of the
Depository or a nominee of the Depository. This Security is exchangeable for
Securities registered in the name of a Person other than the Depository or its
nominee only in the limited circumstances described in the Indenture, and may
not be transferred except as a whole by the Depository to a nominee of the
Depository, by a nominee of the Depository to the Depository or another nominee
of the Depository or by the Depository or any such nominee to a successor
Depository or a nominee of such a successor Depository.

               Unless and until it is exchanged in whole or in part for Notes in
definitive form, this Note may not be transferred except as a whole by the
Depository to a nominee of the Depository or by a nominee of the Depository to
the Depository or another nominee of the Depository or by the Depository or any
such nominee to a successor Depository or a nominee of such successor
Depository. Unless this certificate is presented by an authorized representative
of The Depository Trust Company (55 Water Street, New York, New York) ("DTC"),
to the issuer or its agent for registration of transfer, exchange or payment,
and any certificate issued is registered in the name of Cede & Co. or such other
name as may be requested by an authorized representative of DTC (and any payment
is made to Cede & Co. or such other entity as may be requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner
hereof, Cede & Co., has an interest herein.

               Capitalized terms used herein shall have the meanings assigned to
them in the Indenture referred to below unless otherwise indicated.

               1.     INTEREST. Iron Mountain Incorporated, a Pennsylvania
corporation (the "COMPANY") promises to pay interest on the principal amount of
this Note at 6-5/8% per annum from June 20, 2003 until January 1, 2016. The
Company shall pay interest, semi-annually in arrears on January 1 and July 1 of
each year, or if any such day is not a Business Day, on the next succeeding
Business Day (each an "INTEREST PAYMENT DATE"). Interest on the Notes will
accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the date of issuance; PROVIDED that if there is no
existing Default in the payment of interest, and if this Note is authenticated
between a record date referred to on the face hereof and the next succeeding
Interest Payment Date, interest shall accrue from such next succeeding Interest
Payment Date; PROVIDED, FURTHER, that the first Interest Payment Date shall be
January 1, 2004. The Company shall pay interest (including post-petition
interest to the extent allowed in any proceeding under any Bankruptcy Law) on
overdue principal from time to time on demand at a rate equal to the per annum
rate on the Notes then in effect; it shall pay interest (including post-petition
interest to the extent allowed in any proceeding under any Bankruptcy Law) on
overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the same rate to the extent lawful.
Interest will be computed on the basis of a 360-day year of twelve 30-day
months.

               2.     METHOD OF PAYMENT. The Company will pay principal,
premium, if any, and interest on the Notes in money of the United States that at
the time of payment is legal tender for payment of public and private debts. The
Company, however, may pay principal, premium, if any, and interest by check
payable in such money. It may mail an interest check to a Holder's registered
address.

               3.     PAYING AGENT, REGISTRAR AND SERVICE AGENT. Initially, The
Bank of New York, the Trustee under the Indenture, will act as Paying Agent,
Registrar and Service Agent. The Notes may be presented for registration of
transfer and exchange at the offices of the Registrar. The Company may change
any Paying Agent, Service Agent or Registrar without notice to any Holder. The
Company or any of its Subsidiaries may act in any such capacity.

<Page>

               4.     INDENTURE. The Company issued the Notes under an Indenture
dated as of December 30, 2002 (the "BASE INDENTURE"), as supplemented by a
Second Supplemental Indenture dated as of June 20, 2003 (the "SUPPLEMENTAL
INDENTURE" and, together with the Base Indenture, the "INDENTURE"), among the
Company, the Guarantors and the Trustee. The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code Sections 77aaa-77bbbb).
The Notes are subject to all such terms, and Holders are referred to the
Indenture and such Act for a statement of such terms. To the extent any
provision of this Note conflicts with the express provisions of the Indenture,
the provisions of the Indenture shall govern and be controlling. The Notes
issued under the Indenture are subordinated unsecured obligations of the Company
limited to $150,000,000 in aggregate principal amount.

               5.     OPTIONAL REDEMPTION.

               Prior to July 1, 2008, the Notes shall be subject to redemption
at any time at the option of the Company, in whole or in part, upon not less
than 10 nor more than 60 days' notice, at the Make-Whole Price, plus accrued and
unpaid interest, to but excluding the applicable redemption date. On and after
July 1, 2008, the Notes will be subject to redemption at any time at the option
of the Company, in whole or in part, upon not less than 10 nor more than 60
days' notice, at the redemption price (expressed as percentages of principal
amount) set forth below, plus accrued and unpaid interest to but excluding the
applicable redemption date, if redeemed during the twelve-month period beginning
on July 1 of the years indicated below:

<Table>
<Caption>
               YEAR                                               PERCENTAGE
               ----                                               ----------
               <S>                                                  <C>
               2008...........................................      103.313%
               2009...........................................      102.208%
               2010...........................................      101.104%
               2011 and thereafter............................      100.000%
</Table>

               Notwithstanding the foregoing, at any time prior to July 1, 2006
the Company may on any one or more occasions redeem the Notes at a redemption
price of 106.625% of the principal amount thereof, plus accrued and unpaid
interest, and Liquidated Damages if any, to the redemption date, with the net
cash proceeds of one or more Qualified Equity Offerings; provided that (i) at
least $100.0 million in the aggregate principal amount of the Notes (including
any Additional Notes) issued under the Indenture remains outstanding immediately
after the occurrence of such redemption (excluding Notes held by the Company and
the Company's Subsidiaries) and (ii) the redemption must occur within six months
of the date of the closing of any such Qualified Equity Offering.

               6.     NOTICE OF REDEMPTION.

               Notice of redemption will be mailed at least 10 days but not more
than 60 days before the redemption date to each Holder of the Notes to be
redeemed at such Holder's address of record. The Notes in denominations larger
than $1,000 may be redeemed in part but only in integral multiples of $1,000,
unless all the Notes held by a Holder are to be redeemed. In the event of a
redemption of less than all of the Notes, the Notes will be chosen for
redemption by the Trustee in accordance with the Indenture. On and after the
redemption date, interest ceases to accrue on the Notes or portions of them
called for redemption.

               If this Note is redeemed subsequent to a Record Date with respect
to any Interest Payment Date specified above and on or prior to such Interest
Payment Date, then any accrued interest will be paid to the Person in whose name
this Note is registered at the close of business on such Record Date.

<Page>

               7.     MANDATORY REDEMPTION. Except as set forth in paragraph 8
below, the Company shall not be required to repurchase or to make mandatory
redemption payments with respect to the Notes. There are no sinking fund
payments with respect to the Notes.

               8.     REPURCHASE AT OPTION OF HOLDER. This Note is subject to
purchase at the option of the Holder upon the circumstances set forth in
Sections 3.9, 4.17 and 4.18 of the Indenture.

               9.     SUBORDINATION. The payment of the principal of, interest
on or any other amounts due on the Notes is subordinated in right of payment to
all existing and future Senior Debt of the Company, as described in the
Indenture. Each Holder, by accepting a Note, agrees to such subordination and
authorizes and directs the Trustee on its behalf to take such action as may be
necessary or appropriate to effectuate the subordination so provided and
appoints the Trustee as its attorney-in-fact for such purpose.

               10.    DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in
registered form without coupons in minimum denominations of $1,000 and integral
multiples of $1,000 in excess thereof. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate
endorsements and transfer documents and the Company may require a Holder to pay
any taxes and fees required by law or permitted by the Indenture. The Company
need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being
redeemed in part. Also, the Company need not exchange or register the transfer
of any Notes for a period of 15 days before a selection of Notes to be redeemed
or during the period between a record date and the corresponding Interest
Payment Date.

               11.    PERSONS DEEMED OWNERS. The registered Holder of a Note may
be treated as its owner for all purposes.

               12.    AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain
exceptions, the Indenture with respect to the Notes or the Notes may be amended
or supplemented with the written consent of the Holders of a majority in
principal amount of the Notes and any existing default or compliance with any
provision of the Indenture with respect to the Notes or the Notes may be waived
with the consent of the Holders of a majority in principal amount of the Notes
(including, in each case, Additional Notes, if any). Without the consent of any
Holder of the Notes, the Indenture with respect to the Notes or the Notes may be
amended or supplemented to, in addition to other events more fully described in
the Indenture, cure any ambiguity, defect or inconsistency, provide for
uncertificated Notes in addition to or in place of certificated Notes, provide
for the assumption of the Company's obligations to Holders of the Notes in the
case of a merger or consolidation, make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not
adversely affect the legal rights under the Indenture of any such Holder, or
comply with requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the TIA.

               13.    DEFAULTS AND REMEDIES. An Event of Default with respect to
the Notes occurs upon the occurrence of any of the following events: the default
for 30 days in the payment when due of interest on the Notes (whether or not
prohibited by the subordination provisions of the Indenture); the default in
payment when due of the principal of or premium, if any, on the Notes (whether
or not prohibited by the subordination provisions of the Indenture); the failure
by the Company to comply with Section 4.18 of the Indenture; the failure by the
Company or any Guarantor for 60 days after written notice from the Trustee or
Holders of not less than 25% of the aggregate principal amount of the Notes
(including Additional Notes, if any) outstanding to comply with any of its other
agreements in the Indenture, Notes or the Subsidiary Guarantees; the default
under any mortgage, indenture or instrument under which there may be issued or
by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Restricted Subsidiaries (or the payment of which is

<Page>

guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee exists on the date of the Indenture or is created
thereafter, if: (i) such default results in the acceleration of such
Indebtedness prior to its express maturity or shall constitute a default in the
payment of such Indebtedness at final maturity of such Indebtedness; and (ii)
the principal amount of any such Indebtedness that has been accelerated or not
paid at maturity, when added to the aggregate principal amount of all other such
Indebtedness that has been accelerated or not paid at maturity, exceeds $10.0
million; the failure by the Company or any of its Restricted Subsidiaries to pay
final judgments aggregating in excess of $10.0 million, which judgments remain
unpaid, undischarged or unstayed for a period of 60 days; certain events of
bankruptcy or insolvency with respect to the Company or any of its Restricted
Subsidiaries that is a Significant Subsidiary; or except as permitted by the
Indenture or the Subsidiary Guarantees, any Subsidiary Guarantee issued by a
Restricted Subsidiary shall be held in any judicial proceeding to be
unenforceable or invalid or shall cease for any reason to be in full force and
effect, or any Restricted Subsidiary or any Person acting on behalf of any
Restricted Subsidiary shall deny or disaffirm in writing its obligations under
its Subsidiary Guarantee.

               If any Event of Default occurs and is continuing, the Trustee or
the Holders of at least 25% in principal amount of the then outstanding Notes
(including Additional Notes, if any) may declare all the Notes to be due and
payable immediately; provided, however, that if any Obligation with respect to
Senior Bank Debt is outstanding pursuant to the Credit Agreement upon a
declaration of acceleration of the Notes, the principal, premium, if any, and
interest on the Notes will not be payable until the earlier of: (1) the day
which is five business days after written notice of acceleration is received by
the Company and the Credit Agent; or (2) the date of acceleration of the
Indebtedness under the Credit Agreement. Notwithstanding the foregoing, in the
case of an Event of Default arising from certain events of bankruptcy or
insolvency with respect to the Company or any Restricted Subsidiary that is a
Significant Subsidiary, the principal of, and premium, if any, and any accrued
and unpaid interest on all outstanding Notes will become due and payable without
further action or notice. In the event of a declaration of acceleration of the
Notes because an Event of Default has occurred and is continuing as a result of
the acceleration of any Indebtedness described in Section 6.1(e) of the
Indenture, the declaration of acceleration of the Notes shall be automatically
annulled if the holders of any Indebtedness described in such section have
rescinded the declaration of acceleration in respect of such Indebtedness within
30 days from the date of such declaration and if: (1) the annulment of the
acceleration of the Notes would not conflict with any judgment or decree of a
competent jurisdiction; and (2) all existing Events of Default, except
non-payment of principal or interest on the Notes that became due solely because
of the acceleration of the Notes, have been cured or waived.

               Subject to certain limitations, Holders of a majority in
principal amount of the then outstanding Notes may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders of the
Notes notice of any continuing Default or Event of Default (except a Default or
Event of Default relating to the payment of principal or interest) if it
determines that withholding notice is in their interest. The Company is required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required, upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default and what action the Company is taking or proposes to take
thereto.

               14.    SUBSIDIARY GUARANTEES. Payment of principal of, premium,
if any, and interest (including interest on overdue principal, if any, and
interest, if lawful) on the Notes is guaranteed on an unsecured, senior
subordinated basis by the Guarantors pursuant to Article XII of the Indenture.

               15.    TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its
individual or any other capacity, may make loans to, accept deposits from, and
perform services for the Company or its Affiliates, and may otherwise deal with
the Company or its Affiliates, as if it were not the Trustee.

<Page>

               16.    NO RECOURSE AGAINST OTHERS. No past, present or future
director, officer, employee, incorporator or stockholder, as such, of the
Company or any Guarantor shall have any liability for any obligations of the
Company or any Guarantor under the Notes, the Subsidiary Guarantees or the
Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Holder by accepting a Note and the related
Subsidiary Guarantees waives and releases all such liability. The waiver and
release are part of the consideration for the issuance of the Notes.

               17.    AUTHENTICATION. This Note shall not be valid until
authenticated by the manual signature of the Trustee or an authenticating agent.

               18.    ABBREVIATIONS. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT
(= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

               19.    CUSIP NUMBERS. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders. No representation
is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption and reliance may be placed only on the
other identification numbers placed thereon.

               The Company shall furnish to any Holder upon written request and
without charge a copy of the Indenture. Requests may be made to:

                      Iron Mountain Incorporated
                      745 Atlantic Avenue
                      Boston, Massachusetts 02111
                      Attention:  Chief Financial Officer

<Page>

                                 ASSIGNMENT FORM

     To assign this Note, fill in the form below: (I) or (we) assign and
transfer this Note to

--------------------------------------------------------------------------------
                  (Insert assignee's soc. sec. or tax I.D. no.)

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

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

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

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint
                        --------------------------------------------------------
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

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

Date:
      ---------

Your Signature:
                 ---------------------------------------------------------------
(Sign exactly as your name appears on the face of this Note)

<Page>

                       OPTION OF HOLDER TO ELECT PURCHASE

               If you want to elect to have this Note purchased by the Company
pursuant to Section 4.17 or 4.18 of the Indenture, check the box below:

                             / /    Section 4.17

                             / /    Section 4.18

          If you want to elect to have only part of the Note purchased by the
Company pursuant to Section 4.17 of the Supplemental Indenture, state the amount
you elect to have purchased: $
                               ---------

Date:                 Your Signature:
     ---------                        ----------------------------------------
                      (Sign exactly as your name appears on the Note)

                      Tax Identification No.:
                                             ---------------------------------

<Page>

                         SCHEDULE OF EXCHANGES OF NOTES*

               The following exchanges of a part of this Global Note for other
Notes have been made:

<Table>
<Caption>
                                                                   Principal Amount of
                          Amount of              Amount of          this Global Note        Signature of
                         decrease in            increase in          following such       authorized office
                      Principal Amount        Principal Amount        decrease (or          of Trustee or
 Date of Exchange    of this Global Note    of this Global Note         increase)           Service Agent
-----------------    -------------------    -------------------    -------------------    -----------------
<S>                  <C>                    <C>                    <C>                    <C>

</Table>

----------
*This schedule should be included only if the Note is issued in global form.

<Page>

                                    EXHIBIT B

       FORM OF SUPPLEMENTAL INDENTURE TO BE DELIVERED BY FUTURE GUARANTORS

               SUPPLEMENTAL INDENTURE (this "SUPPLEMENTAL INDENTURE"), dated as
of ________________, _____, among _______________ (the "GUARANTEEING
SUBSIDIARY"), a subsidiary of Iron Mountain Incorporated (or its successor), a
Pennsylvania corporation (the "COMPANY"), the Company, and The Bank of New York,
a New York banking corporation, as trustee under the Indenture referred to below
(the "TRUSTEE").

                               W I T N E S S E T H

               WHEREAS, the Company has heretofore executed and delivered to the
Trustee an indenture, dated as of December 30, 2002, as supplemented by the
Second Supplemental Indenture, dated as of June 20, 2003 (the indenture, as so
supplemented, the "INDENTURE") providing for the issuance of an aggregate
principal amount of up to $150,000,000 of 6-5/8% Senior Subordinated Notes due
2016 (the "NOTES");

               WHEREAS, the Indenture provides that under certain circumstances
the Guaranteeing Subsidiary shall execute and deliver to the Trustee a
supplemental indenture pursuant to which the Guaranteeing Subsidiary shall
unconditionally guarantee all of the Company's obligations under the Notes and
the Indenture on the terms and conditions set forth herein (the "NOTE
GUARANTEE"); and

               WHEREAS, pursuant to Section 9.1 of the Indenture, the Trustee is
authorized to execute and deliver this Supplemental Indenture.

               NOW THEREFORE, in consideration of the foregoing and for other
good and valuable consideration, the receipt of which is hereby acknowledged,
the Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the
equal and ratable benefit of the Holders of the Notes as follows:

               1.     CAPITALIZED TERMS. Capitalized terms used herein without
definition shall have the meanings assigned to them in the Indenture.

               2.     AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby
agrees that its obligations to the Holder and the Trustee pursuant to this
Subsidiary Guarantee shall be as expressly set forth in Article XII of the
Indenture and in such other provisions of the Indenture as are applicable to the
Guarantors (including, without limitation, Article XIII of the Indenture), and
reference is made to the Indenture for the precise terms of this Supplemental
Indenture. The terms of Article XII of the Indenture and such other provisions
of the Indenture (including, without limitation, Article XIII of the Indenture)
as are applicable to the Guarantors are incorporated herein by reference.

               3.     EXECUTION AND DELIVERY OF SUBSIDIARY GUARANTEES.

                      (a)     If an Officer whose signature is on this
Supplemental Indenture no longer holds that office at the time the Trustee
authenticates the Note, the Subsidiary Guarantee shall be valid nevertheless.

                      (b)     The delivery of any Note by the Trustee, after the
authentication thereof under the Indenture, shall constitute due delivery of the
Subsidiary Guarantee set forth in this Supplemental Indenture on behalf of the
Guaranteeing Subsidiary.

               4.     NO RECOURSE AGAINST OTHERS. No past, present or future
director, officer, employee, incorporator or stockholder of the Guaranteeing
Subsidiary, as such, shall have any liability for

<Page>

any obligations of the Company or any Guarantor (including the Guaranteeing
Subsidiary) under the Notes, any Subsidiary Guarantee, the Indenture or this
Supplemental Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of the Notes by accepting a
Note waives and releases all such liability. The waiver and release are part of
the consideration for issuance of the Notes.

               5.     NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF
NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE BUT
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED
THEREBY.

               6.     COUNTERPARTS. The parties may sign any number of copies of
this Supplemental Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement.

               7.     EFFECT OF HEADINGS. The Section headings herein are for
convenience only and shall not affect the construction hereof.

               8.     THE TRUSTEE. The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this
Supplemental Indenture or for or in respect of the recitals contained herein,
all of which recitals are made solely by the Guaranteeing Subsidiary and the
Company.

<Page>

               IN WITNESS WHEREOF, the parties hereto have caused this
Supplemental Indenture to be duly executed and attested, all as of the date
first above written.

               Dated: _______________, 20___

                                           [GUARANTEEING SUBSIDIARY]

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

                                           [COMPANY]

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

                                           [TRUSTEE],
                                           as Trustee

                                           By:
                                              -----------------------------
                                               Authorized Signatory

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