YELLOW PAGES INCOME FUND ANNUAL INFORMATION FORM FOR THE YEAR ENDED DECEMBER 31, 2009 March 24, 2010 TABLE OF CONTENTS EXPLANATORY NOTES............................................................................................................................................1 CORPORATE STRUCTURE .......................................................................................................................................1 Name and Incorporation.......................................................................................................................................1 Intercorporate Relationships ................................................................................................................................2 GENERAL DEVELOPMENT OF THE BUSINESS....................................................................................................2 History of the Company.......................................................................................................................................2 BUSINESS OF THE COMPANY.................................................................................................................................4 Directories ...........................................................................................................................................................4 Overview...............................................................................................................................................................4 General..................................................................................................................................................................4 Products and Customers........................................................................................................................................5 Directories Competition........................................................................................................................................5 Production and Components.................................................................................................................................5 Long-Term Relationships with Telecommunication Companies..........................................................................6 Vertical Media......................................................................................................................................................6 Overview...............................................................................................................................................................6 General..................................................................................................................................................................6 Production and Components.................................................................................................................................7 Vertical Media Competition .................................................................................................................................7 Logos and Trade-marks........................................................................................................................................7 Regulatory Matters...............................................................................................................................................8 Debt Financing.....................................................................................................................................................8 Credit Facilities and Commercial Paper Program.................................................................................................8 MTN Program.......................................................................................................................................................9 Exchangeable Unsecured Subordinated Debentures...........................................................................................11 Derivative Financial Instruments........................................................................................................................12 Equity Financing................................................................................................................................................12 Units....................................................................................................................................................................12 Cumulative Redeemable Preferred Shares..........................................................................................................12 Rate Reset Preferred Shares................................................................................................................................13 Cumulative Exchangeable Preferred Shares .......................................................................................................14 Stability Ratings.................................................................................................................................................15 Facilities.............................................................................................................................................................15 Environment and Corporate Social Responsibility ............................................................................................15 Environment .......................................................................................................................................................15 Community Relations .........................................................................................................................................16 Corporate Governance ........................................................................................................................................16 Legal Proceedings..............................................................................................................................................16 DESCRIPTION OF THE FUND.................................................................................................................................16 General...............................................................................................................................................................16 Activities of the Fund.........................................................................................................................................17 Units...................................................................................................................................................................17 Issuance of Units................................................................................................................................................18 Trustees..............................................................................................................................................................18 Cash Distributions..............................................................................................................................................19 Redemption at the Option of Unitholders ..........................................................................................................19 Repurchase of Units...........................................................................................................................................21 Meetings of Unitholders.....................................................................................................................................21 Limitation on Non-Resident Ownership ............................................................................................................22 Term of the Fund................................................................................................................................................22 Exercise of Certain Voting Rights Attached to Securities of the Trust..............................................................23 Book-Entry Only System ...................................................................................................................................23 - i - Conflicts of Interest Restrictions and Provisions ...............................................................................................24 EMPLOYEES..............................................................................................................................................................24 RISK FACTORS .........................................................................................................................................................25 Risks Related to the Company and the Industry ................................................................................................25 Competition ........................................................................................................................................................25 Decline in Overall Usage of Directories and Vertical Media .............................................................................26 Availability of Capital.........................................................................................................................................26 Interest Rate Fluctuations 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