10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended June 30, 2006

Or

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from                      to

Commission file number 1-13045

IRON MOUNTAIN INCORPORATED

(Exact Name of Registrant as Specified in Its Charter)

Delaware	23-2588479
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)
745 Atlantic Avenue, Boston, MA 02111
(Address of Principal Executive Offices, Including Zip Code)
(617) 535-4766
(Registrant’s Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes x   No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of “large accelerated filer and accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filerxAccelerated fileroNon-accelerated filero

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YesoNox

Number of shares of the registrant’s Common Stock at August 1, 2006: 132,242,111

IRON MOUNTAIN INCORPORATED

Index

	Page
PART I—FINANCIAL INFORMATION
Item 1—Unaudited Consolidated Financial Statements
Consolidated Balance Sheets at December 31, 2005 and June 30, 2006 (Unaudited)		3
Consolidated Statements of Operations for the Three Months Ended June 30, 2005 and 2006 (Unaudited)		4
Consolidated Statements of Operations for the Six Months Ended June 30, 2005 and 2006 (Unaudited)		5
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2005 and 2006 (Unaudited)		6
Notes to Consolidated Financial Statements (Unaudited)		7
Item 2—Management’s Discussion and Analysis of Financial Condition and Results of Operations		33
Item 3—Quantitative and Qualitative Disclosures About Market Risk		48
Item 4—Controls and Procedures		49
PART II—OTHER INFORMATION
Item 1—Legal Proceedings		50
Item 1A—Risk Factors		50
Item 2—Unregistered Sales of Equity Securities and Use of Proceeds		50
Item 4—Submission of Matters to a Vote of Security-Holders		50
Item 6—Exhibits		52
Signature		53

2

Part I.Financial Information

Item 1.Unaudited Consolidated Financial Statements

IRON MOUNTAIN INCORPORATED
CONSOLIDATED BALANCE SHEETS
(In Thousands, except Share and Per Share Data)
(Unaudited)

	December 31,				June 30,
	2005				2006
ASSETS
Current Assets:
Cash and cash equivalents		$	53,413		$	40,952
Accounts receivable (less allowances of $14,522 and $14,181, respectively)		408,564			440,285
Deferred income taxes		27,623			25,745
Prepaid expenses and other		64,568			82,614
Total Current Assets		554,168			589,596
Property, Plant and Equipment:
Property, plant and equipment		2,556,880			2,746,506
Less—Accumulated depreciation		(775,614		)	(870,990		)
Net Property, Plant and Equipment		1,781,266			1,875,516
Other Assets, net:
Goodwill		2,138,641			2,186,367
Customer relationships and acquisition costs		229,006			243,902
Deferred financing costs		31,606			29,046
Other		31,453			32,485
Total Other Assets, net		2,430,706			2,491,800
Total Assets		$	4,766,140		$	4,956,912
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Current portion of long-term debt		$	25,905		$	65,762
Accounts payable		148,234			139,564
Accrued expenses		266,720			244,203
Deferred revenue		151,137			159,685
Total Current Liabilities		591,996			609,214
Long-term Debt, net of current portion		2,503,526			2,541,996
Other Long-term Liabilities		33,545			35,150
Deferred Rent		35,763			47,366
Deferred Income Taxes		225,314			254,500
Commitments and Contingencies (see Note 9)
Minority Interests		5,867			5,083
Stockholders’ Equity:
Preferred stock (par value $0.01; authorized 10,000,000 shares; none issued and outstanding)		—			—
Common stock (par value $0.01; authorized 400,000,000 shares; issued and outstanding 131,662,871 shares and 132,164,748 shares, respectively)		1,317			1,322
Additional paid-in capital		1,105,604			1,123,622
Retained earnings		244,524			309,639
Accumulated other comprehensive items, net		18,684			29,020
Total Stockholders’ Equity		1,370,129			1,463,603
Total Liabilities and Stockholders’ Equity		$	4,766,140		$	4,956,912

The accompanying notes are an integral part of these consolidated financial statements.

3

IRON MOUNTAIN INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except Per Share Data)
(Unaudited)

	Three Months Ended June 30,
	2005		2006
Revenues:
Storage	$	291,666	$	327,863
Service and storage material sales	220,256		253,705
Total Revenues	511,922		581,568
Operating Expenses:
Cost of sales (excluding depreciation)	228,088		259,290
Selling, general and administrative	141,313		168,285
Depreciation and amortization	44,745		51,273
Loss (Gain) on disposal/writedown of property, plant and equipment, net	1,083		(174		)
Total Operating Expenses	415,229		478,674
Operating Income	96,693		102,894
Interest Expense, Net	47,222		47,254
Other Expense (Income), Net	4,946		(6,858		)
Income Before Provision for Income Taxes and Minority Interest	44,525		62,498
Provision for Income Taxes	18,866		24,212
Minority Interest in Earnings of Subsidiaries, Net	249		444
Net Income	$	25,410	$	37,842
Net Income per Share—Basic	$	0.19	$	0.29
Net Income per Share—Diluted	$	0.19	$	0.28
Weighted Average Common Shares Outstanding—Basic	130,474		131,929
Weighted Average Common Shares Outstanding—Diluted	131,470		133,445

The accompanying notes are an integral part of these consolidated financial statements.

4

IRON MOUNTAIN INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS

(In Thousands, except Per Share Data)
(Unaudited)

	Six Months Ended June 30,
	2005		2006
Revenues:
Storage	$	577,021	$	647,018
Service and storage material sales	436,307		498,207
Total Revenues	1,013,328		1,145,225
Operating Expenses:
Cost of sales (excluding depreciation)	458,716		521,658
Selling, general and administrative	276,653		327,128
Depreciation and amortization	89,291		101,121
Loss (Gain) on disposal/writedown of property, plant and equipment, net	865		(11		)
Total Operating Expenses	825,525		949,896
Operating Income	187,803		195,329
Interest Expense, Net	93,028		93,832
Other Expense (Income), Net	9,609		(9,705		)
Income Before Provision for Income Taxes and Minority Interest	85,166		111,202
Provision for Income Taxes	36,102		45,183
Minority Interest in Earnings of Subsidiaries, Net	705		904
Net Income	$	48,359	$	65,115
Net Income per Share—Basic	$	0.37	$	0.49
Net Income per Share—Diluted	$	0.37	$	0.49
Weighted Average Common Shares Outstanding—Basic	130,228		131,805
Weighted Average Common Shares Outstanding—Diluted	131,494		133,379

The accompanying notes are an integral part of these consolidated financial statements.

5

IRON MOUNTAIN INCORPORATED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)

	Six Months Ended June 30,
	2005			2006
Cash Flows from Operating Activities:
Net income	$	48,359		$	65,115
Adjustments to reconcile net income to cash flows from operating activities:
Minority interest in earnings of subsidiaries, net	705			904
Depreciation	81,285			91,791
Amortization (includes deferred financing costs and bond discount of $2,416 and $2,466, respectively)	10,422			11,796
Stock compensation expense	2,146			5,823
Provision for deferred income taxes	29,365			32,843
Loss (Gain) on disposal/writedown of property, plant and equipment, net	865			(11		)
Loss (Gain) on foreign currency and other, net	7,348			(11,432		)
Changes in Assets and Liabilities (exclusive of acquisitions):
Accounts receivable	(17,862		)	(23,828		)
Prepaid expenses and other current assets	(1,665		)	(11,117		)
Accounts payable	7,272			4,629
Accrued expenses, deferred revenue and other current liabilities	21,186			1,484
Other assets and long-term liabilities	1,929			5,738
Cash Flows from Operating Activities	191,355			173,735
Cash Flows from Investing Activities:
Capital expenditures	(131,850		)	(154,971		)
Cash paid for acquisitions, net of cash acquired	(34,874		)	(68,857		)
Additions to customer relationship and acquisition costs	(6,695		)	(7,274		)
Investment in joint ventures	—			(3,129		)
Other, net	919			(732		)
Cash Flows from Investing Activities	(172,500		)	(234,963		)
Cash Flows from Financing Activities:
Repayment of debt and term loans	(307,048		)	(299,013		)
Proceeds from debt and term loans	275,405			339,056
Debt financing (repayment to) and equity contribution from (distribution to) minority stockholders, net	(1,769		)	(1,984		)
Proceeds from exercise of stock options and employee stock purchase plan	12,372			10,202
Payment of debt financing costs and stock issuance costs	(222		)	(15		)
Cash Flows from Financing Activities	(21,262		)	48,246
Effect of exchange rates on cash and cash equivalents	(18		)	521
Decrease in Cash and Cash Equivalents	(2,425		)	(12,461		)
Cash and Cash Equivalents, Beginning of Period	31,942			53,413
Cash and Cash Equivalents, End of Period	$	29,517		$	40,952
Supplemental Data:
Cash Paid for Interest	$	93,558		$	93,133
Cash Paid for Income Taxes	$	6,745		$	11,280
Non-Cash Investing Activities:
Capital Leases	$	1,165		$	8,608
Capital Expenditures	$	—		$	27,301

The accompanying notes are an integral part of these consolidated financial statements.

6

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(1) General

The interim consolidated financial statements are presented herein without audit and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair presentation. Interim results are not necessarily indicative of results for a full year.

The consolidated balance sheet presented as of December 31, 2005 has been derived from our audited consolidated financial statements. The unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to those rules and regulations, but we believe that the disclosures are adequate to make the information presented not misleading. The consolidated financial statements and notes included herein should be read in conjunction with the consolidated financial statements and notes included in our Current Report on Form 8-K dated May 22, 2006.

(2) Summary of Significant Accounting Policies

a.Principles of Consolidation

The accompanying financial statements reflect our financial position and results of operations on a consolidated basis. Financial position and results of operations of Iron Mountain Europe Limited (“IME”), our European subsidiary, are consolidated for the appropriate periods based on its fiscal year ended October 31. All significant intercompany account balances have been eliminated or presented to reflect the underlying economics of the transactions.

b.Foreign Currency Translation

Local currencies are considered the functional currencies for our operations outside the United States. All assets and liabilities are translated at period-end exchange rates, and revenues and expenses are translated at average exchange rates for the applicable period, in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 52, “Foreign Currency Translation.” Resulting translation adjustments are reflected in the accumulated other comprehensive items component of stockholders’ equity. The gain or loss on foreign currency transactions, calculated as the difference between the historical exchange rate and the exchange rate at the applicable measurement date, including those related to (a) our 71¤4% GBP Senior Subordinated Notes due 2014 (the “71¤4% notes”), (b) the borrowings in certain foreign currencies under our revolving credit agreements, and (c) certain foreign currency denominated intercompany obligations of our foreign subsidiaries to us and between our foreign subsidiaries, are included in other expense (income), net, on our consolidated statements of operations. Included in other expense (income), net are $4,965 and $9,754 of net losses associated with foreign currency transactions for the three and six months ended June 30, 2005, respectively, and $7,186 and $8,515 of net gains associated with foreign currency transactions for the three and six months ended June 30, 2006, respectively.

7

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(2) Summary of Significant Accounting Policies(Continued)

c.Goodwill and Other Intangible Assets

We apply the provisions of SFAS No. 142, “Goodwill and Other Intangible Assets.” Under SFAS No. 142, goodwill and intangible assets with indefinite lives are not amortized but are reviewed annually for impairment or more frequently if impairment indicators arise. Separable intangible assets that are not deemed to have indefinite lives are amortized over their useful lives.

We have selected October 1 as our annual goodwill impairment review date. We performed our last annual goodwill impairment review as of October 1, 2005 and noted no impairment of goodwill. In making this assessment, we rely on a number of factors including operating results, business plans, economic projections, anticipated future cash flows, transactions and market place data. There are inherent uncertainties related to these factors and our judgment in applying them to the analysis of goodwill impairment. As of June 30, 2006, no factors were identified that would alter this assessment. Impairment adjustments recognized in the future, if any, will be recognized as operating expenses. Our operating segments at which level we performed our goodwill impairment analysis for the year ended December 31, 2005 were as follows:  Business Records Management, Data Protection, Fulfillment, Digital Archiving Services, Europe, South America, Mexico and Asia Pacific. When changes occur in the composition of one or more operating segments, the goodwill is reassigned to the segments affected based on their relative fair value. Beginning January 1, 2006, we changed our reportable segments as a result of certain management and organizational changes within our North American business. Therefore, the presentation of all historical segment reporting has been changed to conform to our new management reporting. See Note 8 for more information regarding our changes in segment reporting.

Goodwill valuations have been calculated using an income approach based on the present value of future cash flows of each operating segment. This approach incorporates many assumptions including future growth rates, discount factors, expected capital expenditures and income tax cash flows. Changes in economic and operating conditions impacting these assumptions could result in goodwill impairments in future periods.

The changes in the carrying value of goodwill attributable to each reportable operating segment for the six month period ended June 30, 2006 are as follows:

	North  American  Physical  Business			International  Physical  Business				Worldwide  Digital  Business		Total  Consolidated
Balance as of December 31, 2005	$	1,543,037			$	463,742		$	131,862		$	2,138,641
Deductible Goodwill acquired during the period	3,265				7,810			—			11,075
Nondeductible Goodwill acquired during the period	3,358				7,802			—			11,160
Adjustments to purchase reserves	(373		)		430			9			66
Fair value adjustments	(173		)		(9,532		)	497			(9,208		)
Currency effects and other adjustments	6,866				27,606			161			34,633
Balance as of June 30, 2006	$	1,555,980			$	497,858		$	132,529		$	2,186,367

8

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

The components of our amortizable intangible assets at June 30, 2006 are as follows:

	Gross Carrying			Accumulated			Net Carrying
	Amount			Amortization			Amount
Customer Relationships and Acquisition Costs		$	287,512		$	43,610		$	243,902
Core Technology(1)		25,960			4,720			21,240
Non-Compete Agreements(1)		1,418			1,106			312
Deferred Financing Costs		46,910			17,864			29,046
Total		$	361,800		$	67,300		$	294,500

(1) Included in other assets, net in the accompanying consolidated balance sheet.

d.Stock-Based Compensation

In December 2004, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 123R, “Share-Based Payment.” SFAS No. 123R is a revision of SFAS No. 123 and supersedes Accounting Principles Board Opinion No. 25, “Accounting for Stock Issued to Employees” (“APB No. 25”). We adopted the measurement provisions of SFAS No. 123, “Accounting for Stock-Based Compensation,” as amended by SFAS No. 148, “Accounting for Stock-Based Compensation-Transition and Disclosure” in our financial statements beginning January 1, 2003 using the prospective method. The prospective method involves recognizing expense for the fair value for all awards granted or modified in the year of adoption and thereafter with no expense recognition for previous awards. We have applied the fair value recognition provisions to all stock based awards granted, modified or settled on or after January 1, 2003.

Among other items, SFAS No. 123R eliminates the use of APB No. 25 and the intrinsic value method of accounting, and requires companies to recognize the cost of employee services received in exchange for awards of equity instruments, based on the grant date fair value of those awards, in the financial statements. We adopted SFAS No. 123R effective January 1, 2006 using the modified prospective method, as permitted under SFAS No. 123R. We record stock-based compensation expense for the cost of stock options, restricted stock and shares issued under the employee stock purchase plan (together, “Employee Stock-Based Awards”) based on the requirements of SFAS No. 123R beginning January 1, 2006 and based on the requirements of SFAS No. 123 for all unvested awards granted prior to January 1, 2006.

Stock-based compensation expense, included in the accompanying consolidated statements of operations, for the three and six months ended June 30, 2005 was $1,103 ($833 after tax or $0.01 per basic and diluted share) and $2,146 ($1,692 after tax or $0.01 per basic and diluted share), respectively, and for the three and six months ended June 30, 2006 was $3,117 ($2,860 after tax or $0.02 per basic and diluted share) and $5,823 ($4,518 after tax or $0.03 per basic and diluted share), respectively, for Employee Stock-Based Awards. For the three and six months ended June 30, 2006, the incremental stock-based compensation expense due to the adoption of SFAS No. 123R caused income before provision for income taxes and minority interest to decrease by $257 and $554, respectively, and net income to decrease by $158 and $340, respectively, and had no impact on basic and diluted earnings per share.

9

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

SFAS No. 123R also requires that the benefits associated with the tax deductions in excess of recognized compensation cost be reported as a financing cash flow, rather than as an operating cash flow, potentially reducing net operating cash flows and increasing net financing cash flows in future periods.

The following table details the effect on net income and earnings per share had stock-based compensation expense for the Employee Stock-Based Awards been recorded in the three and six months ended June 30,  2005 based on SFAS No. 123R. The reported and pro forma net income and earnings per share for the three and six months ended June 30, 2006 in the table below are the same since stock-based compensation expense is calculated under the provisions of SFAS No. 123R. These amounts for the three and six months ended June 30, 2006 are included in the table below only to provide the detail for a comparative presentation to the same periods of 2005.

	Three Months Ended June 30,						Six Months Ended June 30,
	2005			2006			2005			2006
Net income, as reported	$	25,410		$	37,842		$	48,359		$	65,115
Add: Stock-based employee compensation expense included in reported net income, net of tax benefit	833			2,860			1,692			4,518
Deduct: Total stock-based employee compensation expense determined under fair value based method for all awards, net of tax benefit	(1,135		)	(2,860		)	(2,333		)	(4,518		)
Net income, pro forma	$	25,108		$	37,842		$	47,718		$	65,115
Net Income per share:
Basic—as reported	0.19			0.29			0.37			0.49
Basic—pro forma	0.19			0.29			0.37			0.49
Diluted—as reported	0.19			0.28			0.37			0.49
Diluted—pro forma	0.19			0.28			0.36			0.49

Stock Options

Under our various stock option plans, options were granted with exercise prices equal to the market price of the stock at the date of grant. The majority of our options become exercisable ratably over a period of five years and generally have a contractual life of 10 years, unless the holder’s employment is terminated. Our Directors are considered employees under the provisions of SFAS No. 123R.

10

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

The weighted average fair value of options granted for the six months ended June 30, 2005 and 2006 was $10.38 and $14.64 per share, respectively. The values were estimated on the date of grant using the Black-Scholes option pricing model. The following table summarizes the weighted average assumptions used for grants in the respective period:

	Six Months Ended		Six Months Ended
Weighted Average Assumption	June 30, 2005		June 30, 2006
Expected volatility		26.8%		24.7%
Risk-free interest rate		4.02%		4.75%
Expected dividend yield		None		None
Expected life of the option		6.6 years		6.6 years

Expected volatility was calculated utilizing daily historical volatility over a period that equates to the expected life of the option. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. Expected dividend yield was not considered in the option pricing model since we do not pay dividends and have no current plans to do so in the future. The expected life (estimated period of time outstanding) of the stock options granted was estimated using the historical exercise behavior of employees.

A summary of option activity for the six months ended June 30, 2006 is as follows:

	Options		Weighted Average Exercise Price			Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2005	5,495,274			$	22.41
Granted	497,914			39.07
Exercised	(308,544	)		13.82
Forfeited	(73,216	)		25.96
Outstanding at June 30, 2006	5,611,428			$	24.30		6.6		$	73,398
Options exercisable at June 30, 2006	2,785,711			$	16.68		4.7		$	57,664

The aggregate intrinsic value of stock options exercised during the three and six months ended June 30, 2006 was approximately $2,964 and $8,169, respectively.

Restricted Stock

Under our various stock option plans, we may also issue grants of restricted stock. We granted restricted stock in July 2005 which had a 3-year vesting period. The fair value of restricted stock is the excess of the market price of our common stock at the date of grant over the exercise price, which is zero. Included in our stock-based compensation expense for the six months ended June 30, 2006 is a portion of the cost related to restricted stock granted in July 2005. We did not grant restricted stock in the first six months of 2006.

11

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

A summary of restricted stock activity for the six months ended June 30, 2006 is as follows:

	Restricted Stock			Weighted- Average Grant-Date Fair Value
Non-vested at December 31, 2005		64,641			$	30.94
Granted		—			—
Vested		(26,106	)		30.94
Forfeited		—			—
Non-vested at June 30, 2006		38,535			$	30.94

The total fair value of shares vested for the three and six months ended June 30, 2006 was $1,003.

Employee Stock Purchase Plan

We offer an employee stock purchase plan in which participation is available to substantially all U.S. and Canadian employees who meet certain service eligibility requirements (the “ESPP”). The ESPP provides a way for our eligible employees to become stockholders on favorable terms. The ESPP provides for the purchase of our common stock by eligible employees through successive offering periods. We generally have two 6-month offering periods, the first of which begins June 1 and ends November 30 and the second begins December 1 and ends May 31. During each offering period, participating employees accumulate after-tax payroll contributions, up to a maximum of 15% of their compensation, to pay the exercise price of their options. Participating employees may withdraw from an offering period before the purchase date and obtain a refund of the amounts withheld as payroll deductions. At the end of the offering period, outstanding options are exercised, and each employee’s accumulated contributions are used to purchase our common stock. The price for shares purchased under the ESPP is 85% of the fair market price at either the beginning or the end of the offering period, whichever is lower. For the six months ended June 30, 2005 and 2006, there were 193,890 shares and 193,778 shares, respectively, purchased under the ESPP. Beginning with the December 1, 2006 ESPP offering period, the price for shares purchased under the ESPP will be changed to 95% of the fair market price at the end of the offering period without a look back feature.

12

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

The fair value of the ESPP offerings is estimated on the date of grant using a Black-Scholes option valuation model that uses the assumptions noted in the following table for the respective periods. Expected volatility was calculated utilizing daily historical volatility over a period that equates to the expected life of the option. The risk-free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant. The expected life equates to the 6-month offering period over which employees accumulate payroll deductions to purchase our common stock. Expected dividend yield was not considered in the option pricing model since we do not pay dividends and have no current plans to do so in the future.

Weighted Average Assumption	December 2004 Offering		May 2005 Offering	December 2005 Offering		May 2006 Offering
Expected volatility		24.0%	27.5%		26.6%	20.1%
Risk-free interest rate		3.41%	3.96%		4.04%	4.75%
Expected dividend yield		None	None		None	None
Expected life of the option		6 months	6 months		6 months	6 months

The weighted average fair value for the ESPP options was $6.07, $6.02, $8.70 and $7.20 for the December 2004, May 2005, December 2005 and May 2006 offerings, respectively.

As of June 30, 2006, unrecognized compensation cost related to the unvested portion of our Employee Stock-Based Awards was $27,008 and is expected to be recognized over a weighted-average period of 4.1 years.

We generally issue shares for the exercises of stock options, issuance of restricted stock and issuance of shares under our ESPP from unissued reserved shares.

e.Income Per Share—Basic and Diluted

In accordance with SFAS No. 128, “Earnings per Share,” basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding. The calculation of diluted net income per share is consistent with that of basic net income per share but gives effect to all potential common shares (that is, securities such as options, warrants or convertible securities) that were outstanding during the period, unless the effect is antidilutive. Potential common shares, substantially attributable to stock options, included in the calculation of diluted net income per share totaled 995,719 and 1,515,643 shares for the three months ended June 30, 2005 and 2006, respectively, and 1,265,868 shares and 1,573,996 shares for the six months ended June 30, 2005 and 2006, respectively. Potential common shares of 569,643 and 495,302 for the three and six months ended June 30, 2005, respectively, and potential common shares of 580,113 and 463,483 for the three and six months ended June 30, 2006, respectively, have been excluded from the calculation of diluted net income per share, as their effects are antidilutive.

f.Revenue

Our revenues consist of storage revenues as well as service and storage material sales revenues. Storage revenues consist of periodic charges related to the storage of materials or data (generally on a per unit or per cubic foot of records basis). Service and storage material sales revenues are comprised of

13

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

charges for related service activities and courier operations and the sale of software licenses and storage materials. Related core service revenues arise from: (a) the handling of records including the addition of new records, temporary removal of records from storage, refiling of removed records, destruction of records, and permanent withdrawals from storage; (b) courier operations, consisting primarily of the pickup and delivery of records upon customer request; (c) secure shredding of sensitive documents; and (d) other recurring services including maintenance and support contracts. Our complementary services revenues arise from special project work, including data restoration; and providing fulfillment services, consulting services and product sales, including software licenses, specially designed storage containers, magnetic media including computer tapes and related supplies.

We recognize revenue when the following criteria are met: persuasive evidence of an arrangement exists, services have been rendered, the sales price is fixed or determinable, and collectability of the resulting receivable is reasonably assured. Storage and service revenues are recognized in the month the respective storage or service is provided and customers are generally billed on a monthly basis on contractually agreed-upon terms. Amounts related to future storage or prepaid service contracts, including maintenance and support contracts, for customers where storage fees or services are billed in advance are accounted for as deferred revenue and recognized ratably over the applicable storage or service period or when the service is performed. Storage material sales are recognized when shipped to the customer and include software license sales. Sales of software licenses to distributors are recognized at the time a distributor reports that the software has been licensed to an end-user and all revenue recognition criteria have been satisfied.

g.New Accounting Pronouncements

In July 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), an interpretation of FASB Statement No. 109, “Accounting for Income Taxes” (“SFAS No. 109”). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements in accordance with SFAS No. 109. FIN 48 also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

The evaluation of a tax position in accordance with FIN 48 is a two-step process. The first step is a recognition process whereby the company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

The provisions of FIN 48 are effective January 1, 2007. Earlier application is permitted as long as the company has not yet issued financial statements, including interim financial statements, in the period of adoption. The provisions of FIN 48 are to be applied to all tax positions upon initial adoption of this standard. Only tax positions that meet the more likely than not recognition threshold at the effective date

14

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 (In Thousands, Except Share and Per Share Data)
 (Unaudited)

(2) Summary of Significant Accounting Policies (Continued)

may be recognized or continue to be recognized upon adoption of FIN 48. The cumulative effect of applying the provisions of FIN 48 should be reported as an adjustment to the opening balance of retained earnings for that fiscal year. We are in the process of evaluating the effect of FIN 48 on our consolidated results of operations and financial position.

h.Use of Estimates

The preparation of financial statements in conformity with GAAP requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an on-going basis, we evaluate the estimates used, including those related to accounting for acquisitions, allowance for doubtful accounts and credit memos, impairments of tangible and intangible assets, income taxes, stock-based compensation and self-insured liabilities. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates.

(3) Comprehensive Income

SFAS No. 130, “Reporting Comprehensive Income,” requires presentation of the components of comprehensive income, including the changes in equity from non-owner sources such as unrealized gains (losses) on hedging transactions, securities and foreign currency translation adjustments. Our total comprehensive income is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2005			2006		2005			2006
Comprehensive Income:
Net Income	$	25,410		$	37,842	$	48,359		$	65,115
Other Comprehensive Income (Loss):
Foreign Currency Translation Adjustments	1,398			11,843		3,753			10,061
Market Value Adjustments for Hedging Contracts, Net of Tax	715			48		1,839			262
Market Value Adjustments for Securities, Net of Tax	(20		)	7		(11		)	13
Comprehensive Income	$	27,503		$	49,740	$	53,940		$	75,451

15

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(4) Derivative Instruments and Hedging Activities

SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” requires that every derivative instrument be recorded in the balance sheet as either an asset or a liability measured at its fair value. Periodically, we acquire derivative instruments that are intended to hedge either cash flows or values which are subject to foreign exchange or other market price risk, and not for trading purposes. We have formally documented our hedging relationships, including identification of the hedging instruments and the hedged items, as well as our risk management objectives and strategies for undertaking each hedge transaction. Given the recurring nature of our revenues and the long term nature of our asset base, we have the ability and the preference to use long term, fixed interest rate debt to finance our business, thereby preserving our long term returns on invested capital. We target a range 80% to 85% of our debt portfolio to be fixed with respect to interest rates. Occasionally, we will use floating to fixed interest rate swaps as a tool to maintain our targeted level of fixed rate debt. In addition, we will use borrowings in foreign currencies, either obtained in the U.S. or by our foreign subsidiaries, to economically hedge foreign currency risk associated with our international investments. Sometimes we enter into currency swaps to temporarily hedge an overseas investment, such as a major acquisition, while we arrange permanent financing.

We previously entered into two interest rate swap agreements, which were derivatives as defined by SFAS No. 133 and designated as cash flow hedges. These swap agreements hedged interest rate risk on certain amounts of our term loan. Both of these swap agreements expired in the first quarter of 2006. As a result of the foregoing, for the three and six months ended June 30, 2005, we recorded additional interest expense of $1,235 and $2,768, respectively, and for the three months ended March 31, 2006, we recorded additional interest expense of $127, resulting from interest rate swap payments. These interest rate swap agreements were determined to be highly effective, and therefore no ineffectiveness was recorded in earnings.

In connection with certain real estate loans, we swapped $97,000 of floating rate debt to fixed rate debt. Since the time we entered into the swap agreement, interest rates have fallen. We have recorded, in the accompanying consolidated balance sheet, the estimated cost to terminate this swap (fair value of the derivative liability) of $818 (which was recorded in accrued expenses) as of June 30, 2006. As a result of the repayment of the real estate term loans in the third quarter of 2004, we began marking to market the fair value of the derivative liability through earnings. The total impact of marking to market the fair market value of the derivative liability and cash payments associated with the interest rate swap agreement resulted in our recording interest expense of $1,035 and interest income of $393 for the three and six months ended June 30, 2005, respectively, and interest income of $410 and $978 for the three and six months ended June 30, 2006.

In April 2004, IME entered into two floating for fixed interest rate swap contracts, each with a notional value of 50,000 British pounds sterling and a duration of two years, which were designated as cash flow hedges. These swap agreements hedge interest rate risk on IME’s 100,000 British pounds multi-currency term loan facility. As of June 30, 2006, both of these swap agreements had expired. For the three and six months ended June 30, 2005, we recorded additional interest income of $23 and $43, respectively, and for the three and six months ended June 30, 2006, we recorded interest expense of $71 and $184, respectively, resulting from interest rate swap cash payments.

Subsequent to its second quarter of 2006, IME entered into a floating for fixed interest rate swap contract with a notional value of 75,000 British pounds sterling, which will expire on March 2008 and was designated as a cash flow hedge. This swap agreement hedges interest rate risk on IME’s 100,000

16

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(4) Derivative Instruments and Hedging Activities(Continued)

British pounds multi-currency term loan facility. The notional value of the swap will decline to 60,000 British pounds sterling in March 2007 to match the remaining term loan amount outstanding as of that date.

(5) Acquisitions

We account for acquisitions using the purchase method of accounting, and accordingly, the results of operations for each acquisition have been included in our consolidated results from their respective acquisition dates. Cash consideration for the various 2006 acquisitions was provided through borrowings under our credit facilities augmented by cash provided by operating activities and cash equivalents on-hand.

A summary of the consideration paid and the allocation of the purchase price of all 2006 acquisitions is as follows:

Cash Paid (Gross of cash acquired)(1)	$	49,204
Fair Value of Identifiable Net Assets Acquired:
Fair Value of Identifiable Assets Acquired(2)	(32,590		)
Liabilities Assumed(3)	6,540
Minority Interest(4)	(919		)
Total Fair Value of Identifiable Net Assets Acquired	(26,969		)
Recorded Goodwill	$	22,235

(1) Included in cash paid for acquisitions in the consolidated statements of cash flows for the six months ended June 30, 2006 are contingent payments totaling $21,382 related to acquisitions made in prior years.

(2) Consisted primarily of accounts receivable, prepaid expenses and other, land, buildings, racking and leasehold improvements. Additionally, includes customer relationship assets of $15,963 for the six months ended June 30, 2006.

(3) Consisted primarily of accounts payable, accrued expenses and notes payable.

(4) Consisted primarily of the carrying value of minority interests of European partners at the date of acquisition.

Allocation of the purchase price for the 2006 acquisitions was based on estimates of the fair value of net assets acquired, and is subject to adjustment. The purchase price allocations of certain 2005 and 2006 transactions are subject to finalization of the assessment of the fair value of property, plant and equipment, intangible assets (primarily customer relationship assets), operating leases, restructuring purchase reserves, deferred revenue and deferred income taxes. We are not aware of any information that would indicate that the final purchase price allocations will differ meaningfully from preliminary estimates.

In connection with each of our acquisitions, we have undertaken certain restructurings of the acquired businesses. The restructuring activities include certain reductions in staffing levels, elimination of duplicate facilities and other costs associated with exiting certain activities of the acquired businesses. The estimated costs of these restructuring activities were recorded as costs of the acquisitions and were provided in accordance with EITF No. 95-3, “Recognition of Liabilities in Connection with a Purchase Business Combination.” We finalize restructuring plans for each business no later than one year from the date of acquisition. Unresolved matters at June 30, 2006 primarily include completion of planned abandonments of facilities and severance contracts in connection with certain acquisitions.

17

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(5) Acquisitions(Continued)

The following is a summary of reserves related to such restructuring activities:

	Year Ended December 31, 2005				Six Months Ended June 30, 2006
Reserves, Beginning Balance		$	21,414			$	12,698
Reserves Established		1,142				1,465
Expenditures		(7,360		)		(2,694		)
Adjustments to Goodwill, including currency effect(1)		(2,498		)		197
Reserves, Ending Balance		$	12,698			$	11,666

(1) Includes adjustments to goodwill as a result of finalizing our restructuring plans.

At June 30, 2006, the restructuring reserves related to acquisitions consisted of lease losses on abandoned facilities ($8,656), severance costs ($418), and move and other exit costs ($2,592). These accruals are expected to be used prior to June 30, 2007 except for lease losses ($6,670) and severance contracts ($144), both of which are based on contracts that extend beyond one year.

(6) Long-term Debt

Long-term debt consists of the following:

	December 31, 2005					June 30, 2006
	Carrying Amount			Fair Value		Carrying Amount			Fair Value
IMI Revolving Credit Facility(1)	$	216,396		$	216,396	$	249,602		$	249,602
IMI Term Loan Facility(1)	345,500			345,500		343,750			343,750
IME Revolving Credit Facility(1)	84,262			84,262		104,928			104,928
IME Term Loan Facility(1)	177,450			177,450		182,630			182,630
81¤4% Senior Subordinated Notes due 2011(2)	149,760			151,500		149,782			149,250
85¤8% Senior Subordinated Notes due 2013(2)	481,032			502,513		481,022			483,278
71¤4% GBP Senior Subordinated Notes due 2014(2)	258,120			250,376		272,445			261,220
73¤4% Senior Subordinated Notes due 2015(2)	439,506			435,568		439,049			414,005
65¤8% Senior Subordinated Notes due 2016(2)	315,059			299,200		315,306			287,200
Real Estate Mortgages(1)	4,707			4,707		4,420			4,420
Seller Notes(1)	9,398			9,398		8,189			8,189
Other(1)	48,241			48,241		56,635			56,635
Total Long-term Debt	2,529,431					2,607,758
Less Current Portion	(25,905		)			(65,762		)
Long-term Debt, Net of Current Portion	$	2,503,526				$	2,541,996

(1)The fair value of this long-term debt either approximates the carrying value (as borrowings under these debt instruments are based on current variable market interest rates as of December 31, 2005 and June 30, 2006) or it is impracticable to estimate the fair value due to the nature of such long-term debt.

(2)The fair value of these debt instruments is based on quoted market prices for these notes on December 31, 2005 and June 30, 2006.

18

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(6) Long-term Debt(Continued)

In March 2004, IME and certain of its subsidiaries entered into a credit agreement (the “IME Credit Agreement”) with a syndicate of European lenders. The IME Credit Agreement provides for maximum borrowing availability in the principal amount of 200,000 British pounds sterling, including a 100,000 British pounds sterling revolving credit facility (the “IME revolving credit facility”), which includes the ability to borrow in certain other foreign currencies, and a 100,000 British pounds multi-currency term loan (the “IME term loan facility”). The IME revolving credit facility matures on March 5, 2009. The IME term loan facility is payable in three installments; two installments of 20,000 British pounds sterling on March 5, 2007 and 2008, respectively, and the final payment of the remaining balance on March 5, 2009. The interest rate on borrowings under the IME Credit Agreement varies depending on IME’s choice of currency options and interest rate period, plus an applicable margin. The IME Credit Agreement includes various financial covenants applicable to the results of IME, which may restrict IME’s ability to incur indebtedness under the IME Credit Agreement and from third parties, as well as limit IME’s ability to pay dividends to us. Most of IME’s non-dormant subsidiaries have either guaranteed the obligations or have their shares pledged to secure IME’s obligations under the IME Credit Agreement. We have not guaranteed or otherwise provided security for the IME Credit Agreement nor have any of our U.S., Canadian, Asia Pacific, Mexican or South American subsidiaries. Our consolidated balance sheet as of June 30, 2006 included 100,000 British pounds sterling and 82,966 Euro of borrowings (totaling $287,558) under the IME Credit Agreement; we also had various outstanding letters of credit totaling 1,731 British pounds sterling ($3,161). The remaining availability, based on its current level of external debt and the leverage ratio under the IME revolving credit facility on April 30, 2006, was approximately 40,815 British pounds sterling ($74,540). The interest rates in effect under the IME revolving credit facility ranged from 3.9% to 5.9% as of April 30, 2006. For the three and six months ended June 30, 2005, we recorded commitment fees of $213 and $419, respectively, based on 0.9% of unused balances under the IME revolving credit facility. For the three and six months ended June 30, 2006, we recorded commitment fees of $117 and $254, respectively, based on 0.6% of unused balances under the IME revolving credit facility.

On April 2, 2004 and subsequently on July 8, 2004, we entered into a new amended and restated revolving credit facility and term loan facility (the “IMI Credit Agreement”) to replace our prior credit agreement and to reflect more favorable pricing of our term loans. The IMI Credit Agreement had an aggregate principal amount of $550,000 and was comprised of a $350,000 revolving credit facility (the “IMI revolving credit facility”), which included the ability to borrow in certain foreign currencies, and a $200,000 term loan facility (the “IMI term loan facility”). The IMI revolving credit facility matures on April 2, 2009. With respect to the IMI term loan facility, quarterly loan payments of $500 began in the third quarter of 2004 and will continue through maturity on April 2, 2011, at which time the remaining outstanding principal balance of the IMI term loan facility is due. In November 2004, we entered into an additional $150,000 of term loans as permitted under our IMI Credit Agreement. The new term loans will mature at the same time as our current IMI term loan facility with quarterly loan payments of $375 that began in the first quarter of 2005 and will be priced at LIBOR plus a margin of 1.75%. On October 31, 2005, we entered into the second amendment to the IMI Credit Agreement, increasing availability under the revolving credit

19

IRON MOUNTAIN INCORPORATED
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(6) Long-term Debt (Continued)

facility from $350,000 to $400,000. As a result, the IMI Credit Agreement had an aggregate maximum principal amount of $750,000 as of December 31, 2005. The interest rate on borrowings under the IMI Credit Agreement varies depending on our choice of interest rate and currency options, plus an applicable margin. All intercompany notes and the capital stock of most of our U.S. subsidiaries are pledged to secure the IMI Credit Agreement. As of June 30, 2006, we had $249,602 of borrowings under our IMI revolving credit facility, of which $29,500 was denominated in U.S. dollars and the remaining balance was denominated in Canadian dollars (CAD 188,000), in Australian dollars (AUD 55,000) and in New Zealand dollars (NZD 20,200); we also had various outstanding letters of credit totaling $23,900. The remaining availability, based on Iron Mountain Incorporated’s (“IMI”) current level of external debt and the leverage ratio under the IMI revolving credit facility, on June 30, 2006 was $126,498. The interest rate in effect under the IMI revolving credit facility and IMI term loan facility ranged from 5.5% to 9.1% and 7.0% to 7.9%, respectively, as of June 30, 2006. For the three and six months ended June 30, 2005, we recorded commitment fees of $186 and $443, respectively, and for the three and six months ended June 30, 2006, we recorded commitment fees of $98 and $224, respectively, based on 0.4% of unused balances under the IMI revolving credit facility.

The IME Credit Agreement, IMI Credit Agreement, our indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take certain other corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the IME Credit Agreement, IMI Credit Agreement and our indentures and other agreements governing our indebtedness. We were in compliance with all material debt covenants as of June 30, 2006.

20

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(7) Selected Financial Information of Parent, Guarantors and Non-Guarantors

The following financial data summarizes the consolidating Company on the equity method of accounting as of December 31, 2005 and June 30, 2006 and for the three and six months ended June 30, 2005 and 2006. The Guarantors column includes all subsidiaries that guarantee the senior subordinated notes. The subsidiaries that do not guarantee the senior subordinated notes are referred to in the table as the “Non-Guarantors.”

	December 31, 2005
	Parent		Guarantors		Non-  Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	—	$	10,658	$	42,755	$	—			$	53,413
Accounts Receivable	—		290,546		118,018		—				408,564
Intercompany Receivable	868,392		—		—		(868,392		)		—
Other Current Assets	48		61,531		31,074		(462		)		92,191
Total Current Assets	868,440		362,735		191,847		(868,854		)		554,168
Property, Plant and Equipment, Net	—		1,225,580		555,686		—				1,781,266
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	2,048,104		11,069		—		(2,059,173		)		—
Investment in Subsidiaries	541,612		252,122		—		(793,734		)		—
Goodwill	—		1,482,537		646,363		9,741				2,138,641
Other	26,780		130,012		135,694		(421		)		292,065
Total Other Assets, Net	2,616,496		1,875,740		782,057		(2,843,587		)		2,430,706
Total Assets	$	3,484,936	$	3,464,055	$	1,529,590	$	(3,712,441	)		$	4,766,140
Liabilities and Stockholders’ Equity
Intercompany Payable	$	—	$	249,173	$	619,219	$	(868,392	)		$	—
Current Portion of Long-term Debt	3,841		7,613		14,451		—				25,905
Total Other Current Liabilities	48,229		389,691		128,633		(462		)		566,091
Long-term Debt, Net of Current Portion	2,057,884		10,816		434,826		—				2,503,526
Long-term Notes Payable to Affiliates and Intercompany Payable	1,000		2,048,104		10,069		(2,059,173		)		—
Other Long-term Liabilities	3,853		233,805		57,385		(421		)		294,622
Commitments and Contingencies
Minority Interests	—		—		2,389		3,478				5,867
Stockholders’ Equity	1,370,129		524,853		262,618		(787,471		)		1,370,129
Total Liabilities and Stockholders’ Equity	$	3,484,936	$	3,464,055	$	1,529,590	$	(3,712,441	)		$	4,766,140

21

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(7)Selected Financial Information of Parent, Guarantors and Non-Guarantors (Continued)

	June 30, 2006
	Parent		Guarantors		Non- Guarantors		Eliminations			Consolidated
Assets
Current Assets:
Cash and Cash Equivalents	$	—	$	9,374	$	31,578	$	—			$	40,952
Accounts Receivable	—		299,524		140,761		—				440,285
Intercompany Receivable	868,151		—		—		(868,151		)		—
Other Current Assets	48		66,263		42,922		(874		)		108,359
Total Current Assets	868,199		375,161		215,261		(869,025		)		589,596
Property, Plant and Equipment, Net	—		1,262,169		613,347		—				1,875,516
Other Assets, Net:
Long-term Notes Receivable from Affiliates and Intercompany Receivable	2,123,348		11,044		—		(2,134,392		)		—
Investment in Subsidiaries	584,250		292,750		—		(877,000		)		—
Goodwill	—		1,489,695		686,931		9,741				2,186,367
Other	24,945		133,952		147,470		(934		)		305,433
Total Other Assets, Net	2,732,543		1,927,441		834,401		(3,002,585		)		2,491,800
Total Assets	$	3,600,742	$	3,564,771	$	1,663,009	$	(3,871,610	)		$	4,956,912
Liabilities and Stockholders’ Equity
Intercompany Payable	$	—	$	242,039	$	626,112	$	(868,151	)		$	—
Current Portion of Long-term Debt	4,073		5,256		56,433		—				65,762
Total Other Current Liabilities	48,380		346,035		149,911		(874		)		543,452
Long-term Debt, Net of Current Portion	2,079,833		14,555		447,608		—				2,541,996
Long-term Notes Payable to Affiliates and Intercompany Payable	1,000		2,123,348		10,044		(2,134,392		)		—
Other Long-term Liabilities	3,853		267,410		66,687		(934		)		337,016
Commitments and Contingencies
Minority Interests	—		—		958		4,125				5,083
Stockholders’ Equity	1,463,603		566,128		305,256		(871,384		)		1,463,603
Total Liabilities and Stockholders’ Equity	$	3,600,742	$	3,564,771	$	1,663,009	$	(3,871,610	)		$	4,956,912

22

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(7)Selected Financial Information of Parent, Guarantors and Non-Guarantors (Continued)

	Three Months Ended June 30, 2005
	Parent			Guarantors				Non- Guarantors			Eliminations				Consolidated
Revenues:
Storage	$	—			$	212,449			$	79,217		$	—			$	291,666
Service and Storage Material Sales	—				157,123				63,133			—				220,256
Total Revenues	—				369,572				142,350			—				511,922
Operating Expenses:
Cost of Sales (Excluding Depreciation)	—				160,096				67,992			—				228,088
Selling, General and Administrative	28				107,527				33,758			—				141,313
Depreciation and Amortization	22				32,124				12,599			—				44,745
Loss on Disposal/Writedown of Property, Plant and Equipment, Net	—				1,075				8			—				1,083
Total Operating Expenses	50				300,822				114,357			—				415,229
Operating (Loss) Income	(50		)		68,750				27,993			—				96,693
Interest Expense (Income), Net	39,088				(8,292		)		16,426			—				47,222
Equity in the Earnings of Subsidiaries, Net of Tax	(53,065		)		(5,420		)		—			58,485				—
Other (Income) Expense, Net	(11,483		)		14,608				1,821			—				4,946
Income Before Provision for Income Taxes and Minority Interest	25,410				67,854				9,746			(58,485		)		44,525
Provision for Income Taxes	—				15,260				3,606			—				18,866
Minority Interest in Earnings of Subsidiaries, Net	—				—				249			—				249
Net Income	$	25,410			$	52,594			$	5,891		$	(58,485	)		$	25,410

23

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(7)Selected Financial Information of Parent, Guarantors and Non-Guarantors (Continued)

	Three Months Ended June 30, 2006
	Parent			Guarantors				Non-  Guarantors				Eliminations				Consolidated
Revenues:
Storage	$	—			$	238,241			$	89,622			$	—			$	327,863
Service and Storage Material Sales	—				170,273				83,432				—				253,705
Total Revenues	—				408,514				173,054				—				581,568
Operating Expenses:
Cost of Sales (Excluding Depreciation)	—				173,065				86,225				—				259,290
Selling, General and Administrative	62				127,108				41,115				—				168,285
Depreciation and Amortization	17				35,370				15,886				—				51,273
(Gain) Loss on Disposal/Writedown of Property, Plant and Equipment, Net	—				331				(505		)		—				(174		)
Total Operating Expenses	79				335,874				142,721				—				478,674
Operating Income	(79		)		72,640				30,333				—				102,894
Interest Expense (Income), Net	41,033				(6,491		)		12,712				—				47,254
Equity in the Earnings of Subsidiaries, Net of Tax	(91,223		)		(11,122		)		—				102,345				—
Other Expense (Income), Net	12,269				(19,617		)		490				—				(6,858		)
Income Before Provision for Income Taxes and Minority Interest	37,842				109,870				17,131				(102,345		)		62,498
Provision for Income Taxes	—				19,648				4,564				—				24,212
Minority Interest in Earnings of Subsidiaries, Net	—				—				444				—				444
Net Income	$	37,842			$	90,222			$	12,123			$	(102,345	)		$	37,842

24

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(7)Selected Financial Information of Parent, Guarantors and Non-Guarantors (Continued)

	Six Months Ended June 30, 2005
	Parent			Guarantors				Non- Guarantors				Eliminations				Consolidated
Revenues:
Storage	$	—			$	420,502			$	156,519			$	—			$	577,021
Service and Storage Material Sales	—				310,157				126,150				—				436,307
Total Revenues	—				730,659				282,669				—				1,013,328
Operating Expenses:
Cost of Sales (Excluding Depreciation)	—				321,501				137,215				—				458,716
Selling, General and Administrative	82				207,836				68,735				—				276,653
Depreciation and Amortization	31				64,400				24,860				—				89,291
Loss (Gain) on Disposal/Writedown of Property, Plant and Equipment, Net	—				872				(7		)		—				865
Total Operating Expenses	113				594,609				230,803				—				825,525
Operating (Loss) Income	(113		)		136,050				51,866				—				187,803
Interest Expense (Income), Net	78,177				(16,545		)		31,396				—				93,028
Equity in the Earnings of Subsidiaries, Net of Tax	(107,883		)		(9,945		)		—				117,828				—
Other (Income) Expense, Net	(18,766		)		25,541				2,834				—				9,609
Income Before Provision for Income Taxes and Minority Interest	48,359				136,999				17,636				(117,828		)		85,166
Provision for Income Taxes	—				29,951				6,151				—				36,102
Minority Interest in Earnings of Subsidiaries, Net	—				—				705				—				705
Net Income	$	48,359			$	107,048			$	10,780			$	(117,828	)		$	48,359

25

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(7)Selected Financial Information of Parent, Guarantors and Non-Guarantors (Continued)

	Six Months Ended June 30, 2006
	Parent			Guarantors				Non- Guarantors				Eliminations				Consolidated
Revenues:
Storage	$	—			$	470,489			$	176,529			$	—			$	647,018
Service and Storage Material Sales	—				339,891				158,316				—				498,207
Total Revenues	—				810,380				334,845				—				1,145,225
Operating Expenses:
Cost of Sales (Excluding Depreciation)	—				353,293				168,365				—				521,658
Selling, General and Administrative	(90		)		248,208				79,010				—				327,128
Depreciation and Amortization	37				70,681				30,403				—				101,121
Loss (Gain) on Disposal/Writedown of Property, Plant and Equipment, Net	—				298				(309		)		—				(11		)
Total Operating Expenses	(53		)		672,480				277,469				—				949,896
Operating (Loss) Income	53				137,900				57,376				—				195,329
Interest Expense (Income), Net	81,566				(15,893		)		28,159				—				93,832
Equity in the Earnings of Subsidiaries, Net of Tax	(159,605		)		(19,464		)		—				179,069				—
Other Expense (Income), Net	12,977				(20,874		)		(1,808		)		—				(9,705		)
Income Before Provision for Income Taxes and Minority Interest	65,115				194,131				31,025				(179,069		)		111,202
Provision for Income Taxes	—				36,195				8,988				—				45,183
Minority Interest in Earnings of Subsidiaries, Net	—				—				904				—				904
Net Income	$	65,115			$	157,936			$	21,133			$	(179,069	)		$	65,115

26

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(7)Selected Financial Information of Parent, Guarantors and Non-Guarantors (Continued)

	Six Months Ended June 30, 2005
	Parent			Guarantors			Non- Guarantors			Eliminations				Consolidated
Cash Flows from Operating Activities	$	(76,219	)	$	226,011		$	41,563			$	—			$	191,355
Cash Flows from Investing Activities:
Capital expenditures	—			(90,247		)	(41,603		)		—				(131,850		)
Cash paid for acquisitions, net of cash acquired	—			(15,564		)	(19,310		)		—				(34,874		)
Intercompany loans to subsidiaries	84,458			(29,893		)	—				(54,565		)		—
Investment in subsidiaries	(15,686		)	(15,686		)	—				31,372				—
Additions to customer relationship and acquisition costs	—			(3,443		)	(3,252		)		—				(6,695		)
Other, net	—			903			16				—				919
Cash Flows from Investing Activities	68,772			(153,930		)	(64,149		)		(23,193		)		(172,500		)
Cash Flows from Financing Activities:
Repayment of debt and term loans	(202,700		)	(791		)	(103,557		)		—				(307,048		)
Proceeds from debt and term loans	197,818			—			77,587				—				275,405
Debt financing (repayment to) and equity contribution from (distribution to) minority shareholders, net	—			—			(1,769		)		—				(1,769		)
Intercompany loans from parent	—			(85,201		)	30,636				54,565				—
Equity contribution from parent	—			15,686			15,686				(31,372		)		—
Proceeds form exercise of stock options and employee stock purchase plan	12,372			—			—				—				12,372
Payment of debt financing costs and stock issuance costs	(43		)	—			(179		)		—				(222		)
Cash Flows from Financing Activities	7,447			(70,306		)	18,404				23,193				(21,262		)
Effect of exchange rates on cash and cash equivalents	—			—			(18		)		—				(18		)
Increase (Decrease) in cash and cash equivalents	—			1,775			(4,200		)		—				(2,425		)
Cash and cash equivalents, beginning of period	—			11,021			20,921				—				31,942
Cash and cash equivalents, end of period	$	—		$	12,796		$	16,721			$	—			$	29,517

27

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(7)Selected Financial Information of Parent, Guarantors and Non-Guarantors (Continued)

	Six Months Ended June 30, 2006
	Parent			Guarantors			Non- Guarantors			Eliminations				Consolidated
Cash Flows from Operating Activities	$	(73,772	)	$	198,365		$	49,142			$	—			$	173,735
Cash Flows from Investing Activities:
Capital expenditures	—			(111,673		)	(43,298		)		—				(154,971		)
Cash paid for acquisitions, net of cash acquired	—			(16,791		)	(52,066		)		—				(68,857		)
Intercompany loans to subsidiaries	67,934			11,859			—				(79,793		)		—
Investment in subsidiaries	(13,760		)	(13,760		)	—				27,520				—
Additions to customer relationship and acquisition costs	—			(4,837		)	(2,437		)		—				(7,274		)
Other, net	—			(1,476		)	(2,385		)		—				(3,861		)
Cash Flows from Investing Activities	54,174			(136,678		)	(100,186		)		(52,273		)		(234,963		)
Cash Flows from Financing Activities:
Repayment of debt and term loans	(281,862		)	(6,278		)	(10,873		)		—				(299,013		)
Proceeds from debt and term loans	291,273			—			47,783				—				339,056
Debt financing (repayment to) and equity contribution from (distribution to) minority shareholders, net	—			—			(1,984		)		—				(1,984		)
Intercompany loans from parent	—			(70,453		)	(9,340		)		79,793				—
Equity contribution from parent	—			13,760			13,760				(27,520		)		—
Proceeds form exercise of stock options and employee stock purchase plan	10,202			—			—				—				10,202
Payment of debt financing costs and stock issuance costs	(15		)	—			—				—				(15		)
Cash Flows from Financing Activities	19,598			(62,971		)	39,346				52,273				48,246
Effect of exchange rates on cash and cash equivalents	—			—			521				—				521
Increase (Decrease) in cash and cash equivalents	—			(1,284		)	(11,177		)		—				(12,461		)
Cash and cash equivalents, beginning of period	—			10,658			42,755				—				53,413
Cash and cash equivalents, end of period	$	—		$	9,374		$	31,578			$	—			$	40,952

28

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(8) Segment Information

Beginning January 1, 2006, we changed our reportable segments as a result of certain management and organizational changes within our North American business. Therefore, the presentation of all historical segment reporting has been changed to conform to our new management reporting. Our previous Business Records Management, Data Protection and Fulfillment operating segments are now considered one operating segment which we refer to as the North American Physical Business. Online backup and recovery solutions for server data and intellectual property management services, which were previously included in our Data Protection segment, are now included in the Worldwide Digital Business segment. We now have six operating segments, as follows:

·North American Physical Business—throughout the United States and Canada, the storage of paper documents, as well as all other non-electronic media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers (“Hard Copy”); the storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations (“Data Protection”); secure shredding services (“Shredding”); and the storage, assembly, and detailed reporting of customer marketing literature and delivery to sales offices, trade shows and prospective customers’ sites based on current and prospective customer orders, which we refer to as the “Fulfillment” business

·Worldwide Digital Business—information protection and storage services for electronic records conveyed via telecommunication lines and the Internet, including online backup and recovery solutions for server data and personal computers, as well as email archiving and third party technology escrow services that protect intellectual property assets such as software source code

·Europe—information protection and storage services throughout Europe, including Hard Copy, Data Protection and Shredding

·South America—information protection and storage services throughout South America, including Hard Copy and Data Protection

·Mexico—information protection and storage services throughout Mexico, including Hard Copy, Data Protection and Shredding

·Asia Pacific—information protection and storage services throughout Australia, New Zealand and India, including Hard Copy, Data Protection and Shredding

The South America, Mexico and Asia Pacific operating segments do not individually meet the quantitative thresholds for a reportable segment, but have been aggregated and reported with Europe as one reportable segment, “International Physical Business,” given their similar economic characteristics, products, customers and processes. The Worldwide Digital Business does not meet the quantitative criteria for a reportable segment; however, management determined that it would disclose such information on a voluntary basis.

29

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(8) Segment Information(Continued)

An analysis of our business segment information and reconciliation to the consolidated financial statements is as follows:

	North American Physical Business		International Physical Business			Worldwide Digital Business			Total Consolidated
Three Months Ended June 30, 2005
Total Revenues	$	378,795		$	108,788	$	24,339			$	511,922
Depreciation and Amortization	28,565			10,473		5,707				44,745
Contribution	114,295			28,293		(67		)		142,521
Expenditures for Segment Assets(1)	44,900			19,141		14,636				78,677
Three Months Ended June 30, 2006
Total Revenues	415,254			132,182		34,132				581,568
Depreciation and Amortization	31,534			12,987		6,752				51,273
Contribution	119,094			31,467		3,432				153,993
Expenditures for Segment Assets(1)	67,940			56,534		6,606				131,080
Six Months Ended June 30, 2005
Total Revenues	749,715			216,246		47,367				1,013,328
Depreciation and Amortization	57,155			20,607		11,529				89,291
Contribution	225,037			53,383		(461		)		277,959
Total Assets	3,260,603			1,072,996		206,856				4,540,455
Expenditures for Segment Assets(1)	101,451			54,199		17,769				173,419
Six Months Ended June 30, 2006
Total Revenues	825,155			255,153		64,917				1,145,225
Depreciation and Amortization	62,062			25,338		13,721				101,121
Contribution	233,078			60,575		2,786				296,439
Total Assets	3,469,504			1,251,683		235,725				4,956,912
Expenditures for Segment Assets(1)	134,486			85,755		10,861				231,102

(1) Includes capital expenditures, cash paid for acquisitions, net of cash acquired and additions to customer acquisition costs in the accompanying consolidated statements of cash flows.

The accounting policies of the reportable segments are the same as those described in Note 2 except that certain corporate and centrally controlled costs are allocated primarily to our North American Physical Business and Worldwide Digital Business segments. These allocations, which include human resources, information technology, finance, rent, real estate property taxes, medical costs, incentive compensation, stock option expense, worker’s compensation, 401(k) match contributions and property, general liability, auto and other insurance, are based on rates and methodologies established at the beginning of each year. Included in the corporate costs allocated to our North American Physical Business segment are certain costs related to staff functions, including finance, human resources and information technology, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own

30

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(8) Segment Information (Continued)

cost of implementation. Management has decided to allocate these costs to the North American segment as further allocation is impracticable.

Previously, certain corporate and centrally controlled costs were either not allocated or variances associated with the allocated charges and the actual charges were not pushed down to the operating segments, and these costs and variances remained in our previously reported segment named Corporate and Other. This is no longer the case, and all previously reported periods have been updated to reflect the new methodologies being employed.

Contribution for each segment is defined as total revenues less cost of sales (excluding depreciation) and selling, general and administrative expenses (including the costs allocated to each segment as described above). Internally, we use Contribution as the basis for evaluating the performance of and allocating resources to our operating segments.

A reconciliation of Contribution to income before provision for income taxes and minority interest on a consolidated basis is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2005		2006			2005		2006
Contribution	$	142,521	$	153,993		$	277,959	$	296,439
Less: Depreciation and Amortization	44,745		51,273			89,291		101,121
Loss (Gain) on Disposal/Writedown of Property, Plant and Equipment, Net	1,083		(174		)	865		(11		)
Interest Expense, Net	47,222		47,254			93,028		93,832
Other Expense (Income), Net	4,946		(6,858		)	9,609		(9,705		)
Income before Provision for Income Taxes and Minority Interest	$	44,525	$	62,498		$	85,166	$	111,202

(9) Commitments and Contingencies

We are a party to numerous operating leases. No material changes in the obligations associated with these leases have occurred since December 31, 2005. See our Current Report on Form 8-K dated May 22, 2006 for amounts outstanding at December 31, 2005.

We are involved in litigation from time to time in the ordinary course of business with a portion of the defense and/or settlement costs being covered by various commercial liability insurance policies purchased by us. In the opinion of management, no material legal proceedings are pending to which we, or any of our properties, are subject. We record legal costs associated with loss contingencies as expenses in the period in which they are incurred.

(10) Subsequent Events

In July 2006, we completed an underwritten public offering of $200,000 in aggregate principal amount of our 83¤4% Senior Subordinated Notes due 2018,which were issued at a price to investors at par.

31

IRON MOUNTAIN INCORPORATED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued)
(In Thousands, Except Share and Per Share Data)
(Unaudited)

(10) Subsequent Events(Continued)

Our net proceeds of approximately $196,800, after paying the underwriters’ discounts, commissions and transaction fees, were used to (a) fund our offer to purchase and consent solicitation relating to our outstanding 81¤4%  Senior Subordinated Notes due 2011, (b) fund our purchase in the open market of $33,000 in aggregate principal amount of our other Senior Subordinated Notes and (c) repay borrowings under our revolving credit facility. As a result, we will record a charge to other expense (income), net of approximately $3,000 in the third quarter of 2006 related to the early extinguishment of the 81¤4% and other Senior Subordinated Notes, which consists of tender premiums, transaction costs, deferred financing costs, as well as, original issue discounts and premiums related to the 81¤4% and other Senior Subordinated Notes.

In July 2006, we experienced a significant fire in a records and information facility in London, England that resulted in the complete destruction of the leased facility. We believe we carry adequate property and liability insurance and are in the process of assessing the cause of, and other circumstances involved with, the fire. We do not expect that this event will have a material impact to our consolidated results of operations or financial condition. Revenues from this facility represent less than 1% of our consolidated enterprise revenues.

32

IRON MOUNTAIN INCORPORATED

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations for the three and six months ended June 30, 2006 should be read in conjunction with our consolidated financial statements and notes thereto for the three and six months ended June 30, 2006 included herein, and the year ended December 31, 2005, included in our Current Report on Form 8-K dated May 22, 2006.

FORWARD-LOOKING STATEMENTS

We have made statements in this Quarterly Report on Form 10-Q that constitute “forward-looking statements” as that term is defined in the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements concern our operations, economic performance, financial condition, goals, beliefs, strategies, objectives, plans and current expectations. The forward-looking statements are subject to various known and unknown risks, uncertainties and other factors. When we use words such as “believes,” “expects,” “anticipates,” “estimates” or similar expressions, we are making forward-looking statements. Although we believe that our forward-looking statements are based on reasonable assumptions, our expected results may not be achieved, and actual results may differ materially from our expectations. Important factors that could cause actual results to differ from expectations include, among others: (1) changes in customer preferences and demand for our services; (2) changes in the price for our services relative to the cost of providing such services; (3) in the various digital businesses in which we are engaged, capital and technical requirements will be beyond our means, markets for our services will be less robust than anticipated, or competition will be more intense than anticipated; (4) the cost to comply with current and future legislation or regulation relating to privacy issues; (5) the impact of litigation that may arise in connection with incidents of inadvertent disclosures of customers’ confidential information; (6) our ability or inability to complete acquisitions on satisfactory terms and to integrate acquired companies efficiently; (7) the cost and availability of financing for contemplated growth; (8) business partners upon whom we depend for technical assistance or management and acquisition expertise outside the U.S. will not perform as anticipated; (9) changes in the political and economic environments in the countries in which our international subsidiaries operate; and (10) other trends in competitive or economic conditions affecting our financial condition or results of operations not presently contemplated. You should not rely upon forward-looking statements except as statements of our present intentions and of our present expectations, which may or may not occur. Other risks may adversely impact us, as described more fully under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2005 and our Current Report on Form 8-K filed on July 11, 2006. You should read these cautionary statements as being applicable to all forward-looking statements wherever they appear. We undertake no obligation to release publicly the result of any revision to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. Readers are also urged to carefully review and consider the various disclosures we have made in this document, as well as our other periodic reports filed with the Securities and Exchange Commission (“SEC”).

Non-GAAP Measures

Operating Income Before Depreciation and Amortization, or OIBDA

OIBDA is defined as operating income before depreciation and amortization expenses. OIBDA Margin is calculated by dividing OIBDA by total revenues. Our management uses these measures to evaluate the operating performance of our consolidated business. As such, we believe these measures provide relevant and useful information to our current and potential investors. We use OIBDA for planning purposes and multiples of current or projected OIBDA-based calculations in conjunction with

33

our discounted cash flow models to determine our overall enterprise valuation and to evaluate acquisition targets. We believe OIBDA and OIBDA Margin are useful measures to evaluate our ability to grow our revenues faster than our operating expenses and they are an integral part of our internal reporting system utilized by management to assess and evaluate the operating performance of our business. OIBDA does not include certain items, specifically (1) minority interest in earnings (losses) of subsidiaries, net, (2) other (income) expense, net, (3) income from discontinued operations and loss on sale of discontinued operations and (4) cumulative effect of change in accounting principle that we believe are not indicative of our core operating results. OIBDA also does not include interest expense, net and the provision for income taxes. These expenses are associated with our capitalization and tax structures, which management does not consider when evaluating the profitability of our core operations. Finally, OIBDA does not include depreciation and amortization expenses, in order to eliminate the impact of capital investments, which management evaluates by comparing capital expenditures to incremental revenue generated and as a percentage of total revenues. OIBDA and OIBDA Margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with accounting principles generally accepted in the United States of America, or GAAP, such as operating or net income or cash flows from operating activities (as determined in accordance with GAAP).

Reconciliation of OIBDA to Operating Income and Net Income (In Thousands):

	Three Months Ended June 30,					Six Months Ended June 30,
	2005		2006			2005		2006
OIBDA	$	141,438	$	154,167		$	277,094	$	296,450
Less: Depreciation and Amortization	44,745		51,273			89,291		101,121
Operating Income	96,693		102,894			187,803		195,329
Less: Interest Expense, Net	47,222		47,254			93,028		93,832
Other Expense (Income), Net	4,946		(6,858		)	9,609		(9,705		)
Provision for Income Taxes	18,866		24,212			36,102		45,183
Minority Interest	249		444			705		904
Net Income	$	25,410	$	37,842		$	48,359	$	65,115

Critical Accounting Policies

Our discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities at the date of the financial statements and for the period then ended. On an on-going basis, we evaluate the estimates used, including those related to accounting for acquisitions, allowance for doubtful accounts and credit memos, impairment of tangible and intangible assets, income taxes, stock-based compensation and self-insured liabilities. We base our estimates on historical experience, actuarial estimates, current conditions and various other assumptions that we believe to be reasonable under the circumstances. These estimates form the basis for making judgments about the carrying values of assets and liabilities and are not readily apparent from other sources. Actual results may differ from these estimates. Our critical accounting policies include the following, which are listed in no particular order:

·Accounting for Acquisitions

·Allowance for Doubtful Accounts and Credit Memos

·Impairment of Tangible and Intangible Assets

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·Accounting for Internal Use Software

·Income Taxes

·Stock-based Compensation

·Self-Insured Liabilities

Further detail regarding our critical accounting policies can be found in “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements and the notes included in our Current Report on 8-K dated May 22, 2006 as filed with the SEC. Management has determined that no material changes concerning our critical accounting policies have occurred since December 31, 2005.

Recent Accounting Pronouncements

In July 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), an interpretation of FASB Statement No. 109, “Accounting for Income Taxes” (“SFAS No. 109”). FIN 48 clarifies the accounting for uncertainty in income taxes recognized in a company’s financial statements in accordance with SFAS No. 109. FIN 48 also prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.

The evaluation of a tax position in accordance with FIN 48 is a two-step process. The first step is a recognition process whereby the company determines whether it is more likely than not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The second step is a measurement process whereby a tax position that meets the more likely than not recognition threshold is calculated to determine the amount of benefit to recognize in the financial statements. The tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement.

The provisions of FIN 48 are effective January 1, 2007. Earlier application is permitted as long as the company has not yet issued financial statements, including interim financial statements, in the period of adoption. The provisions of FIN 48 are to be applied to all tax positions upon initial adoption of this standard. Only tax positions that meet the more likely than not recognition threshold at the effective date may be recognized or continue to be recognized upon adoption of FIN 48. The cumulative effect of applying the provisions of FIN 48 should be reported as an adjustment to the opening balance of retained earnings for that fiscal year. We are in the process of evaluating the effect of FIN 48 on our consolidated results of operations and financial position.

Overview

The following discussions set forth, for the periods indicated, management’s discussion and analysis of results. Significant trends and changes are discussed for the three and six month periods ended June 30, 2006 within each section. Trends and changes that are consistent within the three and six months periods are not repeated and are discussed only on a year to date basis.

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Results of Operations

Comparison of Three and Six Months Ended June 30, 2006 to Three and Six Months Ended June 30, 2005 (in thousands):

	Three Months Ended June 30,
	2005			2006			Dollar Change			Percent  Change
Revenues	$	511,922		$	581,568		$	69,646			13.6	%
Operating Expenses	415,229			478,674			63,445				15.3	%
Operating Income	96,693			102,894			6,201				6.4	%
Other Expenses, Net	71,283			65,052			(6,231		)		(8.7	)%
Net Income	$	25,410		$	37,842		$	12,432			48.9	%
OIBDA(1)	$	141,438		$	154,167		$	12,729			9.0	%
OIBDA Margin(1)	27.6		%	26.5		%

	Six Months Ended  June 30,
	2005			2006			Dollar  Change			Percent  Change
Revenues	$	1,013,328		$	1,145,225		$	131,897			13.0	%
Operating Expenses	825,525			949,896			124,371				15.1	%
Operating Income	187,803			195,329			7,526				4.0	%
Other Expenses, Net	139,444			130,214			(9,230		)		(6.6	)%
Net Income	$	48,359		$	65,115		$	16,756			34.6	%
OIBDA(1)	$	277,094		$	296,450		$	19,356			7.0	%
OIBDA Margin(1)	27.3		%	25.9		%

(1) See “Non-GAAP Measures—Operating Income Before Depreciation and Amortization, or OIBDA” for definition, reconciliation and a discussion of why we believe these measures provide relevant and useful information to our current and potential investors.

REVENUES

Our consolidated storage revenues increased $36.2 million, or 12.4%, to $327.9 million and $70.0 million, or 12.1%, to $647.0 million for the three and six months ended June 30, 2006 compared to the same periods in 2005, respectively. For both the three and six month periods ended June 30, 2006, the increase is attributable to internal revenue growth (11%) resulting from net increases in records and other media stored by existing customers, sales to new customers, the net result of pricing actions, and acquisitions (3%), net of a decrease due to foreign currency exchange rate fluctuations (1%).

Consolidated service and storage material sales revenues increased $33.4 million, or 15.2%, to $253.7 million and $61.9 million, or 14.2%, to $498.2 million for the three and six months ended June 30, 2006, respectively, compared to the same periods in 2005. For the three months ended June 30, 2006 the increase is attributable to internal revenue growth (8%) resulting from net increases in service and storage material sales to existing customers, sales to new customers, and acquisitions (8%), net of a decrease due to foreign currency exchange rate fluctuations (1%). For the six months ended June 30, 2006, the increase is attributable to internal revenue growth (8%) resulting from net increases in service and storage material sales to existing customers, sales to new customers, and acquisitions (7%), net of a decrease due to foreign currency exchange rate fluctuations (1%).

For the reasons stated above, our consolidated revenues increased $69.6 million, or 13.6%, to $581.6 million and $131.9 million, or 13.0%, to $1,145.2 million for the three and six months ended

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June 30, 2006, respectively, compared to the same periods in 2005. Foreign currency exchange rate fluctuations that impacted our revenues were primarily due to the weakening of the British pound sterling and Euro, net of the strengthening of the Canadian dollar, against the U.S. dollar, based on an analysis of weighted average rates for the comparable periods. Internal revenue growth was 9% for both the three and six months ended June 30, 2006. We calculate internal revenue growth in local currency for our international operations.

Internal Growth—Eight-Quarter Trend

	2004						2005												2006
	Third Quarter			Fourth Quarter			First Quarter			Second Quarter			Third Quarter			Fourth Quarter			First Quarter			Second Quarter
Storage Revenue		8	%		9	%		8	%		9	%		9	%		10	%		10	%		11	%
Service and Storage Material Sales Revenue		5	%		9	%		3	%		6	%		12	%		9	%		8	%		8	%
Total Revenue		7	%		9	%		6	%		8	%		10	%		9	%		10	%		9	%

Our internal revenue growth rate represents the weighted average year over year growth rate of our revenues after removing the effects of acquisitions and foreign currency exchange rate fluctuations. Over the past eight quarters, the internal growth rate of our storage revenues has increased from a range of 8% to 9% to a range of 10% to 11%. In our North American Physical Business, net carton volume growth remained stable and we benefited from a more positive pricing environment in 2005 and 2006 compared to 2004. Strong growth rates in our digital services business more than offset the impact of reduced growth rates in Europe resulting from the inclusion of the slower growing Hays plc business in our base revenues for internal growth calculation purposes effective in the first quarter of 2005. Net carton volume growth is a function of the rate new cartons are added by existing and new customers offset by the rate of carton destructions and other permanent removals.

The internal growth rate for service and storage material sales revenue is inherently more volatile than the storage revenue internal growth rate due to the more discretionary nature of the services we offer such as large special projects or data products and carton sales, as well as the price of recycled paper. These revenues are often event driven and impacted to a greater extent by economic downturns as customers defer or cancel the purchase of these services as a way to reduce their short-term costs. As a commodity, recycled paper prices are subject to the volatility of that market.

The internal growth rate for service and storage material sales revenues has been stronger over the past several quarters. The internal growth rate for service and storage material sales revenues reflects the following: (1) stronger data product sales, particularly in 2005 compared to 2004; (2) a large data restoration project completed by our digital services business in the third quarter of 2005; (3) growth in North American storage related service revenues; (4) continued growth in our secure shredding operations; and (5) improved growth rates in our data protection and fulfillment businesses. These positive factors were partially offset by lower special project revenues related to the public sector business in the U.K., particularly in 2005 compared to 2004.

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OPERATING EXPENSES

Cost of Sales

Consolidated cost of sales (excluding depreciation) is comprised of the following expenses (in thousands):

	Three Months Ended June 30,				Dollar		Percent			% of Consolidated Revenues				Percent Change (Favorable)/
	2005		2006		Change		Change			2005		2006		Unfavorable
Labor	$	112,609	$	128,353	$	15,744		14.0	%	22.0	%	22.1	%		0.1	%
Facilities	65,226		74,500		9,274			14.2	%	12.7	%	12.8	%		0.1	%
Transportation	23,951		26,937		2,986			12.5	%	4.7	%	4.6	%		(0.1	)%
Product Cost of Sales	11,662		11,835		173			1.5	%	2.3	%	2.0	%		(0.3	)%
Other	14,640		17,665		3,025			20.7	%	2.9	%	3.0	%		0.1	%
	$	228,088	$	259,290	$	31,202		13.7	%	44.6	%	44.6	%		—	%

	Six Months Ended				Dollar		Percent			% of Consolidated Revenues				Percent Change (Favorable)/
	2005		2006		Change		Change			2005		2006		Unfavorable
Labor	$	222,870	$	254,060	$	31,190		14.0	%	22.0	%	22.2	%		0.2	%
Facilities	135,977		154,936		18,959			13.9	%	13.4	%	13.5	%		0.1	%
Transportation	46,647		53,465		6,818			14.6	%	4.6	%	4.7	%		0.1	%
Product Cost of Sales	23,639		24,848		1,209			5.1	%	2.3	%	2.2	%		(0.1	)%
Other	29,583		34,349		4,766			16.1	%	2.9	%	3.0	%		0.1	%
	$	458,716	$	521,658	$	62,942		13.7	%	45.3	%	45.6	%		0.3	%

Labor

For the six months ended June 30, 2006 as compared to the six months ended June 30, 2005, labor expense increased as a percentage of consolidated revenues mainly as a result of higher labor costs in our Australia/New Zealand acquisition driven by their ongoing real estate rationalization program and our recent shredding acquisitions in Europe which have a higher service revenue component and are therefore more labor intensive. Our digital business had higher costs of labor associated with internal information technology personnel and consultants dedicated to revenue producing projects.

Facilities

Facilities costs as a percentage of consolidated revenues increased to 13.5% for the six months ended June 30, 2006 from 13.4% for the six months ended June 30, 2005. The increase in facilities costs as a percentage of consolidated revenues was primarily a result of increases in utilities and maintenance costs. Rent expense decreased slightly as a percentage of consolidated revenues for the six months ended June 30, 2006 compared to the six months ended June 30, 2005 as a result of maintaining approximately the same overall base rent per square foot in our North American operations in 2005 and 2006 while consolidated revenues increased. The largest component of our facilities cost is rent expense, which increased $8.7 million for the six months ended June 30, 2006 compared to the six months ended June 30, 2005. The expansion of our secure shredding operations, which incurs lower facilities costs than our core physical businesses, also helped lower our facilities costs as a percentage of consolidated revenues.

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Transportation

Our transportation expenses, which increased slightly as a percentage of consolidated revenues for the six months ended June 30, 2006 compared to the six months ended June 30, 2005, are influenced by several variables including total number of vehicles, owned versus leased vehicles, use of subcontracted couriers, fuel expenses and maintenance. Higher fuel and rental costs associated with leased vehicles, mainly attributable to the migration from owned to leased vehicles compounded by a shift in the mix of vehicles from light vans to larger more expensive trucks, offset by a reduction in third party subcontractor courier costs, during the six months ended June 30, 2006 compared to the six months ended June 30, 2005, were primarily responsible for the increase in transportation expenses as a percentage of consolidated revenues.

Product and Other Costs of Sales

Product and other costs of sales are highly correlated to complementary revenue streams. Total product and other costs of sales for the six months ended June 30, 2006 were flat compared to the six months ended June 30, 2005.

Selling, General and Administrative Expenses

Selling, general and administrative expenses are comprised of the following expenses (in thousands):

	Three Months Ended June 30,				Dollar		Percent			% of Consolidated Revenues				Percent Change (Favorable)/
	2005		2006		Change		Change			2005		2006		Unfavorable
General and Administrative	$	72,199	$	83,808	$	11,609		16.1	%	14.1	%	14.4	%		0.3	%
Sales, Marketing & Account Management	44,036		52,991		8,955			20.3	%	8.6	%	9.1	%		0.5	%
Information Technology	24,114		29,843		5,729			23.8	%	4.7	%	5.1	%		0.4	%
Bad Debt Expense	964		1,643		679			70.4	%	0.2	%	0.3	%		0.1	%
	$	141,313	$	168,285	$	26,972		19.1	%	27.6	%	28.9	%		1.3	%

	Six Months Ended June 30,				Dollar		Percent			% of Consolidated Revenues				Percent Change (Favorable)/
	2005		2006		Change		Change			2005		2006		Unfavorable
General and Administrative	$	140,280	$	162,938	$	22,658		16.2	%	13.8	%	14.2	%		0.4	%
Sales, Marketing & Account Management	86,681		104,584		17,903			20.7	%	8.6	%	9.1	%		0.5	%
Information Technology	47,948		57,564		9,616			20.1	%	4.7	%	5.0	%		0.3	%
Bad Debt Expense	1,744		2,042		298			17.1	%	0.2	%	0.2	%		—	%
	$	276,653	$	327,128	$	50,475		18.2	%	27.3	%	28.6	%		1.3	%

General and Administrative

The increase in general and administrative expenses as a percentage of consolidated revenues for the six months ended June 30, 2006 compared to the six months ended June 30, 2005 is mainly attributable to (a) increased compensation expense due to expansion through acquisitions, (b) costs associated with our North American reorganization which added a new level of field management, (c) costs associated with a North American field operations meeting held in the first quarter of 2006 that was not held in the first quarter of 2005, and (d) increased management recruiting fees and professional fees.

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Sales, Marketing & Account Management

The majority of our sales, marketing and account management costs are labor related and are primarily driven by the headcount in each of these departments. Increased headcount and related compensation and commissions are the most significant contributors to the increase in sales, marketing and account management expenses as a percentage of consolidated revenues for the six months ended June 30, 2006. Throughout 2005 and into 2006, we invested in the expansion and improvement of our sales, marketing and account management functions. In North America, while our sales force headcount has increased at a slower rate than revenue growth, the shift to higher end resources is driving an increase in the level of spending due to higher costs per sales person and the additional support required. We have significantly increased the size of our digital sales force through acquisition (LiveVault) and the hiring of new sales people, particularly in Europe. Additionally, costs associated with an enterprise-wide sales meeting held in the first quarter of 2006 and not in the first quarter of 2005 also contributed to this increase. Our larger North American sales force generated a $5.1 million increase in sales commissions and an increase of $6.8 million of compensation expense for the six months ended June 30, 2006 compared to the six months ended June 30, 2005.

Information Technology

Information technology expenses increased as a percentage of consolidated revenues for the six months ended June 30, 2006 compared to the six months ended June 30, 2005 due to increases in technology development activities within our digital services business, including the acquisition of LiveVault and associated research and development activities and increased spending to support our growing digital archiving business. Higher utilization of existing information technology resources to revenue producing projects, which are charged to costs of goods sold and decreased information technology spending in our European operations, partially offset this increase.

Depreciation, Amortization and (Gain) Loss on Disposal/Writedown of Property, Plant and Equipment, Net

Consolidated depreciation and amortization expense increased $11.8 million to $101.1 million (8.8% of consolidated revenues) for the six months ended June 30, 2006 from $89.3 million (8.8% of consolidated revenues) for the six months ended June 30, 2005. Depreciation expense increased $5.7 million and $10.5 million for the three and six months ended June 30, 2006 compared to the same periods in 2005, respectively, primarily due to the additional depreciation expense related to recent capital expenditures and acquisitions, including storage systems, which consist of racking, building and leasehold improvements, computer systems hardware and software, and buildings. Amortization expense increased $0.8 million and $1.3 million for the three and six months ended June 30, 2006 compared to the same periods in 2005, respectively, primarily due to amortization of intangible assets such as customer relationship intangible assets and intellectual property acquired through business combinations. We expect that amortization expense will continue to increase as we acquire new businesses and reflect the full year impact of our acquisitions of LiveVault, Pickfords Records Management (“Pickfords”) and our other 2005 acquisitions, most of which were completed in the second half of the year.

OPERATING INCOME

As a result of the foregoing factors, consolidated operating income increased $6.2 million, or 6.4%, to $102.9 million (17.7% of consolidated revenues) for the three months ended June 30, 2006 from $96.7 million (18.9% of consolidated revenues) for the three months ended June 30, 2005. Consolidated operating income increased $7.5 million, or 4.0%, to $195.3 million (17.1% of consolidated revenues) for the six months ended June 30, 2006 from $187.8 million (18.5% of consolidated revenues) for the six months ended June 30, 2005.

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OIBDA

As a result of the foregoing factors, consolidated OIBDA increased $12.7 million, or 9.0% to $154.2 million (26.5% of consolidated revenues) for the three months ended June 30, 2006 from $141.4 million (27.6% of consolidated revenues) for the three months ended June 30, 2005. Consolidated OIBDA increased $19.4 million, or 7.0% to $296.4 million (25.9% of consolidated revenues) for the six months ended June 30, 2006 from $277.1 million (27.3% of consolidated revenues) for the six months ended June 30, 2005.

OTHER EXPENSES, NET

Interest Expense, Net

Consolidated interest expense, net remained flat at $47.2 million for both the three months ended June 30, 2006 and 2005, and increased $0.8 million to $93.8 million from $93.0 million for the six months ended June 30, 2006. The change is primarily due to increased borrowings to fund our 2005 and 2006 acquisitions, particularly LiveVault and Pickfords, offset by a decrease in our weighted average interest rate to 7.4% as of June 30, 2006 from 7.6% as of June 30, 2005.

Other Expense (Income), Net (in thousands)

	Three Months Ended June 30,									Six Months Ended June 30,
	2005			2006			Change			2005			2006			Change
Foreign currency transaction losses (gains), net	$	4,965		$	(7,186	)	$	(12,151	)	$	9,754		$	(8,515	)	$	(18,269	)
Other, net	(19		)	328			347			(145		)	(1,190		)	(1,045		)
	$	4,946		$	(6,858	)	$	(11,804	)	$	9,609		$	(9,705	)	$	(19,314	)

Foreign currency gains of $8.5 million based on period-end exchange rates were recorded in the six months ended June 30, 2006, primarily due to the strengthening of the British pound sterling, Canadian dollar, and Euro, and the weakening of the Australian dollar  against the U.S. dollar compared to December 31, 2005 as these currencies relate to our intercompany balances with and between our Australian, U.K., and European subsidiaries, borrowings denominated in certain foreign currencies under our revolving credit facility and British pounds sterling denominated debt held by our U.S. parent company.

Foreign currency losses of $9.8 million based on period-end exchange rates were recorded in the six months ended June 30, 2005 primarily due to the weakening of the British pound sterling, Canadian dollar and the Euro against the U.S. dollar since December 31, 2004 as these currencies relate to our intercompany balances with our U.K., Canadian and European subsidiaries, and British pounds sterling denominated debt held by our U.S. parent company.

Provision for Income Taxes

Our effective tax rates for the three months ended June 30, 2005 and 2006 were 42.4% and 38.7%, respectively. Our effective tax rates for the six months ended June 30, 2005 and 2006 were 42.4%, and 40.6%, respectively. The primary reconciling item between the statutory rate of 35% and our effective rate is state income taxes (net of federal benefit). During the second quarter of 2006, we recorded a reduction in income tax expense as a result of a new Texas law changing the way state income tax is calculated in that state. As a result of this change, we have reversed a deferred tax liability of $1.7 million, net of federal tax benefit, related to our Texas state taxes. We are subject to income taxes in both the U.S. and numerous foreign jurisdictions. We are subject to examination by various tax authorities in jurisdictions in which we have significant business operations. We regularly assess the likelihood of additional assessments by tax

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authorities and provide for these matters as appropriate. Although we believe our tax estimates are appropriate, the final determination of tax audits and any related litigation could result in changes in our estimates.

Minority Interest

Minority interest in earnings of subsidiaries, net resulted in a charge to income of $0.4 million and $0.9 million for the three and six months ended June 30, 2006, respectively, compared to $0.2 million and $0.7 million for the three and six months ended June 30, 2005, respectively. This represents our minority partners’ share of earnings in our majority-owned international subsidiaries that are consolidated in our operating results.

NET INCOME

As a result of the foregoing factors, consolidated net income increased $12.4 million, or 48.9%, to $37.8 million (6.5% of consolidated revenues) for the three months ended June 30, 2006 from net income of $25.4 million (5.0% of consolidated revenues) for the three months ended June 30, 2005. For the six months ended June 30, 2006, consolidated net income increased $16.8 million, or 34.6%, to $65.1 million (5.7% of consolidated revenues) from net income of $48.4 million (4.8% of consolidated revenues) for the six months ended June 30, 2005.

Segment Analysis (in thousands)

The results of our various operating segments are discussed below. Beginning January 1, 2006, we changed our reportable segments as a result of certain management and organizational changes within our North American business. Therefore, the presentation of all historical segment reporting has been changed to conform to our new management reporting. Our reportable segments are now North American Physical Business, International Physical Business and Worldwide Digital Business. See Note 8 of Notes to Consolidated Financial Statements. Our North American Physical Business, which consists of the United States and Canada, offers the storage of paper documents, as well as all other non-electronic media such as microfilm and microfiche, master audio and videotapes, film, X-rays and blueprints, including healthcare information services, vital records services, service and courier operations, and the collection, handling and disposal of sensitive documents for corporate customers (“Hard Copy”); the storage and rotation of backup computer media as part of corporate disaster recovery plans, including service and courier operations (“Data Protection”); secure shredding services (“Shredding”); and the storage, assembly, and detailed reporting of customer marketing literature and delivery to sales offices, trade shows and prospective customers’ sites based on current and prospective customer orders, which we refer to as the “Fulfillment” business. Our International Physical Business segment offers information and protection services throughout Europe, South America, Mexico and Asia Pacific, including Hard Copy, Data Protection and Shredding. Our Worldwide Digital Business offers storage and related archiving services for electronic records conveyed via telecommunication lines and the Internet, including online backup and recovery solutions for remote server data and personal computers, as well as email archiving and third party technology escrow services that protect intellectual property assets such as software source code.

North American Physical Business

	Segment Revenue							Percentage			Segment Contribution(1)				Segment Contribution as a Percentage of  Segment Revenue
	June 30, 2005		June 30, 2006		Increase in Revenues			Increase in Revenues			June 30, 2005		June 30, 2006		June 30, 2005			June 30, 2006
Three Months Ended	$	378,795	$	415,254		$	36,459		9.6	%	$	114,295	$	119,094		30.2	%		28.7	%
Six Months Ended	749,715		825,155			75,440			10.1	%	225,037		233,078			30.0	%		28.2	%

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Items Excluded from the Calculation of Contribution(1)

	Depreciation and Amortization
	June 30, 2005			June 30,  2006
Three Months Ended		$	28,565		$	31,534
Six Months Ended		57,155			62,062

(1) See Note 8 of Notes to Consolidated Financial Statements for definition of Contribution and for the basis on which allocations are made and a reconciliation of Contribution to income before provision for income taxes and minority interest on a consolidated basis.

During the six months ended June 30, 2006, revenue in our North American Physical Business segment increased 10.1% primarily due to increasing storage internal growth rates resulting from stable net volume growth and a positive pricing environment, increasing service revenue growth rates particularly in data protection and fulfillment, growth of our secure shredding operations, and acquisitions. In addition, favorable currency fluctuations during the six months ended June 30, 2006 in Canada increased revenue, as measured in U.S. dollars, by $6.0 million when compared to the six months ended June 30, 2005. Contribution as a percent of segment revenue decreased in the six months ended June 30, 2006 due mainly to (a) higher transportation costs, primarily fuel and rental costs associated with leased vehicles, mainly attributable to the migration from owned to leased vehicles compounded by a shift in the mix of vehicles from light vans to larger more expensive trucks, (b) increased facility costs, primarily utilities and maintenance, (c) increased investment in sales, marketing and account management primarily related to a shift in hiring more experienced personnel at a higher cost, (d) costs associated with the North American reorganization, including a new level of field management, (e) costs associated with our enterprise-wide sales meeting and a field operations meeting, both held in the first half of 2006 but not in the first half of 2005, and (f) higher labor costs associated with recent acquisitions.

Included in our North American Physical Business segment are certain costs related to staff functions, including finance, human resources and information technology, which benefit the enterprise as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. Management has decided to allocate these costs to the North American segment as further allocation is impracticable.

International Physical Business

	Segment Revenue										Segment Contribution(1)				Segment Contribution as a Percentage of Segment Revenue
								Percentage
	June 30, 2005		June 30, 2006		Increase in Revenues			Increase in Revenues			June 30, 2005		June 30, 2006		June 30, 2005			June 30, 2006
Three Months Ended	$	108,788	$	132,182		$	23,394		21.5	%	$	28,293	$	31,467		26.0	%		23.8	%
Six Months Ended	216,246		255,153			38,907			18.0	%	53,383		60,575			24.7	%		23.7	%

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Items Excluded from the Calculation of Contribution(1)

	Depreciation and Amortization
	June 30, 2005			June 30, 2006
Three Months Ended		$	10,473		$	12,987
Six Months Ended		20,607			25,338

(1) See Note 8 of Notes to Consolidated Financial Statements for definition of Contribution and for the basis on which allocations are made and a reconciliation of Contribution to income before provision for income taxes and minority interest on a consolidated basis.

Revenue in our International Physical Business segment increased 18.0% during the six months ended June 30, 2006.  This increase was due to the acquisition of Pickfords in December 2005, which contributed $19.4 million in revenue, an increase of $11.8 million in Europe (net of a $17.5 million unfavorable currency fluctuation), and an increase of $7.8 million in Latin America (net of a $2.2 million favorable currency fluctuation). Contribution as a percent of segment revenue decreased primarily due to increases in European recruitment fees, new management, sales, and marketing personnel, and the acquisition of shredding businesses that operate at lower margins, off set by a decrease in bad debt expense.

Worldwide Digital Business

	Segment Revenue							Percentage			Segment Contribution(1)							Segment  Contribution as a Percentage of Segment Revenue
	June 30, 2005		June 30, 2006		Increase in Revenues			Increase in Revenues			June 30, 2005				June 30, 2006			June 30, 2005			June 30, 2006
Three Months Ended	$	24,339	$	34,132		$	9,793		40.2	%		$	(67	)		$	3,432		(0.3	)%		10.1	%
Six Months Ended	47,367		64,917			17,550			37.1	%		(461		)		2,786			(1.0	)%		4.3	%

Items Excluded from the Calculation of Contribution(1)

	Depreciation and Amortization
	June 30,  2005			June 30,  2006
Three Months Ended		$	5,707		$	6,752
Six Months Ended		11,529			13,721

(1) See Note 8 of Notes to Consolidated Financial Statements for definition of Contribution and for the basis on which allocations are made and a reconciliation of Contribution to income before provision for income taxes and minority interest on a consolidated basis.

During the three and six months ended June 30, 2006, revenue in our Worldwide Digital Business segment increased 40.2% and 37.1% compared to the three and six months ended June 30, 2005, on internal growth of 31% and 29%, respectively, primarily attributable to our online backup service offerings for both personal computer and server data. The acquisition of LiveVault in December 2005, contributed $2.8 million and $5.0 million in revenue during the three and six months ended June 30, 2006, respectively. Contribution as a percent of segment revenue increased during both periods primarily due to increased revenues which resulted in a higher absorption of fixed costs and a reduction in royalty payments offset by increased overhead due to the acquisition of LiveVault, increased investment in the European sales force, and increases in information technology costs.

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Liquidity and Capital Resources

The following is a summary of our cash balances and cash flows for the six months ended June 30, 2005 and 2006 (in thousands).

	2005			2006
Cash flows provided by operating activities	$	191,355		$	173,735
Cash flows used in investing activities	(172,500		)	(234,963		)
Cash flows provided by financing activities	(21,262		)	48,246
Cash and cash equivalents at the end of period	29,517			40,952

Net cash provided by operating activities was $173.7 million for the six months ended June 30, 2006 compared to $191.4 million for the six months ended June 30, 2005. The decrease resulted primarily from an increase in operating income and non-cash items, such as depreciation offset by the net change in assets and liabilities. The net change in assets and liabilities is primarily associated with higher incentive compensation payments in 2006 compared to 2005 and timing of prepaid items such as real estate taxes.

Due to the nature of our businesses, we make significant capital expenditures and additions to customer acquisition costs. Our capital expenditures are primarily related to growth and include investments in storage systems, information systems and discretionary investments in real estate. Cash paid for our capital expenditures and additions to customer acquisition costs during the six months ended June 30, 2006 amounted to $162.2 million. For the six months ended June 30, 2006, capital expenditures, net and additions to customer acquisition costs were funded with cash flows provided by operating activities. We expect our capital expenditures to be between $320 million and $360 million in the year ending December 31, 2006. Included in our estimated capital expenditures for 2006 is $50 million to $60 million of opportunity driven real estate purchases.

In the six months ended June 30, 2006, we paid net cash consideration of $68.9 million for acquisitions, primarily related to the acquisition of two shredding businesses in the U.K., the buyout of minority partners in France and Mexico and contingent payments associated with a shredding acquisition in the U.S. and another acquisition in Europe. Cash flows provided by operating activities, borrowings under our revolving credit facilities and cash equivalents on-hand funded these acquisitions.

Net cash provided by financing activities was $48.2 million for the six months ended June 30, 2006. During the six months ended June 30, 2006, we had gross borrowings under our revolving credit facilities and term loan facilities of $339.1 million and $10.2 million of proceeds from the exercise of stock options and employee stock purchase plan. We used the proceeds from these financing transactions to repay debt and term loans ($299.0 million), repay debt financing from minority stockholders, net ($2.0 million) and to fund acquisitions.

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We are highly leveraged and expect to continue to be highly leveraged for the foreseeable future. Our consolidated debt as of June 30, 2006 was comprised of the following (in thousands):

IMI Revolving Credit Facility(1)	$	249,602
IMI Term Loan Facility(1)	343,750
IME Revolving Credit Facility(2)	104,928
IME Term Loan Facility(2)	182,630
81¤4% Senior Subordinated Notes due 2011(3)	149,782
85¤8% Senior Subordinated Notes due 2013(3)	481,022
71¤4% GBP Senior Subordinated Notes due 2014(3)	272,445
73¤4% Senior Subordinated Notes due 2015(3)	439,049
65¤8% Senior Subordinated Notes due 2016(3)	315,306
Real Estate Mortgages	4,420
Seller Notes	8,189
Other	56,635
Total Long-term Debt	2,607,758
Less Current Portion	(65,762		)
Long-term Debt, Net of Current Portion	$	2,541,996

(1)All intercompany notes and the capital stock of most of our U.S. subsidiaries are pledged to secure these debt instruments.

(2)Most of IME’s non-dormant subsidiaries have either guaranteed this indebtedness or their shares of capital stock and inercompany indebtedness has been pledged to  secure this indebtedness. IMI has not guaranteed or otherwise provided security for this indebtedness nor have any of IMI’s U.S., Canadian, Asia Pacific, Mexican or  South American subsidiaries.

(3)These debt instruments are fully and unconditionally guaranteed, on a senior subordinated basis, by substantially all of our direct and indirect wholly owned U.S. subsidiaries (the “Guarantors”). These guarantees are joint and several obligations of the Guarantors. The remainder of our subsidiaries do not guarantee these debt instruments.

Our indentures use OIBDA-based calculations as primary measures of financial performance, including leverage ratios. Our key bond leverage ratio, as calculated per our bond indentures, was 5.0 and 4.7 as of December 31, 2005 and June 30, 2006, respectively. Noncompliance with this leverage ratio would have a material adverse effect on our financial condition and liquidity. Our target for this ratio is generally in the range of 4.5 to 5.5 while the maximum ratio allowable under the bond indentures is 6.5.

Our ability to pay interest on or to refinance our indebtedness depends on our future performance, working capital levels and capital structure, which are subject to general economic, financial, competitive, legislative, regulatory and other factors which may be beyond our control. There can be no assurance that we will generate sufficient cash flow from our operations or that future financings will be available on acceptable terms or in amounts sufficient to enable us to service or refinance our indebtedness, or to make necessary capital expenditures.

Our consolidated balance sheet as of June 30, 2006 includes 100.0 million British pounds sterling and 83.0 million Euro of borrowing (totaling $287.6 million) under the IME Credit Agreement; we also had various outstanding letters of credit totaling 1.7 million British pounds sterling ($3.2 million). The remaining availability, based on its current level of external debt and the leverage ratio under the IME revolving credit facility on April 30, 2006, was approximately 40.8 million British pounds sterling ($74.5 million). The interest rates in effect under the IME revolving credit facility ranged from 3.9% to 5.9% as of April 30, 2006.

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As of June 30, 2006, we had $249.6 million of borrowings under the IMI revolving credit facility, of which $29.5 was denominated in U.S. dollars and the remaining balance was denominated in Canadian dollars (CAD 188.0 million), in Australian dollars (AUD 55.0 million), and in New Zealand dollars (NZD 20.2 million); we also had various outstanding letters of credit totaling $23.9 million. The remaining availability, based on Iron Mountain Incorporated’s (“IMI”) current level of external debt and the leverage ratio under the IMI revolving credit facility, on June 30, 2006 was $126.5 million. The interest rate in effect under the IMI revolving credit facility and IMI term loan facility ranged from 5.5% to 9.1% and 7.0% to 7.9%, respectively, as of June 30, 2006.

The IME Credit Agreement, IMI Credit Agreement and our indentures and other agreements governing our indebtedness contain certain restrictive financial and operating covenants, including covenants that restrict our ability to complete acquisitions, pay cash dividends, incur indebtedness, make investments, sell assets and take certain other corporate actions. The covenants do not contain a rating trigger. Therefore, a change in our debt rating would not trigger a default under the IME Credit Agreement, IMI Credit Agreement and our indentures and other agreements governing our indebtedness. We were in compliance with all material debt covenants as of June 30, 2006.

In July 2006, we completed an underwritten public offering of $200,000 in aggregate principal amount of our 83¤4% Senior Subordinated Notes due 2018,which were issued at a price to investors of 100% of par. Our net proceeds of approximately $196,800, after paying the underwriters’ discounts, commissions and transaction fees, were used to (a) fund our offer to purchase and consent solicitation relating to our outstanding 81¤4%  Senior Subordinated Notes due 2011, (b) fund our purchase in the open market of $33,000 in aggregate principal amount of our other Senior Subordinated Notes and (c) repay borrowings under our revolving credit facility. As a result, we will record a charge to other expense (income), net of approximately $3,000 in the third quarter of 2006 related to the early extinguishment of the 81¤4% and other Senior Subordinated Notes, which consists of tender premiums, transaction costs, deferred financing costs, as well as, original issue discounts and premiums related to the 81¤4% and other Senior Subordinated Notes.

In July 2006, we experienced a significant fire in a records and information facility in London, England that resulted in the complete destruction of the leased facility. We believe we carry adequate property and liability insurance and are in the process of assessing the cause of, and other circumstances involved with, the fire. We do not expect that this event will have a material impact to our consolidated results of operations or financial condition or liquidity.

We expect to meet our cash flow requirements for the next twelve months from cash generated from operations, existing cash, cash equivalents and marketable securities, borrowings under the IMI and IME revolving credit facilities and other financings, which may include secured credit facilities, securitizations and mortgage or capital lease financings. We expect to meet our long-term cash flow requirements using the same means described above, as well as the potential issuance of debt or equity securities as we deem appropriate. See Note 6 to Notes to Consolidated Financial Statements.

Net Operating Loss Carryforwards

At June 30, 2006, we had estimated net operating loss carryforwards of approximately $79 million for federal income tax purposes. As a result of such loss carryforwards, cash paid for income taxes has historically been substantially lower than the provision for income taxes. These net operating loss carryforwards do not include approximately $103 million of potential preacquisition net operating loss carryforwards of Arcus Group, Inc. Any tax benefit realized related to preacquisition net operating loss carryforwards will be recorded as a reduction of goodwill when, and if, realized. As a result of these loss carryforwards, we do not expect to pay any significant U.S. federal and state income taxes in 2006.

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Seasonality

Historically, our businesses have not been subject to seasonality in any material respect.

Inflation

Certain of our expenses, such as wages and benefits, insurance, occupancy costs and equipment repair and replacement, are subject to normal inflationary pressures. Although to date we have been able to offset inflationary cost increases through increased operating efficiencies and the negotiation of favorable long-term real estate leases, we can give no assurance that we will be able to offset any future inflationary cost increases through similar efficiencies, leases or increased storage or service charges.

Item 3.   Quantitative and Qualitative Disclosures About Market Risk

Interest Rate Risk

Given the recurring nature of our revenues and the long term nature of our asset base, we have the ability and the preference to use long term, fixed interest rate debt to finance our business, thereby helping to preserve our long term returns on invested capital. We target a range 80% to 85% of our debt portfolio to be fixed with respect to interest rates.

As of June 30, 2006, excluding the affect of the swap described below, we had $801.4 million of variable rate debt outstanding with a weighted average variable interest rate of 6.0%, and $1,806.4 million of fixed rate debt outstanding. As of June 30, 2006, 69% of our total debt outstanding was fixed. If the weighted average variable interest rate on our variable rate debt had increased by 1%, our net income for the quarter ended June 30, 2006 would have been reduced by $1.2 million. See Note 6 to Notes to Consolidated Financial Statements included in this Form 10-Q for a discussion of our long-term indebtedness, including the fair values of such indebtedness as of June 30, 2006.

Subsequent to its second quarter of 2006, Iron Mountain Europe Limited (“IME”) entered into a floating for fixed interest rate swap contract with a notional value of 75,000 British pounds sterling, which will expire on March 2008 and was designated as a cash flow hedge. This swap agreement hedges interest rate risk on IME’s 100,000 British pounds multi-currency term loan facility. The notional value of the swap will decline to 60,000 British pounds sterling in March 2007 to match the remaining term loan amount outstanding as of that date.

Currency Risk

Our investments in IME, Iron Mountain Canada Corporation (“IM Canada”), Iron Mountain Mexico, SA de RL de CV, IMSA and other international investments may be subject to risks and uncertainties related to fluctuations in currency valuation. Our reporting currency is the U.S. dollar. However, our international revenues and expenses are generated in the currencies of the countries in which we operate, primarily the Euro, Canadian dollar and British pound sterling. The currencies of many Latin American countries, particularly the Argentine peso, have experienced substantial volatility and depreciation. Declines in the value of the local currencies in which we are paid relative to the U.S. dollar will cause revenues in U.S. dollar terms to decrease and dollar-denominated liabilities to increase in local currency.

The impact on our earnings is mitigated somewhat by the fact that most operating and other expenses are also incurred and paid in the local currency. We also have several intercompany obligations between our foreign subsidiaries and IMI and our U.S.-based subsidiaries and our foreign subsidiaries and IME. These intercompany obligations are primarily denominated in the local currency of the foreign subsidiary.

We have adopted and implemented a number of strategies to mitigate the risks associated with fluctuations in currency valuations. One strategy is to finance our largest international subsidiaries with

48

local debt that is denominated in local currencies, thereby providing a natural hedge. In determining the amount of any such financing, we take into account local tax strategies among other factors. Another strategy we utilize is to borrow in foreign currencies at the U.S. parent level to hedge our intercompany financing activities. Finally, on occasion, we enter into currency swaps to temporarily hedge an overseas investment, such as a major acquisition to lock in certain transaction economics, while we arrange permanent financing. We have implemented these strategies for our three foreign investments in the U.K., Canada and Asia Pacific. Specifically, through IME borrowing under the IME Credit Agreement and our 150 million British pounds sterling denominated 71¤4%  senior subordinated notes, we effectively hedge most of our outstanding intercompany loan with IME. IM Canada has financed their capital needs through direct borrowings in Canadian dollars under the IMI revolving credit facility. This creates a tax efficient natural currency hedge. To fund the acquisition of Pickfords in Australia and New Zealand, IMI borrowed Australian and New Zealand dollars under its multi-currency revolving credit facility. These borrowings provide a tax efficient natural hedge against the intercompany loans created at the time of the acquisition. As of June 30, 2006, except as noted above, our currency exposures to intercompany balances are unhedged.

The impact of devaluation or depreciating currency on an entity depends on the residual effect on the local economy and the ability of an entity to raise prices and/or reduce expenses. Due to our constantly changing currency exposure and the potential substantial volatility of currency exchange rates, we cannot predict the effect of exchange fluctuations on our business. The effect of a change in foreign exchange rates on our net investment in foreign subsidiaries is reflected in the “Accumulated Other Comprehensive Items” component of stockholders’ equity.

Item 4. Controls and Procedures

The term “disclosure controls and procedures” is defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These rules refer to the controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files under the Exchange Act is recorded, processed, summarized and reported within required time periods. As of June 30, 2006 (the “Evaluation Date”), we carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures. Based upon that evaluation, our chief executive officer and chief financial officer have concluded that, as of the Evaluation Date, our disclosure controls and procedures are effective.

There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2006 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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Part II.   Other Information

Item 1.Legal Proceedings

We are involved in litigation from time to time in the ordinary course of business with a portion of the defense and/or settlement costs being covered by various commercial liability insurance policies purchased by us. In the opinion of management, no material legal proceedings are pending to which we, or any of our properties, are subject.

Item 1A.Risk Factors

There are no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2005, other than the insertion of one additional risk factor as previously disclosed in our Current Report on Form 8-K filed on July 11, 2006.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth our common stock repurchased for the three months ended June 30, 2006:

Issuer Purchases of Equity Securities

Period	Total Number  of Shares  Purchased(1)		Average Price  Paid per Share			Total Number  of Shares  Purchased as Part  of Publicly  Announced Plans  or Programs		Maximum Number  (or Approximate  Dollar Value) of  Shares that May Yet  Be Purchased Under  the Plans or  Programs
May 1, 2006-May 31, 2006		914		$	36.33		—		—
Total		914		$	36.33		—		—

(1) Consists of shares tendered by current and former employees, as payment of the exercise price of stock options granted, in accordance with provisions of our equity compensation plans and individual stock option agreements. No shares have been purchased other than as payment of the exercise price of stock options.

Item 4.Submission of Matters to a Vote of Security-Holders

The following matters were voted on by our stockholders at the Annual Meeting of Stockholders held on May 25, 2006.

(a)Election of directors to serve until the Year 2007 Annual Meeting of Stockholders, or until their successors are elected and qualified

	Total Votes For Each Director		Total Votes Withheld From Each Director		Broker Non-votes
Clarke H. Bailey		100,344,468		24,801,908		0
Constantin R. Boden		122,837,357		2,309,019		0
Kent P. Dauten		124,027,761		1,118,615		0
John F. Kenny, Jr.		122,088,421		3,057,955		0
Arthur D. Little		123,192,135		1,954,240		0
C. Richard Reese		123,171,345		1,975,031		0
Vincent J. Ryan		121,766,851		3,379,525		0

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(b)Approval of an amendment to the Amended and Restated Certificate of Incorporation of Iron Mountain Incorporated to increase the number of authorized shares of Common Stock from 200,000,000 to 400,000,000

For	Against	Abstain	Broker Non-votes
120,488,107	4,614,883	43,386	0

(c)Approval of an amendment to the Iron Mountain Incorporated 2002 Stock Incentive Plan to increase the number of shares of Common Stock authorized for issuance thereunder from 3,352,543 to 8,352,543

For	Against	Abstain	Broker Non-votes
107,676,909	2,442,716	50,954	14,975,797

(d)Approval of an amendment to the Iron Mountain Incorporated 2003 Senior Executive Incentive Program to increase the maximum compensation payable thereunder and modify and to re-approve the payment criteria thereunder

For	Against	Abstain	Broker Non-votes
107,648,777	2,435,991	85,811	14,975,797

(e)Approval of the adoption of the Iron Mountain Incorporated 2006 Senior Executive Incentive Program

For	Against	Abstain	Broker Non-votes
108,931,222	1,170,542	68,815	14,975,797

(f)Ratification of the selection by the Audit Committee of Deloitte & Touche LLP as the Company’s independent registered public accounting firm for the year ending December 31, 2006

For	Against	Abstain
124,862,434	247,245	36,697

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Item 6.Exhibits

(a)Exhibits

Exhibit No.		Description
	4.1	Third Supplemental Indenture, dated as of July 17, 2006, by and among Iron Mountain Incorporated, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee, supplementing the Senior Subordinated Indenture, dated as of December 30, 2002, by and among Iron Mountain Incorporated, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee.  (Incorporated by reference to Iron Mountain Incorporated’s Current Report on Form 8-K dated July 20, 2006.)
	4.2	Supplemental Indenture, dated as of July 24, 2006, by and among Iron Mountain Incorporated, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee, supplementing the Indenture, dated as of April 26, 1999, by and among Iron Mountain Incorporated, the Guarantors named therein and The Bank of New York Trust Company, N.A., as trustee.  (Incorporated by reference to Iron Mountain Incorporated’s Current Report on Form 8-K dated July 28, 2006.)
	10.1	Second Amendment to the 2002 Stock Incentive Plan.  (Incorporated by reference to Iron Mountain Incorporated’s Current Report on Form 8-K dated June 1, 2006.)
	10.2	Second Amendment to the 2003 Senior Executive Incentive Program.  (Incorporated by reference to Iron Mountain Incorporated’s Current Report on Form 8-K dated June 1, 2006.)
	10.3	2006 Senior Executive Incentive Program.  (Incorporated by reference to Iron Mountain Incorporated’s Current Report on Form 8-K dated June 1, 2006.)
	10.4	Compensation Plan for Non-Employee Directors.  (Incorporated by reference to Iron Mountain Incorporated’s Current Report on Form 8-K dated June 1, 2006.)
	10.5	Composite Copy of the Multi-Currency Term, Revolving Credit Facilities Agreement, dated as of March 4, 2004, as amended and in effect on the date hereof, among Iron Mountain Europe Limited, certain lenders party thereto, Barclays Capital and The Governor and Company of the Bank of Scotland, as arrangers, and The Governor and Company of the Bank of Scotland as the facility agent, and security trustee.
	31.1	Rule 13a-14(a) Certification of Chief Executive Officer.
	31.2	Rule 13a-14(a) Certification of Chief Financial Officer.
	32.1	Section 1350 Certification of Chief Executive Officer.
	32.2	Section 1350 Certification of Chief Financial Officer.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	IRON MOUNTAIN INCORPORATED
August 9, 2006	BY:	/s/ JOHN F. KENNY, Jr.
(DATE)		John F. Kenny, Jr.
		Executive Vice President,
		Chief Financial Officer and Director
		(Principal Financial Officer)

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EX-10.5

Exhibit 10.5

	LIMITED LIABILITY PARTNERSHIP
	CONFORMED COPY Incorporating changes made pursuant to amendment agreements dated 29 September 2004, 28 October 2004, 7 January 2005, 22 August 2005 and 31 March 2006

£200,000,000 MULTI-CURRENCY TERM, REVOLVING CREDIT FACILITIES AGREEMENT

dated  4  MARCH 2004

for

IRON MOUNTAIN EUROPE LIMITED

arranged by

BARCLAYS CAPITAL

and

THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

WITH

THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND

acting as Facility Agent

and

THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND
acting as Security Trustee

£200,000,000 MULTI-CURRENCY TERM, REVOLVING CREDIT FACILITIES AGREEMENT

CONTENTS

Clause		Page
1.	Definitions And Interpretation	1
2.	The Facilities	22
3.	Purpose	23
4.	Conditions Of Utilisation	23
5.	Utilisation Of Loans	25
6.	Utilisation - Letters Of Credit	26
7.	Letters Of Credit	28
8.	Optional Currencies	31
9.	Ancillary Facilities	34
10.	Repayment	35
11.	Prepayment And Cancellation	36
12.	Interest	42
13.	Interest Periods	43
14.	Changes To The Calculation Of Interest	44
15.	Fees	45
16.	Tax Gross Up And Indemnities	47
17.	Increased Costs	51
18.	Other Indemnities	52
19.	Mitigation By The Lenders	53
20.	Costs And Expenses	54
21.	Guarantee And Indemnity	55
22.	Representations	59
23.	Information Undertakings	64
24.	Financial Covenants	68
25.	General Undertakings	73
26.	Events Of Default	86
27.	Changes To The Lenders	91
28.	Changes To The Obligors	95
29.	Role Of The Facility Agent, The Arranger, The Issuing Bank And Others	98
30.	Role Of Security Trustee	104
31.	Conduct Of Business By The Finance Parties	113

32.	Sharing Among The Finance Parties	114
33.	Payment Mechanics	116
34.	Set-Off	119
35.	Application Of Proceeds	119
36.	Notices	121
37.	Calculations And Certificates	124
38.	Partial Invalidity	124
39.	Remedies And Waivers	124
40.	Amendments And Waivers	125
41.	Counterparts	126
42.	Governing Law	127
43.	Enforcement	127
SCHEDULE 1 The Original Parties		128
	Part I The Original Obligors	128
	Part II The Original Lenders	129
	Part III Dormant Subsidiaries	130
SCHEDULE 2 Conditions Precedent		131
	Part I Conditions Precedent To Initial Utilisation	131
	Part II Conditions Precedent Required To Be Delivered By An Additional Obligor	136
	Part III Transaction Security Documents And Security Related Documents To Be Delivered By Additional Obligors	140
Schedule 3 Requests		141
	Part I A Utilisation Request	141
	Part I BUtilisation Request	143
	Part II Selection Notice	145
SCHEDULE 4 Mandatory Cost Formulae		146
SCHEDULE 5 Form Of Transfer Certificate		149
SCHEDULE 6 Form Of Accession Letter		151
SCHEDULE 7 Form Of Compliance Certificate		153
SCHEDULE 8 Timetables		155
	Part I.	155
	Part II Letters Of Credit	157
SCHEDULE 9 Material Companies		158
SCHEDULE 10 LMA Confidentiality Undertaking		159

Schedule 11.		164
	Part I Existing Retained Facilities	164
	Part II Existing Retained Security	166
SCHEDULE 12 Form Of Letter Of Credit		168

THIS AGREEMENT is dated fourth March 2004 and made

BETWEEN:

(1)IRON MOUNTAIN EUROPE LIMITED (registration number 2321917) (the “Parent”);

(2)THE PARENT AND THE SUBSIDIARIES of the Parent listed in Part I of Schedule 1 (The Original Obligors) as original borrowers (the “Original Borrowers”);

(3)THE PARENT AND THE SUBSIDIARIES of the Parent listed in Part I of Schedule 1 (The Original Obligors) as original guarantors (together with the Parent, the “Original Guarantors”);

(4)BARCLAYS CAPITAL and THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND (whether acting individually or together the “Arranger”);

(5)THE FINANCIAL INSTITUTIONS listed in Part II of Schedule 1 (The Original Lenders) as lenders (the “Original Lenders”);

(6)THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as Facility Agent of the Lenders (the “Facility Agent”);

(7)THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as Security Trustee for the Secured Parties (the “Security Trustee”); and

(8)THE GOVERNOR AND COMPANY OF THE BANK OF SCOTLAND as issuing bank (the “Issuing Bank”).

IT IS AGREED as follows:

SECTION 1

INTERPRETATION

1.DEFINITIONS AND INTERPRETATION

1.1Definitions

In this Agreement:

“ABN Charges” means the deeds of mortgage granted by Iron Mountain Nederland B.V. in favour of ABN Onroerend Goed Lease B.V. and listed in Part II (Existing Retained Security) of Schedule 11.

“ABN Pledges” means the pledges of bank accounts dated 25 November 1996, 29 December 1997 and 31 October 2000 granted by Iron Mountain Nederland B.V. in favour of ABN Amro and listed in Part II (Existing Retained Security) of Schedule 11.

“Accession Letter” means a document substantially in the form set out in Schedule 6 (Form of Accession Letter).

“Accounting Principles” means generally accepted accounting principles in the United Kingdom.

1

“Additional Borrower” means a company which becomes an Additional Borrower in accordance with Clause 28 (Changes to the Obligors).

“Additional Cost Rate” has the meaning given to it in Schedule 4 (Mandatory Cost Formulae).

“Additional Guarantor” means a company which becomes an Additional Guarantor in accordance with Clause 28 (Changes to the Obligors).

“Additional Obligor” means an Additional Borrower or an Additional Guarantor.

“Affiliate” means, in relation to any person, a Subsidiary of that person or a Holding Company of that person or any other Subsidiary of that Holding Company.

“Agent’s Spot Rate of Exchange” means the Facility Agent’s spot rate of exchange for the purchase of the relevant currency with the Base Currency in the London foreign exchange market as of 11:00 a.m. on a particular day.

“Ancillary Commitment” means, in relation to an Ancillary Lender the maximum amount from time to time of the Ancillary Facilities made available by such Ancillary Lender to the extent not cancelled under this Agreement or the Ancillary Documents relating to that Ancillary Facility.

“Ancillary Document” means each document relating to or evidencing the terms of an Ancillary Facility.

“Ancillary Facility” means any ancillary facility made available to any Obligor upon request as described in Clause 9 (Ancillary Facilities).  The Facility Agent hereby confirms by its signature to this Agreement that the following are Ancillary Facilities at the date of this Agreement,

(a)a £5,000,000 multi option facility made between Bank of Scotland and certain Obligors dated on or about the date of this Agreement;

(b)a £5,000,000 facility made between Barclays Bank PLC and certain Obligors dated on or about the date of this Agreement.

“Ancillary Lender” means any Lender or Lenders selected as an Ancillary Lender by the Parent by notice to the Facility Agent.  Barclays Bank PLC and The Governor and Company of the Bank of Scotland are Ancillary Lenders as at the date of this Agreement.

“Ancillary Outstandings” means, at any time, in relation to an Ancillary Facility the aggregate of the following amounts outstanding under that Ancillary Facility then in force:

(a)the principal amount under each overdraft facility and on demand short term loan facility calculated on a net basis;

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(b)the face amount of each guarantee, bond and letter of credit under each guarantee, bonding or letter of credit facility; and

(c)the amount fairly representing the aggregate exposure (excluding interest and similar charges) of that Ancillary Lender under each other type of accommodation provided under that Ancillary Facility as determined by such Ancillary Lender in accordance with the relevant Ancillary Document or market practice.

“Ancillary Utilisation” means an advance made or guarantee, bond or letter of credit issued under the Ancillary Facility.

“Anniversary” means an anniversary of the date of signing of this Agreement.

“Approved Subordinated Debt” means:

(a)Subordinated Loans under the Subordinated Loan Agreement; and

(b)any subordinated debt to which the Majority Lenders have given their prior written consent.

“Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

“Availability Period” means:

(a)in relation to the Term Facility, the period from and including the date of this Agreement to and including the date falling one Month after the date of this Agreement; and

(b)in relation to the Revolving Facility, the period from and including the date of this Agreement to and including the Final Maturity Date.

“Available Commitment” means, in relation to a Facility, a Lender’s Commitment under that Facility minus (subject as set out below):

(a)the Base Currency Amount of its participation in any outstanding Loans under that Facility; and

(b)in relation to any proposed Utilisation, the Base Currency Amount of its participation in any other Loans that are due to be made under that Facility on or before the proposed Utilisation Date.

For the purposes of calculating a Lender’s Available Commitment in relation to any proposed Utilisation under the Revolving Facility only, that Lender’s participation in any Revolving Facility Utilisations that are due to be repaid or prepaid on or before the proposed Utilisation Date and the Lender’s participation in any Revolving Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date shall not be deducted from a Lender’s Commitment under that Facility.

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“Available Facility” means, in relation to a Facility, the aggregate for the time being of each Lender’s Available Commitment in respect of that Facility.

“Base Currency” means sterling.

“Base Currency Amount” means in relation to a Utilisation, the amount specified in the Utilisation Request delivered by a Borrower for that Utilisation (or, if the amount requested is not denominated in the Base Currency, that amount converted into the Base Currency at the Agent’s Spot Rate of Exchange on the date which is three Business Days before the Utilisation Date or, if later, on the date the Facility Agent receives the Utilisation Request in accordance with the terms of this Agreement) and, in the case of a Letter of Credit, as adjusted under Clause 6.7 (Revaluation of Letters of Credit) at six monthly intervals, as adjusted to reflect any repayment, prepayment, consolidation or division of a Utilisation.

“Borrowings” has the meaning ascribed to it in Clause 24.1 (Financial definitions).

“Borrower” means an Original Borrower or an Additional Borrower unless it has ceased to be a Borrower in accordance with Clause 28 (Changes to the Obligors).

“Break Costs” means the amount (if any) by which:

(a)the interest which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period;

exceeds:

(b)the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period.

“Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business in London and:

(a)(in relation to any date for payment or purchase of a currency other than euro) the principal financial centre of the country of that currency; or

(b)(in relation to any date for payment or purchase of euro) any TARGET Day.

“Cash” means, at any time, cash at bank denominated in sterling, dollars or euro and credited to an account in the name of an Obligor with an Eligible Deposit Bank and to which an Obligor is alone beneficially entitled and for so long as:

(a)that cash is repayable on demand;

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(b)repayment of that cash is not contingent on the prior discharge of any other indebtedness of any Group member or of any other person whatsoever or on the satisfaction of any other condition; and

(c)there is no Security over that cash except Transaction Security.

“Charged Property” means all of the assets of the Obligors which from time to time are, or are expressed to be, the subject of the Transaction Security.

“Confidentiality Undertaking” means a confidentiality undertaking substantially in a recommended form of the LMA as set out in Schedule 10 (Confidentiality Undertaking) or in any other form agreed between the Parent and the Facility Agent.

“Commitment” means a Term Commitment or a Revolving Commitment.

“Compliance Certificate” means a certificate substantially in the form set out in Schedule 7 (Form of Compliance Certificate).

“Conditions Subsequent Longstop Date” has the meaning ascribed to it in Clause 25.23 (Conditions Subsequent).

“Consolidated Total Net Debt” has the meaning given to such term in Clause 24.1 (Financial definitions).

“Credit Participation” means, in relation to a Lender, the aggregate of:

(a)its aggregate Commitments; and

(b)its aggregate Ancillary Commitments (if any).

“Dangerous Substances” means any radiation and any substance (whether in solid or liquid or gaseous form) capable (whether alone or in combination with any other substance) of causing harm to man or any other living organism or damaging property or the environment including, without limitation, any controlled, special, hazardous, toxic, radioactive or dangerous waste.

“Debenture” means any Transaction Security Document described as a debenture in paragraph 4 of Schedule 2 (Conditions Precedent).

“Debt or Equity Issue” has the meaning ascribed to it in Clause 11.8 (Mandatory Prepayment from Debt or Equity Proceeds).

“Debt or Equity Proceeds” has the meaning ascribed to it in Clause 11.8 (Mandatory Prepayment from Debt or Equity Proceeds).

“Default” means an Event of Default or any event or circumstance which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.

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“Delegate” means any delegate, agent, attorney or co-trustee appointed by the Security Trustee.

“Dormant” has the meaning given to it in Section 249AA(4) of the Companies Act 1985.

“Dormant Subsidiaries” means each of the members of the Group which are Dormant and which are listed in Part III of Schedule 1 (The Original Parties).

“Due Diligence Report” means the due diligence report dated 27 January 2004 prepared by RSM Robson Rhodes and addressed to and/or capable of being relied upon by the Arranger and the Secured Parties.

“EBITDA” has the meaning given to such term in Clause 24.1 (Financial definitions).

“Eligible Deposit Bank” means any bank or financial institution with a short term rating of at least A1 granted by Standard and Poor’s Corporation or P1 granted by Moody’s Investor’s Services Inc..

“Environmental Claim” means any claim, proceeding or investigation by any person in respect of any Environmental Law.

“Environmental Law” means any applicable law or regulation which relates to:

(a)the pollution or protection of the environment;

(b)harm to or the protection of human health; or

(c)the health of animals or plants.

“Environmental Permits” means any permit, licence, consent, approval and other authorisation and the filing of any notification, report or assessment required under any Environmental Law for the operation of the business of any member of the Group conducted on or from the properties owned or used by any member of the Group.

“Eurostorage Acquisition” means the acquisition of the assets, business and undertaking comprising Eurostorage Dossier & Archief Beheer B.V. by Iron Mountain Nederland B.V. on 27 February 2004.

“Event of Default” means any event or circumstance specified as such in Clause 26 (Events of Default).

“Existing Deferred Consideration” means:

(a)the deferred consideration of up to euros 2,200,000 due on 12 April 2004 by the Iron Mountain Holdings (Europe) Limited pursuant to the acquisition by Iron Mountain Holdings (Europe) Limited of the entire issued share capital of Iron Mountain Ireland (Holdings) Limited (formerly Beverley Records Management Limited);

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(b)the deferred consideration of up to euros 2,150,000 due on 1 July 2004 by Iron Mountain Ireland Limited pursuant to the acquisition by Iron Mountain Ireland Limited of the entire issued share capital of Record Data Limited; and

(c)the deferred consideration of up to £6,200,000 due by Iron Mountain Holdings (Europe) Limited on demand pursuant to the acquisition by Iron Mountain Holdings (Europe) Limited of the entire issued share capital of Datavault Holdings Limited.

“Existing Facilities” means the term loans and working capital facility of up to £43,000,000 provided to, inter alia, the Parent pursuant to a facility agreement dated 7 May 2003.

“Existing Retained Facilities” means the loan and other facilities detailed in Part I of Schedule 11 (Existing Retained Facilities and Existing Retained Security).

“Existing Retained Inter-company Facilities” means:

(a)the loan agreement dated 12 July 2003 made between the Parent and Iron Mountain Group (Europe) Limited pursuant to which Iron Mountain Group (Europe) Limited made available to the Parent a loan facility of up to £35,070,000.

(b)the loan agreement dated 12 July 2003 made between the Parent and Iron Mountain Group (Europe) Limited pursuant to which Iron Mountain Group (Europe) Limited made available to the Parent a loan facility of up to £34,930,000.

(c)the demand promissory note dated 4 January 1999 made between the Parent (then Britannia Data Management Limited) and Iron Mountain Group (Europe) Limited.

(d)the senior subordinated bridge loan agreement dated 12 July 2003 made between the Parent and Iron Mountain Group (Europe) Limited pursuant to which Iron Mountain Group (Europe) Limited made available to the Parent a loan facility of up to £160,000,000.

“Existing Retained Security” means the security set out in Part II of Schedule 11.

“Expiry Date” means for a Letter of Credit, the last day of its Term.

“Facility” means the Term Facility or the Revolving Facility.

“Facility Office” means the office or offices notified by a Lender to the Facility Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days’ written notice) as the office or offices through which it will perform its obligations under this Agreement.

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“Fee Letter” means:

(a)any letter or letters dated on or about the date of this Agreement between the Arranger and the Parent (or the Facility Agent and the Parent or the Security Trustee and the Parent) setting out any of the fees referred to in Clause 15 (Fees); and

(b)any other agreement setting out fees referred to in Clause 15.4 (Fees payable in respect of Letters of Credit).

“Final Maturity Date” means the date falling five years from the date of this Agreement.

“Finance Document” means this Agreement, any Fee Letter, any Accession Letter, any Resignation Letter, any Transaction Security Document, the Subordination Agreement, any Ancillary Document, any Hedging Agreement and any other document designated as a “Finance Document” by the Facility Agent and the Parent.

“Finance Party” means the Facility Agent, the Arranger, the Security Trustee, a Lender, the Issuing Bank, a Hedge Bank or any Ancillary Lender.

“Financial Indebtedness” means any indebtedness for or in respect of:

(a)Borrowings;

(b)any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value shall be taken into account); and

(c)(without double counting) the amount of any liability in respect of any guarantee or indemnity or similar assurance against financial loss for any of the items referred to in the preceding paragraphs of this definition and any agreement to maintain the solvency of any person whether by investing in, lending to or purchasing the assets of such person.

“Financial Quarter” has the meaning given to that term in Clause 24.1 (Financial definitions).

“Fortis Pledge” means the pledge of bank accounts granted by Iron Mountain Nederland B.V. in favour of Fortis Bank and listed in Part II (Existing Retained Security) of Schedule 11.

“German Share Pledge Agreement” means the pledge agreement in respect of the shares in Iron Mountain Deutschland GmbH dated on or about 19 January 2005 and entered into by, inter alia, the Parent and the Security Trustee.

“German Transaction Security” means any security assumed and accepted by or through the Security Trustee or the Secured Parties, as the case may be, pursuant to any German Transaction Security Document and held or administered by the Security

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Trustee on behalf of or in trust for the Secured Parties hereunder and any addition or replacement or substitution thereof.

“German Transaction Security Documents” means all Transaction Security Documents governed by German Law and “German Transaction Security Document” means any of them.

“Group” means the Parent and its Subsidiaries for the time being.

“Guarantor” means an Original Guarantor or an Additional Guarantor, unless it has ceased to be a Guarantor in accordance with Clause 28 (Changes to the Obligors).

“Hays IMS” means the information management services business acquired by the Parent from Hays plc and certain of its associated companies comprising business and assets within the United Kingdom and shares in other jurisdictions.

“Hays IMS Acquisition” means the acquisition by the Group of the entire business and assets and certain shares comprising Hays IMS from Hays Plc on 16 July 2003, treated as effective as from 1 July 2003.

“Hays IMS Acquisition Indebtedness” has the meaning described to it in paragraph (a)(ii) of Clause 3.1 (Purpose).

“Hays’ Leases” means the leasehold interests to be assigned to certain members of the Group pursuant to the Hays IMS Acquisition.

“Hedge Bank” means any Lender or an Affiliate of a Lender which (if not a Lender) has acceded to this Agreement, which enters into a Hedging Agreement.

“Hedging Agreement” means any agreement entered into or to be entered into by a Borrower and a Hedge Bank for the purpose of hedging interest rate liabilities in relation to the Facilities in accordance with the Hedging Strategy Letter.

“Hedging Strategy Letter” means the letter in the agreed form from the Parent to the Facility Agent setting out the hedging strategy.

“Holding Company” means, in relation to a company or corporation, any other company or corporation in respect of which it is a Subsidiary.

“ICC Charges” means the chattel mortgages and the debenture granted by Iron Mountain Ireland Limited in favour of Bank of Scotland (formerly ICC Bank plc) and listed in Part II (Existing Retained Security) of Schedule 11.

“Information Memorandum” means the document in the form approved by the Parent which, at the request of the Parent and on its behalf was prepared in relation to this transaction and distributed by the Arranger to selected financial institutions before the date of this Agreement.

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“Interest Period” means, in relation to a Loan, each period determined in accordance with Clause 13 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 12.3 (Default Interest).

“Joint Venture Group Company” means any joint venture company, corporation, partnership, trust or other entity in any jurisdiction in which a member of the Group owns 75 per cent. or less of the issued share capital equity or voting rights.

“L/C Proportion” means in relation to a Lender in respect of any Letter of Credit, the proportion (expressed as a percentage) borne by that Lender’s Available Commitment to the relevant Available Facility immediately prior to the issue of that Letter of Credit.

“Lender” means:

(a)any Original Lender; and

(b)any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 27 (Changes to the Lenders),

which in each case has not ceased to be a Party in accordance with the terms of this Agreement.

“Letter of Credit” means:

(a)a letter of credit, substantially in the form set out in Schedule 12 (Form of Letter of Credit) or in any other form requested by the Parent and agreed by the Facility Agent, the Issuing Bank and the Lenders; or

(b)any guarantee, indemnity or other instrument in a form requested by a Borrower (or the Parent on its behalf) and agreed by the Facility Agent, the Issuing Bank and the Lenders.

“LIBOR” means, in relation to any Loan:

(a)the applicable Screen Rate; or

(b)(if no Screen Rate is available for the currency or Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Facility Agent at its request quoted by the Reference Banks to leading banks in the London interbank market,

as of the Specified Time on the Quotation Day for the offering of deposits in the currency of that Loan and for a period comparable to the Interest Period for that Loan.

“Loan” means a Term Loan or a Revolving Loan.

“LMA” means the Loan Market Association.

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“Majority Creditors” means, at any time, a Lender or Lenders whose Credit Participations at that time aggregate more than 66 2/3% of the total Credit Participations at that time.

“Majority Lenders” means, at any time:

(a)a Lender or Lenders whose Commitments aggregate more than 66 2/3% of the Total Commitments at that time; or

(b)if the Total Commitments have been reduced to zero, a Lender or Lenders whose Commitments aggregated more than 66 2/3% of the Total Commitments immediately prior to the reduction).

“Mandatory Cost” means the percentage rate per annum calculated by the Facility Agent in accordance with Schedule 4 (Mandatory Cost Formulae).

“Margin” means 1.75 per cent. per annum:

but if:

(a)no Event of Default has occurred and is continuing;

(b)a period of at least 12 months has expired since the date of this Agreement; and

(c)the ratio of Consolidated Total Net Debt at the end of the most recently completed Relevant Period to EBITDA for such Relevant Period is within the range set out below:

then the Margin for each Loan will be the percentage per annum set out below opposite that range.

Column A	Column B
Consolidated Total Net Debt to EBITDA	Margin% p.a.
Greater than or equal to 3.5:1	1.75
Less than 3.5:1 but greater than or equal to 3.0:1	1.50
Less than 3.0:1	1.25

Any increase or reduction in the Margin shall take effect on the date of receipt by the Facility Agent of the Compliance Certificate for that Relevant Period pursuant to Clause 23.2 (Compliance Certificate) provided that:

(a)if the Parent does not deliver a Compliance Certificate to the Facility Agent in accordance with the terms of Clause 23.2 (Compliance Certificate), the Margin shall as from the date immediately following the date on which such

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Compliance Certificate should have been delivered until the date such Compliance Certificate is delivered, be 1.75 per cent. per annum; or

(b)if an Event of Default has occurred and is continuing, the Margin shall, as from the date of the occurrence of the Event of Default until the date such Event of Default ceases to be continuing, be 1.75 per cent. per annum.

For the purpose of determining the Margin, Consolidated Total Net Debt to EBITDA and Relevant Period shall be determined in accordance with Clause 24.1 (Financial definitions).

“Material Adverse Effect” means a material adverse change in:

(a)the business, operations, property, condition (financial or otherwise) or prospects of the Group taken as a whole;

(b)the ability of an Obligor to perform its payment obligations under the Finance Documents and/or its obligations under Clause 24.2 (Financial Condition); or

(c)the validity or enforceability of the Finance Documents or the rights or remedies of any Finance Party under any of the Finance Documents.

“Material Company” means, at any time a Subsidiary of the Parent which:

(a)is listed in Schedule 9 (Material Companies); or

(b)has earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA, as defined in Clause 24 (Financial Covenants)) representing 5 per cent. or more of EBITDA; or

(c)has gross assets or turnover (excluding intra-group items) representing 5 per cent. or more of the gross assets or turnover of the Group,

in each case calculated on a consolidated basis.

Compliance with the conditions set out in paragraphs (b) and (c) shall be determined by reference to the most recent Compliance Certificate supplied by the Parent and/or the latest audited financial statements of that Subsidiary (consolidated in the case of a Subsidiary which itself has Subsidiaries) and the latest audited consolidated financial statements of the Group.

However if a Subsidiary has been acquired since the date as at which the latest audited consolidated financial statements of the Group were prepared, the financial statements shall be deemed to be adjusted in order to take into account the acquisition of that Subsidiary.

A report by the auditors of the Parent that a Subsidiary is or is not a Material Company shall, in the absence of manifest error, be conclusive and  binding on all Parties.

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“Mentmore Disposal” means the disposal on 27 February 2004 by Mentmore plc of all of its shareholding in the Parent to Iron Mountain Mayflower Limited.

“Minimum Subordinated Debt Threshold” means £123,956,000.

“Month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

(a)(subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day;

(b)if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and

(c)if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end.

The above rules will only apply to the last Month of any period.  “Monthly” shall be construed accordingly.

“Obligor” means a Borrower or a Guarantor.

“Obligors’ Agent” means the Parent, appointed to act on behalf of each Obligor in relation to the Finance Documents pursuant to Clause 2.3 (Obligors’ Agent).

“Optional Currency” means:

(a)euro and/or US dollars; and

(b)a currency (other than the Base Currency) which complies with the conditions set out in Clause 4.3 (Conditions relating to Optional Currencies) or, as the case may be, Clause 8.1(c) (Selection of Currency).

“Original Financial Statements” means the audited consolidated financial statements of the Parent.

“Original Obligor” means an Original Borrower or an Original Guarantor.

“Overseas Subsidiary” means those of the Subsidiaries incorporated in a jurisdiction other than the United Kingdom and Ireland.

“Participating Member State” means any member state of the European Communities that adopts or has adopted the euro as its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union.

“Party” means a party to this Agreement.

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“Pledged Company” means any direct or indirect Subsidiary of the Parent in respect of which 100% (or, in the case of Iron Mountain España S.A., 99.99%) of its voting and issued share capital is pledged pursuant to a Transaction Security Document provided that such Transaction Security Document creates a valid and effective fixed charge over such voting and issued share capital of such Subsidiary in its jurisdiction of incorporation.

“Qualifying Lender” has the meaning given to that term in Clause 16 (Tax Gross-up and Indemnities).

“Qualifying Subordinated Loans” means a Subordinated Loan which is made by the Subordinated Lender to the Parent provided that the principal amount of Subordinated Loans outstanding on the date such Subordinated Loan is made to the Parent exceeds the Minimum Subordinated Debt Threshold.

“Quotation Day” means, in relation to any period for which an interest rate is to be determined:

(a)(if the currency is sterling) the first day of that period;

(b)(if the currency is euro) two TARGET Days before the first day of that period; or

(c)(for any other currency) two Business Days before the first day of that period,

unless market practice differs in the Relevant Interbank Market for a currency, in which case the Quotation Day for that currency will be determined by the Facility Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days).

“Receiver” means a receiver or receiver and manager or administrative receiver of the whole or any part of the Charged Property.

“Reference Banks” means the principal London offices of Barclays Bank PLC, The Governor and Company of the Bank of Scotland and HSBC Bank plc or such other banks as may be appointed by the Facility Agent in consultation with the Parent.

“Refinancing Premium” has the meaning ascribed to it in paragraph (c) of Clause 11.11 (Restrictions)

“Relevant Interbank Market” means the London interbank market.

“Relevant Jurisdiction” means, in relation to an Obligor:

(a)its jurisdiction of incorporation;

(b)any jurisdiction where any asset subject to or intended to be subject to the Transaction Security to be created by it is situated;

(c)any jurisdiction where it conducts its business; and

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(d)the jurisdiction whose laws govern the perfection of any of the Transaction Security Documents entered into by it.

“Renewal Request” means a written notice delivered to the Facility Agent in accordance with Clause 6.6 (Renewal of a Letter of Credit).

“Repayment Date” means each of the dates specified in Clause 10.1 (Repayment of Term Loans) as Repayment Dates.

“Repayment Instalment” means each instalment for repayment of the Term Loans referred to in Clause 10.1 (Repayment of Term Loans).

“Repeating Representations” means each of the representations set out in Clauses 22.1 (Status) to Clause 22.6 (Governing law and enforcement), Clause 22.8 (No Default), paragraph (e) of Clause 22.9 (No misleading information), paragraphs (c) and (d) of Clause 22.10 (Financial statements), Clause 22.11 (No proceedings pending or threatened), Clause 22.16 (Pari Passu Ranking), Clause 22.17 (Transaction Security) to Clause 22.19 (Shares).

“Reports” means the Due Diligence Report.

“Revolving Commitment” means:

(a)in relation to an Original Lender, the amount in the Base Currency set opposite its name under the heading “Revolving Commitment” in Part II of Schedule 1 (The Original Parties) and the amount of any other Revolving Commitment transferred to it under this Agreement; and

(b)in relation to any other Lender, the amount in the Base Currency of any Revolving Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.

“Revolving Facility” means the revolving credit facility made available under this Agreement as described in paragraph (a)(ii) of Clause 2.1 (The Facilities).

“Revolving Loan” means a loan made or to be made under the Revolving Facility or the principal amount outstanding for the time being of that loan.

“Revolving Facility Utilisation” means a Revolving Loan or a Letter of Credit.

“Rollover Loan” means one or more Revolving Loans:

(a)made or to be made on the same day that:

(i)a maturing Revolving Loan is due to be repaid; or

(ii)a demand by the Facility Agent pursuant to a drawing in respect of a Letter of Credit is due to be met;

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(b)the aggregate amount of which is equal to or less than the maturing Revolving Loan or the relevant claim in respect of that Letter of Credit;

(c)in the same currency as the maturing Revolving Loan (unless it arose as a result of the operation of Clause 8.2 (Unavailability of a currency)) or the relevant claim in respect of that Letter of Credit; and

(d)made or to be made to the same Borrower for the purpose of:

(i)refinancing a maturing Revolving Loan; or

(ii)satisfying the relevant claim in respect of that Letter of Credit.

“Screen Rate” means in relation to LIBOR, the British Bankers’ Association Interest Settlement Rate for the relevant currency and period in the British Bankers’ Association Interest Settlement Rate for the relevant currency and period displayed on the appropriate page of the Telerate screen. If the agreed page is replaced or service ceases to be available, the Facility Agent may specify another page or service displaying the appropriate rate after consultation with the Parent and the Lenders.

“Secured Obligations” means all obligations which any of the Obligors may at any time have to the Security Trustee (whether for its own account or as trustee for the Secured Parties) or any of the other Secured Parties under or pursuant to the Finance Documents, whether present or future, actual or contingent (and whether incurred solely or jointly and whether as principal or as surety or in some other capacity), including the obligations set out in Clause 30.2 (Parallel Debt (Covenant to pay the Security Trustee)) of the Facility Agreement.

“Secured Parties” means the Security Trustee, the Arrangers, the Facility Agent and each Lender, the Issuing Bank, each Ancillary Lender and each Hedge Bank from time to time party to this Agreement.

“Security” means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

“Selection Notice” means a notice substantially in the form set out in Part II of Schedule 3 (Selection Notice) given in accordance with Clause 13 (Interest Periods) in relation to a Term Facility.

“Spanish Public Document” means documento público.

“Specified Time” means a time determined in accordance with Schedule 8 (Timetables).

“Subordinated Loans” means the unsecured loans made by the Subordinated Lender to the Parent under the Subordinated Loan Agreement.

“Subordinated Lender” means Iron Mountain Inc.

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“Subordinated Loan Agreement” means the loan agreement dated on or about the date of this Agreement made between the Subordinated Lender and the Parent pursuant to which the Subordinated Loans were made available.

“Subordination Agreement” means the deed of subordination dated the same date as this Agreement and made between the Security Trustee, Iron Mountain Inc and the Obligors.

“Subsidiary” means a subsidiary within the meaning of section 736 of the Companies Act 1985.

“TARGET” means Trans-European Automated Real-time Gross Settlement Express Transfer payment system.

“TARGET Day” means any day on which TARGET is open for the settlement of payments in euro.

“Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).

“Taxes Act” means the Income and Corporation Taxes Act 1988.

“Term” means each period determined under this Agreement for which the Issuing Bank is under a liability under a Letter of Credit.

“Term Commitment” means:

(a)in relation to an Original Lender, the amount in the Base Currency set opposite its name under the heading “Term Commitment” in Part II of Schedule 1 (The Original Parties) and the amount of any other Term Commitment transferred to it under this Agreement; and

(b)in relation to any other Lender, the amount in the Base Currency of any Term Commitment transferred to it under this Agreement,

to the extent not cancelled, reduced or transferred by it under this Agreement.

“Term Facility” means the term loan facility made available under this Agreement as described in paragraph (a)(i) of Clause 2.1 (The Facilities).

“Term Loan” means a loan made or to be made under the Term Facility or the principal amount outstanding for the time being of that loan.

“Total Commitments” means the aggregate of the Total Term Commitments and the Total Revolving Commitments.

“Total Term Commitments” means the aggregate of the Term Commitments.

“Total Revolving Commitments” means the aggregate of the Revolving Commitments.

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“Transaction Security” means the Security created or expressed to be created in favour of the Security Trustee pursuant to the Transaction Security Documents.

“Transaction Security Documents” means each of the following documents:

(a)the charges, pledges and assignments and other security documents in form and substance acceptable to the Security Trustee and the Facility Agent and identified in and delivered to the Facility Agent under paragraph 3 of Part I of Schedule 2 (Conditions Precedent to Initial Utilisation) or under Part III of Schedule 2 (Transaction Security Documents and Security related Documents to be delivered by Additional Obligors); and

(b)any other document entered into by any Obligor creating or expressed to create any Security over all or any part of its assets in respect of the obligations of any of the Obligors under any of the Finance Documents.

“Transfer Certificate” means a certificate substantially in the form set out in Schedule 5 (Form of Transfer Certificate) or any other form agreed between the Facility Agent and the Parent.

“Transfer Date” means, in relation to a transfer, the later of:

(a)the proposed Transfer Date specified in the Transfer Certificate; and

(b)the date on which the Facility Agent executes the Transfer Certificate.

“Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance Documents.

“Utilisation” means a utilisation of a Facility.

“Utilisation Date” means the date on which a Utilisation is made.

“Utilisation Request” means a notice substantially in the form set out in Part I of Schedule 3 (Requests).

“VAT” means value added tax as provided for in the Value Added Tax Act 1994 and any other tax of a similar nature.

1.2Construction

(a)Unless a contrary indication appears a reference in this Agreement to:

(i)the “Facility Agent”, the “Arranger”, the “Security Trustee”, any “Finance Party”, any “Secured Party”, any “Lender”, any “Obligor”, any “Party” or any other person shall be construed so as to include its successors in title, permitted assigns and permitted transferees and, in the case of the Security Trustee, any person for the time being appointed as security trustee or security trustees in accordance with this Agreement;

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(ii)“assets” includes present and future properties, revenues and rights of any description;

(iii)the “European interbank market” means the interbank market for euro operating in Participating Member States;

(iv)a “Finance Document” or a “Transaction Security Document” or any other agreement or instrument is a reference to that Finance Document or Transaction Security Document or other agreement or instrument as amended or novated (however fundamentally);

(v)“guarantee” means (other than in Clause 21 (Guarantee and Indemnity)) any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness;

(vi)“indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent;

(vii)a “participation” of a Lender in a Loan means the amount of such Loan which such Lender has made or is to make available and thereafter that part of the Loan which is owed to such Lender;

(viii)a “person” includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having separate legal personality) of two or more of the foregoing;

(ix)a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation;

(x)a provision of law is a reference to that provision as amended or re-enacted; and

(xi)a time of day is a reference to London time.

(b)Section, Clause and Schedule headings are for ease of reference only.

(c)Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any  Finance Document has the same meaning in that Finance Document or notice as in this Agreement.

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(d)A Default is “continuing” if it has not been remedied or waived.

(e)A Borrower providing “cash cover” for a Letter of Credit means a Borrower paying an amount in the currency of the Letter of Credit to an interest-bearing account in the name of the Borrower and the following conditions being met:

(i)the account is with the Facility Agent (if the cash cover is to be provided for all the Lenders) or with a Lender (if the cash cover is to be provided for that Lender);

(ii)until no amount is or may be outstanding under that Letter of Credit, withdrawals from the account may only be made to pay a Finance Party amounts due and payable to it under this Agreement in respect of that Letter of Credit; and

(iii)the Borrower has executed a security document over that account, in form and substance satisfactory to the Facility Agent or the Lender with which that account is held, creating a first ranking security interest over that account.

(f)A Borrower “repaying” or “prepaying” a Letter of Credit means:

(i)that Borrower providing cash cover for that Letter of Credit;

(ii)the maximum amount payable under the Letter of Credit being reduced or cancelled in accordance with its terms; or

(iii)the Issuing Bank being satisfied that it has no further liability under that Letter of Credit,

and the amount by which a Letter of Credit is repaid, prepaid or cancelled under sub-paragraphs (f)(i) and (f)(ii) above is the amount of the relevant cash cover or reduction.

(g)An amount borrowed includes any amount utilised by way of Letter of Credit.

(h)A Lender funding its participation in a Utilisation includes a Lender participating in a Letter of Credit.

(i)An outstanding amount of a Letter of Credit at any time is the maximum amount that is or may be payable by the relevant Borrower in respect of that Letter of Credit at that time.

1.3Currency Symbols and Definitions

“£” and “sterling” denotes lawful currency of the United Kingdom and “EUR” and “euro” means the single currency unit of the Participating Member States.

1.4Third party rights

(a)Unless expressly provided to the contrary in a Finance Document a person who is not a Party has no right under the Contracts (Rights of Third Parties)

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Act 1999 (the “Third Parties Act”) to enforce or enjoy the benefit of any term of any Finance Document.

(b)Notwithstanding any term of any Finance Document, the consent of any person who is not a Party is not required to rescind or vary any Finance Document at any time.

1.5Barclays Capital

References in the Finance Documents to “Barclays Capital” are references to Barclays Capital, the investment banking division of Barclays Bank PLC.

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SECTION 2

THE FACILITIES

2.THE FACILITIES

2.1The Facilities

(a)Subject to the terms of this Agreement, the Lenders make available:

(i)a multicurrency term loan facility in an aggregate amount equal to the Total Term Commitments; and

(ii)a multicurrency revolving credit facility in an aggregate amount equal to the Total Revolving Commitments being £100,000,000 at the date of this Agreement.

(b)The Revolving Facility will be available to all of the Borrowers.  The Term Facility will only be available to the Parent.

(c)Subject to the terms of this Agreement and the Ancillary Documents, an Ancillary Lender may make available an Ancillary Facility to any of the Borrowers.

2.2Finance Parties rights and obligations

(a)The obligations of each Finance Party under the Finance Documents are several.  Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents.  No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents.

(b)The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance Party from an Obligor shall be a separate and independent debt.

(c)A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents.

2.3Obligors’ Agent

(a)Each Obligor (other than the Parent) by its execution of this Agreement or an Accession Letter irrevocably appoints the Parent to act on its behalf as its agent in relation to the Finance Documents and irrevocably authorises:

(i)the Parent on its behalf to supply all information concerning itself contemplated by this Agreement to the Finance Parties and to give all notices and instructions (including, in the case of a Borrower, Utilisation Requests), to execute on its behalf any Accession Letter, to make such agreements and to effect the relevant amendments, supplements and variations capable of being given, made or effected by any Obligor notwithstanding that they may affect the Obligor, without further reference to or the consent of that Obligor; and

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(ii)each Finance Party to give any notice, demand or other communication to that Obligor pursuant to the Finance Documents to the Parent,

and in each case the Obligor shall be bound as though the Obligor itself had given the notices and instructions (including, without limitation, any Utilisation Requests) or executed or made the agreements or effected the amendments, supplements or variations, or received the relevant notice, demand or other communication.

(b)Every act, omission, agreement, undertaking, settlement, waiver, amendment, supplement, variation, notice or other communication given or made by the Obligors’ Agent or given to the Obligors’ Agent under any Finance Document on behalf of another Obligor or in connection with any Finance Document (whether or not known to any other Obligor and whether occurring before or after such other Obligor became an Obligor under any Finance Document) shall be binding for all purposes on that Obligor as if that Obligor had expressly made, given or concurred with it. In the event of any conflict between any notices or other communications of the Obligors’ Agent and any other Obligor, those of the Obligors’ Agent shall prevail.

3.PURPOSE

3.1Purpose

(a)The Parent shall apply all amounts borrowed by it under the Term Facility towards:

(i)refinancing the Existing Facilities and all broken funding, accrued interest and other costs and expenses relating to such refinancing; and

(ii)general corporate and working capital purposes, including without limitation the refinancing of Financial Indebtedness owed by the Parent to Iron Mountain Inc. and incurred in connection with the Hays IMS Acquisition (the “Hays IMS Acquisition Indebtedness”).

(b)Each Borrower shall apply all amounts borrowed by it under the Revolving Facility towards the general corporate and working capital purposes of the Group including, without limitation, refinancing the Hays IMS Acquisition Indebtedness.

3.2Monitoring

No Finance Party is bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

4.CONDITIONS OF UTILISATION

4.1Initial Conditions Precedent

No Borrower may deliver a Utilisation Request unless the Facility Agent has received all of the documents and other evidence listed in Part I of Schedule 2 (Conditions Precedent to Initial Utilisation) in form and substance satisfactory to the Facility

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Agent.  The Facility Agent shall notify the Parent and the Lenders promptly upon being so satisfied.

4.2Further Conditions Precedent

The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if on the date of the Utilisation Request and on the proposed Utilisation Date:

(a)in the case of a Rollover Loan, no Event of Default is continuing or would result from the proposed Loan and, in the case of any other Loan, no Default is continuing or would result from the proposed Loan;

(b)the Repeating Representations to be made by each Obligor are true in all material respects; and

(c)the Lenders will only be obliged to comply with Clause 8.3 (Change of currency) if, on the first day of an Interest Period, no Default is continuing or would result from the change of currency and the Repeating Representations to be made by each Obligor are true in all material respects.

4.3Conditions relating to Optional Currencies

(a)A currency will constitute an Optional Currency in relation to a Revolving Loan if:

(i)it is readily available in the amount required and freely convertible into the Base Currency in the Relevant Interbank Market on the Quotation Day and the Utilisation Date for that Loan; and

(ii)it has been approved by the Facility Agent (acting on the instructions of all the Lenders) on or prior to receipt by the Facility Agent of the relevant Utilisation Request for that Loan.

(b)If the Facility Agent has received a written request from the Parent for a currency to be approved under paragraph (a)(ii) above, the Facility Agent will confirm to the Parent by the Specified Time:

(i)whether or not the Lenders have granted their approval; and

(ii)if approval has been granted, the minimum amount (and, if required, integral multiples) for any subsequent Loan in that currency.

4.4Maximum number of Utilisations

(a)The Parent may not deliver a Utilisation Request if as a result of the proposed Utilisation more than one Term Loan would be outstanding.

(b)A Borrower (or the Parent) may not deliver a Utilisation Request if as a result of the proposed Utilisation ten (10) or more Revolving Facility Utilisations would be outstanding.

(c)Any Loan made by a single Lender under Clause 8.2 (Unavailability of a currency) shall not be taken into account in this Clause 4.4.

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SECTION 3

UTILISATION

5.UTILISATION of Loans

5.1Delivery of a Utilisation Request

A Borrower may utilise a Facility by delivery to the Facility Agent of a duly completed Utilisation Request not later than the Specified Time.

5.2Completion of a Utilisation Request

(a)Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

(i)it identifies the Facility to be utilised;

(ii)the proposed Utilisation Date is a Business Day within the Availability Period applicable to that Facility;

(iii)the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); and

(iv)the proposed Interest Period complies with Clause 13 (Interest Periods).

(b)Only one Utilisation may be requested in each Utilisation Request.

5.3Currency and amount

(a)The currency specified in a Utilisation Request must be:

(i)in relation to the Term Facility the Base Currency; and

(ii)in relation to the Revolving Facility the Base Currency or an Optional Currency.

(b)The amount of the proposed Utilisation must be an amount whose Base Currency Amount is not more than the Available Facility and which is:

(i)if the currency selected is the Base Currency, a minimum amount of £5,000,000 for the Term Facility or the Revolving Facility or in any case, if less, the Available Facility;

(ii)if the currency selected is euro, a minimum of euro 7,500,000 for the Revolving Facility or in any case, if less, the Available Facility; or

(iii)if the currency selected is an Optional Currency, the minimum amount specified by the Facility Agent for the Revolving Facility pursuant to paragraph (b)(ii) of Clause 4.3 (Conditions relating to Optional Currencies) or, if less, the Available Facility.

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5.4Lenders’ participation

(a)If the conditions set out in this Agreement have been met, each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

(b)The amount of each Lender’s participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making the Loan.

(c)The Facility Agent shall determine the Base Currency Amount of each Loan which is to be made in an Optional Currency and notify each Lender of the amount, currency and the Base Currency Amount of each Loan and the amount of its participation in that Loan by the Specified Time.

5.5Limitations on Utilisations

The maximum aggregate amount of the actual and contingent liabilities of the Issuing Bank under all Letters of Credit shall not exceed £20,000,000 (or its equivalent in any other currency).

6.UTILISATION - - LETTERS OF CREDIT

6.1The Revolving Facility

(a)The Revolving Facility may be utilised by way of Letters of Credit.

(b)Other than Clause 5.5 (Limitations on Utilisations), Clause 5 (Utilisation of Loans) does not apply to utilisation by way of Letters of Credit.

6.2Delivery of a Utilisation Request for Letters of Credit

A Borrower (or the Parent on its behalf) may request a Letter of Credit to be issued  by delivery to the Facility Agent of a duly completed Utilisation Request not later than the Specified Time.

6.3Completion of a Utilisation Request for Letters of Credit

Each Utilisation Request for a Letter of Credit is irrevocable and will not be regarded as having been duly completed unless:

(a)it specifies that it is for a Letter of Credit;

(b)it identifies the Borrower of the Letter of Credit;

(c)the proposed Utilisation Date is a Business Day within the Availability Period applicable to the Revolving Facility;

(d)the currency and amount of the Letter of Credit comply with Clause 6.4 (Currency and amount);

(e)the form of Letter of Credit is attached;

(f)the Expiry Date of the Letter of Credit falls on or before the Final Maturity Date in relation to the Revolving Facility;

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(g)the Term of the Letter of Credit is 12 months or less;

(h)the delivery instructions for the Letter of Credit are specified; and

(i)the identity of the beneficiary of the Letter of Credit is approved by the Lenders.

6.4Currency and amount

(a)The currency specified in a Utilisation Request must be the Base Currency or an Optional Currency.

(b)Subject to Clause 5.5 (Limitations on Utilisations), the amount of the proposed Letter of Credit must be an amount whose Base Currency Amount is not more than the Available Facility and which is:

(i)if the currency selected is the Base Currency, a minimum of £1,000,000 of, if less, the Available Facility; or

(ii)if the currency selected is euro, a minimum of euro 1,500,000 or, if less, the Available Facility; or

(iii)if the currency selected is an Optional Currency, the minimum amount specified by the Facility Agent pursuant to paragraph (b)(ii) of Clause 4.3 (Conditions relating to Optional Currencies) or, if less, the Available Facility.

6.5Issue of Letters of Credit

(a)If the conditions set out in this Agreement have been met, the Issuing Bank shall issue the Letter of Credit on the Utilisation Date.

(b)The Issuing Bank will only be obliged to comply with paragraph (a) above if on the date of the Utilisation Request or Renewal Request and on the proposed Utilisation Date:

(i)in the case of a Letter of Credit to be renewed in accordance with Clause 6.6 (Renewal of a Letter of Credit) no Event of Default is continuing or would result from the proposed Utilisation and, in the case of any other Utilisation, no Default is continuing or would result from the proposed Utilisation; and

(ii)the Repeating Representations to be made by each Obligor are true in all material respects.

(c)The amount of each Lender’s participation in each Letter of Credit will be equal to its L/C Proportion immediately prior to the issue of the Letter of Credit.

(d)The Facility Agent shall determine the Base Currency Amount of each Letter of Credit which is to be issued in an Optional Currency and shall notify the

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Issuing Bank and each Lender of the details of the requested Letter of Credit and its participation in that Letter of Credit by the Specified Time.

6.6Renewal of a Letter of Credit

(a)A Borrower (or the Parent on its behalf) may request that any Letter of Credit issued on behalf of that Borrower be renewed by delivery to the Facility Agent of a Renewal Request in substantially similar form to a Utilisation Request for a Letter of Credit by the Specified Time.

(b)The Finance Parties shall treat any Renewal Request in the same way as a Utilisation Request for a Letter of Credit except that the conditions set out in paragraph (e) of Clause 6.3 (Completion of a Utilisation Request for Letters of Credit) shall not apply.

(c)The terms of each renewed Letter of Credit shall be the same as those of the relevant Letter of Credit immediately prior to its renewal, except that:

(i)its amount may be less than the amount of the Letter of Credit immediately prior to its renewal; and

(ii)its Term shall start on the date which was the Expiry Date of the Letter of Credit immediately prior to its renewal, and shall end on the proposed Expiry Date specified in the Renewal Request.

(d)If the conditions set out in this Agreement have been met, the Issuing Bank shall amend and re-issue any Letter of Credit pursuant  to a Renewal Request.

6.7Revaluation of Letters of Credit

(a)If any Letters of Credit are denominated in an Optional Currency, the Facility Agent shall at six monthly intervals after the date of the Letter of Credit recalculate the Base Currency Amount of each Letter of Credit by notionally converting into the Base Currency the outstanding amount of that Letter of Credit on the basis of the Agent’s Spot Rate of Exchange on the date of calculation.

(b)The Parent shall, if requested by the Facility Agent within five days of any calculation under paragraph (a) above, ensure that within three Business Days sufficient Revolving Facility Utilisations are prepaid to prevent the Base Currency Amount of the Revolving Facility Utilisations exceeding the Total Revolving Facility Commitments following any adjustment to a Base Currency Amount under paragraph (a) of this Clause 6.7.

7.LETTERS OF CREDIT

7.1Immediately payable

If a Letter of Credit or any amount outstanding under a Letter of Credit is expressed to be immediately payable, the Borrower that requested (or on behalf of which the Parent requested) the issue of that Letter of Credit shall repay or prepay that amount immediately.

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7.2Claims under a Letter of Credit

(a)Each Borrower irrevocably and unconditionally authorises the Issuing Bank to pay any claim made or purported to be made under a Letter of Credit requested by it (or requested by the Parent on its behalf) and which appears on its face to be in order (in this Clause 7, a “claim”).

(b)Each Borrower shall immediately on demand or, if such payment is being funded by a Revolving Facility Loan, shall within three Business Days of demand pay to the Facility Agent for the Issuing Bank an amount equal to the amount of any claim.

(c)Each Borrower acknowledges that the Issuing Bank:

(i)is not obliged to carry out any investigation or seek any confirmation from any other person before paying a claim; and

(ii)deals in documents only and will not be concerned with the legality of a claim or any underlying transaction or any available set-off, counterclaim or other defence of any person.

(d)The obligations of a Borrower under this Clause 7 will not be affected by:

(i)the sufficiency, accuracy or genuineness of any claim or any other document; or

(ii)any incapacity of, or limitation on the powers of, any person signing a claim or other document.

7.3Indemnities

(a)Each Borrower shall immediately on demand indemnify the Issuing Bank against any cost, loss or liability incurred by the Issuing Bank (otherwise than by reason of the Issuing Bank’s gross negligence or wilful misconduct) in acting as the Issuing Bank under any Letter of Credit requested by (or on behalf of) that Borrower.

(b)Each Lender shall (according to its L/C Proportion) immediately on demand indemnify the Issuing Bank against any cost, loss or liability incurred by the Issuing Bank (otherwise than by reason of the Issuing Bank’s gross negligence or wilful misconduct) in acting as the Issuing Bank under any Letter of Credit (unless the Issuing Bank has been reimbursed by an Obligor pursuant to a Finance Document).

(c)The Borrower which requested (or on behalf of which the Parent requested) a Letter of Credit shall immediately on demand reimburse any Lender for any payment it makes to the Issuing Bank under this Clause 7.3 in respect of that Letter of Credit.

(d)The obligations of each Lender under this Clause are continuing obligations and will extend to the ultimate balance of sums payable by that Lender in

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respect of any Letter of Credit, regardless of any intermediate payment or discharge in whole or in part.

(e)The obligations of any Lender or Borrower under this Clause will not be affected by any act, omission, matter or thing which, but for this Clause, would reduce, release or prejudice any of its obligations under this Clause (without limitation and whether or not known to it or any other person) including:

(i)any time, waiver or consent granted to, or composition with, any Obligor, any beneficiary under a Letter of Credit or any other person;

(ii)the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor or any member of the Group;

(iii)the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor, any beneficiary under a Letter of Credit or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

(iv)any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any beneficiary under a Letter of Credit or any other person;

(v)any amendment (however fundamental) or replacement of a Finance Document, any Letter of Credit or any other document or security;

(vi)any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document, any Letter of Credit or any other document or security; or

(vii)any insolvency or similar proceedings.

7.4Rights of contribution

No Obligor will be entitled to any right of contribution or indemnity from any Finance Party in respect of any payment it may make under this Clause 7.

7.5Settlement Conditional

Any settlement or discharge between a Lender and the Issuing Bank shall be conditional upon no security or payment to the Issuing Bank by a Lender or any other person on behalf of a Lender being avoided or reduced by virtue of any laws relating to bankruptcy, insolvency, liquidation or similar laws of general application and, if any such security or payment is so avoided or reduced, the Issuing Bank shall be entitled to recover the value or amount of such security or payment from such Lender subsequently as if such settlement or discharge had not occurred.

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7.6Exercise of Rights

The Issuing Bank shall not be obliged before exercising any of the rights, powers or remedies conferred upon it in respect of any Lender by this Agreement or by law:

(a)to take any action or obtain judgment in any court against any Obligor;

(b)to make or file any claim or proof in a winding-up or dissolution of any Obligor; or

(c)to enforce or seek to enforce any other security taken in respect of any of the obligations of any Obligor under this Agreement.

8.OPTIONAL CURRENCIES

8.1Selection of currency

(a)A Borrower shall select the currency of a Revolving Loan in a Utilisation Request.

(b)The Parent shall select the currency of a Term Loan in a Selection Notice.

(c)A currency will constitute an Optional Currency in relation to a Term Loan if:

(i)             it is readily available in the amount required and freely convertible into the Base Currency in the Relevant Interbank Market on the Quotation Day and the first date of the relevant Interest Period for that Term Loan; and

(ii)            it has been approved by the Facility Agent (acting on the instructions of all the Lenders) on or prior to receipt by the Facility Agent of the relevant Selection Notice.

(d)If the Facility Agent has received a written request from the Parent for a currency to be approved under paragraph (c)(ii) above, the Facility Agent will confirm to the Parent by the Specified Time:

(i)             whether or not the Lenders have granted their approval; and

(ii)            if approval has been granted, the minimum amount (and, if required, integral multiples) for any subsequent Term Loan in that currency.

(e)The amount specified in a Selection Notice in relation to a Term Loan must be an amount that is:

(i)if the currency selected is euro, a minimum amount of euro 7,500,000; or

(ii)if the currency selected is an Optional Currency other than euro, the minimum amount specified by the Facility Agent for the Term Facility pursuant to paragraph (d) of Clause 8.1 (Selection of currency).

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(f)If the Parent fails to issue a Selection Notice in relation to a Term Loan, the Term Loan will remain denominated for its next Interest Period in the same currency in which it is then outstanding.

(g)If the Parent issues a Selection Notice in relation to a Term Loan requesting a change of currency and the first day of the requested Interest Period is not a Business Day for the new currency, the Facility Agent shall promptly notify the Parent and the Lenders and the Term Loan will remain in the existing currency (with Interest Periods running from one Business Day until the next Business Day) until the next day which is a Business Day for both currencies, on which day the requested Interest Period will begin.

8.2Unavailability of a currency

If before the Specified Time on any Quotation Day:

(a)a Lender notifies the Facility Agent that the Optional Currency requested is not readily available to it in the amount required; or

(b)a Lender notifies the Facility Agent that compliance with its obligation to participate in a Loan in the proposed Optional Currency would contravene a law or regulation applicable to it,

the Facility Agent will give notice to the relevant Borrower to that effect by the Specified Time on that day.  In this event, any Lender that gives notice pursuant to this Clause 8.2 will be required to participate in the Loan in the Base Currency (in an amount equal to that Lender’s proportion of the Base Currency Amount, or in respect of a Rollover Loan, an amount equal to that Lender’s proportion of the Base Currency Amount of the Rollover Loan that is due to be paid) and its participation will be treated as a separate Loan denominated in the Base Currency during that Interest Period.

8.3Facility Agent’s calculations

(a)If a Term Loan is to be denominated in different currencies during two successive Interest Periods:

(i)if the currency for the second Interest Period is an Optional Currency, the amount of the Term Loan in that Optional Currency will be calculated by the Facility Agent as the amount of that Optional Currency equal to the Base Currency Amount of the Term Loan at the Agent’s Spot Rate of Exchange at the Specified Time;

(ii)if the currency for the second Interest Period is the Base Currency, the amount of the Term Loan will be equal to the Base Currency Amount;

(iii)(unless the Facility Agent and the Parent agree otherwise in accordance with paragraph (b) below) the Parent shall repay it on the last day of the first Interest Period in the currency in which it was denominated for that Interest Period; and

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(iv)(subject to Clause 4.2 (Further Conditions Precedent)) the Lenders shall re-advance the Term Loan in the new currency in accordance with Clause 8.5 (Facility Agent’s calculations).

(b)If the Facility Agent and the Parent agree, the Facility Agent shall:

(i)apply the amount paid to it by the Lenders pursuant to paragraph (a)(iv) above (or so much of that amount as is necessary) in or towards purchase of an amount in the currency in which the Term Loan is outstanding for the first Interest Period; and

(ii)use the amount it purchases in or towards satisfaction of the Parent’s obligations under paragraph (a)(iii) above.

(c)If the amount purchased by the Facility Agent pursuant to paragraph (b)(i) above is less than the amount required to be repaid by the Parent, the Facility Agent shall promptly notify the Parent and the Parent shall, on the last day of the first Interest Period, pay an amount to the Facility Agent (in the currency of the outstanding Term Loan for the first Interest Period) equal to the difference.

(d)If any part of the amount paid to the Facility Agent by the Lenders pursuant to paragraph (a)(iv) above is not needed to purchase the amount required to be repaid by the Parent, the Facility Agent shall promptly notify the Parent and pay the Parent on the last day of the first Interest Period that part of that amount (in the new currency).

8.4Same Optional Currency during successive Interest Periods

(a)If a Term Loan is to be denominated in the same Optional Currency during two successive Interest Periods, the Facility Agent shall calculate the amount of the Term Loan in the Optional Currency for the second of those Interest Periods (by calculating the amount of Optional Currency equal to the Base Currency Amount of that Term Loan at the Agent’s Spot Rate of Exchange at the Specified Time) and (subject to paragraph (b) below):

(i)if the amount calculated is less than the existing amount of that Term Loan in the Optional Currency during the first Interest Period, promptly notify the Parent and the Parent shall pay, on the last day of the first Interest Period, an amount equal to the difference; or

(ii)if the amount calculated is more than the existing amount of that Term Loan in the Optional Currency during the first Interest Period, promptly notify each Lender and, if no Default is continuing, each Lender shall, on the last day of

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the first Interest Period, pay its participation in an amount equal to the difference.

(b)If the calculation made by the Facility Agent pursuant to paragraph (a) above shows that the amount of a Term Loan in the Optional Currency for the second of those Interest Periods converted into the Base Currency at the Agent’s Spot Rate of Exchange at the Specified Time has increased or decreased by less than 10 per cent. compared to its Base Currency Amount (taking into account any payments made pursuant to paragraph (a) above), no notification shall be made by the Facility Agent and no payment shall be required under paragraph (a) above.

8.5Facility Agent’s calculations

Each Lender’s participation in a Loan will, subject to paragraph (a) above, be determined in accordance with paragraph (b) of Clause 5.4 (Lenders’ participation).

9.ANCILLARY FACILITIES

9.1Ancillary Facilities

(a)Each Ancillary Lender makes available to the relevant Obligors, the Ancillary Facilities applicable to that Ancillary Lender on the terms set out in the relevant Ancillary Documents.

(b)Each Ancillary Lender and the relevant Obligor shall promptly notify the Facility Agent of:

(i)the establishment of any Ancillary Facility applicable to it; and

(ii)such information relating to the operation of any Ancillary Facility applicable to it (including, without limitation, the Ancillary Outstandings and Ancillary Commitments thereunder) as the Facility Agent may from time to time request and each Obligor hereby consents to all such information being released to the Facility Agent and each Lender.

(c)In case of any inconsistency between any term of any Ancillary Facility and this Agreement, the terms of this Agreement shall prevail.

(d)Each Ancillary Lender and each relevant Obligor acknowledge the terms of Clause 25.20 (Ancillary Facilities) and paragraph (b)(vi) of Clause 25.16 (Financial Indebtedness).

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SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

10.REPAYMENT

10.1Repayment of Term Loan

(a)The Parent shall repay the Term Loans in three instalments by repaying on each Repayment Date an amount that reduces the Base Currency Amount of the Term Loans outstanding as of the last day of the Availability Period to the Term Loans (being £100,000,000) by the percentage set out opposite each Repayment Date below:

Repayment Date	Repayment Amount
3 March 2007	20 per cent.
3 March 2008	20 per cent.
Final Maturity Date	60 per cent.

(b)The Parent may not reborrow any part of the Term Facility which is repaid.

(c)If the Parent cancels the whole or any part of the Term Commitments in accordance with Clause 11.6 (Right of repayment and cancellation in relation to a single Lender or Issuing Bank) or if the Term Commitment of any Lender is reduced under Clause 11.1 (Illegality of a Lender) then the amount of the Repayment Instalment for each Repayment Date falling after that cancellation will reduce pro rata by the amount cancelled.

(d)If the Parent cancels the whole or any part of the Term Commitments in accordance with Clause 11.3 (Voluntary cancellation) then the amount of the Repayment Instalment for each Repayment Date falling after that cancellation will reduce in inverse chronological order by the amount cancelled.

(e)If the Term Loan is prepaid in accordance with Clause 11.6 (Right of repayment and cancellation in relation to a single Lender or Issuing Bank) or Clause 11.1 (Illegality of a Lender) then the amount of the Repayment Instalment for each Repayment Date falling after that prepayment will reduce pro rata by the amount of the Term Loan prepaid.

(f)If the Term Loan is prepaid in accordance with Clause 11.4 (Voluntary prepayment of Term Loans), Clause 11.8 (Mandatory prepayment from Debt or Equity Proceeds) or Clause 11.9 (Mandatory prepayment on receipt of Disposal Proceeds) then the amount of the Repayment Instalment for each Repayment Date falling after that prepayment will reduce in inverse chronological order by the amount of the Loan prepaid.

10.2Repayment of Revolving Loans

Each Borrower which has drawn a Revolving Loan shall repay that Loan on the last day of its Interest Period.

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11.PREPAYMENT AND CANCELLATION

11.1Illegality of a Lender

If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to make, fund, issue or maintain its participation in any Utilisation:

(a)that Lender shall promptly notify the Facility Agent upon becoming aware of that event;

(b)upon the Facility Agent notifying the Parent the Commitments of that Lender shall immediately be reduced to zero and cancelled; and

(c)each Borrower shall repay that Lender’s participation in the Utilisations made to that Borrower on the last day of the Interest Period for each Utilisation occurring after the Facility Agent has notified the Parent or, if earlier, specified by that Lender in the notice delivered to the Facility Agent (being no earlier than the last day of any applicable grace period permitted by law).

11.2Illegality in relation to Issuing Bank

If it becomes unlawful for an Issuing Bank to issue or leave outstanding any Letter of Credit, then:

(a)that Issuing Bank shall promptly notify the Facility Agent upon becoming aware of that event;

(b)upon the Facility Agent notifying the Parent, the Issuing Bank shall not be obliged to issue any Letter of Credit;

(c)the Parent shall procure that the relevant Borrower shall use its reasonable endeavours to procure the release of each Letter of Credit issued by that Issuing Bank and outstanding at such time; and

(d)unless any other Lender has agreed to be an Issuing Bank pursuant to the terms of this Agreement, the Revolving Facility shall cease to be available for the issue of Letters of Credit.

11.3Voluntary cancellation

The Parent may, if it gives the Facility Agent not less than 10 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, cancel the whole or any part (being a minimum amount of £10,000,000) of an Available Facility. Any cancellation under this Clause 11.3 shall reduce rateably the Commitments of the Lenders under that Facility.

11.4Voluntary prepayment of Term Loans

(a)The Parent may, if it gives the Facility Agent not less than 10 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Term Loan (but, if in part, being an amount that reduces the Base Currency Amount of that Term Loan by a minimum of £10,000,000).

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(b)Any prepayment of a Term Loan under this Clause 11.4 shall satisfy the obligations under paragraph (a) of Clause 10.1 (Repayment of Term Loans) in inverse chronological order.

11.5Voluntary prepayment of Revolving Facility Utilisations

The Borrower to which a Revolving Facility Utilisation has been made may, if it or the Parent gives the Facility Agent not less than 10 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice, prepay the whole or any part of a Revolving Facility Utilisation (but if in part, being an amount that reduces the Base Currency Amount of the Revolving Facility Utilisation by a minimum amount of £10,000,000).

11.6Right of repayment and cancellation in relation to a single Lender or Issuing Bank

(a)If:

(i)any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 16.2 (Tax gross-up);

(ii)any Lender or Issuing Bank claims indemnification from the Parent or an Obligor under Clause 16.3 (Tax indemnity) or Clause 17.1 (Increased costs); or

(iii)any Lender notifies the Facility Agent of its Additional Cost Rate under paragraph 3 of Schedule 4 (Mandatory Cost Formulae),

the Parent may, whilst (in the case of paragraphs (i) and (ii) above) the circumstance giving rise to the requirement or indemnification continues or whilst (in the case of paragraph (iii) above) that Additional Cost Rate is greater than zero, give the Facility Agent notice:

(i)(if the circumstances relate to a Lender) of cancellation of the Commitments of that Lender and its intention to procure the repayment of that Lender’s participation in the Utilisations; or

(ii)(if the circumstances relate to the Issuing Bank) of repayment of any outstanding Letter of Credit issued by it and cancellation of its appointment as an Issuing Bank under this Agreement in relation to any Letters of Credit to be issued in the future.

(b)On receipt of a notice referred to in paragraph (a) above, the Commitments of that Lender shall immediately be reduced to zero.

(c)On the last day of each Interest Period which ends after the Parent has given notice under paragraph (a) above (or, if earlier, the date specified by the Parent in that notice), each Borrower to which a Utilisation is outstanding shall repay that Lender’s participation in that Utilisation together with all interest and other amounts accrued under the Finance Documents.

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11.7Change of Control

(a)If any person or group of persons acting in concert gains control of the Parent, other than (1) persons having control of the Parent as at the date of this Agreement or (2) pursuant to the Mentmore Disposal:

(i)the Parent shall promptly notify the Facility Agent upon becoming aware of that event;

(ii)a Lender shall not be obliged to fund a Utilisation (except for a Rollover Loan);

(iii)if a Lender so requires and notifies the Facility Agent, the Facility Agent shall, by not less than 30 days’ notice to the Borrower, cancel the Commitment of that Lender and declare its participation in all outstanding Utilisations, together with accrued interest and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Commitment of that Lender will be cancelled and all such outstanding amounts will become immediately due and payable.

(b)For the purpose of paragraph (a) above “control” means:

(i)the power (whether by way of ownership of shares, proxy, contract, agency or otherwise) to:

(A)cast, or control the casting of, more than one-half of the maximum number of votes that might be cast at a general meeting of the Parent; or

(B)appoint or remove all, or the majority, of the directors or other equivalent officers of the Parent; or

(C)give directions with respect to the operating and financial policies of the Parent which the directors or other equivalent officers of the Parent are obliged to comply with; or

(ii)the holding of more than one-half of the issued share capital of the Parent (excluding any part of that issued share capital that carries no right to participate beyond a specified amount in a distribution of either profits or capital).

11.8Mandatory prepayment from Debt or Equity Proceeds

For the purposes of this Clause 11.8:

“Debt or Equity Issue” means any issue or raising by the Parent or any other member of the Group of any shares or stock, publicly traded or privately placed debt securities or any other debt securities or equity securities or bank debt other than:

(a)Approved Subordinated Debt;

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(b)Financial Indebtedness permitted in accordance with paragraph (b) of Clause 25.16 (Financial Indebtedness);

(c)an issue permitted pursuant to paragraph (b)(ii) of Clause 25.8 (Acquisition); or

(d)an issue by a Joint Venture Group Company to its shareholder which is not a member of the Group.

“Debt or Equity Proceeds” means the net cash consideration received by any member of the Group for any Debt or Equity Issue made by any member of the Group.

If the Parent or any member of the Group receives any Debt or Equity Proceeds, the Parent shall procure that such Debt or Equity Proceeds are promptly applied in prepayment and/or cancellation of the Facilities in accordance with Clause 11.10 (Application of prepayments).

11.9Mandatory prepayment on receipt of Disposal Proceeds

For the purposes of this Clause 11.9:

“Disposal” means a sale, lease, transfer, loan or other disposal by a person of any asset, undertaking or business (whether voluntary or involuntary and whether as a single transaction or a series of transactions).

“Disposal Proceeds” means the consideration received by any member of the Group (including any amount receivable in repayment of intercompany debt) for any Disposal made by any member of the Group after deducting:

(a)reasonable expenses incurred by any member of the Group with respect to that Disposal to person(s) who are not members of the Group; and

(b)any Tax incurred and required to be paid by the seller in connection with that Disposal (as reasonably determined by the seller, on the basis of existing rates and taking account of any available credit, deduction or allowance),

but does not include:

(i)consideration for any Disposal referred to in paragraphs (b) (i), (iii), (iv), (v), (vii) or (viii) of Clause 25.11 (Disposals);

(ii)cash proceeds received by a Joint Venture Group Company for any Disposal made by that Joint Venture Group Company, but only to the extent that such Disposal Proceeds are not transferred to another member of the Group which is not a Joint Venture Group Company; and

(iii)the first £5,000,000 of cash proceeds from any Disposal not excluded pursuant to paragraph (i) above received by members of the Group in aggregate in any financial year of the Parent.

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The Parent shall ensure that the Borrowers prepay Utilisations in an amount equal to the Disposal Proceeds promptly upon receipt of those proceeds.  The prepayments will be applied under Clause 11.10 (Application of prepayments).

11.10Application of prepayments

A prepayment made under Clause 11.8 (Mandatory prepayment from Debt or Equity Proceeds) or Clause 11.9 (Mandatory prepayment on receipt of Disposal Proceeds) shall be applied in the following order of maturity:

(a)firstly, in prepayment of the Term Loans (in inverse order of maturity);

(b)secondly, in cancellation of the Revolving Commitments (with any such cancellation reducing the Revolving Commitments of the Lenders, rateably); and

(c)thirdly, in prepayment of a sufficient amount of Revolving Facility Utilisations to the extent necessary so that the aggregate of the Base Currency Amounts of the outstanding Revolving Facility Utilisations after that prepayment is equal to or less than the reduced amounts of the Revolving Commitments.

11.11Restrictions

(a)Any notice of cancellation or prepayment given by any Party under this Clause 11 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

(b)Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and Break Costs.

(c)The Parent shall, on the prepayment of the whole or any part of a Term Loan or cancellation of any Revolving Commitment within 12 months of the date of this Agreement, where such prepayment or cancellation is made using the proceeds of any bank debt or such cancellation is made pursuant to a refinancing by the Parent, pay to the Facility Agent for the account of each Lender an amount equal to 1 per cent of the amount prepaid or cancelled (the “Refinancing Premium”) provided that no such Refinancing Premium shall be payable to any Lender which is participating as a Lender in such refinancing.

(d)The Parent may not reborrow any part of the Term Facility which is prepaid.

(e)Unless a contrary indication appears in this Agreement, any part of the Revolving Facility which is prepaid may be reborrowed in accordance with the terms of this Agreement.

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(f)The Borrowers shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in this Agreement.

(g)No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated.

(h)If the Facility Agent receives a notice under this Clause 11 it shall promptly forward a copy of that notice to either the Parent or the affected Lenders, as appropriate.

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SECTION 5

COSTS OF UTILISATION

12.INTEREST

12.1Calculation of interest

The rate of interest on each Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable:

(a)Margin;

(b)LIBOR; and

(c)Mandatory Cost, if any.

12.2Payment of interest

(a)The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the last day of each Interest Period (and, if any Interest Period is longer than six Months, on the dates falling at six Monthly intervals after the first day of that Interest Period).

(b)If the annual audited financial statements of the Group and related Compliance Certificate received by the Facility Agent show that a Margin reduction should not have occurred during a certain period, the Parent shall (or shall ensure the relevant Borrower shall) promptly pay to the Facility Agent any amounts necessary to put the Facility Agent and the Lenders in the position they would have been in had the Margin reduction not occurred.

12.3Default interest

(a)If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual payment (both before and after judgment) at a rate which is two per cent higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency of the overdue amount for successive Interest Periods, each of a duration selected by the Facility Agent (acting reasonably).  Any interest accruing under this Clause 12.3 shall be immediately payable by the Obligor on demand by the Facility Agent.

(b)Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will remain immediately due and payable.

12.4Notification of rates of interest

The Facility Agent shall promptly notify the Lenders and the relevant Borrower (or the Parent) of the determination of a rate of interest under this Agreement.

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13.INTEREST PERIODS

13.1Selection of Interest Periods

(a)A Borrower (or the Parent on behalf of a Borrower) may select an Interest Period for a Loan in the Utilisation Request for that Loan or (if the Loan is a Term Loan and has already been borrowed) in a Selection Notice.

(b)Each Selection Notice for a Term Loan is irrevocable and must be delivered to the Facility Agent by the Parent not later than the Specified Time.

(c)If the Parent fails to deliver a Selection Notice to the Facility Agent in accordance with paragraph (b) above, the relevant Interest Period will, subject to Clause 13.2 (Changes to Interest Periods), be one Month.

(d)Subject to this Clause 13, a Borrower (or the Parent) may select an Interest Period of one, two, three or six Months or any other period agreed between the Parent and the Facility Agent (acting on the instructions of all the Lenders).  In addition a Borrower (or the Parent on its behalf) may select an Interest Period of (in relation to the Term Facility) a period of less than one Month, if necessary to ensure that there are Term Loans (with an aggregate Base Currency Amount equal to or greater than the Repayment Instalment) which have an Interest Period ending on a Repayment Date for the Parent to make the Repayment Instalment due on that date.

(e)An Interest Period for a Loan shall not extend beyond the Final Maturity Date applicable to its Facility.

(f)Each Interest Period for a Term Loan shall start on the Utilisation Date or (if a Loan has already been made) on the last day of its preceding Interest Period.

(g)A Revolving Loan has one Interest Period only.

13.2Changes to Interest Periods

(a)Prior to determining the interest rate for a Term Loan, the Facility Agent may shorten an Interest Period for any Term Loan to ensure that there are sufficient Term Loans (with an aggregate Base Currency Amount equal to or greater than the Repayment Instalment) which have an Interest Period ending on a Term Repayment Date for the Parent to make the Repayment Instalment due on that date.

(b)If the Facility Agent makes any of the changes to an Interest Period referred to in this Clause 13.2, it shall promptly notify the Parent and the Lenders.

13.3Consolidation and division of Term Loans

(a)             Subject to paragraph (b) below, if two or more Interest Periods:

(i) relate to Term Loans in the same currency; and

(ii) end on the same date;

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those Term Loans will, unless the Parent specifies to the contrary in the Selection Notice for the next Interest Period, be consolidated into, and treated as, a single Term A Loan on the last day of the Interest Period.

(b)Subject to Clause 5.3 (Currency and amount) and Clause 8.1 (Selection of currency), if the Parent requests in a Selection Notice that a Term Loan be divided into two or more Term Loans, that Term will, on the last day of its Interest Period, be so divided with Base Currency Amounts specified in that Selection Notice, being an aggregate Base Currency Amount equal to the Base Currency Amount of the Term Loan immediately before its division.

14.CHANGES TO THE CALCULATION OF INTEREST

14.1Absence of quotations

Subject to Clause 14.2 (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by the Specified Time on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks.

14.2Market disruption

(a)If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Lender’s share of that Loan for the Interest Period shall be the rate per annum which is the sum of:

(i)the Margin;

(ii)the rate notified to the Facility Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may reasonably select; and

(iii)the Mandatory Cost, if any, applicable to that Lender’s participation in the Loan.

(b)In this Agreement “Market Disruption Event” means:

(i)at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate not being available and none or only one of the Reference Banks supplying a rate to the Facility Agent to determine LIBOR for the relevant currency and Interest Period; or

(ii)before close of business in London on the Quotation Day for the relevant Interest Period, the Facility Agent receiving notifications from a Lender or Lenders (whose participations in a Loan exceed 50 per cent. of that Loan) that the cost to it of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR.

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14.3Alternative basis of interest or funding

(a)If a Market Disruption Event occurs and the Facility Agent or the Parent so requires, the Facility Agent and the Parent shall enter into negotiations (for a period of not more than thirty days) with a view to agreeing a substitute basis for determining the rate of interest.

(b)Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Parent, be binding on all Parties.

14.4Break Costs

(a)Each Borrower shall, within five Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid by that Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum.

(b)Each Lender shall, as soon as reasonably practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which they accrue.

15.FEES

15.1Commitment fee

(a)The Parent shall pay to the Facility Agent (for the account of each Lender) a fee in the Base Currency computed at the rate of:

(i)50 per cent. per annum of the applicable Margin on that Lender’s Available Commitment under the Term Facility for the Term Availability Period; and

(ii)50 per cent. per annum of the applicable Margin on that Lender’s Available Commitment under the Revolving Facility for the Availability Period applicable to the Revolving Facility.

(b)The accrued commitment fee is payable:

(i)on the last day of each successive period of three Months which ends during the relevant Availability Period;

(ii)on the last day of the relevant Availability Period; and

(iii)on the cancelled amount of the relevant Lender’s Commitment at the time the cancellation is effective.

15.2Arrangement fee

The Parent shall pay to the Arranger an arrangement fee in the amount and at the times agreed in a Fee Letter.

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15.3Agency and Security Trustee fee

The Parent shall pay to (or procure payment to) the Facility Agent (for its own account) an agency fee and Security Trustee fee in the amount and at the times agreed in a Fee Letter.

15.4Fees payable in respect of Letters of Credit

(a)The Parent or each Borrower shall pay to the Issuing Bank a fronting fee at the rate of 0.125 per cent. per annum on the outstanding amount which is counter-indemnified by the other Lenders of each Letter of Credit requested by it for the period from the issue of that Letter of Credit until its Expiry Date.

(b)The Parent or each Borrower shall pay to the Facility Agent (for the account of each Lender) a Letter of Credit fee in the Base Currency (computed at the rate equal to the Margin applicable to a Revolving Loan) on the outstanding amount of each Letter of Credit requested by it for the period from the issue of that Letter of Credit until its Expiry Date.  This fee shall be distributed according to each Lender’s L/C Proportion of that Letter of Credit.

(c)The accrued fronting fee and Letter of Credit fee on a Letter of Credit shall be payable on the first day of each successive period of three Months (or such shorter period as shall end on the Expiry Date for that Letter of Credit) starting on the date of issue of that Letter of Credit.

(d)If the Parent or a Borrower cash covers any part of a Letter of Credit then:

(i)the fronting fee payable to the Issuing Bank and the Letter of Credit fee payable for the account of each Lender shall continue to be payable until the expiry or cancellation of the Letter of Credit; and

(ii)the Parent or each Borrower will be entitled to withdraw the interest accrued on the cash cover to pay the fees set out in paragraph (i) above.

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SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

16.TAX GROSS UP AND INDEMNITIES

16.1Definitions

In this Clause 16:

“Protected Party” means a Finance Party which is or will be, for or on account of Tax, subject to any liability or required to make any payment in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document.

“Qualifying Lender” means a Lender which is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document and is:

(a)a Lender:

(i)which is a bank (as defined for the purpose of section 349 of the Taxes Act) making an advance under a Finance Document; or

(ii)in respect of an advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 349 of the Taxes Act) at the time that that advance was made,

and which is within the charge to United Kingdom corporation tax as respects any payments of interest made in respect of that advance; or

(b)a Treaty Lender.

“Tax Confirmation” means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

(a)a company resident in the United Kingdom, or a partnership each member of which is a company resident in the United Kingdom, for United Kingdom tax purposes; or

(b)a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a branch or agency and that interest payable in respect of that advance falls to be brought into account in computing the chargeable profits of that company for the purposes of section 11(2) of the Taxes Act.

“Tax Credit” means a credit against, relief or remission for, or repayment of, any Tax.

“Tax Deduction” means a deduction or withholding for or on account of Tax from a payment under a Finance Document.

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“Tax Payment” means either the increase in a payment made by an Obligor to a Finance Party under Clause 16.2 (Tax gross-up) or a payment under Clause 16.3 (Tax indemnity).

“Treaty Lender” means a Lender which:

(a)is treated as a resident of a Treaty State for the purposes of the Treaty;

(b)does not carry on a business in the United Kingdom through a permanent establishment with which that Lender’s participation in the Loan is effectively connected.

“Treaty State” means a jurisdiction having a double taxation agreement (a “Treaty”) with the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest.

Unless a contrary indication appears, in this Clause 16 a reference to “determines” or “determined” means a determination made in the absolute discretion of the person making the determination.

16.2Tax gross-up

(a)Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law.  Each Lender hereby represents to each Obligor, on the date of this Agreement (if a New Lender) or the date it becomes a Party, that it is a Qualifying Lender.

(b)The Parent shall promptly upon becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Facility Agent accordingly.  Similarly, a Lender shall notify the Facility Agent on becoming so aware in respect of a payment to that Lender.  If the Facility Agent receives such notification from a Lender it shall notify the Parent and that Obligor.

(c)If a Tax Deduction is required by law to be made by an Obligor the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required.

(d)An Obligor is not required to make an increased payment to a Lender under paragraph (c) above for a Tax Deduction in respect of tax imposed by the United Kingdom from a payment of interest on a Loan, if on the date on which the payment falls due:

(i)the payment could have been made to the relevant Lender without a Tax Deduction if it was a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty,

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or any published practice or concession of any relevant taxing authority; or

(ii)the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had that Lender complied with its obligations under paragraph (g) below.

(e)If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by law.

(f)Within thirty days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Facility Agent for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority.

(g)A Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor to obtain authorisation to make that payment without a Tax Deduction.

16.3Tax indemnity

(a)The Parent shall (within three Business Days of demand by the Facility Agent) pay (or procure payment) to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document.

(b)Paragraph (a) above shall not apply:

(i)with respect to any Tax assessed on a Finance Party:

(A)under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident for tax purposes; or

(B)under the law of the jurisdiction in which that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction,

if that Tax is imposed on or calculated by reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; and

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(ii)to the extent a loss, liability or cost:

(A)is compensated for by an increased payment under Clause 16.2 (Tax gross-up); or

(B)would have been compensated for by an increased payment under Clause 16.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in paragraph (d) of Clause 16.2 (Tax gross-up) applied.

(c)A Protected Party making, or intending to make a claim pursuant to paragraph (a) above shall promptly notify the Facility Agent of the event which will give, or has given, rise to the claim, following which the Facility Agent shall notify the Parent.

(d)A Protected Party shall, on receiving a payment from an Obligor under this Clause 16.3, notify the Facility Agent.

16.4Tax Credit

If an Obligor makes a Tax Payment and the relevant Finance Party determines that:

(a)a Tax Credit is attributable to that Tax Payment; and

(b)that Finance Party has obtained, utilised and retained that Tax Credit,

the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would have been in had the Tax Payment not been made by the Obligor.

16.5Stamp Taxes

The Parent shall pay and, within three Business Days of demand, indemnify each Secured Party and Arranger against any cost, loss or liability that Secured Party or Arranger incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

16.6Value Added Tax

(a)All consideration expressed to be payable under a Finance Document by any Party to a Finance Party shall be deemed to be exclusive of any VAT.  If VAT is chargeable on any supply made by any Finance Party to any Party in connection with a Finance Document, that Party shall pay to the Finance Party (in addition to and at the same time as paying the consideration) an amount equal to the amount of the VAT.

(b)Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party shall also at the same time pay and indemnify that Finance Party against all VAT incurred by the Finance Party in respect of the costs or expenses to the extent that the Finance Party is not entitled to credit or repayment of the VAT.

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17.INCREASED COSTS

17.1Increased costs

(a)Subject to Clause 17.3 (Exceptions) the Parent shall, within three Business Days of a demand by the Facility Agent, pay for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law or regulation made after the date of this Agreement.

(b)In this Agreement “Increased Costs” means:

(i)a reduction in the rate of return from a Facility or on a Finance Party’s (or its Affiliate’s) overall capital;

(ii)an additional or increased cost; or

(iii)a reduction of any amount due and payable under any Finance Document,

which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into its Commitments or an Ancillary Commitment or funding or performing its obligations under any Finance Document or Letter of Credit.

17.2Increased cost claims

(a)A Finance Party intending to make a claim pursuant to Clause 17.1 (Increased costs) shall notify the Facility Agent of the event giving rise to the claim, following which the Facility Agent shall promptly notify the Parent.

(b)Each Finance Party shall, as soon as practicable after a demand by the Facility Agent, provide a certificate confirming the amount of its Increased Costs.

17.3Exceptions

(a)Clause 17.1 (Increased costs) does not apply to the extent any Increased Cost is:

(i)attributable to a Tax Deduction required by law to be made by an Obligor;

(ii)compensated for by Clause 16.3 (Tax indemnity) (or would have been compensated for under Clause 16.3 (Tax indemnity) but was not so compensated solely because any of the exclusions in paragraph (b) of Clause 16.3 (Tax indemnity) applied);

(iii)compensated for by the payment of the Mandatory Cost; or

(iv)attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation.

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(b)In this Clause 17.3 reference to a “Tax Deduction” has the same meaning given to the term in Clause 16.1 (Definitions).

18.OTHER INDEMNITIES

18.1Currency indemnity

(a)If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be converted from the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of:

(i)making or filing a claim or proof against that Obligor; or

(ii)obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings,

that Obligor shall as an independent obligation, within three Business Days of demand, indemnify each Secured Party and the Arranger to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum.

(b)Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed to be payable.

18.2Other indemnities

(a)The Parent shall (or shall procure that an Obligor will), within three Business Days of demand, indemnify each Secured Party and the Arranger against any cost, loss or liability incurred by that Secured Party or Arranger as a result of:

(i)the occurrence of any Event of Default;

(ii)a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 32 (Sharing among the Finance Parties);

(iii)funding, or making arrangements to fund, its participation in a Utilisation requested by the Parent or a Borrower in a Utilisation Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone);

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(iv)issuing or making arrangements to issue a Letter of Credit requested by a Borrower in a Utilisation Request but not issued by reason of the operation of any one or more of the provisions of this Agreement; or

(v)a Utilisation (or part of a Utilisation) not being prepaid in accordance with a notice of prepayment given by a Borrower or the Parent.

18.3Indemnity to the Facility Agent

The Parent shall (or shall procure that an Obligor will) promptly indemnify the Facility Agent against any cost, loss or liability incurred by the Facility Agent (acting reasonably) as a result of:

(a)investigating any event which it reasonably believes is an Event of Default;

(b)entering into or performing any foreign exchange contract for the purposes of paragraph (b) of Clause 33.9 (Change of Currency); or

(c)acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised.

18.4Indemnity to the Security Trustee

(a)Each Obligor shall promptly indemnify the Security Trustee and every Receiver and Delegate against any cost, loss or liability incurred by any of them as a result of:

(i)the taking, holding, protection or enforcement of the Transaction Security,

(ii)the exercise of any of the rights, powers, discretions and remedies vested in the Security Trustee and each Receiver and Delegate by the Finance Documents or by law; and

(iii)any default by any Obligor in the performance of any of the obligations expressed to be assumed by it in the Finance Documents.

(b)The Security Trustee may, in priority to any payment to the Secured Parties, indemnify itself out of the Charged Property in respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 18.4 and shall have a lien on the Transaction Security and the proceeds of the enforcement of the Transaction Security for all monies payable to it.

19.MITIGATION BY THE LENDERS

19.1Mitigation

(a)Each Finance Party shall, in consultation with the Parent, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 11.1 (Illegality of a Lender) (or, in respect of the Issuing Bank, Clause 11.2 (Illegality in relation to Issuing Bank)), Clause 16 (Tax Gross-up and Indemnities) or Clause 17 (Increased Costs) or paragraph 3 of Schedule 4

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(Mandatory Cost Formulae) including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office.

(b)Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents.

19.2Limitation of liability

(a)The Parent shall (or shall procure that an Obligor will) indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 19.1 (Mitigation).

(b)A Finance Party is not obliged to take any steps under Clause 19.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to it.

20.COSTS AND EXPENSES

20.1Transaction expenses

The Parent shall promptly on demand pay (or shall procure that an Obligor will pay) the Facility Agent, the Arranger and the Security Trustee the amount of all costs and expenses (including legal fees) reasonably incurred by any of them in connection with the negotiation, preparation, printing, execution, syndication and perfection of:

(a)this Agreement and any other documents referred to in this Agreement and the Transaction Security; and

(b)any other Finance Documents executed after the date of this Agreement.

20.2Amendment costs

If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 33.9 (Change of currency), the Parent shall, within three Business Days of demand, reimburse (or procure reimbursement of) each of the Facility Agent and the Security Trustee for the amount of all costs and expenses (including legal fees) reasonably incurred by the Facility Agent and the Security Trustee in responding to, evaluating, negotiating or complying with that request or requirement.

20.3Enforcement and preservation costs

The Parent shall, within three Business Days of demand, pay (or procure payment) to each Secured Party and the Arranger the amount of all costs and expenses (including legal fees) incurred by that Secured Party or Arranger in connection with the enforcement of or the preservation of any rights, powers and remedies under any Finance Document and the Transaction Security and any proceedings instituted by or against the Security Trustee as a consequence of taking or holding the Transaction Security or enforcing these rights, powers and remedies.

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SECTION 7

GUARANTEE

21.GUARANTEE AND INDEMNITY

21.1Guarantee and indemnity

Each Guarantor irrevocably and unconditionally jointly and severally:

(a)guarantees to each Finance Party punctual performance by each other Obligor of all that Obligor’s obligations under the Finance Documents;

(b)undertakes with each Finance Party that whenever another Obligor does not pay any amount when due under or in connection with any Finance Document, that Guarantor shall immediately on demand pay that amount as if it was the principal obligor; and

(c)indemnifies each Finance Party immediately on demand against any cost, loss or liability suffered by that Finance Party if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal.  The amount of the cost, loss or liability shall be equal to the amount which that Finance Party would otherwise have been entitled to recover.

21.2Continuing Guarantee

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by any Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part.

21.3Reinstatement

If any payment by an Obligor or any discharge given by a Finance Party (whether in respect of the obligations of any Obligor or any security for those obligations or otherwise) is avoided or reduced as a result of insolvency or any similar event:

(a)the liability of each Obligor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and

(b)each Finance Party shall be entitled to recover the value or amount of that security or payment from the Obligor, as if the payment, discharge, avoidance or reduction had not occurred.

21.4Waiver of defences

The obligations of each Guarantor under this Clause 21 will not be affected by any act, omission, matter or thing which, but for this Clause 21, would reduce, release or prejudice any of its obligations under this Clause 21  (without limitation and whether or not known to it or any Finance Party) including:

(a)any time, waiver or consent granted to, or composition with, any Obligor or other person;

(b)the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group;

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(c)the taking, variation, compromise, exchange, renewal or release of, or refusal or neglect to perfect, take up or enforce, any rights against, or security over assets of, any Obligor or other person or any non-presentation or non-observance of any formality or other requirement in respect of any instrument or any failure to realise the full value of any security;

(d)any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person;

(e)any amendment (however fundamental) or replacement of a Finance Document or any other document or security;

(f)any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; or

(g)any insolvency or similar proceedings.

21.5Immediate recourse

Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 21.  This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

21.6Appropriations

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full, each Finance Party (or any trustee or agent on its behalf) may:

(a)refrain from applying or enforcing any other monies, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts, or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and

(b)hold in an interest-bearing suspense account any monies received from any Guarantor or on account of any Guarantor’s liability under this Clause 21.

21.7Deferral of Guarantor’s rights

Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Facility Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents:

(a)to be indemnified by an Obligor;

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(b)to claim any contribution from any other guarantor of any Obligor’s obligations under the Finance Documents; and/or

(c)to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party.

21.8Release of Guarantors’ right of contribution

If any Guarantor (a “Retiring Guarantor”) ceases to be a Guarantor in accordance with the terms of the Finance Documents for the purpose of any sale or other disposal of that Retiring Guarantor then on the date such Retiring Guarantor ceases to be a Guarantor:

(a)that Retiring Guarantor is released by each other Guarantor from any liability (whether past, present or future and whether actual or contingent) to make a contribution to any other Guarantor arising by reason of the performance by any other Guarantor of its obligations under the Finance Documents; and

(b)each other Guarantor waives any rights it may have by reason of the performance of its obligations under the Finance Documents to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under any Finance Document or of any other security taken pursuant to, or in connection with, any Finance Document where such rights or security are granted by or in relation to the assets of the Retiring Guarantor.

21.9Additional security

This guarantee is in addition to and is not in any way prejudiced by any other guarantee or security now or subsequently held by any Finance Party.

21.10Ireland - Scheme of Arrangement

The guarantee and indemnity contained in Clause 21.1 (Guarantee and Indemnity) shall not be discharged nor shall any Obligor’s liability be affected by any reduction occurring in, or other arrangement being made relating to the Obligors’ liabilities or any of them to the Finance Parties as a result of any arrangement or composition made pursuant to any of the provisions of the Companies (Amendment) Act, 1990 of Ireland or any analogous provisions or made pursuant to any proceedings or actions whatsoever and whether or not following the appointment of an administrator, administrative receiver, trustee, liquidator, receiver or examiner or any similar officer or any analogous event occurring under the laws of any relevant jurisdiction to any Obligor or over all or any substantial part of the assets (as the case may be) of any Obligor and each Obligor agrees with the Finance Parties that the amount recoverable by the Finance Parties from such Obligor under the Finance Documents will be and will continue to be the full amount which would have been recoverable by the Finance Parties from such Obligor in respect of its liabilities and any of them had no such arrangement or composition or event as aforesaid been entered into.

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21.11Limitations applicable to guarantees from Dutch Guarantors

Any guarantee, indemnity obligation, liability and/or undertaking granted or assumed pursuant to this Agreement (including but not limited to this Clause 21 (Guarantee and Indemnity) and 18 (Other Indemnities)) or pursuant to any other Finance Document by any Obligor incorporated in The Netherlands shall be deemed not to be undertaken or incurred by such Obligor to the extent that the same would constitute unlawful financial assistance within the meaning of Section 2:207(c) of the Dutch Civil Code.  For the avoidance of doubt any guarantee, obligation, indemnity, liability and/or undertaking granted or assumed hereunder or under any other Finance Document by:

(a)Iron Mountain Nederland Holdings B.V., shall not be deemed to be undertaken or incurred to the extent relating to an amount of euros 23,700 of the Hays IMS Acquisition Indebtedness used for the acquisition of the shares in the capital of Iron Mountain Nederland Holdings B.V.; and

(b)Iron Mountain Nederland B.V., shall not be deemed to be undertaken or incurred to the extent relating to (i) an amount of £20,150,000 of the Hays IMS Acquisition Indebtedness used for the acquisition of the shares in the capital of Iron Mountain Nederland B.V. (ii) an amount of euros 23,700 of the Hays IMS Acquisition Indebtedness used for the acquisition of the shares in the capital of Iron Mountain Nederland Holdings B.V.

21.12Spanish Guarantors

The guarantee given by any Obligor incorporated in Spain expressly acknowledges that this guarantee takes the form of a first demand guarantee and not a fianza under sections 1,822 and following of the Spanish Civil Code (Código Civil) and, therefore, the benefits conferred by Spanish law to a fiador (benefits of priority, exhaustion of remedies against the principal debtor and division) shall not apply to this guarantee.

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SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

22.REPRESENTATIONS

Each Obligor makes the following representations and warranties to each Finance Party at the times specified in Clause 22.20 (Times on which representations are made):

22.1Status

(a)It and each of its Subsidiaries is a limited liability corporation or company (as the case may be), duly incorporated and validly existing under the law of its jurisdiction of incorporation.

(b)It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted.

22.2Binding obligations

The obligations expressed to be assumed by it in each Finance Document are legal, valid, binding and enforceable obligations.

22.3Non-conflict with other obligations

The entry into and performance by it of, and the transactions contemplated by, the Finance Documents and the granting of the Transaction Security do not and will not conflict with:

(a)any law or regulation applicable to it;

(b)constitutional documents of any Obligor or Pledged Company; or

(c)any agreement or instrument binding upon any Obligor or Pledged Company or any Obligor’s or any Pledged Company’s assets, breach of which could reasonably be expected to have a Material Adverse Effect.

22.4Power and authority

(a)It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents.

(b)No limit on its powers will be exceeded as a result of the borrowing, granting of security or giving of guarantees or indemnities contemplated by the Finance Documents to which it is a party.

22.5Validity and admissibility in evidence

(a)All Authorisations required:

(i)to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party; and

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(ii)to make the Finance Documents to which it is a party admissible in evidence in its Relevant Jurisdictions,

have been obtained or effected and are in full force and effect.

22.6Governing law and enforcement

(a)The choice of English law as the governing law of the Finance Documents will be recognised and enforced in its Relevant Jurisdictions.

(b)Any judgment obtained in England in relation to a Finance Document will be recognised and enforced in its Relevant Jurisdictions.

22.7No filing or stamp taxes

Under the laws of the Relevant Jurisdictions it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration, notarial or similar Taxes or fees be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except:

(a)due presentation for registration of the Transaction Security Documents governed by English law in accordance with The Companies Act 1985;

(b)the payment of applicable Belgian stamp duty on the Transaction Security Documents governed by Belgian law;

(c)the payment of applicable notarial fees on the Transaction Security Documents governed by Spanish law;

(d)due presentation for registration of the Transaction Security Documents governed by French law with the French tax authorities;

(e)due presentation for registration of the Transaction Security Documents governed by the Dutch law: rights of pledge (pandrechten) with the Dutch tax authorities and rights of mortgage (hypotheekrechten) the land register (kadaster);

(f)due presentation for registration of the Transaction Security Documents governed by Irish law in accordance with the Irish Companies Acts 1963 - 2001; and

(g)the payment of applicable Irish stamp duty on the Transaction Security Documents governed by Irish law,

each of which will be made promptly after the date of this Agreement.

22.8No default

(a)No Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation.

(b)No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its

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Subsidiaries or to which its (or its Subsidiaries’) assets are subject which could reasonably be expected to have a Material Adverse Effect.

22.9No misleading information

(a)Any factual information contained in the Information Memorandum was true and accurate in all material respects as at the date of the relevant report or document containing the information.

(b)Any financial projections or forecasts contained in the Information Memorandum have been prepared on the basis of recent historical information and on the basis of reasonable assumptions and were fair (as at the date of the relevant report or document containing the projection or forecast) and arrived at after careful consideration.

(c)The written expressions of opinion or intention provided by or on behalf of an Obligor for the purposes of the Information Memorandum were arrived at after careful consideration and were fair and based on reasonable grounds.

(d)No event or circumstance has occurred or arisen and no information has been omitted from the Information Memorandum and no information has been given or withheld that results in the information, opinions, intentions, forecasts or projections contained in the Information Memorandum being untrue or misleading or other than fair and reasonable in any material respect.

(e)All other written information provided by any member of the Group (including its advisers) was true, complete and accurate in all material respects as at the date it was provided and is not misleading in any material respect.

The representations and warranties made with respect to the Information Memorandum are made by each Obligor in this Clause 22.9 only so far as it is aware after making reasonable enquiries.

22.10Financial statements

(a)Its Original Financial Statements were prepared in accordance with the Accounting Principles consistently applied.

(b)Its unaudited Original Financial Statements fairly represent its financial condition and operations (consolidated in the case of the Parent) during the relevant financial year.

(c)There has been no change in its property, assets, business or financial condition (or the property, assets, business or consolidated financial condition of the Group, in the case of the Parent) since the date of the most recent financial statements delivered pursuant to paragraph (a)(i) of Clause 23.1 (Financial Statements) which could reasonably be expected to have a Material Adverse Effect.

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(d)Each set of financial statements delivered pursuant to Clause 23.1 (Financial statements) gives a true and fair view of (in the case of audited financial statements) or fairly represents (in the case of unaudited financial statements) its financial condition and operations as at the date at which those financial statements were drawn up.

22.11No proceedings pending or threatened

No litigation, arbitration or administrative proceedings or investigations of or before any court, arbitral body or agency which, if adversely determined, could reasonably be expected to have a Material Adverse Effect have (to the best of its knowledge and belief) been started or threatened against it or any of its Subsidiaries.

22.12Environmental and other laws

(a)Each Obligor and Pledged Company is in compliance with Clause 25.3 (Environmental compliance) and to the best of its knowledge and belief no circumstances have occurred which would prevent that performance or observation.

(b)No Environmental Claim has been commenced or (to the best of its knowledge and belief) is threatened against any Obligor or Pledged Company where that claim could reasonably be expected, if adversely determined, to have a Material Adverse Effect.

(c)No Obligor or Pledged Company is in breach of any other law or regulation in a manner or to an extent which could reasonably be expected to have a Material Adverse Effect.

22.13Dangerous Substances

No Dangerous Substance has been used, disposed of, generated, stored, transported, dumped, released, deposited, buried or emitted at, or from, or under, any premises (whether or not owned, leased, occupied, or controlled by it) in circumstances where this might reasonably be expected to result in a liability on it which if enforced could have a Material Adverse Effect.

22.14Taxation

(a)It has duly and punctually paid and discharged all Taxes imposed on it or its assets within the time period allowed without incurring penalties (save to the extent that (i) the payment is being contested in good faith, (ii) it has maintained adequate reserves for those Taxes and (iii) payment can be lawfully withheld);

(b)No Obligor or Pledged Company is materially overdue in the filing of any Tax returns;

(c)No claims are being or are reasonably likely to be asserted against any Obligor or Pledged Company with respect to Taxes which, if adversely determined, could reasonably be expected to have a Material Adverse Effect.

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22.15Security and Financial Indebtedness

(a)No Security exists over all or any of the present or future assets of any member of the Group other than any Security permitted under Clause 25.10 (Negative pledge).

(b)No member of the Group has any actual or contingent Financial Indebtedness outstanding other than as permitted by this Agreement.

22.16Pari Passu Ranking

Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

22.17Transaction Security

Each Transaction Security Document to which it is a party validly creates the Security which is expressed to be created by that Transaction Security Document and evidences the Security it is expressed to evidence and those security interests are valid and effective.

22.18Good Title Assets

Subject to any Security permitted pursuant to paragraph (c) of Clause 25.10 (Negative Pledge) and with the exception of the Hays’ Leases at any time prior to the Conditions Subsequent Longstop Date, each Obligor and Pledged Company has a good, valid and marketable title to, or valid leases or licences of, and all appropriate Authorisations to use, all assets necessary to carry on its business as presently conducted and to perform its obligations under the Finance Documents, save in each case to the extent that the absence of such good, valid and marketable title to, or valid leases or licences of or appropriate Authorisations could not reasonably be expected to be likely to have a Material Adverse Effect.

22.19Shares

The shares of any member of the Group which are subject to the Transaction Security are fully paid and not subject to any option to purchase or similar rights.  The constitutional documents of companies whose shares are subject to the Transaction Security do not and could not restrict or inhibit any transfer of those shares on creation or on enforcement of the Transaction Security.

22.20Times on which representations are made

(a)All the representations and warranties in this Clause 22 are made to each Finance Party on the date of this Agreement except for the representations and warranties set out in paragraphs (a) to (d) of Clause 22.9 (No misleading information) relating to the Information Memorandum which are deemed to be made by each Obligor on the date that the Information Memorandum is approved by the Parent.

(b)The Repeating Representations are deemed to be made by each Obligor to each Finance Party on the date of each Utilisation Request and on the first day of each Interest Period.

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(c)All the representations and warranties in this Clause 22 except paragraphs (a) to (d) of Clause 22.9 (No misleading information), are deemed to be made by each Additional Obligor to each Finance Party on the day on which it becomes an Additional Obligor.

(d)Each representation or warranty deemed to be made after the date of this Agreement shall be made by reference to the facts and circumstances existing at the date the representation or warranty is made.

23.INFORMATION UNDERTAKINGS

The undertakings in this Clause 23 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

23.1Financial statements

The Parent shall supply to the Facility Agent in sufficient copies for all the Lenders:

(a)as soon as they are available, but in any event within 150 days after the end of each of its financial years:

(i)its audited consolidated financial statements for that financial year; and

(ii)the financial statements (consolidated if appropriate) of each Obligor for that financial year audited (if that Obligor produces audited financial statements);

(b)as soon as they are available, but in any event within 60 days after the end of each Financial Quarter of each of its financial years its consolidated financial statements for that Financial Quarter; and

(c)within 90 days after the commencement of each of its financial years a consolidated annual budget (including profit and loss account, balance sheet, cashflow forecasts and capital expenditure forecasts) for the next financial year.

23.2Compliance Certificate

(a)The Parent shall supply a Compliance Certificate to the Facility Agent with each set of its audited consolidated annual financial statements and each set of its consolidated quarterly financial statements delivered pursuant to paragraph (b) of Clause 23.1 (Financial statements).

(b)Each Compliance Certificate shall:

(i)set out (in reasonable detail) computations as to compliance with Clause 24 (Financial Covenants) and the Margin computations set out in the definition “Margin” as at the date as at which those financial statements were drawn up;

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(ii)confirm compliance with Clause 25.18 (Guarantor Group and Security Coverage); and

(iii)confirm no Default has occurred and is continuing or, if a Default has occurred, what Default has occurred and the steps being taken to remedy that Default.

(c)Each Compliance Certificate shall be signed by the finance director and any other director of the Parent.

(d)The first Compliance Certificate required to be delivered under this Agreement shall be in respect of the Relevant Period ending 31 July 2004.

23.3Requirements as to financial statements

(a)Each set of financial statements delivered pursuant to Clause 23.1 (Financial statements):

(i)shall be certified by a director of the relevant company as giving a true and fair view (in the case of annual financial statements delivered pursuant to paragraph (a) of Clause 23.1 (Financial statements)) or fairly representing (in other cases) its financial condition and operations as at the date as at which those financial statements were drawn up;

(ii)shall be prepared using the Accounting Principles, accounting practices and financial reference periods consistent with those applied in the case of any Obligor, in the preparation of the Original Financial Statements for that Obligor,

unless, in relation to any set of financial statements, the Parent notifies the Facility Agent that there has been a change in the Accounting Principles, the accounting practices or reference periods and its auditors (or, if appropriate, the auditors of the Obligor) deliver to the Facility Agent:

(A)a description of any change necessary for those financial statements to reflect the Accounting Principles, accounting practices and reference periods upon which that Obligor’s Original Financial Statements were prepared; and

(B)sufficient information, in form and substance as may be reasonably required by the Facility Agent, to enable the Lenders to determine whether Clause 24 (Financial covenants) has been complied with, to determine the Margin as set out in the definition of “Margin” and to make an accurate comparison between the financial position indicated in those financial statements and the Original Financial Statements.

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(b)If the Parent notifies the Facility Agent of a change in accordance with paragraph (a)(ii) above then the Parent and Facility Agent shall enter into negotiations in good faith with a view to agreeing:

(i)whether or not the change might result in any material alteration in the commercial effect of any of the terms of this Agreement; and

(ii)if so, any amendments to this Agreement which may be necessary to ensure that the change does not result in any material alteration in the commercial effect of those terms,

and if any amendments are agreed they shall take effect and be binding on each of the Parties in accordance with their terms.

If no such agreement is reached within 30 days of that notification of change, the Facility Agent shall (if so requested by the Majority Lenders) instruct the auditors of the Parent or independent accountants (approved by the Parent or, in the absence of such approval within 5 days of request by the Facility Agent of such approval, a firm with recognised expertise) to determine any amendment to Clause 24.2 (Financial condition) the Margin computations set out in the definition of “Margin” and any other terms of this Agreement which those auditors or, as the case may be, accountants (acting as experts and not arbitrators) consider appropriate to ensure the change does not result in any material alteration in the commercial effect of the terms of this Agreement.  Those amendments shall take effect when so determined by those auditors, or as the case may be, accountants.  The cost and expense of those auditors or accountants shall be for the account of the Parent.

Any reference in this Agreement to those financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Original Financial Statements were prepared.

(c)The Parent shall procure that each set of annual financial statements delivered pursuant to paragraph (a) of Clause 23.1 (Financial statements) shall be audited by an internationally recognised firm of independent auditors (which shall, for the purposes of this Agreement, include RSM Robson Rhodes) licensed to practice in the jurisdiction of incorporation of the relevant member of the Group.

23.4Group Companies

The Parent shall, at the request of the Facility Agent, supply to the Facility Agent a report stating which of its Subsidiaries are Material Companies.

23.5Year-end

With the exception of the proposed change of its year-end (and that of any applicable member of the Group) to accord with the year-end of Iron Mountain Inc, the Parent must not change its financial year-end without the prior written consent of the Facility Agent.

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23.6Information: miscellaneous

The Parent shall supply to the Facility Agent (in sufficient copies for all the Lenders, if the Facility Agent so requests):

(a)all documents dispatched by the Parent to its shareholders (or any class of them) or dispatched by the Parent or any Obligor to its creditors generally at the same time as they are dispatched;

(b)promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which could reasonably be expected, if adversely determined, to have a Material Adverse Effect.

(c)promptly, such information or projections regarding the financial condition, business, operations, of any member of the Group as any Finance Party (through the Facility Agent) may reasonably request;

23.7Notification of default

(a)Each Obligor shall notify the Facility Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware that a notification has already been provided by another Obligor).

(b)Promptly upon a request by the Facility Agent (acting reasonably), the Parent shall supply to the Facility Agent a certificate signed by the finance director and any other director of the Parent on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it).

23.8“Know your customer” checks

(a)If:

(i)the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement;

(ii)any change in the status of an Obligor or the composition of the shareholders of an Obligor after the date of this Agreement; or

(iii)a proposed assignment or transfer by a Lender of any of its rights and/or obligations under this Agreement to a party that is not a Lender prior to such assignment or transfer,

obliges the Facility Agent or any Lender (or, in the case of paragraph (iii) above, any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, each Obligor shall promptly upon the request of the Facility Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the

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Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or, in the case of the event described in paragraph (iii) above, on behalf of any prospective new Lender) in order for the Facility Agent, such Lender or, in the case of the event described in paragraph (iii) above, any prospective new Lender to carry out and be satisfied with the results of all necessary “know your customer” or other checks in relation to any relevant person pursuant to the transactions contemplated in the Finance Documents.

(b)Each Lender shall promptly upon the request of the Facility Agent supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself) in order for the Facility Agent to carry out and be satisfied with the results of all necessary “know your customer” or other checks on Lenders or prospective new Lenders pursuant to the transactions contemplated in the Finance Documents.

(c)The Parent shall, by not less than 10 Business Days’ prior written notice to the Facility Agent, notify the Facility Agent (which shall promptly notify the Lenders) of its intention to request that one of its Subsidiaries becomes an Additional Obligor pursuant to Clause 28 (Changes to the Obligors).

(d)Following the giving of any notice pursuant to paragraph ((c) above, if the accession of such Additional Obligor obliges the Facility Agent or any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Parent shall promptly upon the request of the Facility Agent or any Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Facility Agent (for itself or on behalf of any Lender) or any Lender (for itself or on behalf of any prospective new Lender) in order for the Facility Agent or such Lender or any prospective new Lender to carry out and be satisfied with the results of all necessary “know your customer” or other checks in relation to any relevant person pursuant to the accession of such Subsidiary to this Agreement as an Additional Obligor.

24.FINANCIAL COVENANTS

24.1Financial definitions

In this Clause 24:

“Borrowings” means, at any time, the outstanding principal, capital or nominal amount and any fixed or minimum premium payable on prepayment or redemption of any indebtedness for or in respect of:

(a)moneys borrowed or raised;

(b)any amount raised by acceptance under any acceptance credit facility;

(c)any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument;

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(d)the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with the Accounting Principles, be treated as a finance or capital lease;

(e)receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis);

(f)any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution (excluding any given in respect of trade credit arising in the ordinary course of business);

(g)any amount raised by the issue of redeemable shares which are redeemable before the Final Maturity Date;

(h)any amount of any liability under an advance or deferred purchase agreement if one of the primary reasons behind the entry into the agreement is to raise finance;

(i)any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing; and

(j)(without double counting) the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (i) above.

“Consolidated Net Finance Charges” means, for any Relevant Period, the aggregate amount of the accrued interest (including capitalised interest), commission, fees, discounts, prepayment penalties or premiums and other finance payments in respect of Borrowings whether paid, payable or capitalised by any member of the Group in respect of that Relevant Period:

(a)excluding any such obligations owed to any other member of the Group;

(b)including the interest element of leasing and hire purchase payments;

(c)including any  accrued commission, fees, discounts and other finance payments payable by any member of the Group under any interest rate hedging arrangement;

(d)deducting any accrued commission, fees, discounts and other finance payments owing to any member of the Group under any interest rate hedging instrument;

(e)deducting any accrued interest owing to any member of the Group on any deposit or bank account; and

(f)excluding any interest due under the Subordinated Loan Agreement or, as the case may be, the Existing Retained Inter-company Facilities to the extent that

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the payment of such interest is funded by a further drawdown under the Subordinated Loan Agreement;

together with the amount of any cash dividends or distributions paid or made by the Parent in respect of that Relevant Period.

“Consolidated Total Net Debt” means, at any time, the aggregate amount of all obligations of the Group for or in respect of Borrowings but:

(a)excluding any obligations owed by a member of the Group to another member of the Group;

(b)excluding any amounts owed by any member of the Group pursuant to the Subordinated Loan Agreement and the Existing Retained Inter-company Facilities; but

(c)deducting the aggregate amount of freely available Cash at such time;

and so that no amount shall be included or excluded more than once.

“EBIT” means the consolidated profits of the Group from ordinary activities before taxation:

(a)before deducting any Consolidated Net Finance Charges;

(b)before taking into account any items treated as exceptional or extraordinary items;

(c)before taking into account any non-cash charges included in foreign exchange translation gains or losses and minority interest charges,

in each case, to the extent added, deducted or taken into account, as the case may be, for the purposes of determining profits of the Group from ordinary activities before taxation.

“EBITDA” means EBIT before deducting any amount attributable to the amortisation of intangible assets or the depreciation of tangible assets.

“Financial Quarter”  means the period commencing on the day after one Quarter Date and ending on the next Quarter Date.

“Quarter Date” means each of 30 April, 31 July, 31 October and 31 January.

“Relevant Period” means each period of twelve months ending on the last day of the Parent’s financial year and each period of twelve months ending on the last day of each Financial Quarter of the Parent’s financial year.

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24.2Financial condition

The Parent shall ensure that:

(a)Interest Cover: The ratio of EBITDA to Consolidated Net Finance Charges in respect of any Relevant Period specified in Column 1 below shall not be less than:

(i)3.50:1 for each Relevant Period ending on or prior to 31 October 2005;

(ii)3.75:1 for each Relevant Period ending after 31 October 2005 but on or prior to 31 October 2006; and

(iii)4.0:1 for each Relevant Period thereafter.

(b)Debt Cover:  The ratio of Consolidated Total Net Debt on each date set out in Column 1 below to EBITDA in respect of any Relevant Period ending on such date shall not exceed the ratio set out in Column 2 below opposite such date.

Column 1 Relevant Period	Column 2 Ratio
Relevant Period expiring 31 July 2004	4.0:1
Relevant Period expiring 31 October 2004	4.0:1
Relevant Period expiring 31 January 2005	4.0:1
Relevant Period expiring 30 April 2005	4.0:1
Relevant Period expiring 31 July 2005	3.75:1
Relevant Period expiring 31 October 2005	3.75:1
Relevant Period expiring 31 January 2006	3.75:1
Relevant Period expiring 30 April 2006	3.75:1
Relevant Period expiring 31 July 2006	3.75:1
Relevant Period expiring 31 October 2006	3.75:1
Relevant Period expiring 31 January 2007	3.50:1
Relevant Period expiring 30 April 2007	3.50:1
Relevant Period expiring 31 July 2007	3.50:1
Relevant Period expiring 31 October 2007	3.50:1
Relevant Period expiring 31 January 2008	3.25:1
Relevant Period expiring 30 April 2008	3.25:1

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Column 1 Relevant Period	Column 2 Ratio
All Relevant Periods thereafter	3.0:1

24.3Financial testing

(a)The financial covenants set out in Clause 24.2 (Financial condition) shall be tested by reference to each of the financial statements and/or each Compliance Certificate delivered pursuant to Clause 23.2 (Compliance Certificate).

(b)For the purpose of testing the ratios set out in paragraphs (a) and (b) of Clause 24.2 (Financial condition), EBITDA in respect of each Relevant Period ending on 31 July 2004, 31 October 2004, 31 January 2005 and 30 April 2005 shall be increased by an amount equal to the annualised synergies achieved in respect of the Hays IMS Acquisition prior to 31 July 2004 (without double counting), as certified by RSM Robson Rhodes and shown in:

(i)the pro forma statement set out in the Due Diligence Report; and

(ii)the updated pro forma statement delivered to the Facility Agent by RSM Robson Rhodes after 31 July 2004 but in any event no later than the date of the first Compliance Certificate delivered pursuant to Clause 23.2 (Compliance Certificate).

(c)For the purpose of testing the ratio set out in paragraph (b) of Clause 24.2 (Financial Condition), EBITDA shall also;

(i)in the case of any business or company acquired (a “Relevant Acquisition”) in accordance with the terms of this Agreement on a date (the “Acquisition Date”) during a Relevant Period, have added to it:

(A)the Parent’s good faith estimate (as certified to the Facility Agent by two directors of the Parent together with reasonable supporting evidence and calculations) of EBITDA of the company(ies) or business comprising the Relevant Acquisition for the period from the start of that Relevant Period to the Acquisition Date and for this purpose the definitions of EBIT and EBITDA in Clause 24.1 (Financial definitions) shall be applied, mutatis mutandis, to the company(ies) or business comprising the Relevant Acquisition; and

(B)on the four Quarter Dates, immediately following the Acquisition Date, an amount equal to the annualised synergies achieved in respect of the Relevant Acquisition (without double counting) as certified by an internationally recognised firm of independent auditors;

(ii)in the case of any businesses or company(ies) sold (a “Relevant Disposal”) in accordance with this Agreement during a Relevant Period, have deducted from it the Parent’s good faith estimate (as confirmed to

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the Facility Agent by two directors of the Parent together with reasonable supporting evidence and calculations) of EBITDA of the company(ies) or businesses comprising the Relevant Disposal for the period from the start of that Relevant Period to the date of such disposal and for this purpose the definitions of EBIT and EBITDA in Clause 24.1 (Financial definitions) shall be applied, mutatis mutandis, to the company(ies) or business comprising the Relevant Disposal.

25.GENERAL UNDERTAKINGS

The undertakings in this Clause 25 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

25.1Authorisations

Each Obligor shall promptly:

(a)obtain, comply with and do all that is necessary to maintain in full force and effect; and

(b)supply certified copies to the Facility Agent of,

any Authorisation required under any law or regulation of a Relevant Jurisdiction to:

(i)enable it to perform its obligations under the Finance Documents; and

(ii)ensure the legality, validity, enforceability or admissibility in evidence of any Finance Document.

25.2Compliance with laws

Each Obligor shall comply in all respects with all laws to which it may be subject, if failure so to comply would, or could reasonably be expected to have, a Material Adverse Effect.

25.3Environmental compliance

Each Obligor shall (and the Parent shall ensure that each Pledged Company shall):

(a)comply with all Environmental Law;

(b)obtain and maintain and ensure compliance with any Environmental Permits;

(c)comply with all other covenants, conditions, restrictions or agreements directly or indirectly concerned with any contamination, pollution or waste or the release or discharge of any toxic or hazardous substance in connection with any real property which is or was at any time owned, leased or occupied by any Obligor or Pledged Company or on which any Obligor or Pledged Company has conducted any activity; and

(d)take all reasonable steps in anticipation of known or expected future changes to or obligations under Environmental Law or Environmental Permits,

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where failure to do so could reasonably be expected to have a Material Adverse Effect.

25.4Environmental claims

Each Obligor shall (through the Parent) inform the Facility Agent in writing as soon as reasonably practicable upon becoming aware of the same if any Environmental Claim has been commenced or (to the best of an Obligor’s knowledge and belief) is threatened against any Obligor or Pledged Company where the claim could reasonably be expected, if determined against that Obligor or Pledged Company, to have a Material Adverse Effect.

25.5Taxation

Each Obligor shall (and the Parent shall ensure that each Pledged Company shall) duly and punctually pay and discharge all Taxes imposed upon it or its assets within the time period allowed without incurring penalties unless and only to the extent that:

(a)such payment is being contested in good faith;

(b)adequate reserves are being maintained for those Taxes which have been disclosed in its latest financial statements delivered to the Facility Agent under Clause 23.1 (Financial statements); and

(c)such payment can be lawfully withheld.

25.6Merger

No Obligor shall (and the Parent shall ensure that no Pledged Company will) enter into any amalgamation, demerger, merger or corporate reconstruction except pursuant to any acquisition or disposal permitted by paragraph (b) of Clause 25.8 (Acquisitions) or paragraph (b) of Clause 25.11 (Disposals).

25.7Change of business

The Parent shall procure that no substantial change is made to the general nature of the business of the Parent, the other Obligors or the Group from that carried on at the date of this Agreement being the records and information management business or activities related thereto (including ownership of 100% of the issued share capital of limited liability companies whose assets consist substantially of such assets).

25.8Acquisitions

(a)No Obligor shall (and the Parent shall ensure that no other member of the Group (other than a Joint Venture Group Company) will) incorporate or acquire a company or acquire (or acquire an interest in) shares or securities or a business or undertaking.

(b)Paragraph (a) above shall not apply to:

(i)the proposed share acquisition by the Parent of a European company codenamed “Project Mont Blanc”;

(ii)an acquisition of (A) all of the issued share capital of a limited liability company or (B) any shares in a Joint Venture Group Company or (C) a business or undertaking, but only if:

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(1)the consideration for the acquisition does not exceed £10,000,000 and when aggregated with the consideration for all other acquisitions which are not otherwise permitted by paragraph (i) above does not exceed £20,000,000 in any financial year; or

(2)the consideration for the acquisition when aggregated with the consideration for all other acquisitions which are not otherwise permitted by the preceding paragraphs does not exceed £30,000,000 in any financial year but only to the extent that all such acquisitions are fully funded by a specific issue of equity shares or by Approved Subordinated Debt provided that

(i) nothing contained in this Clause 25.8 shall prevent the Parent from (a) completing the Architel acquisition, and if it is necessary that Iron Mountain Incorporated finance the acquisition prior to this amendment, the Parent may repay Iron Mountain Incorporated up to £7,000,000, upon approval of the amendment, without regard to any other provision of this Agreement, and (b) completing the Docu Guard acquisition; and

(ii) for the financial year ending in January 2007 in calculating whether or not the £20,000,000 and £30,000,000 limits have been exceeded, the consideration of all acquisitions made prior to the date of this Amendment Agreement shall be ignored.

(iii)an acquisition by a member of the Group permitted pursuant to paragraphs 25.11(b)(viii) and 25.11(b)(ix) of Clause 25.11 (Disposals);

(iv)any acquisition with the prior written consent of the Majority Lenders.

25.9Pari passu ranking

(a)Each Obligor shall ensure that at all times any unsecured and unsubordinated claims of a Finance Party held against it under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors except those creditors whose claims are mandatorily preferred by laws of general application to companies.

(b)Each Obligor which is incorporated in Spain shall not raise to the status of a Spanish Public Document any unsecured and unsubordinated indebtedness.

25.10Negative pledge

Except as permitted under paragraph (c) below:

(a)No Obligor shall (and the Parent shall ensure that no other member of the Group will) create or permit to subsist any Security over any of its assets.

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(b)No Obligor shall (and the Parent shall ensure that no other member of the Group will):

(i)sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor or any other member of the Group;

(ii)sell, transfer or otherwise dispose of any of its receivables on recourse terms;

(iii)enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

(iv)enter into any other preferential arrangement having a similar effect,

in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the acquisition of an asset.

(c)Paragraphs (a) and (b) above do not apply to:

(i)Existing Retained Security;

(ii)any netting or set-off arrangement entered into by any member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances of members of the Group;

(iii)any lien arising by operation of law in the ordinary course of trading which is discharged within 90 days or is in respect of an amount less than £10,000;

(iv)any retention of title, hire purchase or conditional sale arrangement or arrangements having similar effect in respect of goods supplied to a member of the Group in the ordinary course of trading and on the suppliers standard or usual terms;

(v)any sale, transfer or other disposal of any assets prohibited pursuant to paragraph (b)(i) and (b)(ii) of this Clause 25.10 (Negative Pledge) where an amount equal to the Disposal Proceeds thereof is used in or towards making a prepayment and cancellation of the Facility under Clause 11.9 (Mandatory prepayment on receipt of Disposal Proceeds); and

(vi)the Transaction Security.

25.11Disposals

(a)Except as permitted under paragraph (b) below, no Obligor shall (and the Parent shall ensure that no other member of the Group will) enter into a single transaction or a series of transactions (whether related or not and whether

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voluntary or involuntary) to sell, lease, transfer or otherwise dispose of any asset.

(b)Paragraph (a) above does not apply to any sale, lease, transfer or other disposal:

(i)of assets made in the ordinary course of trading of the disposing entity;

(ii)of assets on arms length terms for market value;

(iii)arising as a result of any Security permitted under Clause 25.10 (Negative pledge);

(iv)of assets where the proceeds of disposal are used within 6 months of that disposal to purchase assets utilised in the records management business;

(v)of any asset (which is not the subject of Transaction Security) in exchange for other assets comparable or superior as to type, value and quantity;

(vi)of any surplus or obsolete assets not required for the efficient operation of the business of the Group by any member of the Group;

(vii)of cash where such disposal is not otherwise prohibited by this Agreement; and

(viii)of any asset by a member of the Group (the “Disposing Company”) to another member of the Group (the “Acquiring Company”), provided that:

(A)if the Disposing Company is an Obligor, the Acquiring Company must also be an Obligor;

(B)if the Disposing Company had given (or intended to give) Security over the asset, the Acquiring Company must give equivalent Security over that asset; and

(C)if the Disposing Company is a Guarantor, the Acquiring Company must be a Guarantor guaranteeing an amount no less than the amount guaranteed by the Disposing Company;

(ix)of any asset by a member of the Group which is not an Obligor to another member of the Group which is not an Obligor.

25.12Arm’s length basis

(a)Except as permitted by paragraph (b) below, no Obligor shall (and the Parent shall ensure no member of the Group will) enter into any transaction with the Parent or its shareholders except on arm’s length terms.

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(b)The following transactions shall not be a breach of this Clause 25.12:

(i)the Mentmore Disposal; and

(ii)intra-Group loans permitted under Clause 25.13 (Loans, credit or guarantees).

25.13Loans, credit or guarantees

(a)Except as permitted under paragraph (b) below, no Obligor shall (and the Parent shall ensure that no member of the Group will)

(i)make any loans or grant any credit to or for the benefit of any person;

(ii)give any guarantee or indemnity (except as required under any of the Finance Documents); or

(iii)otherwise voluntarily assume any liability, whether actual or contingent, in respect of any obligation of any person.

(b)Without double counting, paragraph (a) above does not apply to:

(i)any Subordinated Loans under the Subordinated Loan Agreement;

(ii)a loan by an Obligor to an Obligor;

(iii)any loan made by a member of the Group which is not an Obligor to an Obligor which is a direct or indirect Holding Company of such member of the Group where such loan is to fund obligations under the Finance Documents or working capital requirements of that Obligor;

(iv)a loan by a member of the Group which is not an Obligor to another member of the Group which is not an Obligor;

(v)any loan, grant of credit or guarantee granted to any customer of a member of the Group in the ordinary course of trading and on arm’s length terms;

(vi)any guarantee, bond, indemnity or counter-indemnity given by a member of the Group in respect of the liabilities or obligations of another member of the Group which would, if it were a loan by that member of the Group, be permitted under paragraphs (ii) to (iv) (inclusive) and (vii) to (viii) (inclusive) of this paragraph (b);

(vii)any loan by the Parent to a Joint Venture Group Company, the aggregate amount of which does not exceed £10,000,000 in any financial year of the Parent but only to the extent that the proceeds of any such loans are applied towards working capital purposes and capital expenditure which, for the avoidance of doubt, shall not include any acquisitions as contemplated by paragraph (a) of Clause 25.8(Acquisitions);

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(viii)any loan made by the Parent to any member of the Group or any Joint Venture Group Company which is not a member of the Group provided that such loan is provided by the Parent using the proceeds of Qualifying Subordinated Loans; or

(ix)the loan of euros 9,758,643 made by Document and Information Management Services Limited to Iron Mountain Holdings (France) SNC.

25.14Dividends

(a)The Parent shall not:

(i)declare, make or pay any dividend, charge, fee or other distribution (or interest on any unpaid dividend, fee or distribution) (whether in cash or in kind) on or in respect of its share capital (or any class of its share capital);

(ii)repay or distribute any dividend or share premium reserve;

(iii)pay or allow any member of the Group to pay any management, advisory or other fee to or to the order of any of the shareholders of the Parent unless such payment is on arms length terms; or

(iv)redeem, repurchase, defease, retire or repay any of its share capital or resolve to do so,

save for any such distribution which the Parent is obliged to pay in terms of its Articles of Association, as approved by the Facility Agent.

25.15Subordinated Facilities

(a)Except as permitted under paragraph (b) below, no Obligor shall (and the Parent shall ensure that no member of the Group will):

(i)pay, prepay, defease, repay, redeem, purchase, exchange or enter into any sub-participation arrangements in respect of any principal amount or amount representing capitalised interest under the Subordinated Loans; or

(ii)pay any interest or any other amounts payable in connection with the Subordinated Loans or the Existing Retained Inter-company Facilities.

(b)Paragraph (a) shall not apply to a payment which:

(i)is made when no Default has occurred and is continuing and no Default would occur immediately after that payment is made; and

(ii)is permitted by the Subordination Agreement.

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25.16Financial Indebtedness

(a)Except as permitted under paragraph (b) below, no Obligor shall (and the Parent shall ensure that no member of the Group will) incur or allow to remain outstanding any Financial Indebtedness.

(b)Paragraph (a) above does not apply to Financial Indebtedness which is:

(i)monies borrowed or guarantees or indemnities or counter - indemnities given under the Finance Documents or subject to paragraph (vi) below, Financial Indebtedness under the Ancillary Documents;

(ii)monies borrowed under the Subordinated Loan Agreement;

(iii)monies borrowed under a loan from another member of the Group which is permitted under Clause 25.13 (Loans, credit or guarantees);

(iv)monies borrowed by a Joint Venture Group Company under a loan from its shareholder which is not a member of the Group;

(v)a guarantee in respect of Financial Indebtedness of another member of the Group which is permitted under paragraph25.13(b)(vi) of Clause 25.13 (Loans, credit or guarantees) or any other guarantee, indemnity or counter-indemnity by a member of the Group which is permitted under paragraph 25.13(b)(v) of Clause 25.13 (Loans, credit or guarantees);

(vi)Financial Indebtedness incurred under the Ancillary Documents provided that the aggregate amount of Ancillary Outstandings does not at any time exceed £10,000,000 (or its equivalent in other currencies);

(vii)Financial Indebtedness incurred under any finance lease, hire purchase or conditional sale agreements or arrangements which do not at any time exceed £10,000,000 in aggregate;

(viii)indebtedness in respect of any derivative transaction which is a Hedging Agreement;

(ix)a guarantee or indemnity entered into by a member of the Group in favour of a bank in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances of members of the Group;

(x)any liability incurred in connection with the requirement of any member of the Group to pay local municipal or local or governmental authority or its equivalent thereof charges or such charges designated as such by the Parent or any member of the Group, where any payment thereof is deferred for a period of more than 90 days;

(xi)the Existing Retained Facilities to the extent of the commitments under such Existing Retained Facilities at the date of this Agreement; or

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(xii)interest accrued but unpaid under the Existing Retained Inter-company Facilities provided that the aggregate amount of such interest does not at any time exceed £18,400,000;

(xiii)Financial Indebtedness incurred in respect of the Existing Deferred Consideration; or

(xiv)any Financial Indebtedness incurred by Overseas Subsidiaries, the aggregate amount of which does not at any time exceed €25,000,000 (or its equivalent in other currencies).

25.17Insurance

Each Obligor shall (and the Parent shall ensure that each member of the Group will):

(a)maintain insurances on and in relation to its business and assets against fire and such other risks to the extent as is usual for companies carrying on the same or substantially similar business and reasonably satisfactory to the Facility Agent;

(b)ensure that all insurances must be with reputable independent insurance companies or underwriters;

(c)ensure that the interest of the Security Trustee (on behalf of the Secured Parties) is noted on any policy of insurance;

(d)promptly pay all premiums and do all such other things within its power required to keep each insurance in full force and effect and not liable to be avoided or to have any claim thereunder refused; and

(e)promptly and when requested by the Facility Agent supply to or make available to the Facility Agent copies of all such policies of insurance.

25.18Guarantor Group and Security Coverage

(a)The Parent shall ensure that at all times after the date of this Agreement:

(i)the aggregate of the unconsolidated earnings before interest, tax, depreciation and amortisation calculated on the same basis as EBITDA (as defined in Clause 24 (Financial Covenants)) of each of the Guarantors (but ignoring losses before interest and tax of any Guarantor) and the aggregate gross assets and turnover (without double counting) of the Guarantors represents not less than (as appropriate) 75% in respect of each Relevant Period ending on or prior to 31 October 2005, and 65% in respect of each Relevant Period ending thereafter, of EBITDA (as defined in Clause 24 (Financial Covenants)) consolidated gross assets and consolidated turnover of the Group; and

(ii)the aggregate of the unconsolidated or, in the case of Pledged Companies, consolidated earnings before interest, tax, depreciation and amortisation calculated on the same basis as EBITDA (as defined in

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Clause 24.1 (Financial definitions)) of each of the Guarantors and Pledged Companies (but ignoring losses before interest and tax of any Guarantor) and the aggregate gross assets and turnover (without double counting and consolidated in respect of a Pledged Company of the Guarantors and Pledged Companies represents not less than (as appropriate) 90% in respect of each Relevant Period ending on or prior to 31 October 2005, 85% in respect each Relevant Period ending after 31 October 2005 but on or prior to 31 October 2006, and 80% in respect of each Relevant Period ending thereafter, of the EBITDA (as defined in Clause 24.1 (Financial definitions)) consolidated gross assets and consolidated turnover of the Group.

25.19Security

Each Obligor shall:

(a)take whatever steps and execute whatever documents the Facility Agent may reasonable require in order to give effect to the Transaction Security Documents; and

(b)grant such further security in favour of the Security Trustee as may be required by the Security Trustee, acting on the instructions of the Majority Lenders, from time to time and all such further security will secure the obligations of each Borrower under the Finance Documents.

25.20Ancillary Facilities

(a)Each Lender which is an Ancillary Lender agrees that:

(i)until service of a notice by the Facility Agent under Clause 26.15 (Acceleration), that Ancillary Lender will not, unless the Facility Agent (acting on the instructions of the Majority Creditors) otherwise agrees:

(A)exercise any right it might otherwise have pursuant to the Ancillary Facilities provided by it to cancel or otherwise terminate those Ancillary Facilities; or

(B)demand repayment of or otherwise take any enforcement action in respect of the Ancillary Facilities provided by it (or require the Facility Agent or Security Agent or any other person to exercise any enforcement rights under the Finance Documents in respect of amounts owing under the Ancillary Facilities provided by it);

(ii)it will, promptly after service of a notice by the Facility Agent under Clause 26.15 (Acceleration), exercise any and all rights it may have to cancel the Ancillary Facilities provided by it and demand payment of all amounts outstanding in respect of the Ancillary Facilities provided by it, unless the Facility Agent (acting on the instructions of the Majority Creditors) otherwise agrees or requires.

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(b)The provisions of this Clause 25.21 shall cease to apply after the Utilisations have been prepaid or repaid in full and the Lenders are under no obligation to participate in any further Utilisations.

25.21Hedging Arrangements

(a)The Parent shall procure that, within 45 days of the date of this Agreement, a Borrower or Borrowers acceptable to the Facility Agent enter into hedging agreements with a Lender or Lenders implementing the hedging strategy set out in the Hedging Strategy Letter.

(b)Each Borrower will ensure, and each Hedging Bank agrees, that:

(i)any Hedging Agreement to which it is at any time party will be in the form of the ISDA 1992 Master Agreement and will provide for the “Second Method” (that is, two way payments) in the event of a termination of any hedging transaction entered into under such Hedging Agreement whether upon a Termination Event or an Event of Default (as defined therein);

(ii)if, on termination of any hedging transaction under any Hedging Agreement to which any Borrower is a party, a settlement amount or other amount falls due from a Hedging Bank to any Borrower then, if any of the Transaction Security has become enforceable, that amount shall be paid by such Hedging Bank to the Security Trustee and treated as proceeds of enforcement of the Transaction Security for application in the order prescribed by Clause 35.1 (Order of Application);

(iii)each Hedging Agreement (and any amendment to any Hedging Agreement) shall be delivered to the Facility Agent as soon as reasonably practicable after it has been entered into;

(iv)the Hedging Agreements to which they are party will not (unless the Majority Lenders have otherwise consented in writing) be amended, varied or supplemented in a manner which would result in:

(A)any payment under any such Hedging Agreement being required to be made by a Borrower earlier than the date originally provided for in the relevant Hedging Agreement; or

(B)any Borrower becoming liable to make an additional payment (or increase an existing payment) under any such Hedging Agreement which liability does not arise from the original provisions of that Hedging Agreement,

if, in either case that would be inconsistent with the Hedging Strategy Letter or the requirements of this Clause 25.21.

(c)Each Lender which is a Hedging Bank undertakes that it will not (unless the Majority Creditors have otherwise consented in writing) demand (other than

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as may be necessary in order to exercise any right to terminate or close out any hedging transaction as provided in and permitted under paragraph (d) below) payment, prepayment or repayment of, or any distribution in respect of, or on account of, any of the obligations of the relevant Borrower to it under any Hedging Agreement to which it is party in cash or in kind except:

(i)for scheduled payments arising under the original terms of any Hedging Agreement to which it is party (without regard to any amendments made after the date of such Hedging Agreement prohibited by paragraph (b)(iii)) of this Clause 25.21); and/or

(ii)for the proceeds of enforcement of the Transaction Security Documents received and applied in the order permitted by Clause 35.1 (Order of Application); and/or

(iii)payments due under any Hedging Agreement to which it is a party which has been terminated or closed-out by the relevant Borrower.

(d)Each Lender which is a Hedging Bank undertakes that it will not (unless the Majority Creditors have otherwise consented in writing) exercise any right to terminate or close out any hedging transaction under any Hedging Agreements to which it is party prior to its stated maturity (whether by reason of the Borrower counterparty becoming a Defaulting Party or Affected Party thereunder (and as defined therein) or otherwise) unless:

(i)such Borrower has defaulted on a payment due under such Hedging Agreement, after allowing for any required notice and any applicable days of grace, and such default continues for more than 21 days after notice of such default being given to the Facility Agent; or

(ii)an Illegality or a Tax Event (each as defined in the ISDA 1992 Master Agreement) has occurred; or

(iii)the Facility Agent has served a notice under Clause 26.15 (Acceleration); or

(iv)all Utilisations have been prepaid or repaid in full and the Lenders are no longer under any obligation to participate in further Utilisations; or

(v)there is a prepayment of the Term Facility pursuant to Clause 11 (Prepayment and Cancellation); provided that the Hedging Bank may only exercise its right to terminate or close out that element of the hedging transaction (if any) which corresponds to the amount so prepaid; or

(vi)the parties to the Hedging Agreement have voluntarily agreed to close out any hedging transaction in that Hedging Agreement and the relevant Borrower has demonstrated to the Facility Agent that it will be in compliance with the terms of the Hedging Strategy Letter.

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(e)Each Lender which is a Hedging Bank will, promptly after the Facility Agent has served a notice under Clause 26.15 (Acceleration), exercise any and all rights it may have to terminate the hedging transactions under each Hedging Agreement to which it is party, unless the Facility Agent (acting on the instructions of the Majority Creditors) otherwise agrees or requires.

(f)Each Lender which is a Hedging Bank agrees that (unless the Majority Creditors have otherwise agreed in writing) it will not enforce any Transaction Security or require any other person to enforce the same in respect of amounts owing under any Hedging Agreement to which it is party.

25.22Joint Ventures

The Parent shall ensure that at all times the aggregate EBITDA of the Joint Venture Group Companies, the aggregate gross assets and aggregate turnover of the Joint Venture Group Companies represents not more than 5 per cent. in respect of each Relevant Period ending on or prior to 31 October 2005, 7.5 per cent. in respect of each Relevant Period ending after 31 October 2005 but on or prior to 31 October 2007, and 10% in respect of each Relevant Period ending thereafter, of EBITDA, consolidated gross assets and consolidated turnover of the Group provided that the EBITDA, gross assets and turnover of any Joint Venture Group Company shall be the proportion of EBITDA, gross assets and turnover which the Parent’s (direct or indirect) shareholding in such Joint Venture Group Company bears to the entire issued share capital of that Joint Venture Group Company and for this purpose the definitions of EBIT and EBITDA in Clause 24.1 (Financial definitions) shall be applied, mutatis mutandis, to each Joint Venture Group Company.

25.23Conditions Subsequent

The Parent shall procure that:

(a)within 12 months after the date of this Agreement (such date being the “Conditions Subsequent Longstop Date”) there are obtained landlords’ consents to the assignment and transfer of such number of the Hays’ Leases as will ensure that there could not reasonably be expected to be likely to be a Material Adverse Effect by reason of the remainder of such consents in respect of the Hays’ Leases not having been obtained by such date;

(b)within 1 month after the date of this Agreement, the share certificate in respect of Iron Mountain Ireland (Holdings) Limited is delivered to the Facility Agent by Iron Mountain Holdings (Europe) Limted;

(c)within 1 month after the date of this Agreement, Iron Mountain Nederland B.V. shall have entered into the Transaction Security Documents in favour of the Security Trustee for the benefit of the Secured Parties over all the assets, business and undertaking acquired by it in connection with the Eurostorage Acquisition which are required by the Facility Agent;

(d)within 10 Business Days after the date of this Agreement:

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(i)the ICC Charges are discharged and released: and

(ii)Iron Mountain Ireland Limited shall have entered into the Transaction Security Documents in favour of the Security Trustee for the benefit of the Secured Parties which are required by the Facility Agent;

(e)within 1 month after the date of this Agreement:

(i)the ABN Charges are discharged and released; and

(ii)Iron Mountain Nederland B.V. shall have entered into the Transaction Security Documents in favour of the Security Trustee for the benefit of the Secured Parties over the assets comprising the charged property under the ABN Charges which are required by the Facility Agent; and

(f)within 10 Business Days after the date of this Agreement, each of the ABN Pledges and the Fortis Pledge are discharged and released.

26.EVENTS OF DEFAULT

Each of the events or circumstances set out in Clause 26 is an Event of Default.

26.1Non-payment

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to be payable unless:

(a)its failure to pay is caused by administrative or technical error; and

(b)payment is made within two Business Days of its due date.

26.2Breach of financial covenants

Any requirement of Clause 24 (Financial covenants) is not satisfied.

26.3Other obligations

(a)An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 26.1 (Non-payment) and Clause 26.2 (Breach of financial covenants)).

(b)No Event of Default under paragraph (a) above in relation to Clause 23 (Information Undertakings) or Clause 25 (General Undertakings) (excluding Clause 25.9 (Pari Passu Ranking), Clause 25.10 (Negative Pledge), Clause 25.11 (Disposals), Clause 25.14 (Dividends) and Clause 25.15 (Subordinated Facilities)) and will occur if the failure to comply is capable of remedy and is remedied within:

(i)in relation to Clause 23.1 (Financial Statements), 23.2 (Compliance Certificate), paragraph (a) of Clause 23.6 (Information:  miscellaneous) and paragraph (b) of Clause 25.1 (Authorisations), 5 Business Days;

(ii)or otherwise, 20 Business Days,

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of the earlier of the Facility Agent giving notice to the Parent or relevant Obligor or the Parent or an Obligor becoming aware of the failure to comply.

26.4Misrepresentation

Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or in any other document delivered by or on behalf of any Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made.

26.5Cross default

(a)Any Financial Indebtedness of any member of the Group (other than a Joint Venture Group Company) is not paid when due nor within any originally applicable grace period and in respect of any on demand Financial Indebtedness is not paid within five Business Days after such demand.

(b)Any Financial Indebtedness of any member of the Group (other than a Joint Venture Group Company) is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described).

(c)Any commitment for any Financial Indebtedness of any member of the Group (other than a Joint Venture Group Company) is cancelled or suspended by a creditor of any member of the Group (other than a Joint Venture Group Company) as a result of an event of default (however described).

(d)Any creditor of any member of the Group (other than a Joint Venture Group Company) becomes entitled to declare any Financial Indebtedness of any member of the Group (other than a Joint Venture Group Company) due and payable prior to its specified maturity as a result of an event of default (however described).

(e)No Event of Default will occur under this Clause 26.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d) above is less than £2,500,000 (or its equivalent in any other currency).

26.6Insolvency

(a)A member of the Group (other than a Joint Venture Group Company) is unable or admits inability to pay its debts as they fall due or is deemed to or declared to be unable to pay its debts under applicable law (but, in the case of deemed inability to pay debts under Section 123(1)(a) of the Insolvency Act, this clause shall be construed as if the figure of £750 was replaced with £1,000,000), suspends making payments on any of its debts or, by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness.

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(b)The value of the assets of any member of the Group (other than a Joint Venture Group Company) is less than its liabilities (taking into account contingent and prospective liabilities).

(c)A moratorium is declared in respect of any indebtedness of any member of the Group (other than a Joint Venture Group Company).

26.7Insolvency proceedings

(a)Any corporate action, legal proceedings or other procedure or step is taken in relation to:

(i)the suspension of payments, bankruptcy, a moratorium of any indebtedness, winding-up, dissolution, administration, examination or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any member of the Group (other than a Joint Venture Group Company) other than a solvent liquidation or reorganisation of any member of the Group which is not an Obligor;

(ii)a composition, assignment or arrangement with any creditor of any member of the Group (other than a Joint Venture Group Company);

(iii)the appointment of a provisional liquidator, a liquidator (other than in respect of a solvent liquidation of a member of the Group which is not an Obligor), receiver, receiver or manager, administrative receiver, administrator, examiner, compulsory or interim manager or other similar officer in respect of any member of the Group (other than a Joint Venture Group Company) or any of its assets; or

(iv)enforcement of any Security over any assets valued at more than £500,000 (or its equivalent in any other currency or currencies) of any member of the Group (other than a Joint Venture Group Company),

or any analogous procedure or step is taken in any jurisdiction.

(b)Paragraph (a) shall not apply to:

(i)any procedure or step in relation to a Dormant Subsidiary; or

(ii)any winding-up petition which is frivolous or vexatious or which is being contested in good faith and is discharged,  stayed or dismissed within 28 days of commencement.

26.8Creditors’ process

Any expropriation, attachment, sequestration, distress or execution or any analogous process in any jurisdiction affects any asset or assets of a member of the Group (other than a Joint Venture Group Company) valued at more than £500,000 (or its equivalent in any other currency or currencies) and is not discharged within 7 days.

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26.9Unlawfulness and invalidity

(a)It is or becomes unlawful for an Obligor to perform any of its material obligations under the Finance Documents or any Transaction Security created or expressed to be created or evidenced by the Transaction Security Documents ceases to be effective or subordination created under the Subordination Agreement is or becomes unlawful.

(b)Any obligation or obligations of any Obligor under any Finance Documents are not or cease to be legal, valid, binding or enforceable and the cessation individually or cumulatively materially and adversely effects the interests of the Lenders under the Finance Documents.

(c)Any Finance Document ceases to be in full force and effect or any Transaction Security or subordination created under the Subordination Agreement ceases to be legal, valid, binding, enforceable or effective or the subordination created thereunder is alleged by a party to it (other than a Finance Party) to be ineffective.

26.10Subordination Agreement

(a)Any party to the Subordination Agreement (other than a Finance Party or an Obligor) fails to comply with the provisions of, or does not perform its obligations under, the Subordination Agreement; or

(b)a representation or warranty given by that party in the Subordination Agreement is incorrect in any material respect,

and, if the non-compliance or circumstances giving rise to the misrepresentation are capable of remedy, it is not remedied within 7 days of the earlier of the Facility Agent giving notice to that party or that party becoming aware of the non-compliance or misrepresentation.

26.11Repudiation

An Obligor (or any other relevant party) repudiates a Finance Document or any of the Transaction Security or evidences in writing an intention to repudiate a Finance Document or any Transaction Security.

26.12Cessation of business

An Obligor ceases, or threatens or proposes to cease, to carry on all or a substantial part of its business, except:

(a)in consequence of any reorganisation, reconstruction or amalgamation permitted under this Agreement; or

(b)as may result from any disposal of assets or wind-down of business activities not otherwise prohibited by the terms of this Agreement; or

(c)as previously approved in writing by the Majority Lenders.

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26.13Change of ownership

An Obligor (other than the Parent) ceases to be a wholly-owned Subsidiary of the Parent other than with the permission of the Facility Agent, acting on the instructions of the Majority Lenders.

26.14Material adverse change

Any event or circumstance occurs which the Majority Lenders reasonably believe might have a Material Adverse Effect.

26.15Acceleration

On and at any time after the occurrence of an Event of Default which is continuing the Facility Agent may, and shall if so directed by the Majority Lenders, by notice to the Parent:

(a)cancel the Total Commitments whereupon they shall immediately be cancelled and any fees payable under the Finance Documents in connection with those Commitments shall be immediately due and payable;

(b)declare that all or part of the Utilisations, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable;

(c)declare that all or part of the Utilisations be payable on demand, whereupon they shall immediately become payable on demand by the Facility Agent on the instructions of the Lenders;

(d)declare that cash cover in respect of each Letter of Credit is immediately due and payable at which time it shall become immediately due and payable;

(e)declare that cash cover in respect of each Letter of Credit is payable on demand at which time it shall immediately become due and payable on demand by the Facility Agent on the instructions of the Majority Lenders;

(f)exercise or direct the Security Trustee to exercise any or all of its rights, remedies, powers or discretions under the Finance Documents provided that the Facility Agent is not obliged to direct the Security Trustee to take any enforcement action in relation to the Transaction Security unless the Majority Creditors have so directed the Facility Agent.

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SECTION 9

CHANGES TO PARTIES

27.CHANGES TO THE LENDERS

27.1Assignments and transfers by the Lenders

Subject to this Clause 27, a Lender (the “Existing Lender”) may:

(a)assign any of its rights and benefits; or

(b)transfer by novation any of its rights, benefits and obligations,

to another bank or financial institution (the “New Lender”).

27.2Conditions of assignment or transfer

(a)The consent of the Parent is required for an assignment or transfer by an Existing Lender, unless an Event of Default has occurred and is continuing or unless the assignment or transfer is to another Lender or an Affiliate of a Lender.

(b)The consent of the Parent to an assignment or transfer must not be unreasonably withheld or delayed.  The Parent will be deemed to have given its consent ten Business Days after the Existing Lender has requested it unless consent is expressly refused by the Parent within that time.

(c)The consent of the Parent to an assignment or transfer must not be withheld solely because the assignment or transfer may result in an increase to the Mandatory Cost.

(d)An assignment will only be effective on:

(i)receipt by the Facility Agent of a written confirmation from the New Lender (in form and substance satisfactory to the Facility Agent) that the New Lender will assume the same obligations to the other Finance Parties and the other Secured Parties as it would have been under if it was an Original Lender; and

(ii)performance by the Facility Agent of all “know your customer” or other checks relating to any person that it is required to carry out in relation to such assignment to a New Lender, the completion of which the Facility Agent shall promptly notify to the Existing Lender and the New Lender.

(e)A transfer will only be effective on receipt by the Facility Agent if the procedure set out in Clause 27.5 (Procedure for transfer) is complied with.

(f)Any assignment or transfer of part of its Commitment shall be in a minimum amount of £5,000,000.

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(g)If:

(i)a Lender assigns or transfers any of its rights, benefits or obligations under the Finance Documents or changes its Facility Office; and

(ii)as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through its new Facility Office under Clause 16 (Tax gross-up and indemnities) or Clause 17 (Increased costs),

then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred.

27.3Assignment or transfer fee

The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Facility Agent (for its own account) a fee of £1,000.

27.4Limitation of responsibility of Existing Lenders

(a)Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for:

(i)the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents, the Transaction Security or any other documents;

(ii)the financial condition of any Obligor;

(iii)the performance and observance by any Obligor or any other member of the Group of its obligations under the Finance Documents or any other documents; or

(iv)the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document,

and any representations or warranties implied by law are excluded.

(b)Each New Lender confirms to the Existing Lender, the other Finance Parties and the Secured Parties that it:

(i)has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender or any other Finance Party in connection with any Finance Document or the Transaction Security; and

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(ii)will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance Documents or any Commitment is in force.

(c)Nothing in any Finance Document obliges an Existing Lender to:

(i)accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 27; or

(ii)support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or otherwise.

27.5Procedure for transfer

(a)Subject to the conditions set out in Clause 27.2 (Conditions of assignment or transfer) a transfer is effected in accordance with paragraph (b) below when the Facility Agent executes an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender.  The Facility Agent shall, subject to paragraph (b) below, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate.

(b)The Facility Agent shall only be obliged to execute a Transfer Certificate delivered to it by the Existing Lender and the New Lender upon its completion of all “know your customer” or other checks relating to any person that it is required to carry out in relation to the transfer to such New Lender.

(c)On the Transfer Date:

(i)to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights, benefits and obligations under the Finance Documents and in respect of the Transaction Security each of the Obligors and other members of the Group party to any Finance Document or the Transaction Security and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and in respect of the Transaction Security and their respective rights against one another under the Finance Documents and in respect of the Transaction Security shall be cancelled (being the “Discharged Rights and Obligations”);

(ii)each of the Obligors and other members of the Group party to any Finance Document and the New Lender shall assume obligations towards one another and/or acquire rights and benefits against one another which differ from the Discharged Rights and Obligations only insofar as that Obligor or other member of the Group and the New

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Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender;

(iii)the Facility Agent, the Arranger, the Security Trustee, the New Lender, the other Lenders, the Issuing Bank, any Hedge Bank and any relevant Ancillary Lender shall acquire the same rights and assume the same obligations between themselves and in respect of the Transaction Security as they would have acquired and assumed had the New Lender been an Original Lender with the rights, and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Facility Agent, the Arranger, the Security Trustee, the Issuing Bank, any Hedge Bank and any relevant Ancillary Lender and the Existing Lender shall each be released from further obligations to each other under this Agreement; and

(iv)the New Lender shall become a Party as a “Lender”.

27.6Copy of Transfer Certificate to Parent

The Facility Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate, send to the Parent a copy of that Transfer Certificate.

27.7Disclosure of information

(a)Any Lender may disclose to any of its Affiliates and any other person:

(i)to (or through) whom that Lender assigns or transfers (or may potentially assign or transfer) all or any of its rights and obligations under the Finance Documents;

(ii)with (or through) whom that Lender enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by reference to, the Finance Documents or any Obligor; or

(iii)to whom, and to the extent that, information is required to be disclosed by any applicable law or regulation; and

(b)any Finance Party may disclose to a rating agency,

any information about any Obligor, the Group and the Finance Documents as that Lender shall consider appropriate, if, in relation to paragraphs (a)(i) and (ii) and (b) above, the person to whom the information is to be given has entered into a Confidentiality Undertaking.

27.8Affiliates of Lenders as Hedge Banks

(a)An Affiliate of a Lender which becomes a Hedge Bank shall accede to this Agreement by delivery to the Facility Agent of a duly completed Accession Letter.

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(b)Where this Agreement or any other Finance Document imposes an obligation on a Hedge Bank and the relevant Hedge Bank is an Affiliate of a Lender and is not a party to that document, the relevant Lender shall ensure that the obligation is performed by its Affiliate.

28.CHANGES TO THE OBLIGORS

28.1Assignment and Transfers by Obligors

No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.

28.2Additional Borrowers

(a)Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 23.8 (“Know your customer” checks) the Parent may request that any of its wholly owned Subsidiaries which is not a Dormant Subsidiary becomes an Additional Borrower.  That Subsidiary shall become an Additional Borrower if:

(i)all the Lenders approve the addition of that Subsidiary other than a wholly-owned Subsidiary incorporated in England and Wales, or Scotland;

(ii)the Parent delivers to the Facility Agent a duly completed and executed Accession Letter;

(iii)the Parent confirms that no Default is continuing or would occur as a result of that Subsidiary becoming an Additional Borrower; and

(iv)the Facility Agent has received all of the documents and other evidence listed in Part II (Conditions Precedent Required to be Delivered by an Additional Obligor) and, if applicable, Part III (Transaction Security Documents and Security Related Documents to be delivered by Additional Obligors) of Schedule 2 (Conditions Precedent) in relation to that Additional Borrower, each in form and substance satisfactory to the Facility Agent.

(b)The Facility Agent shall notify the Parent and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all the documents and other evidence listed in Part II (Conditions Precedent Required to be Delivered by an Additional Obligor) and, if applicable, Part III (Transaction Security Documents and Security Related Documents to be delivered by Additional Obligors) of Schedule 2 (Conditions Precedent).

28.3Additional Guarantors

(a)Subject to compliance with the provisions of paragraphs (c) and (d) of Clause 23.8 (“Know your customer” checks) the Parent may request that any wholly owned Subsidiaries become an Additional Guarantor.

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(b)The Parent shall ensure that any member of the Group which is a Material Company shall, as soon as possible after becoming a Material Company become an Additional Guarantor and shall accede to the Subordination Agreement unless legal counsel to the Facility Agent has confirmed there is a provision of law prohibiting such member of the Group becoming an Additional Guarantor and there are no applicable exemptions or exceptions to that prohibition which would permit such member to become an Additional Guarantor.  The Parent shall procure that the Group uses reasonable endeavours to overcome that prohibition.

(c)If required by the Agent (and to the extent permitted under applicable law), each entity which is to become an Additional Guarantor shall enter into Transaction Security Documents in favour of the Security Trustee for the benefit of the Secured Parties (or, if applicable, directly in favour of the Secured Parties) over all its assets, business and undertaking as Security for all indebtedness under the Finance Documents, such Security to provide (to the extent permissible and practicable under applicable law) equivalent security over such assets, business and undertaking (together “Relevant Assets”) as granted to the Security Trustee (or, as applicable, the Secured Parties) by members of the Group with similar Relevant Assets incorporated in the same jurisdiction as such Additional Guarantor and, if such Additional Guarantor is incorporated in a jurisdiction in which no other member of the Group incorporated in that jurisdiction with similar Relevant Assets has granted Security, the Transaction Security Documents shall be in such form and substance as may be required by the Facility Agent (having due regard to the practicality and costs involved in taking any such Security).

(d)In addition, in order to maintain the requirements of Clause 25.18 (Guarantor Group and Security Coverage) the Parent may request that any of its Subsidiaries which is not a Material Company becomes an Additional Guarantor.

(e)A member of the Group shall become an Additional Guarantor if:

(i)the Parent delivers to the Facility Agent a duly completed and executed Accession Letter; and

(ii)the Facility Agent has received all of the documents and other evidence listed in Part II (Conditions Precedent Required to be Delivered by an Additional Obligor) and, if applicable, Part III (Transaction Security Documents and Security Related Documents to be delivered by Additional Obligors) of Schedule 2 (Conditions Precedent) in relation to that Additional Guarantor, each in form and substance satisfactory to the Facility Agent.

(f)The Facility Agent shall notify the Parent and the Lenders promptly upon being satisfied that it has received (in form and substance satisfactory to it) all

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the documents and other evidence listed in Part II (Conditions Precedent Required to be Delivered by an Additional Obligor) and, if applicable, Part III (Transaction Security Documents and Security Related Documents to be delivered by Additional Obligors) of Schedule 2 (Conditions Precedent).

(g)The Facility Agent may (but shall not be obliged to) agree a limit on the amount of the liability of the potential Additional Guarantor or other changes to the Finance Documents which in the opinion of the Facility Agent, based on the advice of its legal counsel, are necessary to overcome a prohibition referred to in paragraph (c) above or a risk that a guarantee by the potential Additional Guarantor will not be legal, valid, binding, enforceable and effective.  The cost of the advice of legal counsel obtained pursuant to this paragraph (f) shall be for the account of the Parent.

28.4Repetition of Representations

Delivery of an Accession Letter constitutes confirmation by the relevant Subsidiary that the representations and warranties referred to in Clause 22 (Representations) are true and correct in relation to it as at the date of delivery as if made by reference to the facts and circumstances then existing.

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SECTION 10

THE FINANCE PARTIES

29.ROLE OF THE FACILITY AGENT, THE ARRANGER, the issuing bank AND OTHERS

29.1Appointment of the Facility Agent

(a)Each of the Arranger and the Lenders and the Issuing Bank appoints the Facility Agent to act as its agent under and in connection with the Finance Documents.

(b)Each of the Arranger and the Lenders and the Issuing Bank authorises the Facility Agent to exercise the rights, powers, authorities and discretions specifically given to the Facility Agent under or in connection with the Finance Documents together with any other incidental rights, powers, authorities and discretions.

29.2Duties of the Facility Agent

(a)The Facility Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Facility Agent for that Party by any other Party.

(b)Except where a Finance Document specifically provides otherwise, the Facility Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party.

(c)If the Facility Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the other Finance Parties.

(d)If the Facility Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Facility Agent, the Arranger or the Security Trustee) under this Agreement it shall promptly notify the other Finance Parties.

(e)The Facility Agent’s duties under the Finance Documents are solely mechanical and administrative in nature.

29.3Role of the Arranger

Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any Finance Document.

29.4No fiduciary duties

(a)Nothing in this Agreement constitutes the Facility Agent, the Arranger and/or the Issuing Bank as a trustee or fiduciary of any other person.

(b)None of the Facility Agent, the Security Trustee, the Arranger or the Issuing Bank shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account.

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29.5Business with the Group

The Facility Agent, the Security Trustee, the Arranger and the Issuing Bank may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the Group.

29.6Rights and discretions

(a)The Facility Agent and the Issuing Bank may rely on:

(i)any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and

(ii)any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify.

(b)The Facility Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that:

(i)no Default has occurred (unless it has actual knowledge of a Default arising under Clause 26.1 (Non-Payment));

(ii)any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised;  and

(iii)any notice or request made by the Parent (other than a Utilisation Request or Selection Notice) is made on behalf of and with the consent and knowledge of all the Obligors.

(c)The Facility Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts.

(d)The Facility Agent may act in relation to the Finance Documents through its personnel and agents.  The Facility Agent shall not be liable for the negligence or misconduct of such agents.

(e)The Facility Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement.

(f)Notwithstanding any other provision of any Finance Document to the contrary, none of the Facility Agent, the Arranger or the Issuing Bank is obliged to do or omit to do anything if it would or might in its reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality.

29.7Majority Lenders’ instructions

(a)Unless a contrary indication appears in a Finance Document, the Facility Agent shall (a) act in accordance with any instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from acting or exercising any right, power, authority or discretion vested in it as Facility Agent) and (b) not be liable for any act (or

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omission) if it acts (or refrains from taking any action) in accordance with such an instruction of the Majority Lenders.

(b)Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties other than the Security Trustee.

(c)The Facility Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions.

(d)In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) the Facility Agent may act (or refrain from taking action) as it considers to be in the best interest of the Lenders.

(e)The Facility Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance Document.  This paragraph (e) shall not apply to any legal or arbitration proceeding relating to the perfection, preservation or protection of rights under the Transaction Security Documents or enforcement of the Transaction Security or Transaction Security Documents.

29.8Responsibility for documentation

None of the Facility Agent, the Arranger or the Issuing Bank:

(a)is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Facility Agent, the Arranger, the Issuing Bank, an Obligor or any other person given in or in connection with any Finance Document or the Information Memorandum or the Reports or the transactions contemplated in the Finance Documents; or

(b)is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of or in connection with any Finance Document or the Transaction Security.

29.9Exclusion of liability

(a)Without limiting paragraph (b) below, none of the Facility Agent or the Issuing Bank will be liable for any action taken by it under or in connection with any Finance Document or the Transaction Security, unless directly caused by its gross negligence or wilful misconduct.

(b)No Party (other than the Facility Agent or the Issuing Bank (as applicable)) may take any proceedings against any officer, employee or agent of the Facility Agent, the Security Trustee or the Issuing Bank, in respect of any claim it might have against the Facility Agent, the Security Trustee or the

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Issuing Bank or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document or any Transaction Document and any officer, employee or agent of the Facility Agent, the Security Trustee or the Issuing Bank may rely on this Clause subject to Clause 1.4 (Third Party Rights) and the provisions of the Third Parties Act.

(c)The Facility Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Facility Agent if the Facility Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Facility Agent for that purpose.

(d)Nothing in this Agreement shall oblige the Facility Agent or the Arranger to carry out any “know your customer” or other checks in relation to any person on behalf of any Lender and each Lender confirms to the Facility Agent and the Arranger that it is solely responsible for any such checks it is required to carry out and that it may not rely on any statement in relation to such checks made by the Facility Agent or the Arranger.

29.10Lenders’ indemnity to the Facility Agent and the Security Trustee

Each Lender and Ancillary Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments immediately prior to their reduction to zero) indemnify each of the Facility Agent and the Security Trustee, within three Business Days of demand, against any cost, loss or liability incurred by the Facility Agent or the Security Trustee (otherwise than by reason of the Facility Agent’s or the Security Trustee’s gross negligence or wilful misconduct) in acting as Facility Agent or as Security Trustee under the Finance Documents (unless the Facility Agent or the Security Trustee has been reimbursed by an Obligor pursuant to a Finance Document).

29.11Resignation of the Facility Agent

(a)The Facility Agent may resign and appoint one of its Affiliates acting through an office in the United Kingdom as successor by giving notice to the Lenders and the Parent.

(b)Alternatively the Facility Agent may resign by giving notice to the Lenders and the Parent, in which case the Majority Lenders (after consultation with the Parent) may appoint a successor Facility Agent.

(c)If the Majority Lenders have not appointed a successor Facility Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the Facility Agent (after consultation with the Parent) may appoint a successor Facility Agent (acting through an office in the United Kingdom).

(d)The retiring Facility Agent shall, at its own cost, make available to the successor Facility Agent such documents and records and provide such assistance as the successor Facility Agent may reasonably request for the

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purposes of performing its functions as Facility Agent under the Finance Documents.

(e)The Facility Agent’s resignation notice shall only take effect upon the appointment of a successor.

(f)Upon the appointment of a successor, the retiring Facility Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of this Clause 29.11.  Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

(g)After consultation with the Parent, the Majority Lenders may, by notice to the Facility Agent, require it to resign in accordance with paragraph (b) above.  In this event, the Facility Agent shall resign in accordance with paragraph (b) above.

29.12Confidentiality

(a)In acting as agent for the Finance Parties or, as the case may be, Security Trustee for the Secured Parties, the Facility Agent and the Security Trustee shall be regarded as acting through its agency division, or as appropriate, Security Trustee division which shall be treated as a separate entity from any other of its divisions or departments.

(b)If information is received by another division or department of the Facility Agent or the Security Trustee, it may be treated as confidential to that division or department and neither the Facility Agent nor the Security Trustee shall be deemed to have notice of it.

(c)Notwithstanding any other provision of any Finance Document to the contrary, none of the Facility Agent, the Security Trustee, and the Arranger are obliged to disclose to any other person (i) any confidential information or (ii) any other information if the disclosure would or might in its reasonable opinion constitute a breach of any law or a breach of a fiduciary duty.

29.13Relationship with the Lenders

(a)The Facility Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility Office unless it has received not less than five Business Days prior notice from that Lender to the contrary in accordance with the terms of this Agreement.

(b)Each Lender shall supply the Facility Agent with any information required by the Facility Agent in order to calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost Formulae).

(c)Each Secured Party shall supply the Facility Agent with any information that the Security Trustee may reasonably specify (through the Facility Agent) as being necessary or desirable to enable the Security Trustee to perform its

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functions as Security Trustee.  Each Lender shall deal with the Security Trustee exclusively through the Facility Agent and shall not deal directly with the Security Trustee.

29.14Credit appraisal by the Secured Parties

Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Secured Party confirms to the Facility Agent, the Arranger, the Security Trustee and each Ancillary Lender that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not limited to:

(a)the financial condition, status and nature of each member of the Group;

(b)the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and the Transaction Security and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security;

(c)whether that Secured Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the Transaction Security, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document;

(d)the adequacy, accuracy and/or completeness of the Information Memorandum and any other information provided by the Facility Agent, the Security Trustee, any Party or by any other person under or in connection with any Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

(e)the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any of the Transaction Security or the existence of any Security affecting the Charged Property.

29.15Reference Banks

If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Facility Agent shall (in consultation with the Parent) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank.

29.16Facility Agent’s Management Time

Any amount payable to the Facility Agent under Clause 18.3 (Indemnity to the Facility Agent), Clause 20 (Costs and Expenses) and Clause 29.10 (Lenders’ Indemnity to the

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Facility Agent and the Security Trustee) shall include the cost of utilising the Facility Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Facility Agent may notify to the Parent and the Lenders, and is in addition to any fee paid or payable to the Facility Agent under Clause 15 (Fees).

29.17Deduction from amounts payable by the Facility Agent

If any Party owes an amount to the Facility Agent under the Finance Documents the Facility Agent may, after giving notice to that Party, deduct an amount no exceeding that amount from any payment to that Party which the Facility Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed.  For the purposes of the Finance Documents that Party shall be regarded as having received any amount so deducted.

29.18Reliance and Engagement Letters

Each Finance Party and Secured Party confirms that each of the Arranger and the Facility Agent has authority to accept on its behalf the terms of any reliance letter or engagement letters relating to the Reports or any reports or letters provided by accountants in connection with the Finance Documents or the transactions contemplated in the Finance Documents  and to bind it in respect of those Reports, reports or letters and to sign such letters on its behalf and further confirms that it accepts the terms and qualifications set out in such letters.

30.ROLE OF SECURITY TRUSTEE

30.1Trust

The Security Trustee declares that it shall hold the Transaction Security (other than the German Transaction Security) on trust for the Secured Parties on the terms contained in this Agreement.  Each of the parties to this Agreement agrees that the Security Trustee shall have only those duties, obligations and responsibilities expressly specified in this Agreement or in the Transaction Security Trustee Documents (and no others shall be implied).

30.2Parallel Debt (Covenant to pay the Security Trustee)

(a)Notwithstanding any other provision of this Agreement, each Obligor hereby irrevocably and unconditionally undertakes to pay to the Security Trustee, as creditor in its own right and not as representative of the other Secured Parties, sums equal to and in the currency of each amount payable by such Obligor to each of the Secured Parties under each of the Finance Documents as and when that amount falls due for payment under the relevant Finance Document or would have fallen due but for any discharge resulting from the failure of another Secured Party to take appropriate steps, in insolvency proceedings affecting that Obligor, to preserve its entitlement to be paid that amount.

(b)The Security Trustee shall have its own independent right to demand payment of the amounts payable by each Obligor under this Clause 30.2, irrespective of any discharge of such Obligor’s obligation to pay those amounts to the other Secured Parties resulting from failure by them to take appropriate steps,

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in insolvency proceedings affecting that Obligor, to preserve their entitlement to be paid those amounts.

(c)Any amount due and payable by an Obligor to the Security Trustee under this Clause 30.2 (Parallel Debt (Covenant to pay the Security Trustee)) shall be decreased to the extent that the other Secured Parties have received (and are able to retain) payment in full of the corresponding amount under the other provisions of the Finance Documents and any amount due and payable by an Obligor to the other Secured Parties under those provisions shall be decreased to the extent that the Security Trustee has received (and is able to retain) payment in full of the corresponding amount under this Clause 30.2 (Parallel Debt (Covenant to pay the Security Trustee)),

(d)The rights of the Secured Parties (other than the Security Trustee) to receive payment of amounts payable by each Obligor under the Finance Documents are several and separate and independent from, and without prejudice to, the rights of the Security Trustee to receive payment under this Clause 30.2 (Parallel Debt (Covenant to pay the Security Trustee)).

30.3No Independent Power

The Secured Parties shall not have any independent power to enforce, or have recourse to, any of the Transaction Security Trustee or to exercise any rights or powers arising under the Transaction Security Trustee Documents except through the Security Trustee.

30.4Security Trustee’s Instructions

The Security Trustee shall:

(a)unless a contrary indication appears in a Finance Document, act in accordance with any instructions given to it by the Facility Agent and shall be entitled to assume that (i) any instructions received by it from the Facility Agent are duly given by or on behalf of the Majority Lenders or, as the case may be, the Lenders in accordance with the terms of the Finance Documents and (ii) unless it has received actual notice of revocation that any instructions or directions given by the Facility Agent have not been revoked;

(b)be entitled to request instructions, or clarification of any direction, from the Facility Agent as to whether, and in what manner, it should exercise or refrain from exercising any rights, powers and discretions and the Security Trustee may refrain from acting unless and until those instructions or clarification are received by it; and

(c)be entitled to, carry out all dealings with the Lenders through the Facility Agent and may give to the Facility Agent any notice or other communication required to be given by the Security Trustee to the Lenders.

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30.5Security Trustee’s Actions

Subject to the provisions of this Clause 30:

(a)the Security Trustee may, in the absence of any instructions to the contrary, take such action in the exercise of any of its powers and duties under the Finance Documents which in its absolute discretion it considers to be for the protection and benefit of all the Secured Parties; and

(b)at any time after receipt by the Security Trustee of notice from the Facility Agent directing the Security Trustee to exercise all or any of its rights, remedies, powers or discretions under any of the Finance Documents, the Security Trustee may, and shall if so directed by the Facility Agent, take any action as in its sole discretion it thinks fit to enforce the Transaction Security Trustee.

30.6Security Trustee’s Discretions

(a)The Security Trustee may assume (unless it has received actual notice to the contrary in its capacity as Security Trustee for the Secured Parties) that:

(i)no Default has occurred and no Obligor is in breach of or default under its obligations under any of the Finance Documents; and

(ii)any right, power, authority or discretion vested in any person has not been exercised.

(b)The Security Trustee may, if it receives any instructions or directions from the Facility Agent to take any action in relation to the Transaction Security Trustee, assume that all applicable conditions under the Finance Documents for taking that action have been satisfied.

(c)The Security Trustee may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts (whether obtained by the Security Trustee or by any other Secured Party).

(d)The Security Trustee may rely upon any communication or document believed by it to be genuine and, as to any matters of fact which might reasonably be expected to be within the knowledge of a Secured Party or an Obligor, upon a certificate signed by or on behalf of that person.

(e)The Security Trustee may refrain from acting in accordance with the instructions of the Facility Agent or Lenders (including bringing any legal action or proceeding arising out of or in connection with the Finance Documents) until it has received any indemnification and/or security that it may in its absolute discretion require (whether by way of payment in advance or otherwise) for all costs, losses and liabilities which it may incur in bringing such action or proceedings.

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30.7Security Trustee’s Obligations

The Security Trustee shall promptly inform the Facility Agent of:

(a)the contents of any notice or document received by it in its capacity as Security Trustee from any Obligor under any Finance Document; and

(b)the occurrence of any Default of which the Security Trustee has received notice from any other party to this Agreement.

30.8Excluded Obligations

The Security Trustee shall not:

(a)be bound to enquire as to the occurrence or otherwise of any Default or the performance, default or any breach by an Obligor of its obligations under any of the Finance Documents;

(b)be bound to account to any other Secured Party for any sum or the profit element of any sum received by it for its own account;

(c)be bound to disclose to any other person (including any Secured Party) (i) any confidential information or (ii) any other information if disclosure would, or might in its reasonable opinion, constitute a breach of any law or be a breach of fiduciary duty;

(d)be under any obligations other than those which are specifically provided for in the Finance Documents; or

(e)have or be deemed to have any duty, obligation or responsibility to, or relationship of trust or agency with, any Obligor.

30.9Exclusion of Security Trustee’s liability

Unless caused directly by its gross negligence or wilful misconduct the Security Trustee shall not accept responsibility or be liable for:

(a)the adequacy, accuracy and/or completeness of any information supplied by the Security Trustee or any other person in connection with the Finance Documents or the transactions contemplated in the Finance Documents, or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with the Finance Documents;

(b)the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document or the Transaction Security;

(c)any losses to any person or any liability arising as a result of taking or refraining from taking any action in relation to any of the Finance Documents or the Transaction Security or otherwise, whether in accordance with an instruction from the Facility Agent or otherwise;

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(d)the exercise of, or the failure to exercise, any judgment, discretion or power given to it by or in connection with any of the Finance Documents, the Transaction Security or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with the Finance Documents or the Transaction Security; or

(e)any shortfall which arises on the enforcement of the Transaction Security.

30.10No proceedings

No Party (other than the Security Trustee) may take any proceedings against any officer, employee or agent of the Security Trustee in respect of any claim it might have against the Security Trustee or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Security Trustee may rely on this Clause subject to Clause 1.4 (Third Party Rights) and the provisions of the Third Parties Act .

30.11Own responsibility

It is understood and agreed by each Secured Party that at all times that Secured Party has itself been, and will continue to be, solely responsible for making its own independent appraisal of and investigation into all risks arising under or in connection with the Finance Documents including but not limited to:

(a)the financial condition, creditworthiness, condition, affairs, status and nature of each of the Obligors;

(b)the legality, validity, effectiveness, adequacy and enforceability of each of the Finance Documents and the Transaction Security and any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with the Finance Documents or the Transaction Security;

(c)whether that Secured Party has recourse, and the nature and extent of that recourse, against any Obligor or any other person or any of their respective assets under or in connection with the Finance Documents, the transactions contemplated in the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under to or in connection with the Finance Documents;

(d)the adequacy, accuracy and/or completeness of any information provided by any person in connection with the Finance Documents, the transactions contemplated in the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with the Finance Documents; and

(e)the right or title of any person in or to, or the value or sufficiency of any part of the Charged Property, the priority of any of the Transaction Security or the existence of any security interest affecting the Charged Property,

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and each Secured Party warrants to the Security Trustee that it has not relied on and will not at any time rely on the Security Trustee in respect of any of these matters.

30.12No responsibility to perfect Transaction Security

The Security Trustee shall not be liable for any failure to:

(a)require the deposit with it of any deed or document certifying, representing or constituting the title of any Obligor to any of the Charged Property;

(b)obtain any licence, consent or other authority for the execution, delivery, legality, validity, enforceability or admissibility in evidence of any of the Finance Documents or the Transaction Security Trustee;

(c)register, file or record or otherwise protect any of the Transaction Security Trustee (or the priority of any of the Transaction Security Trustee) under any applicable laws in any jurisdiction or to give notice to any person of the execution of any of the Finance Documents or of the Transaction Security Trustee;

(d)take, or to require any of the Obligors to take, any steps to perfect its title to any of the Charged Property or to render the Transaction Security Trustee effective or to secure the creation of any ancillary Security Trustee under the laws of any jurisdiction; or

(e)require any further assurances in relation to any of the Transaction Security Trustee Documents.

30.13Insurance by Security Trustee

(a)The Security Trustee shall not be under any obligation to insure any of the Charged Property, to require any other person to maintain any insurance or to verify any obligation to arrange or maintain insurance contained in the Finance Documents.  The Security Trustee shall not be responsible for any loss which may be suffered by any person as a result of the lack of or inadequacy of any such insurance.

(b)Where the Security Trustee is named on any insurance policy as an insured party, it shall not be responsible for any loss which may be suffered by reason of, directly or indirectly, its failure to notify the insurers of any material fact relating to the risk assumed by the insurers or any other information of any kind, unless any Secured Party has requested it to do so in writing and the Security Trustee has failed to do so within fourteen days after receipt of that request.

30.14Custodians and Nominees

The Security Trustee may appoint and pay any person to act as a custodian or nominee on any terms in relation to any assets of the trust as the Security Trustee may determine, including for the purpose of depositing with a custodian this Agreement or any document relating to the trust created under this Agreement and the Security Trustee shall not be responsible for any loss, liability, expense, demand, cost, claim or

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proceedings incurred by reason of the misconduct, omission or default on the part of any person appointed by it under this Agreement or be bound to supervise the proceedings or acts of any person.

30.15Acceptance of Title

The Security Trustee shall be entitled to accept without enquiry, and shall not be obliged to investigate, the right and title as each of the Obligors may have to any of the Charged Property and shall not be liable for or bound to require any Obligor to remedy any defect in its right or title.

30.16Refrain from Illegality

The Security Trustee may refrain from doing anything which in its opinion will or may be contrary to any relevant law, directive or regulation of any jurisdiction which would or might otherwise render it liable to any person, and the Security Trustee may do anything which is, in its opinion, necessary to comply with any law, directive or regulation.

30.17Business with the Obligors

The Security Trustee may accept deposits from, lend money to, and generally engage in any kind of banking or other business with any of the Obligors.

30.18Releases

Upon a disposal of any of the Charged Property:

(a)pursuant to the enforcement of the Transaction Security by a Receiver or the Security Trustee; or

(b)if that disposal is permitted under the Finance Documents,

the Security Trustee shall (at the cost of the Obligors) release that property from the Transaction Security Trustee and is authorised to execute, without the need for any further authority from the Secured Parties, any release of the Transaction Security Trustee or other claim over that asset and to issue any certificates of non-crystallisation of floating charges that may be required or desirable.

30.19Winding up of Trust

If the Security Trustee, with the approval of the Majority Lenders, determines that (a) all of the Secured Obligations and all other obligations secured by any of the Transaction Security Trustee Documents have been fully and finally discharged and (b) none of the Secured Parties is under any commitment, obligation or liability (actual or contingent) to make advances or provide other financial accommodation to any Obligor pursuant to the Finance Documents, the trusts set out in this Agreement shall be wound up and the Security Trustee shall release, without recourse or warranty, all of the Transaction Security Trustee and the rights of the Security Trustee under each of the Transaction Security Trustee Documents.

30.20Perpetuity Period

The perpetuity period under the rule against perpetuities, if applicable to this Agreement, shall be the period of eighty years from the date of this Agreement.

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30.21Powers Supplemental

The rights, powers and discretions conferred upon the Security Trustee by this Agreement shall be supplemental to the Security Trustee Acts 1925 and 2000 and in addition to any which may be vested in the Security Trustee by general law or otherwise.

30.22Disapplication

Section 1 of the Security Trustee Act 2000 shall not apply to the duties of the Security Trustee in relation to the trusts constituted by this Agreement.  Where there are any inconsistencies between the Security Trustee Acts 1925 and 2000 and the provisions of this Agreement, the provisions of this Agreement shall, to the extent allowed by law, prevail and, in the case of any inconsistency with the Security Trustee Act 2000, the provisions of this Agreement shall constitute a restriction or exclusion for the purposes of that Act.

30.23Resignation of Security Trustee

(a)The Security Trustee may resign and appoint one of its Affiliates as successor by giving notice to the other Parties (or to the Facility Agent on behalf of the Lenders).

(b)Alternatively the Security Trustee may resign by giving notice to the other Parties (or to the Facility Agent on behalf of the Lenders) in which case the Majority Lenders may appoint a successor Security Trustee.

(c)If the Majority Lenders have not appointed a successor Security Trustee in accordance with paragraph (b) above within 30 days after the notice of resignation was given, the Security Trustee (after consultation with the Facility Agent) may appoint a successor Security Trustee.

(d)The retiring Security Trustee shall, at its own cost, make available to the successor Security Trustee such documents and records and provide such assistance as the successor Security Trustee may reasonably request for the purposes of performing its functions as Security Trustee under the Finance Documents.

(e)The Security Trustee’s resignation notice shall only take effect upon (i) the appointment of a successor and (ii) the transfer of all of the Transaction Security Trustee to that successor.

(f)Upon the appointment of a successor, the retiring Security Trustee shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit of Clauses 29 (Role of the Facility Agent, the Arranger, the Issuing Bank and Others) and this Clause 30.  Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party.

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(g)The Majority Lenders may, by notice to the Security Trustee, require it to resign in accordance with paragraph (b) above.  In this event, the Security Trustee shall resign in accordance with paragraph (b) above.

30.24Delegation

(a)The Security Trustee may, at any time, delegate by power of attorney or otherwise to any person for any period, all or any of the rights, powers and discretions vested in it by any of the Finance Documents.

(b)The delegation may be made upon any terms and conditions (including the power to sub-delegate) and subject to any restrictions as the Security Trustee may think fit in the interests of the Secured Parties and it shall not be bound to supervise, or be in any way responsible for any loss incurred by reason of any misconduct or default on the part of any delegate or sub-delegate.

30.25Additional Securities

(a)The Security Trustee may at any time appoint (and subsequently remove) any person to act as a separate security or as a co-security jointly with it (i) if it considers that appointment to be in the interests of the Secured Parties or (ii) for the purposes of conforming to any legal requirements, restrictions or conditions which the Security Trustee deems to be relevant or (iii) for obtaining or enforcing any judgment in any jurisdiction, and the Security Trustee shall give prior notice to the Borrower and the Facility Agent of that appointment.

(b)Any person so appointed shall have the rights, powers and discretions (not exceeding those conferred on the Security Trustee by this Agreement) and the duties and obligations that are conferred or imposed by the instrument of appointment.

(c)The remuneration that the Security Trustee may pay to any person, and any costs and expenses incurred by that person in performing its functions pursuant to that appointment shall, for the purposes of this Agreement, be treated as costs and expenses incurred by the Security Trustee.

30.26German Transaction Security

In relation to the German Transaction Security Documents the following additional provisions shall apply:

(a)The Security Trustee shall:

(i)hold and administer any German Transaction Security which is security assigned (Sicherungseigentum/Sicherungsabtretung) or otherwise transferred under a non-accessory security right (nicht akzessorische Sicherheit) to it as trustee (Treuhänder) for the benefit of the Finance Parties; and

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(ii)administer any German Transaction Security which is pledged (Verpfändung) or otherwise transferred to any Finance Party under an accessory security right (akzessorische Sicherheit) as agent.

(b)Each of the Finance Parties hereby authorises the Security Trustee (whether or not by or through employees or agents):

(i)to exercise such rights, remedies, powers and discretions as are specifically delegated to or conferred upon the Security Trustee by the German Transaction Security Documents together with such powers and discretions as are reasonably incidental thereto;

(ii)to take such action on its behalf as may from time to time be authorised under or in accordance with the German Transaction Security Documents; and

(iii)as its representative (Stellvertreter) to enter into any of the German Transaction Security Documents and accept any pledge or other creation of any accessory right made to such Finance Party in relation to this Agreement.

(c)None of the Finance Parties shall have any independent power to enforce any German Transaction Security Document or to exercise any rights, discretions or powers or to grant any consents or releases under or pursuant to any German Transaction Security Document or otherwise have direct recourse to the security constituted by any German Transaction Security Document except through the Security Trustee.

(d)For the purpose of this Clause 30 the Security Trustee shall be exempted from the restrictions of Section 181 of the German Civil Code or any similar restriction under any other applicable law.

31.CONDUCT OF BUSINESS BY THE FINANCE PARTIES

No provision of this Agreement will:

(a)interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit;

(b)oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

(c)oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax.

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32.SHARING AMONG THE FINANCE PARTIES

32.1Payments to Finance Parties

If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an Obligor other than in accordance with Clause 33 (Payment Mechanics) or Clause 35 (Application of Proceeds) and applies that amount to a payment due under the Finance Documents then:

(a)the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery to the Facility Agent;

(b)the Facility Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or made by the Facility Agent and distributed in accordance with Clause 33 (Payment Mechanics), without taking account of any Tax which would be imposed on the Facility Agent in relation to the receipt, recovery or distribution; and

(c)the Recovering Finance Party shall, within three Business Days of demand by the Facility Agent, pay to the Facility Agent an amount (the “Sharing Payment”) equal to such receipt or recovery less any amount which the Facility Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in accordance with Clause 33.5 (Partial Payments).

32.2Redistribution of payments

The Facility Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the Recovering Finance Party) in accordance with Clause 33.5 (Partial Payments).

32.3Recovering Finance Party’s rights

(a)On a distribution by the Facility Agent under Clause 32.2 (Redistribution of Payments), the Recovering Finance Party will be subrogated to the rights of the Finance Parties which have shared in the redistribution.

(b)If and to the extent that the Recovering Finance Party is not able to rely on its rights under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Finance Party for a debt equal to the Sharing Payment which is immediately due and payable.

32.4Reversal of redistribution

If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party, then:

(a)each Finance Party which has received a share of the relevant Sharing Payment pursuant to Clause 32.2 (Redistribution of Payments) shall, upon request of the Facility Agent, pay to the Facility Agent for account of that Recovering Finance Party an amount equal to its share of the Sharing Payment (together with an amount as is necessary to reimburse that

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Recovering Finance Party for its proportion of any interest on the Sharing Payment which that Recovering Finance Party is required to pay); and

(b)that Recovering Finance Party’s rights of subrogation in respect of any reimbursement shall be cancelled and the relevant Obligor will be liable to the reimbursing Finance Party for the amount so reimbursed.

32.5Exceptions

(a)This Clause 32 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim against the relevant Obligor.

(b)A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal or arbitration proceedings, if:

(i)it notified the other Finance Party of the legal or arbitration proceedings; and

(ii)the other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice or did not take separate legal or arbitration proceedings.

(c)This Clause 32 shall not apply to the extent that the Recovering Finance Party is an Ancillary Lender or a Hedging Bank and the amounts recovered are amounts which are owing under an Ancillary Facility or, as the case may be, a Hedging Agreement and are received at a time when no notice has been served by the Facility Agent under Clause 26.15 (Acceleration).

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SECTION 11

ADMINISTRATION

33.PAYMENT MECHANICS

33.1Payments to the Facility Agent

(a)On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Facility Agent (unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Facility Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

(b)Payment shall be made to such account in the principal financial centre of the country of that currency (or, in relation to euro, in a principal financial centre in a Participating Member State or London) with such bank as the Facility Agent specifies.

33.2Distributions by the Facility Agent

Each payment received by the Facility Agent under the Finance Documents for another Party shall, subject to Clause 33.3 (Distributions to an Obligor) and Clause 33.4 (Clawback) be made available by the Facility Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such account as that Party may notify to the Facility Agent by not less than five Business Days’ notice with a bank in the principal financial centre of the country of that currency (or, in relation to euro, in the principal financial centre of a Participating Member State or London).

33.3Distributions to an Obligor

(a)The Facility Agent may (with the consent of the Obligor or in accordance with Clause 34 (Set-Off)) apply any amount received by it for that Obligor in or towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied.

(b)Each payment to an Obligor shall be made to such account with such bank as the Parent specifies.

33.4Clawback

(a)Where a sum is to be paid to the Facility Agent under the Finance Documents for another Party, the Facility Agent is not obliged to pay that sum to that other Party (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum.

(b)If the Facility Agent pays an amount to another Party and it proves to be the case that the Facility Agent had not actually received that amount, then the Party to whom that amount (or the proceeds of any related exchange contract)

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was paid by the Facility Agent shall on demand refund the same to the Facility Agent together with interest on that amount from the date of payment to the date of receipt by the Facility Agent, calculated by the Facility Agent to reflect its cost of funds.

33.5Partial payments

(a)If the Facility Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Facility Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents in the following order:

(i)first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Facility Agent, the Issuing Bank, the Arranger and the Security Trustee under those Finance Documents;

(ii)secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under those Finance Documents;

(iii)thirdly, in or towards payment pro rata of any principal outstandings due but unpaid under those Finance Documents and any amount due but unpaid under Clause 7.2 (Claims under a Letter of Credit) and Clause 7.3 (Indemnities); and

(iv)fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

(b)The Facility Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above.

(c)If after the service of a notice by the Facility Agent under Clause 26.15 (Acceleration) or pursuant to the provisions of Clause 35.1 (Order of Application) the Facility Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Facility Agent shall apply that payment towards the obligations of that Obligor under the Finance Documents in the following order:

(i)first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Facility Agent, the Issuing Bank, the Security Trustee and the Arranger under the Finance Documents;

(ii)secondly, in or towards payment pro rata of any accrued interest or commission due but unpaid under the Finance Documents;

(iii)thirdly, in or towards payment pro rata of any principal due but unpaid under the Finance Documents (including without limitation provisions of cash cover in respect of contingent liabilities and payments due under the Ancillary Facilities and Hedging Agreements); and

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(iv)fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents.

(d)The Facility Agent shall, if so directed by the Majority Creditors, vary the order set out in paragraphs (c)(ii) to (iv) above.

(e)Paragraphs (a), (b), (c) and (d) above will override any appropriation made by an Obligor.

33.6No set-off by Obligors

All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

33.7Business Days

(a)Any payment or reduction which is due to be made, or an Interest Period which would otherwise end, on a day that is not a Business Day shall be made or will end, as the case may be, on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not).

(b)During any extension of the due date for payment of any principal or an Unpaid Sum under this Agreement interest is payable on the principal at the rate payable on the original due date.

33.8Currency of account

(a)Subject to paragraphs (b) to (e) below, the Base Currency is the currency of account and payment for any sum due from an Obligor under any Finance Document.

(b)A repayment of a Utilisation or Unpaid Sum or a part of a Utilisation or Unpaid Sum shall be made in the currency in which that Utilisation or Unpaid Sum is denominated on its due date.

(c)Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.

(d)Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred.

(e)Any amount expressed to be payable in a currency other than the Base Currency shall be paid in that other currency.

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33.9Change of currency

(a)Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that country, then:

(i)any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the currency or currency unit of that country designated by the Facility Agent (after consultation with the Parent); and

(ii)any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or currency unit into the other, rounded up or down by the Facility Agent (acting reasonably).

(b)If a change in any currency of a country occurs, this Agreement will, to the extent the Facility Agent (acting reasonably and after consultation with the Parent) specifies to be necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency.

34.SET-OFF

A Finance Party may set off any matured obligation due from an Obligor under the Finance Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation.  If the obligations are in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

35.APPLICATION OF PROCEEDS

35.1Order of Application

All monies from time to time received or recovered by the Security Trustee under Clause 30.2 (Parallel Debt (Covenant to pay the Security Trustee)) and/or in connection with the realisation or enforcement of all or any part of the Transaction Security shall be held by the Security Trustee on trust to apply them, to the extent permitted by applicable law in the following order of priority:

(a)in discharging any sums owing to the Security Trustee (in its capacity as Security Trustee);

(b)in payment to the Facility Agent, on behalf of the Secured Parties, for application towards the discharge of all sums due and payable by any Obligor under any of the Finance Documents in the order set out in paragraph (c) of Clause 33.5 (Partial payments).

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(c)if none of the Obligors is under any further actual or contingent liability under any Finance Document, in payment to any person to whom the Security Trustee is obliged to pay in priority to any Obligor; and

(d)the balance, if any, in payment to the relevant Obligor.

35.2Investment of proceeds

Prior to the application of the proceeds of the Transaction Security in accordance with Clause 35.1 (Order of Application) the Security Trustee may, at its discretion, hold all or part of those proceeds in an interest bearing suspense or impersonal account(s) in the name of the Security Trustee or Facility Agent with such financial institution (including itself) for so long as the Security Trustee thinks fit (the interest being credited to the relevant account) pending the application from time to time of those monies at the Security Trustee’s discretion in accordance with the provisions of this Clause 35.

35.3Currency conversion

(a)For the purpose of or pending the discharge of any of the obligations owed by the Obligors to the Finance Parties under the Finance Documents the Security Trustee may convert any monies received or recovered by the Security Trustee from one currency to another, at the spot rate at which the Security Trustee is able to purchase the currency in which such obligations owed by the Obligors are due with the amount received.

(b)The obligations of any Obligor to pay in the due currency shall only be satisfied to the extent of the amount of the due currency purchased after deducting the costs of conversion.

35.4Permitted deductions

The Security Trustee shall be entitled (a) to set aside by way of reserve amounts required to meet and (b) to make and pay, any deductions and withholdings (on account of Taxes or otherwise) which it is or may be required by any applicable law to make from any distribution or payment made by it under this Agreement, and to pay all Taxes which may be assessed against it in respect of any of the Charged Property, or as a consequence of performing its duties, or by virtue of its capacity as Security Trustee under any of the Finance Documents or otherwise (except in connection with its remuneration for performing its duties under any Finance Document).

35.5Discharge of Obligations

(a)Any payment to be made in respect of the obligations owed by the Obligors to the Finance Parties under the Finance Documents by the Security Trustee may be made to the Facility Agent and any payment so made shall be a good discharge to the extent of that payment, to the Security Trustee.

(b)The Security Trustee is under no obligation to make payment to the Facility Agent in the same currency as that in which any Unpaid Sum is denominated.

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35.6Sums received by Obligors

If any of the Obligors receives any sum which, pursuant to any of the Finance Documents, should have been paid to the Security Trustee, that sum shall promptly be paid to the Security Trustee for application in accordance with this Clause 35.

35.7Application and consideration

In consideration for the covenants given to the Security Trustee by each Obligor in Clause 30.2 (Parallel Debt (Covenant to pay the Security Trustee)), the Security Trustee agrees with each Obligor to apply all moneys from time to time paid by such Obligor to the Security Trustee in accordance with the provisions of Clause 35.1 (Order of Application).

36.NOTICES

36.1Communications in writing

Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax or letter.

36.2Addresses

The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:

(a)in the case of the Parent, that identified with its name below;

(b)in the case of each Lender, each Ancillary Lender or any other Obligor, that notified in writing to the Facility Agent on or prior to the date on which it becomes a Party; and

(c)in the case of the Facility Agent or the Security Trustee, that identified with its name below,

or any substitute address, fax number, telex number or department or officer as the Party may notify to the Facility Agent (or the Facility Agent may notify to the other Parties, if a change is made by the Facility Agent) by not less than five Business Days’ notice.

36.3Delivery

(a)Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

(i)if by way of fax, when received in legible form; or

(ii)if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address,

and, if a particular department or officer is specified as part of its address details provided under Clause 36.2 (Addresses), if addressed to that department or officer.

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(b)Any communication or document to be made or delivered to the Facility Agent or the Security Trustee will be effective only when actually received by the Facility Agent or Security Trustee and then only if it is expressly marked for the attention of the department or officer identified with the Facility Agent’s or Security Trustee’s signature below (or any substitute department or officer as the Facility Agent or Security Trustee shall specify for this purpose).

(c)All notices from or to an Obligor shall be sent through the Facility Agent.  The Parent may make and/or deliver as agent of each Obligor notices and/or requests on behalf of each Obligor.

(d)Any communication or document made or delivered to the Parent in accordance with this Clause 36.3 will be deemed to have been made or delivered to each of the Obligors.

36.4Notification of address, fax number and telex number

Promptly upon receipt of notification of an address, fax number and telex number or change of address, fax number or telex number pursuant to Clause 36.2 (Addresses) or changing its own address, fax number or telex number, the Facility Agent shall notify the other Parties.

36.5Electronic communication

(a)Any communication to be made between the Facility Agent or the Security Trustee and a Lender under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Facility Agent, the Security Trustee  and the relevant Lender:

(i)agree that, unless and until notified to the contrary, this is to be an accepted form of communication;

(ii)notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

(iii)notify each other of any change to their address or any other such information supplied by them.

(b)Any electronic communication made between the Facility Agent and a Lender or the Security Trustee will be effective only when actually received in readable form and in the case of any electronic communication made by a Lender to the Facility Agent or the Security Trustee only if it is addressed in such a manner as the Facility Agent or Security Trustee shall specify for this purpose.

36.6English language

(a)Any notice given under or in connection with any Finance Document must be in English.

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(b)All other documents provided under or in connection with any Finance Document must be:

(i)in English; or

(ii)if not in English, and if so required by the Facility Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document.

36.7Use of Websites

(a)The Parent may satisfy its obligation under this Agreement to deliver any information in relation to those Lenders (the “Website Lenders”) who accept this method of communication by posting this information onto an electronic website designated by the Parent and the Facility Agent (the “Designated Website”) if:

(i)the Facility Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method;

(ii)both the Parent and the Facility Agent are aware of the address of and any relevant password specifications for the Designated Website; and

(iii)the information is in a format previously agreed between the Parent and the Facility Agent.

If any Lender (a “Paper Form Lender”) does not agree to the delivery of information electronically then the Facility Agent shall notify the Parent accordingly and the Parent shall supply the information to the Facility Agent (in sufficient copies for each Paper Form Lender) in paper form.  In any event the Parent shall supply the Facility Agent with at least one copy in paper form of any information required to be provided by it.

(b)The Facility Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the Parent and the Facility Agent.

(c)The Parent shall promptly upon becoming aware of its occurrence notify the Facility Agent if:

(i)the Designated Website cannot be accessed due to technical failure;

(ii)the password specifications for the Designated Website change;

(iii)any new information which is required to be provided under this Agreement is posted onto the Designated Website;

(iv)any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or

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(v)the Parent becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

If the Parent notifies the Facility Agent under paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by the Parent under this Agreement after the date of that notice shall be supplied in paper form unless and until the Facility Agent and each Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing.

(d)Any Website Lender may request, through the Facility Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website.  The Parent shall comply with any such request within ten Business Days.

37.CALCULATIONS AND CERTIFICATES

37.1Accounts

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate.

37.2Certificates and Determinations

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

37.3Day count convention

Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of 360 days (or in the case of any Utilisation denominated in sterling, 365 days) or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice.

38.PARTIAL INVALIDITY

If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.

39.REMEDIES AND WAIVERS

No failure to exercise, nor any delay in exercising, on the part of any Finance Party or Secured Party, any right or remedy under the Finance Documents shall operate as a waiver, nor shall any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right or remedy.  The rights and

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remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided by law.

40.AMENDMENTS AND WAIVERS

40.1Required consents

(a)Subject to Clause 40.2 (Exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Parent and any such amendment or waiver will be binding on all Parties.

(b)The Facility Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause 40.

(c)The Parent may effect, as agent of each Obligor, any amendment or waiver permitted by this Clause 40.

40.2Exceptions

(a)An amendment or waiver that has the effect of changing or which relates to:

(i)the definition of “Majority Lenders” in Clause 1.1 (Definitions);

(ii)an extension to the date of payment of any amount under the Finance Documents;

(iii)a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable;

(iv)an increase in or an extension of any Commitment;

(v)a change to the Borrowers or Guarantors other than in accordance with Clause 28 (Changes to the Obligors);

(vi)any provision which expressly requires the consent of all the Lenders;

(vii)Clause 2.2 (Finance Parties Rights and Obligations), Clause 27 (Changes to the Lenders) or this Clause 40;

(viii)the nature or scope of the Charged Property or the manner in which the proceeds of enforcement of the Transaction Security are distributed,

shall not be made without the prior consent of all the Lenders.

(b)An amendment or waiver which relates to the rights or obligations of the Facility Agent, the Arranger, the Security Trustee or any Ancillary Lender may not be effected without the consent of the Facility Agent, the Arranger, the Security Trustee or the Ancillary Lenders at such time.

40.3Amendments by Security Trustee

Unless the provisions of any Finance Document expressly provide otherwise, the Security Trustee may, if authorised by the Majority Creditors, amend the terms of, waive any of the requirements of, or grant consents under, any of the Transaction

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Security Documents, any such amendment, waiver or consent being binding on all the parties to this Agreement except that:

(a)the prior consent of all of the Lenders is required to authorise any amendment of any Transaction Security Document which would affect the nature or the scope of the Charged Property or the manner in which proceeds of enforcement are distributed; and

(b)no waiver or amendment may impose any new or additional obligations on any person without the consent of that person.

41.COUNTERPARTS

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.

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SECTION 12

GOVERNING LAW AND ENFORCEMENT

42.GOVERNING LAW

This Agreement is governed by English law.

43.ENFORCEMENT

43.1Jurisdiction of English Courts

(a)The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement) (a “Dispute”).

(b)The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

(c)This Clause 43.1 is for the benefit of the Finance Parties and Secured Parties only.  As a result, no Finance Party or Secured Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction.  To the extent allowed by law, the Finance Parties and Secured Parties may take concurrent proceedings in any number of jurisdictions.

43.2Service of process

Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales):

(a)irrevocably appoints the Parent as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document (and the Parent by its execution of this Agreement, accepts that appointment); and

(b)agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned.

This Agreement has been entered into on the date stated at the beginning of this Agreement.

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SCHEDULE 1
The Original Parties

Part I
The Original Obligors

Name of Original Borrower	Registration number (or equivalent, if any)	Jurisdiction
Iron Mountain Europe Limited	2321917	England
Iron Mountain (UK) Limited	1478540	England
Document and Information Management Services Limited	02760301	England

Name of Original Guarantor	Registration number (or equivalent, if any)	Jurisdiction
Iron Mountain Europe Limited	2321917	England
Iron Mountain (UK) Limited	1478540	England
Document and Information Management Services Limited	02760301	England
The Document Storage Company Limited	02109452	England
Iron Mountain Holdings (Europe) Limited	03847309	England
Miller Data Management Limited	01447686	England
Iron Mountain Ireland (Holdings) Limited	289489	Ireland
Iron Mountain Ireland Limited	236398	Ireland
Iron Mountain Nederland Holdings B.V.	32095962	The Netherlands
Iron Mountain Nederland B.V.	24244203	The Netherlands

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Part II

The Original Lenders

Name of Original Lender	Term  Commitment	Revolving Commitment
	£	£
Allied Irish Banks, P.L.C.	8,750,000	8,750,000
Barclays Bank PLC	20,000,000	20,000,000
Bear Stearns Corporate Lending Inc.	15,000,000	15,000,000
HSBC Bank plc	15,000,000	15,000,000
Lloyds TSB Bank PLC	8,750,000	8,750,000
The Governor and Company of the Bank of Scotland	20,000,000	20,000,000
The Governor and Company of the Bank of Ireland	12,500,000	12,500,000
Total	100,000,000	100,000,000

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Part III

Dormant Subsidiaries

Name of Dormant Subsidiary	Registration Number (or equivalent, if any)	Jurisdiction
Iron Mountain Scotland (Holdings) Ltd	SC15007	Scotland
JAD 93 Ltd	SC143870	Scotland
Datavault Holdings Ltd	3638141	England
Datavault Ltd	SC080642	Scotland
Archive Services Ltd	230753	England
Datavault Southwest Ltd	2693403	England
Datavault Northwest Limited	SC142441	Scotland
Arcus Data Security Ltd	2640804	England
Jones & Crossland	641974	England
Kestrel Reprographics Ltd	1558086	England
Britannia Data Management Ltd	1575446	England
Iron Mountain Scotland Ltd	SC096145	Scotland
Kestrel Data Services Ltd	1177562	England
Kestrel Data UK Ltd	1575457	England

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SCHEDULE 2
Conditions Precedent

Part I
Conditions Precedent to Initial Utilisation

1.Obligors

(a)A certified copy of the constitutional documents of each Original Obligor.

(b)A copy of a resolution of the board of directors of each Original Obligor:

(i)approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which it is a party;

(ii)authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf;

(iii)authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request and Selection Notice) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party; and

(iv)in the case of an Original Obligor other than the Parent, authorising the Parent to act as its agent in connection with the Finance Documents.

(c)A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above in relation to the Finance Documents.

(d)A copy of a resolution signed by all the holders of the issued shares in each Original Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Original Guarantor is a party.

(e)A certificate of the Parent (signed by a director) confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on any Original Obligor to be exceeded.

(f)A certificate of an authorised signatory of the relevant Original Obligor certifying that each copy document relating to it specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement.

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(g)In relation to Original Obligors incorporated in England and Wales or Scotland either:

(i)a letter from the Parent to the Facility Agent (attaching supporting advice from the Parent’s English Solicitors) confirming that no Original Obligor is prohibited by Section 151 of the Companies Act 1985 from entering into the Finance Documents; and/or

(ii)evidence that members of the Group incorporated in England and Wales and Scotland have done all that is necessary (including, without limitation, by re-registering as a private company) to follow the procedures set out in Sections 151 to 158 of the Companies Act 1985 (the “Act”) in order to enable each Original Obligor to enter into the Finance Documents and perform its obligations under the Finance Documents.

(h)In relation to Original Obligors incorporated in Ireland either:

(i)a letter from the Parent to the Facility Agent (attaching supporting advice from the Parent’s Irish Solicitors) confirming that no Original Borrower is prohibited by Section 60 of the Irish Companies Act 1963 from entering into the Finance Documents; and/or

(ii)evidence that members of the Group incorporated in Ireland have done all that is necessary to follow the procedures set out in Section 60 of the Irish Companies Act 1963 in order to enable each such Original Obligor to enter into the Finance Documents and perform its obligations under the Finance Documents.

2.Finance Documents

(a)The Subordination Agreement executed by the members of the Group party to that Agreement and the Parties under the Subordinated Loan Agreement.

(b)This Agreement executed by the members of the Group party to this Agreement.

(c)The Fee Letters executed by the Parent.

3.Transaction Security Documents

The following Transaction Security Documents executed by the Original Obligors:

Name of Original Obligor	Transaction Security Document
Iron Mountain Europe Limited	Debenture
Iron Mountain (UK) Limited	Debenture

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Name of Original Obligor	Transaction Security Document
Document and Information Management Services Limited	(i)Debenture. (ii)French share pledge in respect of 99.9% of the issued share capital of Iron Mountain Holdings (France) SNC.
The Document Storage Company Limited	Debenture
Iron Mountain Holdings (Europe) Limited	(i)Debenture (i)Belgian Share Pledge. (iii)Spanish share pledge in respect of the entire issued share capital of Iron Mountain España, S.A..
Miller Data Management Limited	(i)Debenture (ii)French share pledge in respect of 0.1% of the issued share capital of Iron Mountain Holdings (France) SNC.
Iron Mountain Ireland (Holdings) Limited	Irish debenture.
Iron Mountain Ireland Limited	An irish debenture will be granted pursuant to Clause 25.23 (Conditions Subsequent).
Iron Mountain Nederland Holdings B.V.	(i)Dutch share pledge in respect of the entire issued share capital of Iron Mountain Nederland B.V.. (ii)An undisclosed pledge of receivables. (iii)A pledge of bank accounts. (iv)A pledge of moveable assets.
Iron Mountain Nederland B.V.	(i)A deed of mortgage of real property. (ii)A pledge of bank accounts. (iii)An undisclosed pledge of receivables. (iv)A pledge of moveable assets.

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4.             Pledged Companies

(a)In relation to Iron Mountain Holdings (France) SNC:

(i)a copy, certified as true, of the by-laws (statuts) of Iron Mountain Holdings (France) SNC and an original extract K-bis of Iron Mountain Holdings (France) SNC dated no more than 15 days earlier than the date of receipt by the Facility Agent.

(ii)a copy, certified as true, of the shareholders’ resolution of Iron Mountain Holdings (France) SNC approving the Security Trustee as a shareholder upon enforcement of the share pledge agreement over its shares.

(b)In relation to Iron Mountain Belgium NV:

(i)a certified copy of the latest coordinated statutes of Iron Mountain Belgium NV;

(ii)registered share certificate in respect of the shares in Iron Mountain Belgium NV, bearing the notice referred to in the Belgian share pledge agreement (the “Belgian Share Pledge”) in respect of the entire issues share capital of Iron Mountain Belgium NV;

(iii)a photocopy of the relevant pages of the share register bearing the notice referred to in the Belgian Share Pledge;

(iv)a  certificate substantially in the form of Schedule 2 of the Belgian Share Pledge.

(c)In relation to Iron Mountain Norge A.S.:

(i)a certified copy of the notification from Iron Mountain Holdings (Europe) Limited to Iron Mountain Norge A.S. in respect of the pledge by Iron Mountain Holdings (Europe) of the entire issued share capital of Iron Mountain Norge A.S.;

(ii)a certified copy of the confirmation from Iron Mountain Norge A.S. that the notification of the pledge detailed in (i) above has been received by it and that its shares have been pledged;

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(iii)a certified copy of the confirmation from Iron Mountain Norge A.S. that it is not aware of any right or restriction attaching to the shares which are the subject of the pledge; and

(iv)certified transcripts of the updated register of shareholders of Iron Mountain Norge A.S. in which the pledge has been registered.

5.Shares

(a)All share certificates (other than Iron Mountain Ireland (Holdings) Limited) and stock transfer forms duly executed by the relevant Original Obligor in blank in relation to the certificated shares subject to or expressed to be subject to the Transaction Security.

(b)A copy of the register of members of each member of the Group, whose shares are subject to or expressed to be subject to the Transaction Security.

(c)To the extent not delivered under paragraph 1(a) above, a copy of the constitutional documents of each member of the Group whose shares are expressed to be subject to the Transaction Security.

6.Legal Opinions

The following legal opinions, each addressed to the Facility Agent, the Security Trustee and the Original Lenders.

(a)A legal opinion of Clifford Chance LLP, legal advisers to the Arranger and the Facility Agent in England, as to English law substantially in the form distributed to the Original Lenders prior to signing this Agreement.

(b)A legal opinion of the following legal advisers to the Facility Agent and Arranger:

(i)Clifford Chance LLP as to Belgian law;

(ii)Clifford Chance SELAFA as to French law;

(iii)Clifford Chance LLP as to Dutch law;

(iv)Clifford Chance S.C as to Spanish law;

(v)McCann FitzGerald as to Irish law; and

(vi)BA-HR as to Norwegian law.

each substantially in the form distributed to the Original Lenders prior to signing this Agreement.

7.Other Documents and Evidence

A copy of any other Authorisation or other document, opinion or assurance which the Facility Agent considers to be necessary (if it has notified the Parent accordingly) in

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connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document.

(a)Evidence that the fees, costs and expenses then due from the Parent pursuant to Clause 15 (Fees), Clause 20 (Costs and Expenses) and Clause 16.5 (Stamp Taxes) have been paid or will be paid by the first Utilisation Date.

(b)Due Diligence Report in a form capable of being relied on by the Lenders.

(c)A copy, certified by an authorised signatory of the Parent to be a true copy, of the Original Financial Statements of each Original Obligor.

(d)A copy of the Subordinated Loan Agreement duly executed by the parties thereto.

(e)A certificate of the Parent (signed by a director) certifying that a utilisation request requesting an advance of £123,956,000  on or before the date of the first Utilisation has been made by the Parent in accordance with Clause 2.1 of the Subordinated Loan Agreement.

(f)The Hedging Strategy Letter duly executed by the Parent.

(g)Evidence that upon the date that the first Loan is made:

(i)all Financial Indebtedness under the Existing Facilities will be immediately repaid in full and all commitments under the Existing Facilities cancelled; and

(ii)all of the existing Security relating to the Existing Facilities will be immediately released.

(h)A Certificate from a director of the Parent that at the time the Parent and each of the Obligors incorporated in Ireland executed this Agreement they form a “group of companies” for the purposes of Section 35 of the Irish Companies Act 1990.

(i)A letter from AON addressed to the Agent, the Arrangers, the Security Trustee, the Lenders, the Ancillary Lenders and the Hedge Banks confirming that the insurance for the Group at the date of this Agreement is at a level acceptable to the Agent and covering appropriate risks carried out by the Group.

(j)Funds flow statement in a form agreed by the Parent and the Agent detailing the proposed movement of funds on the first Utilisation Date.

(k)Pro-forma balance sheet as at the first Utilisation Date.

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Part II
Conditions Precedent Required to be
Delivered by an Additional Obligor

1.An Accession Letter executed by the Additional Obligor and the Parent.

2.A copy of the constitutional documents of the Additional Obligor.

3.A copy of a resolution of the board of directors of the Additional Obligor:

(a)approving the terms of, and the transactions contemplated by, the Accession Letter and the Finance Documents and resolving that it execute the Accession Letter and any other Finance Document to which it is a party;

(b)authorising a specified person or persons to execute the Accession Letter and other Finance Documents on its behalf; and

(c)authorising a specified person or persons, on its behalf, to sign and/or despatch all other documents and notices (including, in relation to an Additional Borrower, any Utilisation Request or Selection Notice) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party; and

(d)authorising the Parent to act as its agent in connection with the Finance Documents.

4.A specimen of the signature of each person authorised by the resolution referred to in paragraph 3 above.

5.A copy of a resolution signed by all the holders of the issued shares of the Additional Guarantor, approving the terms of, and the transactions contemplated by, the Finance Documents to which the Additional Guarantor is a party.

6.A certificate of the Additional Obligor (signed by a director) confirming that borrowing or guaranteeing or securing, as appropriate, the Total Commitments would not cause any borrowing, guarantee, security or similar limit binding on it to be exceeded.

7.A certificate of an authorised signatory of the Additional Obligor certifying that each copy document listed in:

(a)this Part II of Schedule 2; and

(b)if the Additional Obligor is listed in Part III (Transaction Security Documents and Security Related Documents to be Delivered by Additional Obligors) of Schedule 2, Part III of Schedule 2 relating to it,

is correct, complete and in full force and effect as at a date no earlier than the date of the Accession Letter.

8.If available, the latest audited financial statements of the Additional Obligor.

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9.The following legal opinions, each addressed to the Facility Agent, the Security Trustee and the Lenders:

(a)A legal opinion of the legal advisers to the Facility Agent in England, as to English law in the form distributed to the Facility Agent prior to signing the Accession Letter.

(b)If the Additional Obligor is incorporated in a jurisdiction other than England and Wales or executing a Finance Document which is governed by a law other than English law, a legal opinion of the legal advisers to the Facility Agent in the jurisdiction of incorporation of that Additional Obligor or, as the case may be, the jurisdiction of the governing law of that Finance Document (the “Relevant Jurisdiction”) as to the law of the Relevant Jurisdiction and in the form distributed to the Facility Agent prior to signing the Accession Letter.

10.If the proposed Additional Obligor is incorporated in a jurisdiction other than England and Wales, evidence that the process agent specified in Clause 43.2 (Service of Process), if not an Original Obligor, has accepted its appointment in relation to the proposed Additional Obligor.

11.In the case of an Additional Obligor incorporated in Spain, the resolutions referred to in paragraphs 3 and 5 above, shall be certified by the secretary or vice-secretary of the board of directors of such Additional Obligor and endorsed by its chairman or vice-chairman, whose signatures shall be legalised by a Spanish notary. In the case of an Additional Borrower incorporated in Spain, a copy of the “Número de Operación Financiera” (“NOF”) (Financial transaction number) allocated by the Bank of Spain to its borrowings.

12.The Transaction Security Documents executed by the Additional Obligor which are required by the Facility Agent.

13.Any notices or documents required to be given or executed or made under the terms of those Transaction Security Documents.

14.An accession memorandum to the Subordination Agreement executed by the Additional Obligor.

15.

(a)If the Additional Obligor is incorporated in England and Wales or Scotland:

(i)either a letter from the Parent to the Facility Agent (attaching supporting evidence from the Parent’s English Solicitors) confirming that the Additional Obligor is not prohibited by Section 151 of the Companies Act 1985 from entering into the Finance Documents; and/or

(ii)evidence that the Additional Obligor has done all that is necessary (including, without limitation, by re-registering as a private company) to follow the procedures set out in Sections 151 to 158 of the Companies

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Act 1985 in order to enable that Additional Obligor to enter into the Finance Documents and perform its obligations under the Finance Documents.  The following documentary evidence shall be supplied: a copy of the statutory declarations and annexed auditors reports, board resolutions, shareholders resolutions (if applicable), a certificate of that Additional Obligor listing all directors at the time the statutory declarations are made and a non-statutory comfort letter from its auditors regarding its net asset position.  The copy documents shall be certified by an authorised signatory of the Additional Obligor as correct, complete and in full force and effect at a date no earlier than the date of the Accession Letter.

(b)If the Additional Obligor is not incorporated in England and Wales or Scotland, such documentary evidence as legal counsel to the Facility Agent may require, that such Additional Obligor has complied with any law in its jurisdiction relating to financial assistance or analogous process.

16.A copy of any other Authorisation or other document, opinion or assurance which the Facility Agent considers to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by the Accession Letter and each Finance Document to which the Additional Obligor is a party or for the validity and enforceability of any Finance Document or of any Transaction Security created or intended to be created by the Additional Obligor.

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Part III

Transaction Security Documents and Security Related Documents to be delivered by Additional Obligors

Name of Additional Obligor	Capacity (Borrower and/or Guarantor)	Description of Transaction Security Document and Transaction Security	Description of Security related documents and other action to be taken by Additional Obligor to protect or perfect or give priority to Transaction Security
[insert name]	[Borrower] [Guarantor]	[insert description]

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SCHEDULE 3
Requests

Part IA
Utilisation Request

Loans

From:         [Borrower] [Parent]*

To:             [Facility Agent]

Dated:

Dear Sirs

Iron Mountain Europe Limited – £200,000,000 Multicurrency Term and Revolving Credit Facilities Agreement dated 4 March 2004 (the “Facilities Agreement”)

1.[We wish a Loan to be made on the following terms:

(a)	Borrower:	[·]
(b)	Proposed Utilisation Date:	[·]
(c)	Facility to be utilised:	[Term Facility]/[Revolving Facility]**
(d)	Currency of Loan:	[·]
(e)	Amount:	[·]
(f)	Interest Period:	[·]

2.We confirm that each condition specified in Clause 4.2 (Further Conditions Precedent) is satisfied on the date of this Utilisation Request.

3.[The proceeds of this Loan should be credited to [account]].

4.This Utilisation Request is irrevocable.

5.Terms used in this Request which are not defined in this Request but are defined in the Facilities Agreement shall have the meaning given to those terms in the Facilities Agreement.

Yours faithfully

authorised signatory for

[the Parent on behalf of [insert name of relevant Borrower]]/ [insert name of Borrower]*

NOTES:

* Amend as appropriate.  The Request can be given by the Borrower or by the Parent.

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**Select the Facility to be utilised and delete references to the other Facilities.

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Part IBUtilisation Request

Letters of Credit

From:      [Borrower] [Parent](1)

To:          [Facility Agent]

Dated:

Dear Sirs

Iron Mountain Europe Limited – £200,000,000 Multicurrency Term and Revolving Credit Facilities Agreement dated 4 March 2004 (the “Facilities Agreement”)

1.We refer to the Facilities Agreement.  This is a Utilisation Request.  Terms defined in the Facilities Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request.

2.We wish to arrange for a Letter of Credit to be [issued]/[renewed] by the Issuing Bank specified below (which has agreed to do so) on the following terms:

(a)	Borrower:	[·]
(b)	Issuing Bank:	[·]
(c)	Proposed Utilisation Date:	[·]
(d)	Facility to be utilised:	Revolving Facility
(e)	Currency of Letter of Credit:	[·]
(f)	Amount:	[·]
(g)	Term:	[·]

3.We confirm that each condition specified in paragraph (c) of Clause 6.5 (Issue of Letters of Credit) is satisfied on the date of this Utilisation Request.

4.We attach a copy of the proposed Letter of Credit.

5.[The purpose of this proposed Letter of Credit is [•].](2)

6.This Utilisation Request is irrevocable.

(1)Not required for a renewal.

(2)Amend as appropriate.  The Utilisation Request can be given by the Borrower or by the Parent.

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authorised signatory for

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Part II

Selection Notice

Applicable to a Term Loan

From:      Iron Mountain Europe Limited

To:          [Facility Agent]

Dated:

Dear Sirs

Iron Mountain Europe Limited - £200,000,000 Multicurrency Term and Revolving Credit Facilities Agreement dated 4 March 2004 (the “Facilities Agreement”)

We refer to the following Term Loan[s] in [identify currency] with an Interest Period ending on [           ]*

[We request that the above Term Loan[s] be divided into [             ] Term Loans  with the following Base Currency Amounts and Interest Periods:]**

or

[We request that the next Interest Period for the above Term Loan[s] is [     ]].***

We request that the above Term Loan[s] [is]/[are] [denominated in the same currency for the next Interest Period]/[denominated in the following currencies: [                         ].  As this results in a change of currency we confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Selection Notice.  The proceeds of any change in currency should be credited to [account].] .

This Selection Notice is irrevocable.

Terms used in this Request which are not defined in this Request but are defined in the Facilities Agreement shall have the meaning given to those terms in the Facilities Agreement.

Yours faithfully

authorised signatory for

Iron Mountain Europe Limited

* Insert details of all Term Loans in the same currency which have an Interest Period ending on the same date.

** Use this option if division of Loans is requested.

*** Use this option if sub-division is not required.

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SCHEDULE 4
Mandatory Cost Formulae

1.The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces all or any of its functions) or (b) the requirements of the European Central Bank.

2.On the first day of each Interest Period (or as soon as possible thereafter) the Facility Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”) for each Lender, in accordance with the paragraphs set out below.  The Mandatory Cost will be calculated by the Facility Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum.

3.The Additional Cost Rate for any Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Lender to the Facility Agent.  This percentage will be certified by that Lender in its notice to the Facility Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from that Facility Office) of complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Facility Office.

4.The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom will be calculated by the Facility Agent as follows:

(a)in relation to a sterling Loan:

(b)in relation to a Loan in any currency other than sterling:

Where:

Ais the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash ratio deposit with the Bank of England to comply with cash ratio requirements.

Bis the percentage rate of interest (excluding the Margin and the Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate of interest specified in paragraph (a) of Clause 12.3 (Default Interest)) payable for the relevant Interest Period on the Loan.

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Cis the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England.

Dis the percentage rate per annum payable by the Bank of England to the Facility Agent on interest bearing Special Deposits.

Eis designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Facility Agent as being the average of the most recent rates of charge supplied by the Reference Banks to the Facility Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000.

5.For the purposes of this Schedule:

(a)“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998 or (as may be appropriate) by the Bank of England;

(b)“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in respect of the payment of fees for the acceptance of deposits;

(c)“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate); and

(d)“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules.

6.In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05).  A negative result obtained by subtracting D from B shall be taken as zero.  The resulting figures shall be rounded to four decimal places.

7.If requested by the Facility Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Facility Agent, the rate of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank as being the average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank.

8.Each Lender shall supply any information required by the Facility Agent for the purpose of calculating its Additional Cost Rate.  In particular, but without limitation, each Lender shall supply the following information on or prior to the date on which it becomes a Lender:

(a)the jurisdiction of its Facility Office; and

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(b)any other information that the Facility Agent may reasonably require for such purpose.

Each Lender shall promptly notify the Facility Agent of any change to the information provided by it pursuant to this paragraph.

9.The percentages of each Lender for the purpose of A and C above and the rates of charge of each Reference Bank for the purpose of E above shall be determined by the Facility Agent based upon the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Facility Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office.

10.The Facility Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects.

11.The Facility Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8 above.

12.Any determination by the Facility Agent pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the absence of manifest error, be conclusive and binding on all Parties.

13.The Facility Agent may from time to time, after consultation with the Parent and the Lenders, determine and notify to all Parties any amendments which are required to be made to this Schedule in order to comply with  any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all Parties.

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SCHEDULE 5
Form Of Transfer Certificate

To:             [·] as Facility Agent

From:[The Existing Lender] (the “Existing Lender”) and [The New Lender] (the “New Lender”)

Dated:

Iron Mountain Europe Limited — £200,000,000 Multicurrency Term and Revolving Credit Facilities Agreement dated 4 March 2004 (the “Facilities Agreement”)

1.We refer to Clause 27.5 (Procedure for Transfer):

(a)The Existing Lender and the New Lender agree to the Existing Lender and the New Lender transferring by novation all or part of the Existing Lender’s Commitment, rights and obligations referred to in the Schedule in accordance with Clause 27.5 (Procedure for Transfer).

(b)The proposed Transfer Date is [·].

(c)The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 36.2 (Addresses) are set out in the Schedule.

2.The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 27.4 (Limitation of Responsibility of Existing Lenders).

3.The New Lender hereby expressly consents to the declarations of the Security Trustee made on behalf and in the name of the New Lender as Future Pledgee (as defined in the German Share Pledge Agreement) in the German Share Pledge Agreement. The New Lender confirms that it is aware of the contents of the German Share Pledge Agreement.

4.This Transfer Certificate is governed by English law.

5.Terms which are used in this Transfer Certificate which are not defined in this Transfer Certificate but are defined in the Facilities Agreement shall have the meaning given to those terms in the Facilities Agreement.

149

THE SCHEDULE

Commitment/rights and obligations to be transferred

[insert relevant details]

[Facility Office address, fax number and attention details for notices and account details for payments,]

[Existing Lender]	[New Lender]
By:	By:

This Transfer Certificate is accepted by the Facility Agent and the Transfer Date is confirmed as [·].

[Facility Agent]

By:

150

SCHEDULE 6
Form Of Accession Letter

To:             [·] as Facility Agent

From:         [[Subsidiary] and Iron Mountain Europe Limited] [Affiliate of Lender]

Dated:

Dear Sirs

Iron Mountain Europe Limited – £200,000,000 Multicurrency Term and Revolving Credit Facilities Agreement dated 4 March 2004 (the “Facilities Agreement”)

1.[Subsidiary] [Affiliate of Lender] agrees to become [an Additional [Borrower]/[Guarantor]] [a Hedging Bank] and to be bound by the terms of the Facilities Agreement, the Subordination Agreement and the other Finance Documents as [an Additional [Borrower]/[Guarantor]] [a Hedge Bank] pursuant to Clause [28.2 (Additional Borrowers)]/[Clause 28.3 (Additional Guarantors)] [Clause 27.8 (Affiliates of Lenders as Hedge Banks)] of the Facility Agreement [and as an [Obligor] pursuant to Clause [·] of the Subordination Agreement. [Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company and registered number [·]].

2.[Subsidiary’s] administrative details are as follows:

Address:

Fax No.:

Attention:

3.[The Parent confirms that no Default is continuing or would occur as a result of a [Subsidiary] becoming an additional Borrower.]*

4.This letter is governed by English law.

5.Terms which are used in this Accession Letter which are not defined in this Accession Letter but are defined in the Facilities Agreement shall have the meaning given to those terms in the Facilities Agreement.

[This Guarantor Accession Letter is entered into by deed.]**

Iron Mountain Europe Limited [Subsidiary]

151

NOTES:

*Insert if Accession Letter is for an Additional Borrower.

**If the Facilities are fully drawn there may be an issue in relation to past consideration for a proposed Additional Guarantor.  This can be overcome by acceding by way of deed.

152

SCHEDULE 7
Form Of Compliance Certificate

To:             [·] as Facility Agent

From:         Iron Mountain Europe Limited

Dated:

Dear Sirs

Iron Mountain Europe Limited - £200,000,000 Multicurrency Term and Revolving Credit Facilities Agreement dated [·] (the “Facilities Agreement”)

1.We refer to the Facilities Agreement.  This is a Compliance Certificate.

2.We confirm that:

(a)in respect of the Relevant Period ending on [·] EBITDA for such Relevant Period was [·] and Consolidated Net Finance Charges for such Relevant Period were [·].  Therefore EBITDA for such Relevant Period was [·] times Consolidated Net Finance Charges for such Relevant Period and the covenant contained in paragraph (b) of Clause 24.2 (Financial condition) [has/has not] been complied with;

(b)on the last day of the Relevant Period ending on [·] Consolidated Total Net Debt was [·] and EBITDA for such Relevant Period was [·].  Therefore Consolidated Total Net Debt at that time was [greater than or equal to [·] times EBITDA for such Relevant Period]/[less than [·] times EBITDA for such Relevant Period but greater than or equal to [·] times EBITDA for such Relevant Period]/[less than [·] times EBITDA for such Relevant Period].

3.[We confirm that no Default is continuing.]*

4.We confirm that the following companies constitute Material Companies for the purposes of the Facility Agreement: [·].

We confirm that:

(a)the aggregate of the unconsolidated earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA) of the Guarantors and the aggregate gross assets and aggregate turnover of the Guarantors (in each case calculated on an unconsolidated basis and excluding all intra-group items) represents not less than [·] per cent of EBITDA, and consolidated gross assets and consolidated turnover of the Group;

(b)the aggregate of the unconsolidated earnings before interest, tax, depreciation and amortisation (calculated on the same basis as EBITDA) of the Guarantors and the Pledged Companies and the aggregate gross assets and aggregate turnover of the Guarantors and the Pledged Companies (in each case

153

calculated on an unconsolidated basis and excluding all intra-group items) represents not less than [·] per cent of EBITDA, and consolidated gross assets and consolidated turnover of the Group.

Signed
	Director	Finance Director
	of	of
	Iron Mountain Europe Limited	Iron Mountain Europe Limited

[insert applicable certification language]

for and on behalf of

[name of auditors of the Parent]

NOTES:

*If this statement cannot be made, the certificate should identify any Default that is continuing and the steps, if any, being taken to remedy it.

154

SCHEDULE 8
Timetables

Part I

	Loans in euro	Loans in sterling	Loans in other currencies
Facility Agent notifies the Parent if a currency is approved as an Optional Currency in accordance with Clause 4.3 (Conditions relating to Optional Currencies) and Clause 8.1 (Selection of currency)	—	—	U-4
Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request) or a Selection Notice (Clause 13.1 (Selection of Interest Periods and Terms))	U-3 9.30am	U-1 9.30am	U-3 9.30am
Facility Agent determines (in relation to a Utilisation) the Base Currency Amount of the Loan, if required under Clause 5.4 (Lenders’ participation) and Clause 8.1 (Selection of currency)	U-3 noon	U-1 noon	U-3 noon
Facility Agent notifies the Lenders of the Loan in accordance with Clause 5.4 (Lenders’ participation)	U-3 3.00pm	U-1 3.00pm	U-3 3.00pm
Facility Agent receives a notification from a Lender under Clause 8.2 (Unavailability of a currency)	U-1 5.00pm	U-1 5.00pm	U-1 5.00pm
Facility Agent gives notice in accordance with Clause 8.2 (Unavailability of a currency)	U- 2 9.30am	U 9.30am	U-2 9.30am
Facility Agent determines amount of a Term Loan in the Optional Currency in accordance with Clause 8.4 (Same Optional Currency during successive Interest Periods)	U- 2 9.30am	U 9.30am	U-2 9.30am

155

LIBOR is fixed Quotation Day as of 11:00 a.m. Quotation Day as of 11:00 a.m. Quotation Day as of 11:00 a.m.

“U”            =          date of utilisation

“U - X”      =          X Business Days prior to date of utilisation

156

Part II

Letters of Credit

	Letters of Credit
Delivery of a duly completed Utilisation Request (Clause 5.1 (Delivery of a Utilisation Request for Letters of Credit)	U3 9.30am
Agent determines (in relation to a Utilisation) the Base Currency Amount of the Letter of Credit if required under paragraph (e) of Clause 6.5 (Issue of Letters of Credit) and notifies the Issuing Bank and Lenders of the Letter of Credit in accordance with paragraph (e) of Clause 6.5 (Issue of Letters of Credit).	U-3 3.00pm
Delivery of duly completed Renewal Request

“U”         =              date of utilisation

“U-X”     =              Business Days prior to date of utilisation

157

SCHEDULE 9
Material Companies

Iron Mountain Europe Limited

Iron Mountain (UK) Limited

Iron Mountain Nederland B.V.

158

SCHEDULE 10
LMA Confidentiality Undertaking

[Letterhead of Seller/Seller’s agent/broker]

To:

[insert name of Potential Purchaser/Purchaser’s agent/broker]

Re:          The Agreement

Borrower:

Date:

Amount:

Agent:

Dear Sirs

We understand that you are considering [acquiring](a)/[arranging the acquisition of](b) an interest in the Agreement (the “Acquisition”).  In consideration of us agreeing to make available to you certain information, by your signature of a copy of this letter you agree as follows:

1.Confidentiality Undertaking

You undertake (a) to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by paragraph 2 below and to ensure that the Confidential Information is protected with security measures and a degree of care that would apply to your own confidential information, (b) to use the Confidential Information only for the Permitted Purpose, (c) to use all reasonable endeavours to ensure that any person to whom you pass any Confidential Information (unless disclosed under paragraph 2[(c)/(d)](c) below) acknowledges and complies with the provisions of this letter as if that person were also a party to it, and (d) not to make enquiries of any member of the Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the Acquisition.

(a)delete if addressee is acting as broker or agent.

(b)delete if addressee is acting as principal.

(c)  delete as applicable.

159

2.             Permitted Disclosure

We agree that you may disclose Confidential Information:

(a)to members of the Purchaser Group and their officers, directors, employees and professional advisers to the extent necessary for the Permitted Purpose and to any auditors of members of the Purchaser Group;2

(b)[subject to the requirements of the Agreement, in accordance with the Permitted Purpose so long as any prospective purchaser has delivered a letter to you in equivalent form to this letter;]

[(b/c)]3subject to the requirements of the Agreement, to any person to (or through) whom you  assign or transfer (or may potentially assign or transfer) all or any of the rights, benefits and obligations which you may acquire under the Agreement or with (or through) whom you enter into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by reference to, the Agreement or the Borrower or any member of the Group in each case so long as that person has delivered a letter to you in equivalent form to this letter; and

[(c/d)]3(i) where requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body, (ii) where required by the rules of any stock exchange on which the shares or other securities of any member of the Purchaser Group are listed or (iii) where required by the laws or regulations of any country with jurisdiction over the affairs of any member of the Purchaser Group.

3.Notification of Required or Unauthorised Disclosure

You agree (to the extent permitted by law) to inform us of the full circumstances of any disclosure under paragraph 2[(c)/(d)]3 or upon becoming aware that Confidential Information has been disclosed in breach of this letter.

4.Return of Copies

If we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently erase all copies of Confidential Information made by you and use all reasonable endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases such Confidential Information and any copies made by them, in each case save to the extent that you or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in accordance with internal policy, or where the Confidential Information has been disclosed under paragraph 2[(c)/(d)]3 above.

160

5.Continuing Obligations

The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us.  Notwithstanding the previous sentence, the obligations in this letter shall cease (a) if you become a party to or otherwise acquire (by assignment or sub-participation) an interest, direct or indirect, in the Agreement or (b) twelve months after you have returned all Confidential Information supplied to you by us and destroyed or permanently erased all copies of Confidential Information made by you (other than any such Confidential Information or copies which have been disclosed under paragraph 2 above (other than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not required to be returned or destroyed).

6.No Representation; Consequences of Breach, etc

You acknowledge and agree that:

(a)neither we, [nor our principal](d) nor any member of the Group nor any of our or their respective officers, employees or advisers (each a “Relevant Person”) (i) make any representation or warranty, express or implied, as to, or assume any responsibility for, the accuracy, reliability or completeness of any of the Confidential Information or any other information supplied by us or the assumptions on which it is based or (ii) shall be under any obligation to update or correct any inaccuracy in the Confidential Information or any other information supplied by us or be otherwise liable to you or any other person in respect to the Confidential Information or any such information; and

(b)we [or our principal](4) or members of the Group may be irreparably harmed by the breach of the terms hereof and damages may not be an adequate remedy; each Relevant Person may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you.

7.No Waiver; Amendments, etc

This letter sets out the full extent of your obligations of confidentiality owed to us in relation to the information the subject of this letter.  No failure or delay in exercising any right, power or privilege hereunder will operate as a waiver thereof nor will any single or partial exercise of any right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privileges hereunder.  The terms of this letter and your obligations hereunder may only be amended or modified by written agreement between us.

8.Inside Information

You acknowledge that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be regulated or

(d) delete if letter is sent out by the Seller rather than the Seller's broker or agent.

161

prohibited by applicable legislation relating to insider dealing and you undertake not to use any Confidential Information for any unlawful purpose.

9.Nature of Undertakings

The undertakings given by you under this letter are given to us and (without implying any fiduciary obligations on our part) are also given for the benefit of [our principal,](4) the Borrower and each other member of the Group.

10.Third Party Rights

(a)Subject to this paragraph 10 and to paragraphs 6 and 9, a person who is not a party to this letter has no right under the Contracts (Rights of Third Parties) Act 1999 (the “Third Parties Act”) to enforce or to enjoy the benefit of any term of this letter.

(b)The Relevant Persons may enjoy the benefit of the terms of paragraphs 6 and 9 subject to and in accordance with this paragraph 10 and the provisions of the Third Parties Act.

(c)The parties to this letter do not require the consent of the Relevant Persons to rescind or vary this letter at any time.

11.Governing Law and Jurisdiction

(a)This letter (including the agreement constituted by your acknowledgement of its terms) is governed by English law.

(b)The parties submit to the non-exclusive jurisdiction of the English courts.

12.Definitions

In this letter (including the acknowledgement set out below) terms defined in the Agreement shall, unless the context otherwise requires, have the same meaning and:

“Confidential Information” means any information relating to the Borrower, the Group, the Agreement and/or the Acquisition provided to you by us or any of our affiliates or advisers, in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that (a) is or becomes public knowledge other than as a direct or indirect result of any breach of this letter or (b) is known by you before the date the information is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by you thereafter, other than from a source which is connected with the Group and which, in either case, as far as you are aware, has not been obtained in violation of, and is not otherwise subject to, any obligation of confidentiality;

“Group” means the Borrower and each of its holding companies and subsidiaries and each subsidiary of each of its holding companies (as each such term is defined in the Companies Act 1985);

162

“Permitted Purpose” means [subject to the terms of this letter, passing on information to a prospective purchaser for the purpose of](2) considering and evaluating whether to enter into the Acquisition; and

“Purchaser Group” means you, each of your holding companies and subsidiaries and each subsidiary of each of your holding companies (as each such term is defined in the Companies Act 1985).

Please acknowledge your agreement to the above by signing and returning the enclosed copy.

Yours faithfully

For and on behalf of

[Seller/Seller’s agent/broker]

To:       [Seller]

[Seller’s agent/broker]

The Borrower and each other member of the Group

We acknowledge and agree to the above:

For and on behalf of

[Potential Purchaser/Purchaser’s agent/broker]

163

SCHEDULE 11

Part I
Existing Retained Facilities

Company Name	Existing Facility	Particulars of Indebtedness		Total commitment as at the date of this Agreement
Societe Civile Immobiliere du Chemin Cornillon	Credit Industriel et Commercial - construction loan secured on Paris building	€	83,863	€	83,863
Societe Civile Immobiliere du Chemin Cornillon	Banque du Credit Mutuel - construction loan secured on Paris building	€	125,696	€	125,696
Societe Civile Immobiliere du Chemin Cornillon	Banque Nationale de Paris - construction loan secured on Paris building	€	207,154	€	207,154
Iron Mountain España S.A.	Banco Santander - 10 year mortgage loan secured on Daganzo building	€	1,361,064	€	1,500,000
Iron Mountain España S.A.	Banco Sabadell - overdraft facility	In credit		€	300,000
Iron Mountain España S.A.	La Caixa - overdraft facility	In credit		€	300,000
Iron Mountain Iberica S.L.	Banco Pastor - loan	€	1,725	€	1,725
Iron Mountain Ireland Limited	Bank of Scotland (formerly ICC Bank plc)- Racking loan	€	75,848	€	75,848
Iron Mountain Ireland Limited	ACC Bank Asset Finance - Finance Lease (Lansing fork lift)	€	8,308	€	8,308
Iron Mountain Nederland B.V.	ABN Onroerend Goed Lease B.V. - Finance Lease	€	247,877.50	€	247,877.50

164

Company Name	Existing Facility	Particulars of Indebtedness		Total commitment as at the date of this Agreement
Iron Mountain Nederland B.V.	ABN Amro	€	104,056	€	104,056
Iron Mountain Nederland B.V.	Fortis Bank	€	75,203	€	75,203

165

Part II

Existing Retained Security

Company Name	Date of Creation	Type of Security	Chargee	Maximum Amount Secured		Short Particulars
Societe Civile Immobiliere du Chemin Cornillon	08/02/96	Guarantee/ Charge	Banque due Credit Mutuel	€	125,696	Building
	08/02/96	Guarantee/ Charge	BNP Paribas	€	207,154	Building
	08/02/96	Guarantee/ Charge	CIS Bank	€	83,863	Building
Iron Mountain España S.A.	26/12/02	Mortgage	Banco Santander	€	1,500,000	Building
Iron Mountain Ireland Limited	23/08/1996 26/06/1998 23/08/1996	Chattel Mortgage Chattel Mortgage Debenture	Bank of Scotland (formerly ICC Bank plc)	€	75,848	Racking
	15/03/2001	Guarantee/ Charge	ACC Bank Asset Finance	€	8,308	Lansing FLT

166

Company Name	Date of Creation	Type of Security	Chargee	Maximum Amount Secured		Short Particulars
Iron Mountain Nederland B.V.	1/11/1988 2/5/1989	Deed of Mortgage Second Deed of Mortgage	ABN Onroerend Goed Lease B.V.	€	1,043,694.49	Land lease Schepenbergweg 1 in Amsterdam, recorded in the Land Register as municipality of Weesperkarspel, section M, number 254
Iron Mountain Nederland B.V.	25/11/1996 29/12/1997 3/10/2000	Pledges of bank accounts	ABN Amro	€	104,056	Bank Accounts: (i) 51.41.09.289 (ii) 51.64.24.556
Iron Mountain Nederland B.V.		Pledge of bank accounts	Fortis Bank	€	75,203	Bank Accounts: (i) 24.46.24.070 (ii) 63.18.86.184 (iii) 63.18.86.230

167

SCHEDULE 12
FORM OF LETTER OF CREDIT

To:          [Beneficiary](the “Beneficiary”)

Date                           

Irrevocable Standby Letter of Credit no. [•]

At the request of [•], [Issuing Bank] (the “Issuing Bank”) issues this irrevocable standby Letter of Credit (“Letter of Credit”) in your favour on the following terms and conditions:

1.Definitions

In this Letter of Credit:

“Business Day” means a day (other than a Saturday or a Sunday) on which banks are open for general business in [London].*

“Demand” means a demand for a payment under this Letter of Credit in the form of the schedule to this Letter of Credit.

“Expiry Date” means [·].

“Total L/C Amount” means [·].

2.Issuing Bank’s agreement

(a)The Beneficiary may request a drawing or drawings under this Letter of Credit by giving to the Issuing Bank a duly completed Demand.  A Demand must be received by the Issuing Bank by [•] p.m. ([London] time) on the Expiry Date.

(b)Subject to the terms of this Letter of Credit, the Issuing Bank unconditionally and irrevocably undertakes to the Beneficiary that, within [ten] Business Days of receipt by it of a Demand, it must pay to the Beneficiary the amount demanded in that Demand.

(c)The Issuing Bank will not be obliged to make a payment under this Letter of Credit if as a result the aggregate of all payments made by it under this Letter of Credit would exceed the Total L/C Amount.

3.Expiry

(a)The Issuing Bank will be released from its obligations under this Letter of Credit on the date (if any) notified by the Beneficiary to the Issuing Bank as the date upon which the obligations of the Issuing Bank under this Letter of Credit are released.

(b)Unless previously released under paragraph (a) above, on [•] p.m.([London] time) on the Expiry Date the obligations of the Issuing Bank under this Letter

168

of Credit will cease with no further liability on the part of the Issuing Bank except for any Demand validly presented under the Letter of Credit that remains unpaid.

(c)When the Issuing Bank is no longer under any further obligations under this Letter of Credit, the Beneficiary must return the original of this Letter of Credit to the Issuing Bank.

4.Payments

All payments under this Letter of Credit shall be made in [·] and for value on the due date to the account of the Beneficiary specified in the Demand.

5.Delivery of Demand

Each Demand shall be in writing, and, unless otherwise stated, may be made by letter, fax or telex and must be received in legible form by the Issuing Bank at its address and by the particular department or office (if any) as follows:

[

                         ]

6.Assignment

The Beneficiary’s rights under this Letter of Credit may not be assigned or transferred.

7.ISP

Except to the extent it is inconsistent with the express terms of this Letter of Credit, this Letter of Credit is subject to the International Standby Practices (ISP 98), International Chamber of Commerce Publication No. 590.

8.Governing Law

This Letter of Credit is governed by English law.

9.Jurisdiction

The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Letter of Credit.

169

Yours faithfully

[Issuing Bank]

By:

NOTES:

*This may need to be amended depending on the currency of payment under the Letter of Credit.

170

SIGNATURES

THE PARENT

IRON MOUNTAIN EUROPE LIMITED

By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507
Attention:	Finance Director
THE ORIGINAL BORROWERS
IRON MOUNTAIN EUROPE LIMITED
	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507
IRON MOUNTAIN (UK) LIMITED
By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507
DOCUMENT AND INFORMATION MANAGEMENT SERVICES LIMITED
By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507

171

THE ORIGINAL GUARANTORS
IRON MOUNTAIN EUROPE LIMITED
By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507
IRON MOUNTAIN (UK) LIMITED
By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507
DOCUMENT AND INFORMATION MANAGEMENT SERVICES LIMITED
By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507
THE DOCUMENT STORAGE COMPANY LIMITED
By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507

172

IRON MOUNTAIN HOLDINGS (EUROPE) LIMITED
By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507
MILLER DATA MANAGEMENT LIMITED
By:	RICHARD HODGSON
Address:	Third Floor
	Cottons Centre
	Tooley Street
	London SE1 2TT
Fax:	020 7 939 1507
IRON MOUNTAIN IRELAND (HOLDINGS) LIMITED
By:	CLIVE DRYSDALE
Address:	Unit 17
	Crag Terrace
	Clondalkin Industrial Estate
	Dublin 22
Fax:	+ 353 (0) 1 457 1023
IRON MOUNTAIN IRELAND LIMITED
By:	CLIVE DRYSDALE
Address:	Unit 17
	Crag Terrace
	Clondalkin Industrial Estate
	Dublin 22
Fax:	+ 353 (0) 1 457 1023

173

IRON MOUNTAIN NEDERLAND HOLDINGS B.V.
By:	RICHARD HODGSON
Address:	Cairostraat 1
	3047 BB Rotterdam
	Nederland
Fax:	+ 31 (0) 10462 4120
IRON MOUNTAIN NEDERLAND B.V.
By:	RICHARD HODGSON
Address:	Cairostraat 1
	3047 BB Rotterdam
	Nederland
Fax:	+ 31 (0) 10462 4120
THE ARRANGERS
BARCLAYS CAPITAL (the investment banking division of Barclays Bank PLC)
By:	JOHN LOOMES
Address:	5 The North Colonnade
	Canary Wharf
	London E14 4BB
Fax:	020 7 773 1572
Attention:	John Loomes
THE GOVERNOR & COMPANY OF THE BANK OF SCOTLAND
By:	NORMAN SCOTT
Address:	3rd Floor
	New Uberior House
	11 Earl Grey Street
	Edinburgh
Fax:	0131 659 0674
Attention:	Fiona Ross

174

THE FACILITY AGENT
THE GOVERNOR & COMPANY OF THE BANK OF SCOTLAND
By:	NORMAN SCOTT
Address:	Corporate Banking
	123 St Vincent Street
	Glasgow
	G2 5EA
Fax:	0141 207 1205
Attention:	Alison Campbell
THE SECURITY TRUSTEE
THE GOVERNOR & COMPANY OF THE BANK OF SCOTLAND
By:	NORMAN SCOTT
Address:	Corporate Banking
	123 St Vincent Street
	Glasgow
	G2 5EA
Fax:	0141 207 1205
Attention:	Alison Campbell
THE LENDERS
ALLIED IRISH BANKS, P.L.C.
By:	ANDREW ARMAH KWANTRENG
Address:	Corporate Operations
	AIB Bankcentre
	Ballsbridge
	Dublin 4
	Ireland
Fax:	020 7 726 8735
Attention:	Antoinette Dunleavy

175

BARCLAYS BANK PLC
By:	JOHN LOOMES
Address:	Barclays Capital Global Services Unit
	7th Floor
	10 The South Colonnade
	Canary Wharf
	London E14 4BB
Fax:	020 7 773 6807
Attention:	Graham Smart
BEAR STEARNS CORPORATE LENDING INC.
By:	KEITH BARNISH
Address:	One Canada Square
	Canary Wharf
	London E14 5AD
Fax:	020 7 516 5966
Attention:	Neils Ribeiro
HSBC BANK PLC
By:	SHARON HILL
Address:	Specialised Financing
	8 Stephenson Place
	New Street
	Birmingham B2 4NH
Fax:	0121 252 2652
Attention:	Sharon Hill

176

LLOYDS TSB BANK PLC
By:	SIMON STIRLING
Address:	Corporate Banking
	PO Box 908
	125 Colmore Row
	Birmingham B3 2DS
Fax:	0121 212 0861
Attention:
THE GOVERNOR & COMPANY OF THE BANK OF SCOTLAND
By:	NORMAN SCOTT
Address:	Corporate Banking
	123 St Vincent Street
	Glasgow G2 5EA
Fax:	0141 207 1205
Attention:	Alison Campbell
THE GOVERNOR AND COMPANY OF THE BANK OF IRELAND
By:	BRENDAN GILMORE WILL HAYWOOD
Address:	Corporate Relationship Banking
	Eastcheap Court
	11 Philpot Lane
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177

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, C. Richard Reese, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Iron Mountain Incorporated;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2006
	/s/ C. RICHARD REESE
	C. Richard Reese
	Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, John F. Kenny, Jr., certify that:

1.I have reviewed this quarterly report on Form 10-Q of Iron Mountain Incorporated;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and

(d)   Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)   Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 9, 2006
	/s/ JOHN F. KENNY, JR.
	John F. Kenny, Jr.
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2006 (the “Report”) by Iron Mountain Incorporated (the “Company”), the undersigned, as the Chief Executive Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.     the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.     the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 9, 2006
	/s/ C. RICHARD REESE
	C. Richard Reese
	Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO
18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the filing of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2006 (the “Report”) by Iron Mountain Incorporated (the “Company”), the undersigned, as the Chief Financial Officer of the Company, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

1.     the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934; and

2.     the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 9, 2006
	/s/ JOHN F. KENNY, JR.
	John F. Kenny, Jr.
	Chief Financial Officer